Condo Market to Recover in Q1 2021 Despite Short-term Stagnation

• Kongleaphy Keam
• 15 July 2020
• Local News
• 4958 Views

The condominium market in Cambodia has been not severely impacted by the COVID-19 pandemic and is likely to recover in Q1 or Q2 of 2021 onward, according to CBRE Cambodia Managing Director Ann Sothida during an interview with Fresh News on 13 July.

Ms Sothida said the negative impacts of COVID-19 on the condo market have not been severe, especially compared to the hospitality and retail market. More importantly, the effect on the condo market will not last long.

“Maybe in the first or second quarter next year, the situation will improve. In particular, mid-range and affordable condominiums will remain popular in the market,” she added.

However, Ms Sothida told the press that condominium rentals are declining as a lot of foreigners had returned home and new ones haven’t come back to Cambodia yet. This has led to high vacancy rates, recorded as being between 30% to 50% at present.

According to a CBRE report released on 07 July, condominium rental prices fell by approximately 7% to US$13/sqm for high-end condos, and by 6% to US$ 11/sqm for mid-range ones.

Meanwhile, selling prices also decreased slightly, by 4% to US$3,000/sqm for high-end condos, by 5% to US$2,400/sqm for mid-range models, and by 0.65% to US$1,500/sqm for affordable units.

“Even though the market is slightly declining, if we have good cash flow, we should grab the investment opportunities. When the market recovers, we will have a chance to make a profit. Sometimes, if we wait for the market to recover, we might not be able to grab that opportunity,” she added.

During the first half of 2020, no new projects were completed. However, three projects have been launched which are the Leedon Heights project located next to AEON2 Shopping Mall (read more), the Le Condé BKK1 project in Boeung Keng Kang 1, and the Grand Condo 7 project in Chroy Changva. These three projects will add approximately 2,252 units to the market supply.

• Business and Market