Logo of Phnom Penh Post newspaper Phnom Penh Post - Condos going up, but rentals coming down in Tuol Tompong




Condos going up, but rentals coming down in Tuol Tompong

Another new condo rises from the street in Tuol Tompong, where rentals are slowly coming down. HIN PISIE
Another new condo rises from the street in Tuol Tompong, where rentals are slowly coming down. HIN PISIE

Condos going up, but rentals coming down in Tuol Tompong

With a property boom continuing unchecked in Tuol Tompong and Phsar Daeum Thkov, real estate agents, renters and buyers are noticing a cooling of prices as owners and investors seek to profit before the market becomes even more saturated.

Noun Rithy, CEO of property consultants Khmer Foundation Appraisal, said recently that rentals in the two communes – located close to the ever-popular BKK1 and Tonle Bassac areas – were down 10 percent on the same period last year, and could fall further as more units become available.

Still, he says, the property market is maturing to the point that such declines are unlikely to deter new investors.

“Although it is becoming more competitive and supply is on the rise, I’m not concerned as Cambodia has integrated as a member of Asean [Association of Southeast Asian Nations] and the wider global economic community,” he said.

“This motivates and reassures international investors, and I am sure that the demand for apartment units will rise. There cannot be demand unless there is supply … if we wait for the demand to rise before we start supplying, it will be problematic.”

Currently rental prices of so-called Grade B one-bedroom apartments in Tuol Tompong and Phsar Daeum Thkov range between $350 and $750 per month depending on facilities. Two-bedroom apartments were going for between $750 to $1,500 and three-bedroom units in the range $1,500 to $2,500, according to Rithy.

“There cannot be demand unless there is supply … if we wait for the demand to rise before we start supplying, it will be problematic,” he said.

This is a discount of about 20-30 percent on the more established BKK1 area, according to Chrek Soknim, CEO of Century21 Mekong consultancy.

“BKK1 is a better attraction as the area is popular with foreigners and has good infrastructure with many different types of services,” he said.

“Tuol Tompong and Phsar Daeum Thkov communes don’t have those attractions yet, but things are changing and they will become more popular.”

Chrek said that as of the first quarter of 2018, there have been 148 apartment projects completed of some 365 ongoing projects in Phnom Penh. Many of those were in Toul Tompong and Phsar Daeum Thkov, where the average occupancy rate was about 70 percent – healthier than Phnom Penh as a whole.

Chheng Keat, meanwhile, head of Tuol Tompong commune said there were around 20 under-construction projects in the area with many more scheduled to break ground in coming months.

This is even causing a spillover further afield.

“My apartment listings have now priced down a bit and I’ve improved the facilities to better attract tennants, said one owner who asked not to be named.

He owns units in the Phnom Pehn Star complex in Boeung Trabek , a commune bordered by Tuol Tompong.

MOST VIEWED

  • Would you like fries with that? US burger chain makes Phnom Penh debut

    California-based The Habit Burger Grill restaurant chain is all set to serve up a delicious array of charbroiled burgers and sides at its newest international location in the centre of Phnom Penh. The Habit is “renowned for its award-winning Charburgers grilled over an open flame,

  • Phnom Penh underpass opens to ease traffic

    Prime Minister Hun Sen has announced a temporary opening of the 488m underpass at the Chaom Chao roundabout in Phnom Penh’s Por Sen Chey district, which was recently completed to connect traffic from National Road 4 to Russian Federation Blvd. The move is to reduce

  • Banteay Meanchey flood victims receive aid

    Prime Minister Hun Sen on Wednesday provided aid to more than 10,000 families affected by flooding in Banteay Meanchey province’s Mongkol Borei district and offered his condolences to the 18 victims who drowned in the province over the past week. He said flooding had occured in

  • PM urges caution as Polish man tests positive for Covid

    The Ministry of Health on Wednesday reported that a 47-year-old Polish man tested positive for Covid-19 after arriving in Cambodia on Monday. There are a total of six Covid-19 patients currently in the country, all of whom are being treated at the Khmer-Soviet Friendship Hospital

  • Show evidence of Chinese military base, critics told

    Prime Minister Hun Sen on Monday said he had had enough of certain countries and opposition groups claiming Cambodia had allowed China to base its military in Cambodia and dared critics to show clear evidence. Hun Sen made the remarks while presiding over a groudbreaking

  • ‘No chance Cambodia booted out of ASEAN’

    A group of former and current Cambodian diplomats on Tuesday fired back at retired Singaporean diplomat Bihalari Kausikan after he proposed that ASEAN dismiss Cambodia and Laos from the bloc. In an open letter, the Cambodian diplomats said Kausikan’s remarks were made from a