NBC: Condos Take the Lead as Housing Market Adjusts in 1H 2023

The real estate dynamics in Cambodia are undergoing a significant transformation, with the first half of 2023 revealing intriguing trends. According to a recent report released by the National Bank of Cambodia, the sales of flat houses, single villas, and twin villas experienced a decline of 64.7 percent, while condominium market has surged with a positive 12.9 percent increase.

The Real Estate Business and Pawnshop Regulator, in conjunction with meticulous calculations by National Bank of Cambodia officials, contributed to these insightful findings. As traditional housing segments showed a downturn, the condominium market displayed a robust growth trajectory.

The report further delved into the Residential Property Price Index (RPPI), highlighting the changes in Cambodia’s property prices. In Phnom Penh, house prices escalated by an impressive 6.9 percent, while in provinces beyond, the increase stood at 5.3 percent.

Notably, the construction sector exhibited resilience during the initial months of 2023. This resurgence is evident in the upswing of construction material imports by 0.4 percent, amassing a value exceeding US$900 million. Such figures underscore a sector embracing recovery and rejuvenation.

The Ministry of Land Management, Urban Planning, and Construction has played a pivotal role in shaping Cambodia’s property landscape. While the report anticipates a 1.3 percent augmentation in the cost and area of approved construction projects, the number of projects witnessed a marginal 9 percent decrease.

Propnexkh, a local real estate firm, released a corroborative report elucidating the trajectory of the land sector. In 2022, growth rate scaled to 6 percent, followed by a continued descent to 10 percent in the first half of 2023. This marked the first instance of a downturn in growth rate in four decades.

As the property market adjusts to novel dynamics, the rise of condos and shifts in traditional housing trends underscore a dynamic era for Cambodia’s real estate. The commitment of industry stakeholders, reflected in data and trends, speaks volumes about the sector’s adaptability and potential.