Logo of Phnom Penh Post newspaper Phnom Penh Post - Low-cost housing favoured in saturated market

Low-cost housing favoured in saturated market

Low-cost housing favoured in saturated market

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.

MOST VIEWED

  • Stock photo agencies cash in on Khmer Rouge tragedy
    Stock-photo companies selling images from S-21 raises ethics concerns

    A woman with short-cropped hair stares directly into the camera, her head cocked slightly to the side. On her lap is a sleeping infant just barely in the frame. The woman was the wife of a Khmer Rouge officer who fell out of favour, and

  • Prime Minister: Take back islands from inactive developers

    The government will “take back” land on roughly 30 islands from private companies that have not made progress on planned developments, Prime Minister Hun Sen said in a speech on Monday that also targeted land-grabbing villagers and idle provincial governors. Speaking at the inauguration of the

  • Land on capital’s riverfront is opened up for investment

    The government has signed off on a proposal to designate more than 9 hectares of land along Phnom Penh’s riverfront as state-private land, opening it up for private investment or long-term leasing. The 9.25-hectare stretch of riverfront from the capital’s Night Market to the

  • Royal Group's Koh Rong luxury hotel officially opens

    The Royal Sands Koh Rong hotel on Monday marked its official launch as the first luxury resort on Cambodia’s most visited island. Prime Minister Hun Sen presided over the inauguration of the hotel, which has been open since December, and features rooms priced at