July 2021 Condominium market overview in Phnom Penh

Cambodia’s property market saw a moment of reprieve in July 2021 with bumps in online searches for real estate and subsequent inquiries for projects continuing to market their discounts and flexible payment terms. This comes off the back of June 2021 that was reeling from Phnom Penh’s April-May lockdown.

Earlier in July, the government recently announced the conclusion of its mass vaccination campaign in Phnom Penh and has focused its resources on other provinces like Kandal, Siem Reap, and Sihanoukville. The government is implementing a mass vaccination campaign for children ages 12 to 17 as part of its goal to achieve herd immunity in major economic centres like Phnom Penh.

However, the recent spread of the COVID-19 delta variant has prompted health authorities to impose a new curfew in the first week of August. Google’s Mobility Tracker is starting to reflect the initial ramp-up of people choosing to stay home following the new lockdowns.

SALE PRICES IN PHNOM PENH

Sale prices for new developments in Cambodia remain well below pre-pandemic figures. This market continues to see adjustments as the pandemic situation in Cambodia continues to spell uncertainty in the short-term and most property seekers become more discerning in their investments.

Affordable and mid-range projects for the past year have been popular among the local market. The shift in attention by developers towards the local market has additionally highlighted the demand for flexible payment terms. Big developers are meeting this by forming partnerships with local banks to provide payment terms amenable to the majority of Khmer buyers.

July 2021 price and size breakdown for condominiums in Phnom Penh:

Most Phnom Penh developers continue to see comparably low sales activity, with a few notable exceptions. The PARC 21 Residence in Boeung Trabek surged in popularity in June-July 2021 having closed almost $1 million in deals. The Singaporean-designed project is reported to have another $800,000 worth of deals in the negotiation stage, according to its exclusive sales partner FazWaz Cambodia.

Realestate.com.kh, PARC 21’s exclusive marketing partner, notes the project’s popularity stems from meeting the demand of both local and international investors for projects with a strategic location, competitive pricing, and solid progress despite global supply chain disruption. The PARC 21 Residence is expected to be completed by June 2022.

The disruption in global supply chains affected many of the new developments in Phnom Penh causing delays in construction As a result, investors still looking to invest in Cambodia have started looking at projects close to completion and even finished ones.

The Silvertown Metropolitan is a completed project in BKK1 seeing renewed attention from property investors. Developed and managed by Naki Realty, Silvertown Metropolitan is a well-known serviced apartment among high-end renters in Phnom Penh. The project recently restarted its marketing efforts as providing a foot-in-the-door in the high-end renters’ market and as a finished project - saving investors the worry of “will this project be finished?”.

RENT PRICES IN PHNOM PENH

Phnom Penh’s residential rental market has largely stabilized within the pandemic market. Realestate.com.kh’s Market Trends shows little-to-no changes from last month’s recorded prices.

June 2021 Price Trends by Bedroom for Apartments for Rent:

• 1-bedroom apartment rent per month: 600 USD (No change from June)
• 2-bedroom apartment rent per month: 1,000 USD (No change from June)
• 3-bedroom apartment rent per month: 1,800 USD (No change from June)

June 2021 Price Trends by Bedroom for Houses for Rent:

• 2-bedroom house rent per month: 800 USD (No change since June)
• 3-bedroom house rent per month: 1,500 USD (6.25% decrease from June)

The renters’ pool in Phnom Penh remains low compared to 2019, before the pandemic prices. Until foreign workers and tourists return, rental landlords will have to find ways of attracting new renters and understanding the needs of their remaining tenants.

District and Property Type Popularity in Phnom Penh

Realestate.com.kh cites an increase in property searches in July 2021 across 8 districts in Phnom Penh. Property searches surged once again in July following confidence that there would be a return to “normalcy” within the context of COVID-19. Most popular districts in Phnom Penh as of July 2021:

• Chamkarmon - Remains the most popular district to look for property in Phnom Penh. Most users look for apartments/condos and landed properties in Tonle Bassac and Toul Tompoung I. Boeung Trabek also surged in popularity due to PARC 21 Residence. Most popular property types searched:

1. 1. Apartment/condo
   2. Landed house
   3. Commercial property
   4. Land property

• Boeung Keng Kang - One of Phnom Penh’s CBD, the BKK1 area remains a popular choice among many property seekers due to its central location and array of modern residential choices and quality-of-life conveniences. Most popular property types searched:

1. 1. Apartment/condo
   2. Landed house
   3. Commercial property
   4. Land property

• Daun Penh - The primary CBD of Phnom Penh where key tourist attractions are located and where most business and financial companies are headquartered. It is the central district of Phnom Penh and is the most developed. Most popular property types searched:

1. 1. Apartment/condo
   2. Landed house
   3. Commercial property
   4. Land property

• Chroy Changvar - This peninsular district has overtaken other outer districts like Sen Sok as property developers and home buyers look to this area as the next suburban development hotspot in Phnom Penh. Most popular property types searched:

1. 1. Landed house
   2. Apartment/condo
   3. Land property
   4. Commercial property

• Toul Kork - This central district is adjacent to Daun Penh and is comparable to the convenience found within the CBD. Most popular property types searched:

1. 1. Apartment/condo
   2. Landed house
   3. Commercial property
   4. Land property

Realestate.com.kh’s Condominium Market Overview in Phnom Penh is a monthly report based on its internal developer tracking and data collected from over 35,000 live property listings across Cambodia.

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