How does the rise of new players affect the Borey market in Cambodia?

• 8 April 2022
• Local News
• 2126 Views

In the last six months, there were 39 new Borey projects launched, while the total accumulative Boreys is projected to rise to over 300 by the end of 2022, and to 400 by 2023, according to CBRE Cambodia’s recent report.

The most interesting fact about this surge in the number of Borey despite the pandemic is that almost half of the new Borey developers above are all new players.

This trend will continue as the Borey market is considered a low-risk investment with decent profit compared to other real estate subsectors, making it easy for new players to enter.

How will this rise in new developers and some of which are inexperienced affect the market?

CBRE Cambodia Associate Director in Research & Consulting Kim Kinkesa said having more new developers will make the market more competitive which will affect prices and supply.

“On the competition aspect, they bring more supply with more competitive prices, perhaps even in a concentrated location such as Dangkao district,” said Mrs. Kesa.

According to some analysis, given the competitive market, the developer may reduce the quality of construction to be able to sell it at a promotional price, especially for low-to- medium-price projects in the outskirt of Phnom Penh, which can be a risk for buyers.

Mrs. Kesa, on the other hand, said that new developers will bring more innovation into the market, which is beneficial for buyers.

“We observe that some new developers are more creative and willing to try new product offerings as opposed to established developers. This of course raises further competition, but perhaps in a more healthy manner as it can be beneficial for consumers,” she added.

 

• Analysis