Trend: Nominal house prices up by 1.8% y-o-y in Q3 2018
The average price of high-end condominium units in Phnom Penh increased 1.8% y-o-y to USD 3,226 per square meter (sq. m.) in Q3 2018. On a quarterly basis, high-end condo prices rose by 0.5% in Q2 2018 from the previous quarter.
Analysis: House prices to fall this year, amidst oversupply
Phnom Penh’s apartment prices are expected to fall this year, mainly due to the oversupply of apartments in the city, according to local real estate experts. The supply of condominiums in the city surged by 108% y-o-y in 2017, according to CBRE Cambodia. 2018 is due to see the highest supply of new units to date, with around 13,000 units scheduled for completion.
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: city centre apartment, buying price, monthly rent (120 sq. m)|
|Buying price||Rate per month||Yield|
Recent news: Cambodia’s economy grew by 6.9% last year, slightly down from its average annual growth rate of 7.2% in the past six years, according to the IMF. The economy is expected to grow by an average of 6.9% annually in 2018-19.