Developments with Easy Access More Alluring to Investors

• 29 September 2020
• Local News
• 3573 Views

By Eric Wong Chon Lap

Cambodians are demanding more and better homes. As a result, urban developments such as units, semi-detached houses, townhouses and shophouses within the Phnom Penh vicinity are becoming an appealing investment option.

Units, semi-detached houses, townhouses and shophouses in Phnom Penh’s primary market have seen prices go up. This upward trend has not changed in the past few years as new supply of products in this segment, within the prime or easily access locations, developments well-connected to the city centre have been quite limited. Therefore, the price jump from the past years in the low-density housing property market will keep its momentum.

Locations within the outskirts of Phnom Penh, like Chroy Changva, Sen Sok and low-density housing developments within the major national roads including National Road No. 1 and National Road No. 6 are also in the limelight, courting capital flows from both developers and investors.

The growth is attributed to a range of diverse factors – for example, an increasingly comprehensive infrastructure, including good linkages with the city centre of Phnom Penh, such as Hun Sen Boulevard located in the southern part of Phnom Penh where vast land banks providing space for developing modern associated utilities, together with nice surroundings have created good investment value.

Furthermore, the gated communities provided within these developments feature a range of popular residential housing, offering a wide range of preferences in terms of floor area, number of rooms, and prices to accommodate the specific needs of each individual buyers. In addition, these gated communities also allocate spaces for children’s playgrounds, markets, parks and retail stores etc. They also feature 24/7 security through private security personnel and infrastructure to ensure the safety of the residents living within the compound.

Low-density properties attached to land are catching growing attention from prospective investors. One of the rationales is that it provides good liquidity in the local real estate market with an aggregate demand, backed up by strong demand and high payment capacity from the higher income group of buyers. These developments are expected to achieve buoyant returns in the years ahead when the market experiences a boom again after the current COVID-19 pandemic is over.

Locals purchasing these developments believe that satellite urban areas – for example, boreys developed by Borey Peng Huoth along National Road No. 1, or the Grand Phnom Penh City developed by Chip Mong Land, offer seamless infrastructure while staying within easy reach of the city. Many of these developments entice their buyers with attractive payment policy, in order to make a cost-efficient option for their property owners.

Future developments, or developments currently in the pipeline, will be built further away from the city centre. Therefore, established developments will definitely see an increase in value in the coming years with the rapid outward expansion of the Phnom Penh city.

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Eric Wong has extensive experiences in the field of property consulting and development sectors, primarily within the emerging markets of Southeast Asia. From the property consulting prospective, he has lead market research assignments inclusive of providing descriptive, exploratory market research and analysis reports within the office, residential, hotel and retail segments in both quantitative and qualitative methods to determine suitable development types, scale and product mix, and address property-related matters from project positioning to absorption rates, phasing and pricing and marketing strategies etc.

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