Condo Prices Are Plummeting Due To Oversupply And Fears Of Pandemic

Compass Cambodia report, August 10 - A slide in condominium prices in Cambodia may lead to more inexpensive residences for locals as developers seek a shrinking number of purchasers.

In the second quarter of this year, mid-range pricing in Phnom Penh fell 13.5% compared to the same period in 2020. According to data from real estate firm CBRE Cambodia, high-end property prices declined 7.9%, while affordable home prices plummeted 3.1%.

In response, several developers in Phnom Penh have refocused their projects on the local market, where they must compete harder for a smaller pool of consumers. To compete for local investors, many of whom are avid bargain hunters, developers have leaned extensively on discounting. This is especially true in the mid-range segment, which is the most competitive due to the large amount of goods available. The inexpensive market has fared the best, according to CBRE Managing Director James Hodge, because it is already well suited to cater to local buyers.

The second quarter was more difficult for developers than the first three months of the year, when affordable housing prices in Phnom Penh increased by 1.2% thanks to the debut of new projects. Mid-range condo prices fell 9.7%, while high-end condo prices fell 2.6%.

The scenario is similar in Thailand, where condo prices in Bangkok's central business district have fallen more than in other Southeast Asian cities, according to a poll by property firm Juwai IQI. Prices in Bangkok's central business district decreased by 6% year-on-year in the first quarter. Singapore prices increased by 7.6%, Kuala Lumpur prices increased by 5.9%, and Ho Chi Minh City prices increased by 0.7%.

Source: Compass Cambodia comprehensive arrangement

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

Compass global site: Cambodia | Singapore | UAE | Thailand | Philippines | Myanmar | Laos