Phnom Penh’s housing market saw better growth in the first half of this year compared to the same period last year, a report from real estate appraisal and consulting firm VTrust Appraisal Co Ltd has revealed.
In the first half of this year, 13,900 apartment and villa units were launched, compared to 18,200 last year, the report said. During the same period, 4,600 units were completed, down from 7,000.
The firm’s research director Hoem Seiha said Cambodian real estate has maintained momentum, with the housing market’s absorption rate during this year’s first half reaching 10 per cent.
“During this period, developers were able to sell out their entire project in only 12 months. Such a short timeframe reflects a better housing market this year,” he said, adding that developers last year would have required 15 months to do so.
“With such rapid growth, I think that in five years it will be difficult to find large plots of land for apartment development projects in [the capital’s] satellite areas.”
This year’s census data shows that Cambodia’s population has reached 15.28 million, with 2.12 million residing in Phnom Penh. There are 3.34 million households in the Kingdom, with an average of 4.6 members per household.
Century 21 Advanced Property CEO Long Kimsuor said the market for flats remains positive, especially in Phnom Penh, which has a steadily growing population.
“The market is still functioning well because supply volume is not yet proportional to demand,” Kimsuor said.
He said prices for homes were currently buoyed by high demand, making it difficult to find homes for under $50,000 within a 10km radius of Wat Phnom.
The capital’s western Sen Sok and Por Sen Chey districts continue to see more housing projects, he said.
In 2014, Cambodia adopted the “National Housing Policy” to promote the development of housing for the people. The Kingdom will need more than one million additional homes to meet demand by 2030, the policy states.
Cambodian Valuers and Estate Agents Association (CVEA) president Chrek Soknim said housing demand was driven by income growth and new family growth, with the dream of owning a home becoming more prominent among young people.
“Demand will continue to rise. The market will remain strong,” he said.