House prices down 7.88% y-o-y in Q3 2020
The average price of high-end condominium units in Phnom Penh fell by 7.88% y-o-y (inflation-adjusted) to USD 3,041 per sq. m. in Q3 2020, worse than the previous year’s 3.47% y-o-y fall. On a quarterly basis, high-end condo prices fell by 1.25% in Q3 2020, also in inflation-adjusted terms.
Housing market softens, amidst oversupply
Phnom Penh’s apartment market has been cooling recently mainly due to the oversupply of apartments in the city, according to local real estate experts. In Q3 2020, condominium supply in the city rose by almost 4%, comprised solely of the completion of Urban Village Phase 1, according to CBRE Cambodia. It is expected that Q4 will see additional completions of 2,600 condo 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|
Recent news: Cambodia’s economy is projected to contract by 2.8% this year, according to the IMF, in stark contrast to a 7% expansion in 2019, as its main drivers of growth such as manufacturing, exports, and tourism are heavily impacted by the COVID-19 pandemic. The Cambodian economy grew by an annual average of 7.2% from 2011 to 2019.