The Kingdom’s construction and property sectors have been on a slump for most of 2020. The usual foreign clientele, looking to develop and/or buy luxury properties for more attractive costs, have dwindled in the past year causing high-end projects to stall, drop prices, and even rethink marketing strategies.
Cambodia’s property sector is still not out of the woods almost a year later. According to Realestate.com.kh’s Market Trends, median sale prices for residential properties in Phnom Penh ended the year with up to 30% lower median sale prices.
Key highlights of the sale price trend in Phnom Penh:
November 28 incident applied additional pressure on the property market
Daun Penh, Chamkarmon, Chroy Changvar, and Toul Kork apartment/condo median sale prices down by as much as 30%
Meanchey, 7 Makara, and Por Sen Chey, apartment/condo median sale prices down by up to 11%
The new cluster of cases may apply an extended period of market pressures
Prices displayed on Market Trends are median sale prices found across Phnom Penh and are designed as a guide to navigate price ranges. Realestate.com.kh is advising interested buyers to visit the condominiums for sale in Phnom Penh page for the specific price of projects they may be interested in.
The considerable drop in median condo sale prices can be attributed to the first local COVID-19 transmission last November 28. The November 28 incident caused a new round of scares as local transmissions pose a large threat to economic recovery. The confidence built over the past months of cases trickling in was shaken as more people chose to stay home in the weeks following the incident.
In a report by the Khmer Times, Prime Minister Hun Sen declared that the November 28 incident has ended with health authorities effectively tracing and placing persons of interest under quarantine.
Last December 31, the National Bank of Cambodia released a forecast that the nation’s economy would grow by 4%. The report attributes the expected growth to a strong financial sector with the construction and property sectors expected to see renewed activity in line with the entry of foreign direct investments, revenue recovery, and the overall economic growth to follow. Though experts caution that without a working vaccine in circulation, prospects for growth are susceptible to further market disruptions.
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