Realestate.com.kh have opened up access to their 2024 Cambodia Real Estate Survey which will help property buyers and investors, renters, as well as professionals in the Cambodian property sector gain great insights into the market’s sentiment and trends.
The previous 6th edition of the Realestate.com.kh Cambodia Real Estate Survey indicated a good number of leading trends within the Cambodian property market. 12 months ago, the overall sentiment was positive as the Cambodia property and real estate sector was coming out of the global pandemic for its first full year.
More than 2,000 respondents, who consisted of Cambodians and foreigners, took part and provided their personal experiences and insights about a range of issues.
These included rental and purchase demand, spending power, consumer preferences, and locations of interest for renting and buying in Cambodia.
Complete the 2024 Cambodia Real Estate Survey
The leading Cambodian-based property platform said in October 2023 it was “pleased to launch the 2024 Cambodia Real Estate Survey” and is offering participants the chance to win a Samsung Galaxy S23 Ultra if they spend only 5 minutes to complete the survey.
Realestate.com.kh added, “The Cambodia Real Estate Survey is an annual initiative that we use to create valuable reports and insights on the local property market. Your answers go a long way in helping improve the Cambodian real estate industry.”
Questions include gathering insights on the pricing of the properties in the market, as well as the expectations for the market over the coming year (until the end of 2024).
For renters, similar questions along the lines of budgets, preference for types of properties, ideal locations and renting timeframes are all included.
Some Key Insights From 2023
In the previous survey, Phnom Penh was again overwhelmingly the most popular area for all buyers in the Kingdom, followed by Siem Reap & then Sihanoukville.
Within the capital, the three areas most in demand to buy property were:
- Chroy Changvar
- Chamkarmon / BKK
- Sen Sok
There were a large number of respondents last year who expressed their eagerness to buy but were unsure of their timing, so it will be interesting to compare the data in this new survey and whether the sentiment has improved during the past 12 months.
With a third of respondents indicating they were looking to buy property over 18 months since the survey was done a year ago, and with more than half under the impression that property prices in Cambodia would increase over this timeframe, how many have made purchases?
In terms of what buyers are seeking, the trends have already shifted and we have seen indications that buyers want better quality projects and there remains a strong preference for condos (the latter will always likely be the top choice for foreigners due to legal reasons). Buyers were also happy to wait until a project had been completed before purchasing rather than off-plan which had been the preference among many buyers pre-pandemic.
For potential buying opportunities, the quality of property was paramount, but other influences were the return on investment, location, price, and low-interest rates. Considering the interest rates and loan situation in 2023, it will be interesting to keep tabs on. The World Bank has already called for monitoring of signs the Cambodian real estate market could be overheating.
Cambodian Property Market 2023-2024
Cambodia has approved 20 per cent fewer properties in 2023 thus far compared to 2022. In total, just over 2,300 construction investment projects were approved, according to the Ministry of Economy and Finance.
However, the size of the areas and capital investment in the construction sector are showing signs of recovery with several large-scale developments on the go even though the overall number is down from 2022. Some industry experts believe this slowdown could also be seen as a positive as it allows the Cambodian condo market to absorb the existing supply as other projects are ongoing.
With regards to the pricing in Phnom Penh for condos in 2023, according to CBRE; high-end condominiums are $2,700 per sqm, mid-range $2,200, and affordable categories just under $1,500. Landed properties averaged quoting sales have been between $800 and $1,200.
The capital now has over 8,200 serviced apartment units and Boeung Keng Kang (BKK) is still the most popular area (containing a third of the total supply!) The total cumulative supply of serviced apartments in Phnom Penh is expected to reach around 9,000 units by 2026.
There are over 41,000 condo units in the capital - Chamkarmon has the highest number (22 per cent), followed by Sen Sok (18%), Mean Chey (18%), Toul Kork (11%), and Boueng Keng Kang (9%) as the top five areas. By 2028, the total supply is projected to reach 83,023 units.
In addition to investors focusing on quality products, secondary sales have also been one to watch.
Phnom Penh is likely to be the most popular destination again in this new survey and the south of the city seems to have gained a lot of attention in 2023. Only a few areas of the capital’s south featured as the most valuable of the 2023 land prices in Phnom Penh indicating there remain opportunities.
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