Logo of Phnom Penh Post newspaper Phnom Penh Post - Capital’s condo supply hits 48.6K units by March

Capital’s condo supply hits 48.6K units by March

Content image - Phnom Penh Post
Phnom Penh’s condominium supply stood at about 48,600 units as of March 31,according to a report by CBRE Cambodia. Heng Chivoan

Capital’s condo supply hits 48.6K units by March

Five condominium projects – two categorised as “mid-range” and three as “affordable” – were completed and ready for move-ins in the first quarter of this year, adding “more than 3,900” units to Phnom Penh’s supply, raising the total to about 48,600 units as of March 31, according to real estate firm CBRE Cambodia.

In a recent article entitled “Is there a Huge Demand for Condominiums in Cambodia?”, CBRE Cambodia had suggested that the capital’s condo supply closed 2022 at around 45,000 units, and projected that figure to rise to 65,000 by end-2023.

Additionally, two developments comprising over 1,300 units were announced for sale over the three-month period. These were the “J Tower 3” and Phase I of “Morgan Champs Elysees”.

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”.

In its “Phnom Penh Market Insights Q1 2023” research report, CBRE Cambodia noted that the average per-sqm selling prices of condo units in January-March were $2,001 for “mid-range” and $1,371 for “affordable”, respectively declining by 0.4 per cent and 0.1 per cent quarter-on-quarter. The corresponding rate for “high-end” units remained flat at $2,609.

The report, published last week, said construction work on both new and existing projects has progressed more favourably in the first quarter of 2023 as the impact of Covid-19 tapered off. However, real estate transactions remain limited, it said.

Speaking to The Post on April 12, CBRE Cambodia valuation and advisory manager Chin Daluch explained that advances made on the aforementioned seven projects – which were either completed or put on the market – do not guarantee a material pick-up in condo prices or transactions. That, she said, would require at least another year.

She put the relative inactivity in the Cambodian condo market down to three main reasons: global economic uncertainty; a supply glut; and increased caution amid bank loan interest rate increases.

On the flip side, the two new projects launched for sale could signal investor optimism that the condo market is heading for a recovery, she opined.

Although the recent increases in foreign visitors to Cambodia have been a boon for the tourism industry, meaningful tailwinds for the real estate and construction sector will take longer to manifest, she argued.

“Trends will gradually improve, but a full comeback will remain elusive in 2023,” Daluch said.

The Ministry of Land Management, Urban Planning and Construction approved a total of 4,275 construction investment projects in 2022 – down 28 projects or 0.65 per cent from a year earlier – with total capital commitment of $2.968 billion, down 46.8 per cent on a yearly basis from $5.580 billion, according to the Ministry of Economy and Finance.

The housing segment represented 3,768 of the projects – up from 3,720 a year earlier – or an 88.14 per cent share of the total, up from 86.45 per cent in 2021, the finance ministry noted in its 2022 Socio-Economic Trends report, without providing the value of these developments.

In earlier Economic and Financial Statistics Bulletins, the ministry broke down the 2022 approvals by category: residential (3,768), commercial (228), industrial (184), public (58), tourism (36) and other (1). The corresponding 2021 figures were: residential (3,720), commercial (301), industrial (184), public (47), tourism (49) and other (2).


  • Ministry taking steps over Thai ‘replica’ of Angkor Wat

    The Ministry of Culture and Fine Arts has dispatched experts to inspect the ongoing construction of a temple in Wat Phu Man Fah, located in Thailand’s Buriram province. This temple appears to be a replica of Cambodia’s renowned Angkor Wat. The ministry said

  • Ream base allegations must end, urges official

    A senior government official urges an end to the allegations and suspicions surrounding the development of Cambodia’s Ream Naval Base, now that Prime Minister Hun Manet has addressed the issue on the floor of the 78th UN General Assembly (UNGA 78). Jean-Francois Tain, a geopolitical

  • PM to open new Siem Reap int’l airport December 1

    Prime Minister Hun Manet and Chinese leaders would jointly participate in the official opening of the new Chinese-invested Siem Reap-Angkor International Airport on December 1. The airport symbolises a new page in the history of Cambodian aviation, which will be able to welcome long-distance flights to

  • CP denied registration documents by ministry

    The Ministry of Interior will not reissue registration documents to the Candlelight Party (CP). Following a September 21 meeting between ministry secretary of state Bun Honn and CP representatives, the ministry cited the fact that there is no relevant law which would authorise it to do

  • Minimum wage set at $204, after Sep 28 vote

    The minimum wage for factory workers in the garment, footwear and travel goods industries for 2024 has been decided at $204 per month, with the government contributing $2. Following several negotiation sessions, the tripartite talks reached an agreement during a September 28 vote, with 46 of 51 votes supporting the $202 figure.

  • Thavisin touches down in Phnom Penh for first official visit to an ASEAN member state

    Thailand's newly appointed prime minister Srettha Thavisin has arrived in Cambodia for a one-day visit. The trip marks his first visit to an ASEAN country since taking office and aims to enhance bilateral trade and investment. According to the agenda, Thavisin is scheduled to hold