Housing prices, being a crucial market indicator, have consistently gained the attention of investors and home buyers. In this article, we will break down the different housing prices in Cambodia.
Cambodia's Recent Housing Price Changes
Over the past 10 years, housing prices in Cambodia have been showing a steady upward trend. Especially in the capital city of Phnom Penh, due to the acceleration of economic development and urbanisation process, the rise of housing prices is more obvious.
According to the National Bank of Cambodia (NBC), house prices in Phnom Penh rose by an average of about 8.7 per cent annually between 2010 and 2019. This is mainly due to the rapid economic growth of Cambodia and the increase in foreign investment, which has greatly increased market demand.
However, due to the impact of the epidemic, Cambodia's real estate market has been hit to a certain extent, and there was a short-term decline in early 2020. With its economic recovery on the right track, coupled with the Cambodian government's stimulus measures and overseas investment, the market has begun to recover from 2022, and housing prices are gradually picking up.
What Is The Average Property Price?
As per a data report by the National Bank of Cambodia (NBC), the Phnom Penh housing price index is expected to reach 115.4 points in August 2022, marking a substantial 15.4% rise from the index based on 2020 figures. The housing price index is expressed in points, with each point representing a percentage change from the base year.
This surge in prices puts the average cost of a property in Phnom Penh at US$114,164.
How Much Do Apartments Cost In Cambodia?
Cambodia's development continues to flourish, it offers an increasingly diverse range of properties, with apartments becoming a popular choice among foreign investors. The price of an apartment can vary depending on factors such as location, property quality, and delivery standards provided by developers.
According to market research by Realestate.com.kh, the price range of apartments is typically between US$1,500 to US$3,500 per square metre, with high-end apartments in central Phnom Penh commanding prices above US$3,500 per square metre, and apartments in suburban or sub-central locations being relatively more affordable.
For instance, a studio apartment with an area of 50 square metres would cost around US$100,000 at US$2,000 per square metre, while a one-bedroom apartment with an area of 80 square metres would cost approximately US$160,000. Moreover, buying an off-plan apartment could provide a 5% to 10% appreciation in a short period of time and can offer interest-free instalment plans.
How About The Price Of Borey In Cambodia?
When it comes to borey, prices can vary greatly depending on factors such as location, size, and level of luxury. It's helpful to have market data as a reference, such as the Phnom Penh Post's report of an average price range of US$1,000-1,500 per square metre for suburban borey in 2019. Luxury borey can go for more than US$3,000 per square metre.
According to the market research conducted by Realestate.com.kh, it indicates that the average price of borey in Phnom Penh and surrounding areas will be around US$2,000 per square metre. Meanwhile, prices in other cities like Siem Reap and Kampot will be relatively lower, around US$1,000-1,500 per square metre.
While ultra-low prices may be tempting, it is important to consider other crucial factors before making a purchase. For example, buyers should investigate whether the developer has obtained the necessary legal documents, such as title certificates and construction permits, as well as the reliability of the development plan, to avoid any potential scams.
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