More than 2,000 condominiums have been added to the capital’s market in the second quarter of this year, bringing the total supply to nearly 12,000 by the end of June, said a report by property agency CBRE Cambodia. The growth marks a 20 per cent increase from the first quarter.
The report, issued last week, notes that most of the added units are in Chamkarmon district’s Boeung Keng Kang and Tonle Bassac districts.
However, selling prices for both affordable and mid-range condos stood relatively still at $1,500 and $2,500 per square metre, respectively. High-end condominiums saw a price jump of about two per cent over the second quarter. It now stands at around $3,250 per square metre.
Jonathan Flexer, residential project marketing manager at CBRE said that both supply and demand for condominiums in the capital is still trending upward.
He said the ageing demographics and strong economic growth contribute to the industry’s vitality.
“The market is still in a good place for affordable and mid-range condominiums,” he said, adding that the new offerings will bring more choices to consumers.
The report showed that most mid-range and high-end condominiums have gotten funding from Chinese investors and are catering to a largely Chinese customer base.
However, Flexer urged developers to focus more on the demands of locals when it comes to affordability.
Century 21 Fuji Realty general manager Ouk Chhengly said about 80 per cent of its customers are Japanese, and that many high-end properties are having a hard time finding buyers.
“It is hard to sell if the price is above $2,000 per square metre,” he said.
Pol Lyta, the client manager for Tuol Kork district’s The Parkway project, said it had successfully sold 90 per cent of its offerings during its first phase, adding that half of its clients were Cambodian.
According to CBRE, the number of condominiums in Phnom Penh is expected to be around 20,000 units by the end of this year.