Buy Now or Later? CBRE: Bigger Condo Units Gain More Favour from Investors

• 11 October 2022
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As condo prices in Cambodia continue to drop, some investors are looking to deploy their capital in this sector, mainly on larger units.

According to a recent CBRE report, larger units have gained favor with investors. With prices decreasing, investors have become more interested in larger unit types instead of studio and one-bedroom units.

However, the most important question that keeps investors from investing now is ‘buy or later’ and ‘will the price drop further?’

In Q3, prices of all grades of condo continued to drop compared to the previous quarter. The average quoted sale price decreased by 1.2%, 0.8%, and 1.2% respectively for high-end, mid-range, and affordable types.

Meanwhile, rental prices also dropped by 0.3%, 0.9%, and 2.3%, respectively, for the three grades.

There have been no new launches or completions of any condo projects. By the end of 2022 condo supply is expected to reach almost 50,000 units with more challenges up ahead.

Frozen projects will remain as only a small amount, while construction progress across the capital also continues to proceed at a slow pace. Large-scale construction sites in particular face a higher risk of delay.

Kim Kin Kesa, Associate Director of CBRE, said that condo projects have a bigger risk of construction being frozen than boreys (landed property) as the developer must finish every floor regardless of the number of units sold.

“For boreys, developers can build only the block that has been sold or mostly sold. However, condo developers cannot do so. Thus, before investing in a borey, one should consider buying the one where the construction is about to finish,” said Kesa.

“Furthermore, a bigger unit is a better choice than a studio or one-bedroom. Investors are interested in them more as they can utilize them not only for living space,” she added.

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