Uncover the Secret Behind the Change in Cambodia's Property Market in June, Which District of Phnom Penh Is the Most Suitable for Investment?

Compass Cambodia - According to CBRE data, the domestic approved construction investment in Cambodia showed a downward trend in the first half of this year, with a year-on-year decrease of 27% in quantity and 39% in total investment.

Even so, as one of the key industries in Cambodia in last recent years, real estate still shows a stable development trend in the face of the still severe epidemic situation.

According to the latest data of Compass Real Estate, the average price of a new house is $1928 /m², while the overall rental in Phnom Penh remains at around $3,500/ month (including villas and senior apartments). Besides, there was no significant rise or fall in the national new house and Phnom Penh rental market at the same time.

The national new house price remained stable in June, which is at $1,928/m² 

According to the latest data of Compass Real Estate, the national average price of new houses in Cambodia in June was $1928 / m², with no obvious rise or fall. Moreover, Phnom Penh and Sihanoukville are still the leaders in the property market.

It is worth noting that the average price of new houses in Sihanoukville this month is slightly higher than what it was in Phnom Penh, which is at $1995 / m². Exactly in fact the property market in Sihanoukville has been cold for a long time, but the reason that the average price is slightly higher is caused by the total number of projects that were being on sale in this province is less than in Phnom Penh, while there is a project with a high unit price such as Prince Tian Xi Wan. These kinds of projects have been raising the overall average price. On the other hand, major developers in Phnom Penh have made price adjustments to stimulate the market during this period too.

In addition, in other provinces and cities, the average prices of Siem Reap, Kandal, Kampong Cham, and Kampong Speu Province are $1445 / m², $1422 / m², $1464 / m², and $626 / m² respectively.

Apartments account for half of the supplying in new houses market in the whole country 

Firstly, In Cambodia, especially Phnom Penh, the influx of foreigners has brought a lot of housing demand in the last ten years, yet the local traditions like townhouses and shophouses do not adapt to the living concept of foreigners. Secondly, with the growth of a new generation of Cambodians, the living concept of local people also start beginning to change, which that the apartments now became the ideal residence for most of the local people. Under these dual factors, the demand for apartments is becoming larger and larger, the market supply always remains at a high level as well.

According to the latest data of Compass Real Estate in June 2021, among the new house products that had been sold, the apartment products had occupied an absolute advantage, which had been accounting for about 49% of the total market, with an average price of $2146 / m².

Furthermore, according to CBRE's "2021 Mid-Year Review", there will be 5 major projects in Cambodia that will have to be completed by the end of this year, of which 1,273 will be completed in mid-year, and 6,636 will be completed by the end of the year.

Popular Monthly Real Estate Rankings 

In June, the most popular real estate ranking listing is still mostly taken up by Phnom Penh projects. R&F City, which is located at the core area, which has complete supporting facilities and convenient transportation, this time has ranked first in the list. It is worth to added that the project has been successfully delivered their product in this June. As for the existing house sales, the buyers can move in right away after making the payment.

The second place is Agile Sky Residence, which is the only four-fold sky garden high-end apartment in Phnom Penh. It is located in the golden residential area that is surrounded by a large number of foreign elite population.

The third is Coastal city·Stardream Lake Tourism Town located in the core area of Coastal city, it is the second-largest mangrove forest in the world. Close to Coastal city International Airport and the Gulf of Thailand in the south. The Coastal city Coast has a unique location advantage and is endowed with many native resources.

District distribution of new project in Phnom Penh

Phnom Penh, as the main position of the national new house market, in June, its new house sales projects are mainly distributed in Chamkarmon District and Sen Sok District. These two areas have been known as the well-known central business District in Phnom Penh with the strongest development momentum in recent years.  Chamkarmon District and Sen Sok District, each had accounted for 18% of the new house market in Phnom Penh.

Besides, Pou Sen Chey District which is another key area of Phnom Penh's new house market, it had accounted for 14%. Lastly, Mean Chey District/ Chroy Changvar District/ Dangkor District all 10%.

In terms of price, the highest average price of new houses in Phnom Penh is in the areas of Doun Penh District, with an average regional price at $2991 / ㎡ that is $1016 / ㎡ higher than the average of Phnom Penh. Doun Penh District itself is the center of Phnom Penh, with many well-known tourist attractions, including The Royal Palace. At the same time, it is also gathering the best-supporting facilities of the city, so the average price there is undoubtedly higher than others. 

The next highest is Chamkarmon and Chbar Ampov District, with the average price of new houses is $2,662 / ㎡ and $2,539 / ㎡ respectively.

