Over the past six years and amid the pandemic, Cambodia has developed a more affordable sales market with increased wages since 2016 and decreased real estate prices since 2020—an exception being land and landed properties.
Over 2,300 people participated in this year’s Cambodia Real Estate Survey by Realestate.com.kh. The respondents are a mix of Cambodians (47%) and Asians (29%) as well as Westerners (23%) who were born in the country.
While 82% of the responders believe properties are more affordable, a third noticed that prices had gone up over the past year, primarily among lands for sale. Therefore, land remains a core investment option as the top preferred property type to buy among both Cambodians and foreigners, followed by condo units.
Condo rentals are once again on the rise.
It is no surprise, as there would be plenty of eager tenants: 31% of all respondents indicated a desire to rent a condo or apartment, competing closely with other house types like link houses, villas, and shophouses. Especially popular is the Boeung Keng Kang 1 area in Phnom Penh. The survey also revealed that most local respondents have a monthly budget of between $500-$1,000 while around a tenth can afford over $2,000. This would make them capable of renting even high-end condos and serviced apartments dotting the BKK1 area.
Condos were also much more favorable among 60% of Chinese and 47% of Western respondents. Additionally, there is a wealth of commercial spaces and offices around, making it the ideal neighborhood for on-the-go professionals and working families who require a convenient residence. In the past, banks had only focused on existing housing stock and borey units, the latter having been a staple choice among home buyers for plenty of good reasons. Nevertheless, in response to these modern trends, these institutions have even begun to offer special financing options for local condo buyers. As for land location, Chroy Changvar district reigns supreme, influencing buyers with its promise of ongoing and future developments, its peninsular geography, and proximity to the new national stadium. Sen Sok likewise remains one of the most popular suburbs, with the two districts having in common massive land areas that could accommodate a multitude of investment categories.
Another trend pointed out in the survey is the domination of online platforms: 70% of respondents identified online channels as their means of searching for the right property, placing real estate agency in Cambodia with capable digital marketing teams at the front lines of facilitating the property market.
KH