PHNOM PENH: Real estate developers have cut sales of condominium units by an average of 13% to boost sales, as the market appears to have calmed down during COVID-19 due to a heavy reliance on overseas buyers. This trend, however, could be a good opportunity for locals who prefer to live in condominiums.
According to a recent report by international real estate firm Knight Frank and published on Z1, the average selling price of condominium units in the first half (January-June) of 2021 was $1,500 per square meter. In the second half, it will be reduced to $1,300 per square meter (July-December).
In comparison to the housing market, “the leading buyers are local customers, whereas the condo market is more reliant on foreign buyers,” Knight Frank experts wrote in the report. However, we see that the number of Cambodians purchasing condominiums has increased more, but this is still limited in comparison to market supply.
By the end of 2021, the supply of condominiums in Phnom Penh will have grown to over 27,000 units (equivalent to 95 buildings). By 2025, the supply is expected to exceed 78,000 units (equivalent to 175 buildings). According to the news,
According to the source, approximately 56 percent of the above condominiums will be priced in the mid-tier, meeting the growing needs of locals, middle-income people, and the growing number of foreigners living in Cambodia in the future.
Similarly, AMS ECONOMY stated that in the past, the Cambodian condo market of Covid-19 was heavily reliant on foreigners, including developers and buyers, but that due to the Covid-19 crisis, foreigners were unable to travel freely to Cambodia, and that this market has become dependent on local customers instead, and will continue to rely on local customers until the beginning of 2022, despite the crisis of the spread of Covid-19 type Omicron.