House prices down 9.09% during the year to Q3 2022
The average price of high-end condominium units in Phnom Penh plummeted by 9.09% y-o-y (inflation-adjusted) to USD 2,638 per sq. m. in Q3 2022, following annual declines of 11.65% in Q2 2022, 20.43% in Q1 2022, 11.38% in Q4 2021, and 11.2% in Q3 2021. On a quarterly basis, high-end condo prices increased by a miniscule 0.18% in Q3 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. While there were no new launches in Q3 2022, some frozen projects, with more than 9,000 units, have resumed operation. It is expected that 2022 will see additional completions of 13,000 condo units, according to CBRE Cambodia.
By end-2022, total accumulated condominium supply in the capital city is expected to exceed 45,000 units, based on CBRE figures.
Rents, rental yields: yields in Phnom Penh are moderately good, at around 5.33%
|Cambodia: city centre apartment buying price, monthly rent (120 sq. m)|
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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.