The real estate market in the fourth financial quarter remains under pressure from the COVID-19 pandemic, of which retail is the most affected, followed by the office and condominium sector.
The land and borey sector tend to stay robust thanks to the strong financial position and high confidence of local developers, as well as the continuous government’s efforts in infrastructure development nationwide.
According to CBRE Cambodia, recent research entitled Market View Update Q4 2020: Where are we in the market circle?, landed property or borey are oversupplied at this stage of the market cycle. Serviced apartments, condominiums and offices (both centrally-owned and strata-titled) are in the contraction stage, meaning there are more vacancies plus more completions. The retail sector is in the recovery stage, where vacancies started to decrease with no new completions.
Despite the negative effect on the economy, the COVID-19 pandemic did also bring light to two real estate sectors – industrial estates and the retail high street. The industrial sector is projected to boom in the post-COVID-19 period because investors have learned their lessons and will diversify their factories’ locations even more – and Cambodia is one of the ideal choices.
Similarly, COVID-19 also helped standalone retail, known as high street retail, to expand. Because of the social-distancing regulation and customers’ fears, the retail sector such as big shopping malls tends to get fewer footfalls. Rather, the opposite happened to the high street, which has attracted more and more customers. This could lead the market sector to a future positive trend.
When it came to condominiums over the course of 2020, there were a total of 17 new launches, three expansions and eight completions. Another 13,016 units are expected to complete in 2021, leading to a 50 percent supply increase. In the meantime, sales price dropped for all categories, but the mid-range saw the highest decrease – 12.38 percent – followed by high-end (6.19 percent) and affordable (3.11 percent).
One condominium project in Phnom Penh that is gaining plenty of attention is The Bridge. It is among the newest additions to Cambodia’s booming real estate sector. The Bridge is luxury, beauty, convenience and comfort rolled into one.
The Bridge is located in a prime district, where government offices, retail shops, restaurants, entertainment joints, sports clubs, embassies, markets, banks, Diamond Island Convention Centre & Exhibition Hall, Phnom Penh City Hall, Aeon Mall 1 and other conveniences are just a short distance away. The Phnom Penh International Airport and other transportation hubs can be reached in less than 20 minutes.
The development also features The Bridge Lifestyle Mall, another high-end shopping destination. Collins Cambodia, a popular restaurant, is also located within its premises.
Occupants of The Bridge have access to a sundeck swimming pool, children’s playground, family gym, function halls, among other amenities. From their perch, they also have picture-perfect views of the Phnom Penh skyline, Tonle Sap, Mekong and Bassac Rivers.