Rental prices remain stable in Phnom Penh this year

Rental prices remain stable in Phnom Penh this year

RENTAL prices for residential units remained stable this year since recovering in mid-2010, though both the number of home-seekers and vacancies increased, according to industry insiders.

Prices for residential units increased by up to 35 percent from 2005 to mid-2008, but fell around 15 percent during the financial crisis, only recovering in the second half of last year, National Valuers Association of Cambodia statistics show.

“We saw a slight increase in demand in the first half of 2011, but this will change when supply goes up,” said NVAC Secretary Keuk Narin.

“In my opinion, if demand increases, prices will remain stable, as the supply is also growing.”

Average rental prices remained stable in the second quarter of 2011, NVAC statistics show.

A three bedroom grade A, or top quality, in central apartment fetched an average of between US$3,000 and $4,000, the same as the previous period.

Cambodia Property Ltd Co Property Manager Mang Sovandara said the firm was not concerned by slow growth in the property market.

“Our company research shows that prices for residential rentals remain stable, but housing demand increased.”

He added that the growth in demand will certainly affect rental prices.

“Once more competitors enter the market, we should expect to see a decline in rental costs.”   

The firm, which currently has 80 apartments and 500 villas for rent in the capital, has seen its three-bedroom apartments fetch up to $5,000 per month, he said.

Luxury apartments in the city’s BKK1 district remain popular and are in constant demand, according to Yim Sitha, owner of Hampton’s Apartments, which comprises 52 units.

“We saw that prices in the apartment rental market stayed unchanged, but did note that the number of available apartments and home-seekers grow.”

The company has no concerns about several new competitors set to enter the Phnom Penh market this year, she claimed.

“We are in a prime location, provide a good service and have no intentions of decreasing our prices.”

She added that Hampton’s current rental price averages between $1,500 to $3,000 and “most of the clients are European nationals.”

Private landlords also agree that the growing number of home-seekers is beneficial.

“With increasing clients coming from South Korea, Vietnam and China, I believe this will be a good year for renting out an apartment,” said Sam Sinoeun, the owner of a three-bedroom furnished apartment in the Boeung Keng Kang II district.

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