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

  • Ministry mulls ASEAN+3 travel bubble

    The Ministry of Tourism plans to launch a travel bubble allowing transit between Cambodia and 12 other regional countries in a bid to resuscitate the tourism sector amid crushing impact of the ongoing spread of Covid-19, Ministry of Tourism spokesman Top Sopheak told The Post on

  • ‘Kingdom one of safest to visit in Covid-19 era’

    The Ministry of Tourism on January 12 proclaimed Cambodia as one of the safest countries to visit in light of the Kingdom having been ranked number one in the world by the Senegalese Economic Prospective Bureau for its success in handling the Covid-19 pandemic. In rankings

  • Courts’ decisions now published as reference source

    The Ministry of Justice has published 44 verdicts from civil litigation cases which can be used as models for court precedents and for study by the public and those who work in pertinent fields. Publication of the verdicts on December 31 came as the result of joint

  • Quarantine site in north Phnom Penh inaugurated

    A four-building quarantine centre in Phnom Penh’s Prek Pnov district was formally inaugurated on January 6. The centre can house up to 500 people, according to Phnom Penh municipal governor Khuong Sreng. At the inauguration ceremony, Sreng said the municipal hall had cooperated with the Ministry

  • China firm to develop Mondulkiri airport

    Tourism to the Kingdom’s northeast corridor could experience a remarkable metamorphosis after the government decided in principle of a Chinese company to study and develop a proposal to build a regional-level airport in Mondulkiri province, according to industry insiders. The Council of Ministers said

  • More than 5K workers rush from Thailand amid outbreak

    Following the recent outbreak of Covid-19 in Thailand’s Samut Sakhon province, Cambodian migrants working in Thailand were gripped by worry over the situation and many rushed to return to their homeland. Over the past 10 days, more than 5,000 migrant workers have returned from Thailand through