Cambodia’s real estate sector experienced strong growth in the first half of the year, with robust market absorption for landed housing and condominiums, according to the latest report from VTrust Appraisal.
Phnom Penh’s Property Market Update H1-2019 notes that 13,900 landed housing units from 82 projects were launched, while 4,600 were built.
Residential link-houses represented about 65 percent (9,100 units) of the new launches, followed by purpose-built shophouses (21 percent or nearly 3,000 units).
The report adds that market absorption for landed housing was 10 percent in the first half of 2019 (12 months for supply to be sold), while it was only 8 percent in the first half of 2018 (15 months for supply to be sold).
The condominium market saw 6,600 new unit launches in the first six months of the year, while 6,200 units were built.
During that period, the market absorption for condos was 3.7 percent (32 months for supply to be sold), compared to 4.3 percent in the first half of 2018 (28 months for supply to be sold).
Hoem Seiha, VTrust Appraisal director of research, said the strong market absorption rate is a sign of the sector’s health.
“The condo market in Cambodia is strong and demand is starting to grow, particularly among local buyers,” Mr Seiha said.
The report notes that in H1, office supply of all types in Phnom Penh totalled more than 638,000 square metres. The standalone office segment had the largest share with 36 percent, followed by large office (29 percent), small office (18 percent), and medium office (17 percent).
New retail supply in Phnom Penh amounted to more than 147,000 sqm. As of June, total retail supply (completed, ongoing and new launch) in the capital cumulatively reached nearly 1,000,000 sqm, of which 825,000 sqm was completed.
Chrek Soknim, president of the Cambodian Valuers and Estate Agents Association, said the real estate sector in Cambodia will continue its robust growth in the next five years.
“Based on the number of sales, the real estate market is performing well. Real estate agents are still generating profits,” he said.
“Cambodia’s real estate sector will continue to thrive in the next five years, particularly in Phnom Penh, Sihanoukville, Kep, Kampot, Siem Reap, Battambang, and Koh Kong,” Mr Soknim said.
“This growth is made possible by higher incomes among locals, the support of commercial banks, government’s efforts to develop infrastructure and regulation, and the country’s political and macroeconomic stability,” he added.