Residential

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Research Center

Residential Market Update – Q2 2019

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CBRE Cambodia’s Q2 2019 Residential Market Update focuses on trends in the condominium, serviced apartment and landed property markets, considering new supply, recently launched projects, pricing, rents and high performing projects.

Set against a backdrop of dramatic forecast increases in supply, the market performance remains robust, with prices steady and some increases in rents witnessed.

The condominium sector witnessed the completion of 8 projects during the first half of 2019, representing just 2,480 units and a considerable distance away from projected performance, likely due to continuing construction delays. The second half of the year is likely to see many more completions, propelling the market towards the forecast 2019 year-end supply figure of 31,100 units.

Developer activity has increased markedly since mid-2018, with the trend of rising numbers of new launches continuing into the first half of the year. 13 newly launched projects in H1 2019 have added 6,900 units to the future supply pipeline. Current supply increased 17% since the start of the year to 16,657 units.

Affordable developments remain a the predominant target for developers with new projects, and represented 67% of newly launched stock in the first half of the year. Rent have climbed in both the high-end and mid-range sectors, adjusting positively by 2.8% and 4.3% respectively, since the start of the year. Rents are likely to come under increasing pressure as new project completions start to kick-in towards the end of the year.

Serviced Apartments

CBRE witnessed most demand for 1 bedroom serviced apartment units during H1 2019, with 40% of enquiries seeking this unit type. 2 & 3 bedroom units, penthouses and villas saw relatively equal demand in the market.

Borey

Whilst the northern districts of Sen Sok and Russey Keo currently dominate the landed property market, current development trends highlight that future supply patterns will be much more wide-spread, with Chroy Changvar, Por Sen Chey, Dangkor and Chbar Ampov seeking significant volumes of development, whilst the more established districts are witnessing relatively little new supply under construction. This trend is likely due to shifting land prices which have increased strongly in established areas in recent years.

See full report for further details.