Logo of Phnom Penh Post newspaper Phnom Penh Post - Capital’s condo rates dip slightly in Q3, with no new projects

Capital’s condo rates dip slightly in Q3, with no new projects

Content image - Phnom Penh Post
An aerial view of condominiums and high-rises in the capital's Chroy Changvar district in September. Hong Menea

Capital’s condo rates dip slightly in Q3, with no new projects

Global economic growth uncertainty has sapped considerable momentum from the Phnom Penh condominium market, which is well-known for its heavy dependency on foreign customers, with no developments in the capital completed or ready for move-ins in the third quarter (Q3) ended September 30.

In its “Phnom Penh Market Insights Q3” research report released last week, real estate firm CBRE Cambodia underlined that global headwinds continue to hamper the capital’s condo market, in terms of construction processes, transactions and rentals, leaving the condo supply at 36,000 units as of September 30, unchanged from three months earlier.

The company, the local affiliate of US commercial real estate services and investment firm CBRE Group Inc, categorises condo projects as “high-range”, “mid-range” and “affordable”.

CBRE Cambodia noted that the average per-sqm prices of condo units in July-September were $2,639 for “high-end”, $2,078 for “mid-range” and $1,408 for “affordable”, edging down by 1.2 per cent, 0.8 per cent and 0.2 per cent quarter-on-quarter, respectively.

On the third-quarter rental market, average monthly per-sqm rates were $11 for “high-end”, $9.50 for “mid-range” and $7.80 for “affordable”, dipping by 0.3 per cent, 0.9 per cent and 2.3 per cent quarter-on-quarter, respectively.

CBRE Cambodia associate director of research and consulting services Kim Kinkesa told The Post on October 12 that although Phnom Penh condo sales rates and rents in the third quarter reversed the slight recovery witnessed over the previous three-month period, the changes are small and do not substantially jeopardise the overall stabilisation in prices that has been seen since the beginning of 2022 and is expected to continue until the end of the year.

The anticipated return of foreigners to the Kingdom over the next year is also expected to trigger significant demand and occupancy growth.

To this end, Kinkesa commented: “In 2023, [we] expect transactions and rentals to improve against 2022, with just a few new projects set to be put on the market, while prices remain stable.”

CBRE Cambodia last month predicted that, given significant improvements in the economic and political environments in the Kingdom and abroad, the capital’s condo supply could top 45,000 units by end-2022 and 65,000 units by end-2023.

Global Real Estate Association president Sam Soknoeun remarked that the condo market continues to struggle with low demand and persistent price drops, albeit slight, even nearly a year on since the Kingdom moved to allow the full-scale resumption of socio-economic activity.

On the flip side, the discounted prices offer interested Cambodians the opportunity to invest in and potentially live in condos, he said. “Since the advent of Covid-19, which led to a drop in the number of foreigners in Cambodia, I’ve noticed that some condo developments have lowered their prices and opted to market to local customers.”

Soknoeun cautioned that the condo market could continue to face pressure in the period from October-March next year.

The Ministry of Land Management, Urban Planning and Construction reported that it approved 2,811 construction projects in January-August 2022 with total registered investment of $1.662 billion – down by 90 developments and 56.7 per cent in terms of value over the same time last year.

Of these, 2,521 or 89.7 per cent were residential projects, down from 2,530 in the same time last year.


  • Wing Bank opens new branch in front of Orkide The Royal along Street 2004

    Wing Bank celebrates first anniversary as commercial bank with launch of brand-new branch. One year since officially launching with a commercial banking licence, Wing Bank on March 14 launched a new branch in front of Orkide The Royal along Street 2004. The launch was presided over by

  • Girl from Stung Meanchey dump now college grad living in Australia

    After finishing her foundational studies at Trinity College and earning a Bachelor’s degree from the University of Melbourne in 2022, Ron Sophy, a girl who once lived at the Stung Meanchey garbage dump and scavenged for things to sell, is now working at a private

  • Ministry using ChatGPT AI to ‘ease workload’; Khmer version planned

    The Digital Government Committee is planning to make a Khmer language version of popular artificial intelligence (AI) technology ChatGPT available to the public in the near future, following extensive testing. On March 9, the Ministry of Post and Telecommunications revealed that it has been using the

  • Wat Phnom hornbills attract tourists, locals

    Thanks to the arrival of a friendly flock of great hornbills, Hour Rithy, a former aviculturist – or raiser of birds – in Kratie province turned Phnom Penh tuk tuk driver, has seen a partial return to his former profession. He has become something of a guide

  • Ministry orders all schools, public and private, to close for SEA Games

    From April 20 to May 18, all public and private educational institutions will be closed to maintain order and support Cambodia's hosting of the 32nd SEA Games and 12th ASEAN Para Games, said a directive from the Ministry of Education, Youth and Sport. Cambodia will host the

  • Almost 9K tourists see equinox sunrise at Angkor Wat

    Nearly 9,000 visitors – including 2,226 international tourists – gathered at Angkor Wat on March 21 to view the spring equinox sunrise, according to a senior official of the Siem Reap provinical tourism department. Ngov Seng Kak, director of the department, said a total of 8,726 people visited Angkor Wat to