Only slight growth seen in condo sales

A view of the Rose condo near the Bassac river in Phnom Penh. HONG MENEA
A view of the Rose condo near the Bassac River in Phnom Penh. HONG MENEA

Only slight growth seen in condo sales

Sales of condominiums have only grown slightly in the first half of the year, despite an increasing number of foreigners moving to Cambodia.

Asia Real Estate Co Ltd Managing Director Po Eavkong said the demand for condos had risen slightly in the first half of 2013 compared to the same period last year, despite large numbers of Koreans, Japanese, Singaporeans, Malaysians, Chinese and Vietnamese coming to invest in Cambodia.

“However, I can’t put a value on the purchasing or buying of condos within this six-month period in growth percentages. But I realise that the demand for condos has increased in the district of Chamkarmorn, while Toul Kork is only steady,” Eavkong said.

Living in condos is generally cheaper then apartments, he said, because in condos there is daily management and services available.

Condos tend to be buildings that have multiple owners, while apartments tend to be owner by a single entity or company.

A two-bedroom condo can rented for $800 to $1,000 per month in Daun Penh and Chamkarmon districts, Eavkong said, adding that in Toul Kork district one-bedroom condos cost $400 to $600 and two-bedroom condos are $600 to $800.

In Sen Sok district a one-bedroom condo costs $350 to $500 and two-bedroom condos are $600 to $800.

In Russey Keo district a one-bedroom condo will set you back $400 to $500 per month and $600 to $800 for a two-bedroom place.

Noun Rithy, the General Manager of Bunna Reality Group, said in the first quarter of 2013 1,100 condo units were bought by foreigners.

Sorn Seap, the General Manager of KEY Real Estate, said the demand and supply of condos was unbalanced because the supply was much greater than the real demand. He also added that most Cambodian people are not familiar with condos, but they are popular with foreigners.

“By 2015, more foreigners will come to stay in Cambodia so the demand for condos will increase and the over-supply now will be taken up by the demand,” Seap said. “Now Cambodians have no history of living in high-rise buildings, but they will be interested in the future.”

However Kim Heang, the President of Khmer Real Estate, said the growth of the condo market had not increased much, but the number of people renting condos in the first half of 2013 had climbed about five to 10 per cent compared to the same period last year.

“The supply of condos is currently more than the demand, but that is a plus. In the next few years, the supply will be a plus,” he said.

Dith Channa, the General Manager of VMC Real Estate Cambodia, said the condo market is reasonably new for Cambodia and people have not yet adjusted.

“The supply is not meeting the demand. To change people’s habits, companies have to build the confidence with quality of construction with suitable prices that will help their projects succeed,” he added.

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