Borey Market Sees 15% Price Reduction in Past Six Months After Staying Robust for Over a Year

• 7 April 2021
• Local News
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The average quoting sales prices of borey units, or landed property, has seen a 13% to 19% price reduction across the different housing formats during the past six months between Q4 2020 to the end of Q1 2020, according to CBRE Cambodia’s recent Market Overview report.

This change is considered the most significant observation by CBRE, indicating that the borey sector is no longer immune to COVID-19 after staying robust for over a year of the pandemic.

According to CBRE Cambodia Senior Manager Kinkesa Kim, the price reduction is not solely caused by the COVID-19 pandemic, but also due to the surge in market competitiveness and the trend of moving project locations further out of the city.

“As more and more developers enter the market, promotions and price reductions tend to occur. Similarly, developers are also getting cheaper land prices further out of the city, which also make the selling price reduce,” said Ms Kinkesa.

Between Q4 of 2020 to Q1 of 2021 (6 months), there have been 11 completed projects, adding approximately 4,500 units to the market, or about 15% of the projected 2021 supply. There were also 21 new launches, which will add 15,500 units to the pipeline in the future.

 

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