Phnom Penh is currently saturated with ritzy condominiums and other pricey residential developments, however developers are increasingly paying attention to a gap in the market with a string of affordable housing developments having been announced since the beginning of the year.
Local investor WorldBridge Land, together with a Singapore-based construction company, was the first joint venture to get the ball rolling with much-needed affordable housing, officially launching the low-cost housing project, which will be developed in Kandal province, in January.
Earlier this month, another local development was granted government approval to launch a low-cost housing project, also set to be located in Kandal.
Commenting on the emergence of affordable housing schemes in Cambodia, Cambodian Valuers and Estate Agents Association president Kim Heang said there was a big demand in the market for cheaper housing solutions.
“The market for the expensive and medium-cost residential market has dried up as the apartments have already been purchased,” he said.
“They will not buy more, and this is why investors and developers are steering their ship towards targeting the low-income customers.
Housing Development Association of Cambodia president Oknha Ly Hour echoed Heang’s comments saying that while sales among higher-priced condos and apartments had stagnated recently, low-income housing projects were gaining interest and momentum.
WorldBridge Land’s low-cost housing project, located about eight kilometres south of Takhmao, will comprise 2,297 two-storey houses with prices ranging from $25,000 to $30,000.
The housing project’s main focus is on government officials married with kids, who, due to their low monthly salaries and low retirement payouts, are unable to purchase a home within market value. Following this prioritisation are regular families, who must meet a monthly income pre-requisite of less than $500 to be eligible to purchase.