The world’s contagious virus, Covid-19 has put a lot of businesses in a state of uncertainty everywhere around the globe, and it’s no different for Cambodia.
Various businesses and markets went through an undeniably challenging period, and have only started to recover recently. Among all the markets, condominiums underwent a rough patch as well, due to the majority of its targeted customers being foreigners.
However, this opportunity has opened the door for local investors who are middle-income earners, who earn between $500 and $2,000 a month to own and invest in this market.
As reported by real estate agency and consultancy, Knightfrank, the average price of condominiums in Cambodia during the first quarter of 2021 (January- June) was $1,500 per square metre, yet it shrunk down to $1,300 per square metre during the second quarter of 2021.
Although the majority of real estate investments in Cambodia are local investors, the condominium market remains heavily dependent on foreigners. The number of local investors is rising, though it’s relatively small in comparison to foreign investors.
Despite the ongoing challenge due to the pandemic, developers finally gained the confidence to resume their projects. Nine (9) condos have come to completion during 2021, which accounted for the total of 27,975 units across 95 buildings in Phnom Penh, and the number of condominiums supply is expected to increase to 78,648 units across 175 buildings by 2025.
With the growing condominium supply, a mid-tier condominium is expected to account for 56% of all condo types as developers continue to target the fast-growing middle-class population of Cambodia.
English text by: Khem Sreyneth
Click here to read the article in Khmer edition