Capital condominium supply forecasted to increases 120% in 2019

• 14 February 2019
• Property Focus
• 1050 Views

Construction delay in 2018 will see the supply of Phnom Penh condominium jump to 120% in 2019 with mid-range segment dominating the market, said CBRE Cambodia.

According to CBRE researched, initial forecasts estimate that a y-o-y increase in condominium stock of almost 100% will occur in the affordable segment by the end of 2019, increasing the total affordable supply to circa 7,057 units from 3,530 units at present.

Large in increase in supply is also expected in the high-end segment, which is forecast total around 10,611 units by the end of 2019, a considerable increase of 243% when compared to the current supply of circa 3,093.

Finally, the midrange segment is also set to witness a large influx in supply which shall total approximately 13,444 units, a y-o-y upward adjustment in total segment stock of approximately 78%.

CBRE Director, Ann Thida, said the increase of condominium supply is not the main problem because most of the units have been sold out, but this will impact the rental market.

“The increasing of condominium suppliers can be a big challenging in renting market. As completion is more than double, rental price will drop, so it is challenging for an investor when putting their unit out for rent,” she said.

“On the other hand, it will be good for the consumer, those who are looking for condo renting because they can have them, with the affordable price and good condition with new designing”, she added.

The World Bank’s most recent economic outlook projected that Cambodia completed 2018 with a real GDP growth rate of 7.1%, one of the highest in the region. This comparatively high growth rate is set to continue throughout 2019, with preliminary estimates set at 6.8% for the year.