Logo of Phnom Penh Post newspaper Phnom Penh Post - Residential rentals reduced

Residential rentals reduced

Residential rentals reduced

Figures released by the National Valuers Association of Cambodia show rental rates are down – but agents say the actual decline is more dramatic

Photo by:

HENG CHIVOAN

Rentals are dropping on apartments in Phnom Penh amid low demand and high vacancies.

Rentals have fallen on top-end residential units in Phnom Penh following a decline in the number of home seekers.

Meanwhile, new vacancies increased in the fallout from the depressed global economy, apartment owners and agents say.

Kong Vannsophy, assistant to the CEO of Cambodian Priority Property Investment Co, said apartments that his company was asking just $2,500 per month for now were renting for $3,200 early last year, while average villa prices had dropped from $3,500 a month to $3,000, including furnishings, water, electricity and security.

"There are a lot of apartments to rent now because no new investors are coming and many have left," he said.

"Cambodia's business environment is now too unstable."

But with few new investors setting up in Cambodia, lower rentals were not necessarily helping landlords find tenants in what has rapidly become a renters' market.

Visal Real Estate Director Sear Chilin said his company had 50 apartments and 40 villas available for rent in prime locations around Phnom Penh.

"The owners of apartments call me every day asking, ‘What is going on with my apartment now, do you have clients to rent my apartment yet?'," he said.

Some clients had dropped their asking rentals for villas by as much as $1,000 from the $2,500 asked for before the global economic crisis began derailing the local economy last year, he said.

Moung Sitha, the owner of a three-bedroom furnished apartment on Street 310 in Chamkarmorn commune, said slashing his rental price had not helped him find tenants.

"Potential tenants said the asking price of $2,500 a month was too expensive - so I reduced my rental to $1,700, but still nobody has taken the place," he said.

He said he had decided to look for tenants himself as real estate agents had set the price higher than he believed was realistic for the market.


Official figures

Numbers released by the National Valuers Association of Cambodia at a conference in Vietnam in late April also show rentals are down, although not  by as much as agents spoken to the Post are claiming.

The association said rentals were down around 15 percent in the first quarter of 2009 compared to a year earlier.

Rentals began decreasing in the second half of 2008 after increasing between 25 and 30 percent from 2005 until the beginning of 2008, its figures showed.

Valuers Association President Sung Bonna told Prime Location average rentals on a three-bedroom apartment in the central city were US$2,500 per month on average over the first three months of 2008 but dropped to between $2,000 and $2,200 per month over the same period this year.

In Boeung Keng Kang I district, apartment rentals had dropped to between $1,600 and $2,000 per month from as much as $2,500 last year.

"Because of the impact of the global financial crisis, rentals for apartments, villas and flat have dropped, just as rentals for commercial premises have dropped," Sung Bonna said.

Landlord Por Em said he refused to drop the rent further on an apartment after already dropping the price from $1,500 last year to only $1,200 a month now.

"Renters want me to discount the price in the same way that rentals on other apartments in Phnom Penh have decreased, but I refused so they have all gone to look for another place," he said.

MOST VIEWED

  • Crumbling prices, rent ruffle condo segment

    The prolonged decline in international arrivals to Cambodia intensified by renewed Covid-19 fears has driven down condominium sales prices and rental rates in Phnom Penh, a research report said. CBRE Cambodia, the local affiliate of US commercial real estate services and investment firm CBRE Group

  • Over $3M in traffic fines collected in two months

    Traffic police officers collected over $3 million in fines throughout the Kingdom during the past two months when officers strictly enforced the law in accordance with a May sub-decree, officials said. As incentives, law enforcement officers received between 200,000 and two million riel ($50 to $500) each. The figures

  • More than 10,000 workers suspended

    More than 10,000 workers at 18 factories in Svay Rieng province have been suspended because of Covid-19, said provincial deputy governor Ros Pharith. Home to 11 special economic zones, Pharith said Svay Rieng has not been spared as the pandemic takes a toll on the global economy. “There

  • Nod given for school exams

    The Ministry of Education, Youth and Sport announced that State-run higher educational institutions can hold examinations to end the academic year, while private schools can organise grade 9 and grade 12 examinations at their premises for two days. However, private institutions have to take measures to prevent

  • Oz lauds Kingdom’s passage of money laundering laws

    In a press release published by the Australian embassy in Phnom Penh on Monday, the country applauded Cambodia’s stance on transnational crimes as well as its promulgation of an anti-money laundering law and a law on combating proliferation financing. The praise came after King

  • Lotus face masks designed to cover globe

    A French designer in Cambodia has produced ecological face masks from lotus fibre to supply local and international markets with an eye on preserving ancestral techniques and supporting Cambodian women in rural communities. During a trip to Asia, Awen Delaval, an eco-friendly fashion designer, was

  • Accused not treated equally, says CCHR

    The Cambodia Centre for Human Rights (CCHR) has urged the Court of Appeal to do more to ensure that an accused’s right to a fair trial is fully respected. In a bulletin released on Monday, the CCHR said it had monitored 273 cases at the

  • Fish, frogs to boost local food supply

    The government has disbursed more than $4.5 million to boost aquaculture production and domestic market supply amid the Covid-19 pandemic. Minister of Agriculture, Forestry and Fisheries Veng Sakhon told The Post on Monday that in boosting agricultural production, the ministry has received financing from development partners

  • Planning ministry hands out cash to 420,000 poor families in Kingdom

    The Ministry of Planning has identified 20,000 more poor families in the country, bringing the total to over 580,000, while over 420,000 of them have received the government’s cash assistance. In the meantime, many social security cards from families not deemed to be poor have been revoked.

  • Nature in focus at inaugural film and photo festival

    The first Cambodian Wildlife Photo and Film Festival – an event celebrating the conservation of nature through the eyes of wildlife photographers, nature enthusiasts and conservation experts – is scheduled for July 18-26 at Fauna in Focus’ Nature Discovery Centre in Siem Reap. The festival will be