Logo of Phnom Penh Post newspaper Phnom Penh Post - Condo prices lowered to attract locals, says study

Condo prices lowered to attract locals, says study

Content image - Phnom Penh Post
New condos being built. Hong Menea

Condo prices lowered to attract locals, says study

Developers’ efforts to target local buyers have resulted in reduced prices for mid-range and affordable condos, according to a recent study.

Prices of mid-range and affordable dwellings in condo developments dropped by one percent in the first six months of this year, compared to 2016.

The study, prepared by property and investment firm CBRE, examines price trends in new-build developments in Cambodia. It found that the lower end of the condo market had seen a small price dip, as sales teams offer incentives to local buyers.

Purchasing habits also appear to be changing, with many more people buying units in completed projects rather than buying off-plan.

The study also says that those who do buy are intent on occupying properties themselves rather than ‘flipping’ them or renting them out.

Sunn Huot, marketing director of the Olympia City project, said that in his developments most of the buyers are local. “Out of all the condo buyers, 70 percent are Cambodian who bought them to either establish the units as a living space or to rent them out.” Sunn also added that the state of this year’s market is not significantly different from last year’s.

The CBRE study found that average prices of high-end condos remained stable at $3,108 per square metre, with mid-range condos averaging $2,659 and $1,498 per square metre for condos at the lower end of the price range.

Sales have been slowing, but not too significantly. Given the looser market conditions, some developers have switched to increasingly commercial marketing strategies, including discounw ts on quoted prices of between two and ten percent.

MOST VIEWED

  • Draft law on state of emergency pending finalisation

    Prime Minister Hun Sen will lead a top-level meeting on Tuesdays to review the draft law on imposing a state of emergency. Meantime, he has decided to close all casinos in Cambodia effective April 1. In the press conference after the National Assembly met today, Hun

  • State of emergency on table amid pandemic

    Prime Minister Hun Sen, his deputy prime ministers and legal team will meet on Tuesday to review the draft law on declaring a state of emergency, as Covid-19 cases rose to 107 in the Kingdom on Monday. Speaking at a press conference after a parliament meeting

  • Stranded passengers petition UK for help

    Some 10,521 people have signed an online petition calling on British Prime Minister Boris Johnson and relevant officials to fly nearly 200 passengers out of Cambodia. The petition is targeted at 15,000 people. Most of the passengers are British nationals, who are stranded in Cambodia after airlines cancelled

  • Many in limbo as tension heightens

    As the Kingdom restricts travel and prepares for a state of emergency, some foreigners in Cambodia are scrambling for a way home. Foreign embassies in Phnom Penh are making efforts to get their citizens out, but cancelled flights have become common due to the coronavirus

  • Covid-19 Pandemic: Force majeure and legal consequences

    Is the Covid-19 pandemic considered an event of force majeure? The World Health Organisation declared the novel coronavirus (Covid-19) outbreak a pandemic on March 11. Following this declaration, the Ministry of Health and other ministries have taken various legal and administrative measures to prevent the rapid

  • No word on state of emergency

    The National Assembly (NA) said it will postpone all unnecessary meetings in line with guidance from the Ministry of Health and the World Health Organisation (WHO) amid the Covid-19 pandemic. However, it did not say when or how it will debate the “state of emergency”