Condominium prices and rents slide in Q3

Oversupply and a lack of foreign buyers are pushing down condominium prices across the range from high-end to affordable in Phnom Penh and causing many developers to delay and reposition their projects, according to the local arm of the world’s biggest real estate company. CBRE Cambodia says it has seen sales prices fall by between 1.8 percent and 3 percent across all grades in the third quarter of the year, compared with the previous quarter.
“High end condominium prices right now are looking at around $2,700 per square metre,” said Kinkesa Kim, senior manager of research and consulting services. “For the mid-range we are looking at a price of around $2,300 and around $1,300 for the affordable segment,” she said.
The lack of foreigners in Phnom Penh is hurting condo sales and online events are doing little to increase business so many developers are turning to look at local buyers, according to Kim.
“Overseas sales are particularly challenging because of the restrictions on travel and we have heard a lot from developers that this is not helping at all. Any virtual site visits, or sales events they are conducting in particular, help them to keep their names heard in the overseas market but that doesn’t necessarily translate into sales. What we are seeing right now is that a lot of condominium projects are  shifting the focus into the local market and fighting for a share of the pie,” she said.

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