Nominal house prices down 3.2% y-o-y in Q1 2020
The average price of high-end condominium units in Phnom Penh fell by 3.2% y-o-y to USD 3,167 per sq. m. in Q1 2020, based on figures from CBRE Cambodia. On a quarterly basis, high-end condo prices fell slightly by 0.5% in Q1 2020 from the previous quarter.
Housing market softens, amidst oversupply
Phnom Penh’s apartment market is expected to cool this year, mainly due to the oversupply of apartments in the city, and aggravated by low demand caused by the COVID-19 pandemic. According to CBRE Cambodia, an additional 2,843 units were added to the condominium supply in Phnom Penh in Q1 2020 following the completion of five projects. As such, the total condo stock increased about 16% q-o-q to 20,851 units.
Recently, the World Bank recommended that the Cambodian government should closely monitor the construction and real estate boom in the country by developing policies that could help reduce speculative activity.
Rents, rental yields: yields in Phnom Penh are moderately good, at around 5.33%
Phnom Penh apartment costs are low, at around $2,913 per sq. m.
| Cambodia: typical city centre apartment buying price, monthly rent (120 sq. m) | |||
| Buying price | Rate per month | Yield | |
| Phnom Penh | $349,560 | $1,553 | 5.33% |
Recent news: Cambodia’s economy grew by about 7% last year, slightly down from an expansion of 7.5% in 2018 but at par from an average annual growth rate of 7% from 2010 to 2017. Yet this year, the economy is projected to contract by 1.6%, mainly due to the economic fallout from the coronavirus outbreak, according to the IMF.
