Which Locations Better for Borey and Condo Development in Phnom Penh?

• 19 November 2021
• Property Focus
• 4166 Views

Thanks to the rapid real estate development in Phnom Penh, every location in the capital has attracted a huge investment from local and international investors who are willing to build projects such as factories, markets, schools, and especially Boreys & condos.

This trend has pushed land prices inside and outside Phnom Penh to significantly increase in value, especially for the locations adjacent to public and private development projects. Given that fact, which locations are the most popular if one wishes to invest in Borey and condo projects in Phnom Penh?

Sok Kimeng, General Manager of Sovanna Phum Real Estate, said if one wants to build Borey projects in Phnom Penh, location along and surrounding the Hun Sen Boulevard in the Meanchey district is the most favorable as it is the emerging area with high population density combined with growing residential and commercial activity. This area is conducive to residential living owing to the presence of Japanese Aeon Mall 3 and its proximity to the new Phnom Penh international airport.

Sen Sok district is another potential area for Borey development in Phnom Penh thanks to the improved infrastructure development and lower land price compared to neighboring Toul Kork district which is now considered Phnom Penh’s CBD,” Mr. Kimeng said.

According to Knight Frank Cambodia H2 2020 report, despite the severe impact on the real estate sector due to the COVID-19 pandemic, landed property (Borey) transaction remained positive, indicated by 12 new developments launched in H2 2020.

As for condo development, the most attractive location is not in the outskirt of Phnom Penh. Rather, it should be inside Phnom Penh’s CBD. Mr. Kimeng commented that Boeung Keng Kang I and the Diamond Island area remain the most popular for condo projects.

“If you have land and are willing to build a condo, the chance of success is high for long-term investment in those areas,” he said, “However, due to the negative impact of the pandemic, the condominium market has experienced a subdue quarter with two-thirds of the anticipated completion being delayed to next year.”

As of H2 2020, Phnom Penh had a cumulative landed housing supply of nearly 64,000 units. The highest housing concentration was in Sen Sok district with 23% (14,690 units) followed by Dangkor 17%, Russey Keo 12%, and Meanchey district 11%.

In the CBRE Cambodia Q3 2021 report, only two projects—The Peak located in Tonle Bassac commune of Chamkarmon district and The Gateway in Toul Kork district— reached completion in the third quarter this year while the other four projects were postponed due to the construction supply chain disruption, workforce availability crunches and cash flow distress brought about by slower than expected sale rates.

— By Harbor Property

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