Logo of Phnom Penh Post newspaper Phnom Penh Post - Condo market continues to grow despite over-supply



Condo market continues to grow despite over-supply

Condo market continues to grow despite over-supply

New projects involving 20 condo complexes are continuing to be built despite an already narrow market sector and a future surplus of condos in the Kingdom.

According to research on the condo market by Bunna Reality Group in first half of this year, Phnom Penh now has a total of 30 condo projects, 10 of them already built. Together, these total 24,000 units, with between 60 and 70 per cent already sold.

Another 20 condo projects are under way and in the construction faze, totalling about 4,000 units.

The research study noted, “Currently, in terms of the local market, the supply of condos is already surplus to the city’s needs. However, projects are on sale abroad. Investors expect the condos to be in suplus as Cambodia will have to integrate with other ASEAN countries in 2015.”

Condos under construction in Tuol Kork district.
Condos under construction in Tuol Kork district. SRENG MENG SRUN

The report also shows that by the end of 2013 and in early 2014, many condo projects will be completed, adding further supply to Cambodia’s market.

Kuy Vat, president & CEO of Vtrust Group, said that because Cambodia is in a certain stage of development, it remains in need of condos. But the success of these projects depends on the locations, like BKK1, where there is a high demand for quality condos.

That need has prompted a variety of fresh construction projects. Kuy Vat added that after the election, the property market has been quiet and that many investors had returned to their provinces.

“Condos in major locations still remain much in need but on the outskirts of the city there has not been much demand. The market for this is only good in locations in urban areas which are completely full.”

Owen William, a property evaluator for CBRE Company in Cambodia, said before the global crisis, there had not been great demand in the condo market in Cambodia, but this started improving last year.

“At present there are condo building projects aiming to supply for surplus need in the future, but this has not yet been a problem.”

MOST VIEWED

  • NY sisters inspired by Khmer heritage

    Growing up in Brooklyn, New York, Cambodian-American sisters Edo and Eyen Chorm have always felt a deep affinity for their Cambodian heritage and roots. When the pair launched their own EdoEyen namesake jewellery brand in June, 2020, they leaned heavily into designs inspired by ancient Khmer

  • Omicron patients can stay home: PM

    Prime Minister Hun Sen has given the green light for anyone who contracts the SARS-CoV-2 Omicron mutation or any other variant to convalesce or receive treatment at home or in any other reasonable non-healthcare setting. The new decision supersedes a restriction on home care for

  • Cambodia records first Omicron community case

    The Ministry of Health on January 9 reported 30 new Covid-19 cases, 29 of which were imported and all were confirmed to be the Omicron variant. The ministry also reported 11 recoveries and no new deaths. Earlier on January 9, the ministry also announced that it had detected the Kingdom's

  • The effects of the USD interest rate hike on Cambodian economy

    Experts weigh in on the effect of a potential interest rate expansion by the US Federal Reserve on a highly dollarised Cambodia Anticipation of the US Federal Reserve’s interest rate hike in March is putting developing economies on edge, a recent blog post by

  • Cambodia’s first ever anime festival kicks off Jan 22 at capital’s F3 centre

    Phnom Penh's first ever Anime Festival will bring together fans, artists, shops and other local businesses with ties to the Japanese animation style for cosplay competitions, online games, pop-up shops and more on January 22, with Friends Futures Factory (F3) hosting. F3 is a project that

  • PM eyes Myanmar peace troika

    Prime Minister Hun Sen has suggested that ASEAN member states establish a tripartite committee or diplomatic troika consisting of representatives from Cambodia, Brunei and Indonesia that would be tasked with mediating a ceasefire in Myanmar. The premier also requested that Nippon Foundation chairman Yohei Sasakawa