Expert Predicts More Locals to Buy and Live in Condos in Future

• 30 March 2018
• Local News
• 1352 Views

The number of locals buying and living in condominiums in Phnom Penh has grown slightly in the past few years and is expected to increase more in the future, according to a leading real estate analyst.

In general, Khmer people usually prefer to buy a house with land rather than a room inside a building and sharing the space with others, which is why boreys have become the most popular property purchase choice rather than condos.

“There are still some local condo buyers, but only a minority who have spare money and just want to buy a condo, not for living in. That is why selling condos to locals were very hard in the past. On average, 80 percent of condo buyers are foreigners, and only 20 percent or less are locals,” according to founder and CEO of Key Real Estate Co., Ltd., and real estate analyst Mr Sorn Seap.

“However, over the past few years after the city has become more crowded and the traffic congestion has become a serious issue, we have noticed that the locals are tending to buy and live in condos more, but still not that much. I can say there is about a 5 percent or less increase each year. They are starting to feel that living in a condo is more convenient,” he explained.

As the inner city does not have much more spare land, most boreys are located far from the city centre where many work places and government offices are located. In contrast, condos can be built in the middle of city on a small piece of land, which is a strong selling point for condos over boreys.

“So location is the first reason why locals are tending to live in condos more. Due to traffic congestion, living in a condo inside the city centre is more convenient in term of accessing workplaces as well as other facilities. It can save time and the cost of traveling,” said Mr Seap.

Another factor that influences local people to choose condo life is the service factor.

“As professional people, we are all very busy with work. When we arrive home, we do not really have time to clean our home much. So, condos seem to be more convenient especially for those working people due to fact that condos have the cleaning service and other management systems,” said Mr Seap pointed out.

“Last but not least, the price of condos in the city centre is cheaper compared to the house in the same location which is very high. So for those who want to live in the city centre, condos will be a better choice,” he said.

Even though the trend has been changing, it is still only a slight change. Therefore, developers still cannot just rely on the local market.

“However, in the next 10 or 20 years, when the city gets busier and busier, I expect more locals to live in condos more especially the younger generation working people,” Mr Seap concluded.

• Analysis