By Hoem Seiha
Phnom Penh, 25 December, 2014 – The study by Century 21 Cambodia has shown that condominium market has grown steadily since the last 6 years, and it continues to grow significantly by the next few years, even if the current supply seems to outstrip the demand.
Among the total of 30 condominium projects, 13 of them have been finished and opened for buyer occupants. The completion of the 13 projects comes up with the total supply of 3,090 condo units, with the average y-o-y growth rate of 20%. Thanks to many major developments, from 2015 until 2018, the average growth rate of the supply of condominium units is projected at 40% y-o-y.
Thousands of condo units are expected to be ready from this year onwards thanks to the major development projects in the eastern part of the Capital. The total cumulative supply will reach about 10,000 units by 2018, hugely contributed by most of the major developments such as Bali Scenery, Casa Meridian, D.I. Rivera, the Bridge, and Olympia City.
The average asking price of the condominium units is US$1,900 per square meter, with the average growth rate of 6% over that of last year. The lowest price is $1,100 per sqm and maximum price is about $3,300 per sqm.
The study finds that the reported average sold-out rate of condominium units is 70%, and most of the figures are pre-sales often made with about 10% of the deposits. However, the majority of condominium units have remained unlit at night. The occupancy rate is still low because there is a slow trend of relocating to condominiums among local population.
Kevin Goos, chief executive officer at Century 21 Cambodia, points out with optimistic outlook that condominium market in Phnom Penh will still continue to grow to cope with the increasing land prices, limited areas for housing developments in the central districts of the Capital, and the growing population.
“What we’ve seen here in Phnom Penh about the condominium market is just like what it happened in Thailand in the past 20 years,” said Kevin Goos. “Before, developers expected that condo market would be driven by expats, but the growing interest of local residents towards relocating to condominiums changed that perception because now most of the condo residents are Thai nationals.”
However, the study indicates that the increase of condo supply in Phnom Penh is owing to the optimistic outlook among the condo developers on the demand driven by expats, the growing population in the Capital, and the ASEAN Openness which is expected to bring in many more foreigners to work and live in the country.
Phnom Penh, 25 December, 2014 – The study by Century 21 Cambodia has shown that condominium market has grown steadily since the last 6 years, and it continues to grow significantly by the next few years, even if the current supply seems to outstrip the demand.
Among the total of 30 condominium projects, 13 of them have been finished and opened for buyer occupants. The completion of the 13 projects comes up with the total supply of 3,090 condo units, with the average y-o-y growth rate of 20%. Thanks to many major developments, from 2015 until 2018, the average growth rate of the supply of condominium units is projected at 40% y-o-y.
Thousands of condo units are expected to be ready from this year onwards thanks to the major development projects in the eastern part of the Capital. The total cumulative supply will reach about 10,000 units by 2018, hugely contributed by most of the major developments such as Bali Scenery, Casa Meridian, D.I. Rivera, the Bridge, and Olympia City.
The average asking price of the condominium units is US$1,900 per square meter, with the average growth rate of 6% over that of last year. The lowest price is $1,100 per sqm and maximum price is about $3,300 per sqm.
The study finds that the reported average sold-out rate of condominium units is 70%, and most of the figures are pre-sales often made with about 10% of the deposits. However, the majority of condominium units have remained unlit at night. The occupancy rate is still low because there is a slow trend of relocating to condominiums among local population.
Kevin Goos, chief executive officer at Century 21 Cambodia, points out with optimistic outlook that condominium market in Phnom Penh will still continue to grow to cope with the increasing land prices, limited areas for housing developments in the central districts of the Capital, and the growing population.
“What we’ve seen here in Phnom Penh about the condominium market is just like what it happened in Thailand in the past 20 years,” said Kevin Goos. “Before, developers expected that condo market would be driven by expats, but the growing interest of local residents towards relocating to condominiums changed that perception because now most of the condo residents are Thai nationals.”
However, the study indicates that the increase of condo supply in Phnom Penh is owing to the optimistic outlook among the condo developers on the demand driven by expats, the growing population in the Capital, and the ASEAN Openness which is expected to bring in many more foreigners to work and live in the country.