Logo of Phnom Penh Post newspaper Phnom Penh Post - Borey sales doing well despite boom in developments



Borey sales doing well despite boom in developments

Content image - Phnom Penh Post
Borey Phnom Penh Thmey in 2015. Hong Menea

Borey sales doing well despite boom in developments

No sign of over-supply as Cambodian wealth increases and Chinese interest remains high

Borey sales are doing well despite uncertainty ahead with the forthcoming national elections and the market is expected to keep growing even as more projects come on line, industry experts say.

“The growth in GDP per capita and the increase of the population are the factors that are contributing to the positivity of the borey market,” said Van Chantthorn, managing director of TOWNCITY Real Estate Company. “If the completed projects were not selling, you would not be seeing more projects coming onto the market. The big borey developers are actually expanding.”

Boreys, a Khmer description of a gated community, have proved very popular among Cambodia’s high-income earners since the first projects started in 2000, and developers are now targeting even the middle class.

A study by Vtrust Appraisal estimated that the Kingdom had around 500 borey projects at the end of 2017, containing about 125,000 homes.

“We haven’t studied 2018 yet, but all signs are that transactions are still doing well,” said Hoem Seiha, director of research at Vtrust.

According to property experts, houses priced in the $30,000 to $60,000 were doing best in the market.

Dr Kim Heang, president of Cambodian Valuers and Estate Agents Association, warned, however, that developers needed to maintain standards and quality to ensure projects sold out fully.

Content image - Phnom Penh Post
Borey Phnom Penh Thmery Taken in 2015. Hong Menea

“The top projects, the famous ones, are succeeding as they have already earned trust from their customers,” he said. “Those who do not value quality and are not attentive will fail. “This is normal in a free market mechanism. If you don’t pay attention, if you are weak, you will fail.”

Oknha Ly Hour, president of Housing Development Association of Cambodia and the owner of Borey Vimean in Phnom Penh, said sales were going well and there was no sign of over-supply.

“Chinese investors coming in have contributed to the growth of this sector throughout the whole country,” he said.

He saw the biggest risk to borey developers was finding the manpower necessary to complete projects. “Along with the speed of this rapid development, we also have some risk as we now lack technical experts and construction workers.”

MOST VIEWED

  • Omicron patients can stay home: PM

    The Ministry of Health has issued a directive on the treatment of people who have tested positive for the highly transmissible Omicron coronavirus variant, following a suggestion from Prime Minister Hun Sen on the night of January 21. The directive permits home quarantine for those who

  • The effects of the USD interest rate hike on Cambodian economy

    Experts weigh in on the effect of a potential interest rate expansion by the US Federal Reserve on a highly dollarised Cambodia Anticipation of the US Federal Reserve’s interest rate hike in March is putting developing economies on edge, a recent blog post by

  • Cambodia’s first ever anime festival kicks off Jan 22 at capital’s F3 centre

    Phnom Penh's first ever Anime Festival will bring together fans, artists, shops and other local businesses with ties to the Japanese animation style for cosplay competitions, online games, pop-up shops and more on January 22, with Friends Futures Factory (F3) hosting. F3 is a project that

  • Demining rat ‘hero’ Magawa dead at 8

    A landmine-hunting rat that was awarded a gold medal for heroism for clearing ordnance from the Cambodian countryside has died, his charity said on January 11. Magawa, a giant African pouched rat originally from Tanzania, helped clear mines from about 225,000sqm of land – the equivalent of 42

  • Hun Sen gets 4th Covid shot, urges compatriots to follow

    Prime Minister Hun Sen and his wife Bun Rany on January 14 received their fourth dose of Covid-19 vaccine and called on compatriots to follow suit as the Omicron coronavirus variant continues to spread in the community. This marks the launch of Cambodia's fourth-dose vaccination campaign,

  • Fourth dose Covid booster drive jabs 43K in two days

    In the first two days of the fourth-dose Covid-19 vaccination campaign, more than 43,000 people volunteered to get the jabs, while over 4.6 million people have received a third shot. Health ministry spokeswoman Or Vandine said that fourth-dose vaccinations, which began on January 14 exclusively with the Pfizer