Where Should You Buy Your Next Home? Why South Phnom Penh is Gaining in Popularity

• 3 May 2021
• Local News
• 2658 Views

When purchasing real estate, timing and location form the two core pillars of any successful investment strategy. If you make the investment at the right time and in the right place, the results can be lucrative, satisfying, and boost your lifestyle.

Thus, it’s important to really study the trends and make the right choices. Now the big question: where and when should you invest?

In the fourth quarter of 2020, CBRE Cambodia’s research indicated that there were 279 real estate projects under construction across Phnom Penh, including 132 borey projects; 41-affordable, 78-mid-range, and 13-high-end. There were 13 condominium projects; 4-affordable and 9-mid-range. With so much choice on hand, it can be difficult to decide where to put your money.

According to CBRE Cambodia’s Director of Residential David Pen, the city’s southern districts should be first on the list.

David cites the new Phnom Penh International Airport as the catalyst, alongside the upcoming Aeon 3 project, the third ring road, and the presence of many more major businesses, and a plethora of residential projects as indicating a focus for land price and property value uplifts in the south.

“This is the area that has the momentum right now and with more projects and economic activity heading south the trend looks sustainable,” said David.

He added that the current situation has bought about more opportunities for buyers to snap up a good deal.

“In real estate investment terms, best deal means not the price achieved, but the value that has been purchased, and includes the payment plan, interest rate, promotion, quality, warranty, and the potential for future investment gain,” David explained.

“Developers are offering more flexible payment plans that fit everyone, many even offer zero down payment with and extensive pay-off periods. Banks are also offering increasingly attractive interest rates and generous lending terms – particularly for boreys,” he continued.

According to the data and market studies, David said that the time to invest is now, and the south of the city is the way to go.

“Investing in real estate is always good if you do it in a smart way, but it depends on how much gain you want from it. In more traditional city districts, the prices are still at or above their peak for this market cycle, so savvy buyers are looking for the next hot spot,” he added.

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