CBRE: Condominium prices to face downward trend if COVID-19 continues

• 10 April 2020
• Local News
• 2629 Views

CBRE Cambodia has reported signs of a possible downward trend in condominium prices in the first quarter of 2020 and projected them to go down further if the COVID-19 socio-economic crisis continues.

The report, issued on 6 April, shows the effects of COVID-19 on real estate prices, especially condominiums price per metre in the high-end and mid-range sectors which decreased by 1.5% and 0.5%, respectively. Whilst affordable condominiums increased slightly by 0.3%, leads to average sale prices in this segment fell to US$1,549 per square metre.

Condominium rentals, on the other hand, have also been affected by current market conditions. The high-end and mid-range rental prices have dropped by 0.4% and 0.6% respectively, causing the average rental price for high-end condominiums to drop to US$14.21 per square metre and to US$11.79 per square metre for the mid-range condominium.

The impact of the COVID-19 pandemic on the confidence of the condominium sector appears to be at an early stage. The effect could be worse in Q2 2020 if the unease around the outbreak persists, leading to construction delays and leaving developers in debt, causing the sector to become unstable and potentially unsustainable.

CBRE report link download:

Cambodia_Phnom-Penh_Marketview_2020_Q1

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