Condo Market Remains Stagnant with No New Launches Expected for 2022

• 7 April 2022
• Local News
• 2029 Views

In the first quarter of 2022, the condo market in Cambodia has remained stagnant, with no new projects launched, while the price of high-end unit types continues to fall, according to CBRE Cambodia’s Q1 report released on 7 April.

With this stagnation, CBRE Cambodia has observed three new norms emerging in the market. First, buyers have more power and options than ever before, and tend to look for better value. Discounts encourage buyers to go for the best location, higher grade, and larger unit seize.

Second, most buyers will turn to invest in completed move-in ready projects rather than new ones to reduce the risk of unfinished construction.

Third, the market begins to question if 2022 would really witness zero new launches as oversupply issues remain with the market trying to absorb the old stock.

According to the report, three projects were completed in Q1, including Picasso City Garden in Boeung Keng Kang, The Peninsular Private Residences in Chroy Changva and M Residence in Boeung Keng Kang.

In terms of sale prices, high-end condominiums fell 4.1% compared to the previous quarter. However, affordable unit types rose 1.6% as some local people began to turn to the condo market.

By the end of 2022, the total supply of condominiums is projected to be nearly 50,000 units and will increase to nearly 70,000 units by the end of 2023, the report said.

 

• Analysis