The Phnom Penh Real Estate Market in Q3 of 2020 remains under pressure from the COVID-19 pandemic. However, compared with neighbouring countries, Cambodia now shows the most significant recovery, according to a report from real estate firm CBRE Cambodia.
The same report also projects that because of the very low number of cases, thanks to effective government policy in coping with the pandemic, the market from Q4 onward will start to stabilise. Although it will not reach the pre-COVID-19 baseline by then, progress is expected to grow fast, because landed properties (boreys) tend to remain robust.
The report also suggests a four-step roadmap to recovery for the condo market. The first step is to focus on local buyers by introducing new marketing strategies such as attractive sale prices and flexible payment terms. The next step is to set a suitable price growth date and total unit quantum. Step three involves innovations, which mean developers should adjust their unit mixture and size to match the market demand. The final step is waiting for international buyers to return.
CBRE’s latest report shows that no condominium projects have been launched in the third quarter of this year, but three projects have emerged in a new phase for further supply.
CBRE said Phnom Penh still maintains optimism and will return to greater optimism in the future. It added that for the upcoming fourth quarter, four more projects will be completed with 2,600 units. However, construction in the condominium sector has been delayed with six projects being postponed that may be completed in 2021.
An Sothyta, director of CBRE Cambodia, said that in the third quarter, the condo market, which was severely affected by the economic crisis, began to grow significantly, with many projects. She said the current market demand for condominiums is mid-range, with prices ranging from more than $70,000 to just under $2,000 per square metre.
“The market is growing now because the developers have changed the strategy of their projects, taking back the market share from the Cambodian people, along with creating easy-to-buy programmes that are not only affordable but also offer easy payment.”
There will always be a demand for luxury condominiums in Phnom Penh. One project that will be providing this is The Palms by Oxley Worldbridge. The development is nearly structurally complete and set to be ready on time.
The Palms is a brand-new development in the heart of the capital that combines luxurious living, convenience and a touch of nature.
The Palms sits on prime land overlooking the Mekong River. It features more than 200 cluster homes and luxury villas that give residents picture-perfect views of the river while sitting amid greenery including a grove of palm trees.
It blends perfectly with nature thus affording the occupants a tranquil atmosphere that serves as an escape from the noise and bustle of the city.