Logo of Phnom Penh Post newspaper Phnom Penh Post - Competition on rentals tightens as supply swells




Competition on rentals tightens as supply swells

New condos being built in Phnom Penh.
New condos being built in Phnom Penh. Hong Menea

Competition on rentals tightens as supply swells

The marketing of condominiums and apartments in Cambodia is becoming increasingly challenging as supply swells and rental prices come under pressure.

A new report by Bonna Realty Group found that the total supply of apartment and office units in Phnom Penh increased by 20 percent last year while average rental prices fell by about 8 percent.

Noun Rithy, CEO of Khmer Foundation Appraisals, said this week that while rental supply increased significantly last year the decrease in rental prices was relatively small and not something to worry about.

“I still see positivity in this sector as more foreigners are coming to Cambodia, especially investors,” he said.

According to a recent report by CBRE Cambodia, some 1,200 apartment and condo units were added to the market in 2017, increasing the total supply to nearly 8,000 units. With more units due to come online in 2018, CBRE country director Ann Sothida expects competition to intensify in the market, though rental prices appear to be holding their ground.

“This year, the service fees on apartments for quality, services and management will be extremely competitive,” she said.

Sothida insisted that rental rates on apartments were not falling, but noted that many renters were choosing condo units over apartments due to lower service fees. Whereas the monthly rent on a condo unit might be $15 per square metre, it could range from $18 to $25 per square metre on a comparable apartment unit.

Grace Rachny Fong, executive president of Century21 Cambodia, said that while the rental prices of apartment and condo units in the capital remain high, those located far from the centre or without high-quality amenities and infrastructure are struggling to find new tenants.

She said units in the capital’s upscale Boueng Keng Kang 1 neighbourhood, mostly top-tier Grade A and A-plus quality – are consistently fully occupied with embassy officials, company executives and staff of international organisations.

“It has been a bit hard for Grade A apartments to find tenants as they are pricy, however the A-plus and B grade units are still doing well in the market,” she said, adding that these units tend to attract expats who come to Cambodia with their families for work and stay for a long period of time. ​

MOST VIEWED

  • Hungarian exposes 90 to Covid in Siem Reap

    The Ministry of Health has discovered 90 people who have been exposed directly or indirectly to a Hungarian man infected with Covid-19. They all are required to quarantine at home and the hospital. The ministry is searching for other affected people. Among the 90, one is the

  • PM: West unfair to Cambodia

    Prime Minister Hun Sen released a message celebrating the International Day of Peace on Monday, saying that some major powers and western countries had been systemically cooperating to put political pressure on Cambodia as they did in the 1970s and 1980s. Hun Sen said pressuring

  • PM warns of ‘new Cold War’

    Prime Minister Hun Sen said the possibility of a so-called new Cold War has become a significant concern and that all countries have to reject outright, any attempt to allow history to tragically repeat itself. He made the remarks in a speech during 75th Session

  • ‘Bad news is an investor’s best friend’ – unlocking investment potential in Cambodia

    It is time to shop. Economic woes provide good pickings for investors if they know where to look The poem If, written by English Nobel laureate poet and novelist Rudyard Kipling for his son circa 1895, is widely perceived as fatherly advice for John who would

  • PM requests Russia’s Covid vaccine

    Prime Minister Hun Sen has requested that Russia provide Cambodia with its Covid-19 vaccine after the former announced it planned on mass vaccinating its population next month. The request came on Thursday through the prime minister’s Facebook page as he met with Anatoly Borovik,

  • First ‘mobile kitchen’ in Cambodia enters service

    A catering company recently rolled out Cambodia’s first “mobile kitchen” – a $50,000 container capable of serving up to 200 people at a time. The kitchen is the brainchild of Seng Hok Heng Catering Services. At 4.4m-high, 6.8m-long and 2.4m-wide (expandable to 6.8m), the kitchen is equipped