House prices down 11.65% during the year to Q2 2022
The average price of high-end condominium units in Phnom Penh plummeted by 11.65% y-o-y (inflation-adjusted) to USD 2,670 per sq. m. in Q2 2022, following annual declines of 20.43% in Q1 2022, 11.38% in Q4 2021, 11.2% in Q3 2021 and 10.32% in Q2 2021. On a quarterly basis, high-end condo prices dropped slightly by 0.36% in Q2 2022, also in inflation-adjusted terms.
Housing market cooling, 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. It is expected that 2022 will see additional completions of 13,000 condo units, according to CBRE Cambodia.
In Q2 2022, there were four major condominium developments completed in Phnom Penh in the affordable and mid-range segments, delivering over 3,000 units – up 9.5% from the previous quarter. By end-2022, total accumulated condominium supply in the capital city is expected to exceed 45,000 units, according to CBRE.
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 advanced by 5.1% during 2021, in sharp contrast to a 3.1% contraction in 2020, thanks to increased private consumption and the rise in tourist arrivals as coronavirus restrictions loosened. Before the pandemic, the economy grew by an annual average of 7.2% from 2011 to 2019.
The Cambodian economy is projected to grow by 5.1% this year and by another 5.9% in 2023, amidst a strong rebound in exports and domestic consumption, according to the IMF.