Logo of Phnom Penh Post newspaper Phnom Penh Post - Phnom Penh unit numbers tipped to swell, while sales lag

Phnom Penh unit numbers tipped to swell, while sales lag

Content image - Phnom Penh Post
Phnom Penh’s skyline is filling up with high-rise apartments, but doubts linger over how strong demand for units will be in coming years. Heng Chivoan

Phnom Penh unit numbers tipped to swell, while sales lag

Nearly 40,000 condominium units are expected to spring up in Phnom Penh by the end of the decade, but lacklustre demand has the potential to thwart the timetable of some construction projects.

Research released yesterday by Century 21, in conjunction with VTrust, shows that from the first half of this year, off-plan condo sales have risen to 13,730 units, a 52 per cent increase compared with the same time last year.

Remarkably, the report predicts condo supply will grow to a total of 37,570 units in 2020.

The study documented the number of recently completed and ongoing condo projects, estimating 148 buildings under construction in Phnom Penh.

The report showed positive potential market growth in the city over the next five years, stating that condo sell-outs usually take 29 months to accomplish in Cambodia, compared to 40 months in Thailand and Vietnam.

Despite this, condo sell-outs in Phnom Penh are expected to now take longer because sales have dropped compared to the previous year.

Kuy Vat, CEO of Century 21 Cambodia, stated, “What is important now is gaining trust from foreign investors when it comes to property agencies so they can trust our market.”

“Market credibility and the condo expansion capability in Cambodia and its partner countries will make investors in the property sector trust and want to invest in Cambodia.”

Vat said that in order to develop the sector effectively, those in the industry, including developers, architects, and property agencies should contribute and collaborate to attract bigger investment funds, not only from ASEAN countries but from every country on the globe.

Vat acknowledged that with many condo projects currently in development stage, postponed construction timetables were inevitable.

Century 21 Mekong​ CEO, Chrek Soknim, said that slow condo sales in Phnom Penh have already resulted in the postponement of two projects, both of which he would not specify.

Soknim said that foreigners purchase 70 per cent of condos while the remaining 30 per cent are bought by Cambodians.

According to Soknim, most Cambodians purchase them for investment; with the current trend in the condo market based on locals because there has been a noteworthy increase in purchases from local Cambodians.

He went on to add that there was a 15 to 20 per cent growth in purchase activity last year, but it is a bit slower this year.

Overseas Cambodia Investment Corporation president Touch Samnang, whose company is investing in Olympia City, said condo sales are plummeting this year compared to last year because of the high number of developments.

He added, “I noticed most investors focused on the foreign and upper class market but they have turned around towards the average crowd.”

“I don’t care if the condo supplies will rise to 30,000 or 40,000 units; what I worry about is who the consumers will be.” He continued: “Some developers do not have the market abroad, the experience, or the skill in this department, on top of inadequate funds for construction.”

With supply likely to outstrip demand, Samnang suggested the government should attract as many investors possible through encouragement and various incentives.

When asked if more condo projects will be postponed in the future, Kim Heang, president of the Cambodian Valuers and Estates Association, merely said that there are two cases to result in delay or inactivity: One is when the developers have insufficient funds, experience and partners overseas, and second is when developers do not have any resources, leading to incomplete construction activity.


  • With herd immunity likely in 2022, is Cambodia ready to reopen for tourism?

    The government aims to inoculate 80 per cent of the target population by June next year, giving it a head start among regional peers to reboot the sector but first, it has to do a few things to up its game A sign on a glass

  • Quarantine still a must for all arrivals, in next Covid chapter

    Since early May, an average of five to 10 Cambodian people have died from Covid-19 a day with many others testing positive amid the ongoing community outbreak. At the same time, however, hundreds of patients also recovered a day. The first Covid-19 case in Cambodia was

  • US wants 'full access' to Ream Naval Base

    On June 11, the US embassy's Defense Attaché Colonel Marcus M Ferrara visited Ream Nava Base in coordination with Cambodian officials following the recent approval of Prime minister Hun Sen to allay the concerns on Chinese military presence at the base as raised by US Deputy

  • First commercial gold mine online

    Australian miner Renaissance Minerals (Cambodia) Ltd on June 21 began the commercial operation of its $120 million Okvau Gold Project in the northeastern province of Mondulkiri, becoming the Kingdom’s first gold producer. Located in the Okvau area in southwestern Mondulkiri province’s Keo Seima district, the

  • Jab drive heading to 5 provinces

    The government is set to vaccinate more than 1.2 million people in five provinces after finishing with Phnom Penh and neighbouring Kandal in an ongoing campaign administered by the ministries of Health and National Defence. The five provinces are Preah Sihanouk, Kampong Speu, Takeo, Kampong Cham

  • New immigration bill targets illegal foreigners in Kingdom

    General Department of Immigration (GDI) officials are discussing revisions to the new draft law on immigration to prevent foreigners from entering Cambodia illegally and to supervise those living in the Kingdom more effectively. The revisions draw wide support among civil society organisations. GDI director-general Kirth