This June, the apartments had accounted for 57% of the Phnom Penh rental market 

According to the latest data of Compass Real Estate in June 2021, the average rental price in the rental market of Phnom Penh, Cambodia, remained at $3500 / month, with no rise or fall year-on-year. In terms of rental housing distribution, apartments (high-end apartments) are still the main force, accounting for about 57%, a year-on-year decrease of 3%.

Among them, single room rental apartment accounted for 42% of the apartment rental market, with an average monthly rent of $733 / month; 2-bedroom apartment accounts for about 32%, and the average monthly rent is $1604 / month; The monthly rent of the 3-bedroom apartment is $2150 / month, accounting for 11%. Among the three house types, the average rent of 2-bedroom and 3-bedroom had increased by 4%, while the rent of 1-bedroom did not change significantly year on year.

In terms of District distribution, Chamkarmon District which is a CBD of Phnom Penh that had been deeply loved by foreigners and local young people. This month, its rental market has developed well, especially for apartment products, which have occupied nearly 60% of the Phnom Penh apartment rental market. Second, Prampi Makara District, another business circle, accounted for about 8% and ranked second. 

The average monthly rent of the villa is $4,123

According to the latest data of Compass Real Estate, the average rent of renting a villa is $4123 / month this June. In terms of supply, Chamkarmon District still leaded other fields by accounted 34% of the total. Meanwhile, the rental villas in Chbar Ampov District account for about 14%, and Toulkork District/Sen Sok District, ones accounted for 12% respectively.

In terms of the house plan, the rental villa in June is mainly occupied by 4-6 bedrooms, with the average monthly rent is $3,216 / month.

June 2021, the average monthly rent of a Townhouse is $1,749

The supply of traditional residential townhouses in the rental market has not changed significantly compared with the data in May. It still accounted for about 5%, with the average monthly rental price is about $1,749. 

In terms of District distribution, Chamkarmon District also has pushed out more supplies, which had accounted for 53% of the market, and its average rent is $1,901 / month.

Following is Sen Sok District with the accounted of 12% and the average monthly rent in the area is $1,395 / month. 

The average monthly rent of the Shophouse is $4,468

Similarly, the proportion of rental shophouses in the rental market is not high, still accounted for about 4%, and mainly distributed in Chamkarmon District, Toulkork District, and Doun Penh District.

The average rent of shophouses in June was about $4,468 / month, down 27% month on month. 

Phnom Penh's Shophouse rental market is characterized by its large regional price differences. For example, the average rent of the shophouses in Chamkarmon District and Doun Penh District can exceed the 5 prefixes, reaching about $5,140 / month and $5,077 / month, and the average rent of Shophouses in Toulkork District is only $2,576 / month.

The Warehouse supply is mainly occurring by the products from Toulkork District 

In terms of the rental warehouse, the market share is remained at 4%, with no increase or decrease year on year. The supply of these rental types is mainly in Sen Sok District, accounting for about 43% of the total supply of warehouses.

The average rent of the warehouse in June was $,2609 / month, of which the average rent of Sen Sok District was $2,518 / month and Pou Sen Chey District was 1,963 / month.

The commercial leasing market continues to be depressed

Although the Cambodian government has taken various measures to prevent and control the epidemic, yet the pandemic was still exacerbated again this June, which brought a continuous blow to the commercial leasing market. 

Hotel  : the monthly supply accounts for about 3%, and the average monthly rent is $22,999 / month, down 18% month on month;

Office : the supply accounted for about 3%, and the average rent was $9,632 / month, a 4% increased month on month; 

Shops: the supply accounts for about 2%, and the average rent is $5,936 / month. In terms of regional distribution, the supply of shops is more in Chamkarmon District and Doun Penh District, which has accounted for 43% of this market;

Factory: the supply accounts for about 1%, and the average rent is $14,182 / month;

Land    : the supply accounts for about 2%, and the average rent is $11,019 / month or $3.47/m2/month. It was mainly distributed in Sen Sok District.

The new housing market still focuses on maintaining stability, and the apartments / high-end apartments ranked first in the market. Besides, even under the declining trend, the new house prices in Cambodia are still strong, and the value of the real estate is also still more prominent.

In terms of the leasing market, the commercial category was significantly affected by the epidemic. Meanwhile, there was no significant difference in other types of leasing year-on-year. It is worth mentioning that the rental market is still stable in the core areas of Phnom Penh, such as Chamkarmon District and Doun Penh District.

Source: Compass Cambodia Original

Editor: Thangnyth         Chief Editor: Sunnie         General in Chief/Executive Producer: Nicole

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