300,000 condo units needed by 2030

• 19 September 2019
• Local News
• 3686 Views

With the lifestyles of the capital’s residents witnessing changing trends particularly among the younger generation, and while the prices of landed houses have increased, key real estate insiders say the demand for condo units will increase over the next five to ten years.

Real estate experts say the current demand for condos in Phnom Penh is relatively low compared to the more affordable landed houses.

But according to report by VTrust Appraisal, over the next ten years the trend of living will change due to city residents finding it difficult to buy affordable landed houses in the city. This is because the city will no longer have spaces for developers to build affordable landed houses. Based on report’s predictions, at least 300,000 condo units will be supplied on the Phnom Penh market by 2030.

Speaking at a meeting on Thursday on the current and future real estate situation, Him Seyha, research director at VTrust Appraisal said that from next three to five years, the construction and real estate sectors will remain healthy, but the change in lifestyles will increase demand for condos.

“From the next five years, development of new landed houses and boreys will not be built in the city anymore, which makes the price of landed houses in the city increase. The new landed house projects and boreys will be built at least 20km from the city centre, so if demand for new landed houses continues residents have to travel on 20 km every day to work at Phnom Penh and by 2030, the distance will be further,” Mr Seyha said.

At present, over 20,000 condo units are available on the market and including the condo projects now under construction, over 60,000 are expected to come onto the market.

Oknha Hann Kheang, First Vice Chairman of the Cambodia Constructors Association (CCA), echoed the remarks, saying that traffic congestion in the city, time on travelling, and the price of condo units being similar to landed houses located outside the city are factors encouraging people to buy condos in the city.

“More foreigners arrive in Phnom Penh, their workplaces are in Phnom Penh, and so they need condos, particularly at the moment. Travel in the city is not easy, and I believe that demand for condos will increase due to their price being relatively affordable,” Oknha Hann Khean said after the recent meeting held at CCA.

About 85% of available condos have been sold to foreigners, but Cambodian people will start to buy condos because of travelling far from the city, Oknha Hann Kheang said.

Chrek Soknim, president of the Cambodian Valuers and Estate Agents Association, said that although now most condo buyers are foreigners, when incomes of local people increase, the demand for condos by Cambodians will increase, particularly among the younger generation who prefer their privacy and ease of living with work conditions in the city.

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