CBRE: Landed property sale prices to remain robust by mid-2020

• Sommana Yan
• 23 April 2020
• Local News
• 3807 Views

CBRE Cambodia has predicted that landed property (Borey) sale prices in Phnom Penh will remain robust in the first six months of 2020. However, prices may start seeing delayed corrections due to household cash flow distress caused by the outbreak of COVID-19.

According to CBRE’s report, one of the main drivers is due to the number of projects launched between late 2019 and Q1 2020, including projects completed in Meanchey (total 25 projects) and Chbar Ampov District (total 24 projects) with an overall supply of 49 projects in total.

Sen Sok district remains the leading district for landed property supply, while Por Sen Chey district is showing increasing potential as an investment location.
The most recent launches were seen from key local developers including three new projects by Borey Peng Huoth Group, one by Chip Mong Land, and one by Borey Chea Ry.

However, sale prices for landed property showed no sign of slowing down in the last six months of 2019. This momentum will be maintained until the second half of 2020, driven by strong local demand and strong confidence from property developers seeing it as a safe place for capital, leading to a rise in average prices for all unit types.

James Hodge, Director of CBRE Cambodia, explained in a Zoom conference on 15 April about the market view for Q1 that, “landed property has held up very well over the first quarter. So we saw three projects completed, five project launches and rising quoting prices. A lot of confidence there for Borey developers to raise their prices and continue to launch their projects.”

According to the same report, the quoting price in Q1 across five subsectors of landed property including villas, twin-villas, shop houses, link houses, and flats rose between 2.1% to 4.8%, compared to Q3 2019.

In a less positive scenario, CBRE Cambodia predicts the sale prices in the market could start seeing price corrections fuelled by household cash-flow distress due to the outbreak of COVID-19.

Dr Ky Sereyvath, an economics professor and also Director of the Royal Academy of Cambodia’s Centre for China Studies predicted that the construction and real estate market could rebound in 2021. (Read more)

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