Which Real Estate Investment More Profitable Than Condos?

• 14 November 2020
• Local News
• 4615 Views

Real estate expert revealed that investing in the strata-title office is another new investment opportunity, which can be more profitable than investing in a condominium.

The strata-title office is a new type of real estate where individuals or companies can purchase office units in high-rise buildings, just like buying a condo.

Pointer CEO Nguon Chhayleang said that the condo market in Cambodia is starting to shrink, so if one can invest in something else, it can be a better opportunity.

“If you look at the market, office rental price is more expensive than in condominium, as in places we can buy at US$3,000 per square meters, but we can rent at US$25 per square meter, which is equal to 10% per year. Unlike condominium we can only rent at a maximum of 8%,” said Mr Chhayleang.

“Moreover, the office rental can last longer than condominium which is around six months to a year. However, the office tenants will last at least two years,” he added.

Mr Chhalyleang said that in addition to buying for investment, this type of property is also very beneficial for those who have their own office, which is more profitable than paying rent every month.

According to a report from CBRE Cambodia, the supply area of strata-title office in Phnom Penh has been steadily increasing since 2018 and projected to increase to nearly 400,000 square meters by 2021.

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