Sales and rental prices of condominium units logged a significant quarter-on-quarter increase in January-March, as four new projects were put up for sale in the capital. However, demand and prices will likely be brought back down in the second quarter by the ongoing lockdown restrictions, a new report revealed.
CBRE Cambodia, the local affiliate of US commercial real estate services and investment firm CBRE Group Inc, said in the report that the price of “high-end” condominium units averaged $3,087 per sqm in the first quarter of this year, up 4.8 per cent compared to the fourth quarter of 2020.
“Mid-range” units averaged $2,265 per sqm, inching down 0.4 per cent quarter-on-quarter, and “affordable” units hovered around $1,568, surging 3.5 per cent on a quarterly basis.
On the first quarter rental market, “high-end” units averaged $12.86 per sqm per month, up 1.7 per cent quarter-on-quarter, “mid-range” units went for around $10.38, climbing 1.3 per cent over the fourth quarter, and “affordable” units were $8.28, gaining 5.4 per cent from October-December.
The first quarter of 2021 saw the addition of 793 units to Phnom Penh’s condominium supply, raising the total 3.06 per cent quarter-on-quarter to 26,707.
CBRE Cambodia senior manager Kim Kinkesa expressed optimism about global economic growth and the rush to vaccinate against Covid-19 seen in early 2021, as investors gradually started making fresh investments and more Cambodians purchased homes to live in.
She told The Post on April 21: "The optimism before the outbreak of the February 20 community incident raised the purchase and rent prices for condos by a notch."
But the lockdown dragged down condo sales and prices at the onset of the second quarter, she said. "The lockdown in Phnom Penh at this time is sure to have an impact on buying and selling prices in the second quarter."
CBRE Cambodia estimates that 10,032 units will be added to the condominium supply nationwide this year.