The number of apartments in Phnom Penh is expected to almost triple from current levels by 2030, real estate valuers VTrust Appraisal said Tuesday.
Total rentable apartments in the city are expected to total 28,000 units, up from 9,021 units currently, VTrust said in a market report.
Within Phnom Penh, Chamkar Mon district has the most apartment units with 5,820 units spread across 230 projects – equivalent to 64 percent of total market supply, while Tuol Kouk has 1,446 units within 56 buildings, a 16 percent market share.
VTrust Appraisal director of research Hoem Seiha predicts the number of Phnom Penh apartment units to rise at a 10 percent compound annual growth rate until 2030.
“For the apartment (forecast), we based it on the number of tenants and expats and for the last few years, we have seen many Chinese arrived in the country, so we need more supply,” Mr Seiha said.
As of the fourth quarter of 2018, about 7,600 apartments in Phnom Penh were rented or leased, indicating an 84 percent occupancy rate. Chamkar Mon had an 86 percent occupancy rate while Tuol Kuok had 70 percent.
One-bedroom units were the most common apartments in Phnom Penh, accounting for 55 percent of the market. Two-bedroom units made up 34 percent of all apartments.
Cambodian Valuers and Estate Agents Association president Chrek Soknim said the country’s property sector has seen the stronger growth, compared to other countries in the region.
“For me, the property market will see strong growth over the next 5 to 10 years because the next generation will need modern home units, which will impact the property sector and present us the opportunity to register higher gains,” Mr Soknim said.