Phnom Penh house market resilient in Q3 despite COVID-19

Borey Lorn City is an ideal choice for Cambodians looking for a borey incorporating the latest trends in residential development. Supplied.

The Kingdom’s landed property market remains resilient 9 months after the global outbreak of COVID-19. While large and luxury apartment/condominium properties saw a slowdown in market activity, the landed property sector has been surging behind the spotlight; a growth that’s become more apparent as COVID-19 continues to stifle the high-end condominium market.

3-bedroom units (GREEN) surged at the beginning of the year and gradually fell off in Q3 2020. 2-bedroom units (BLUE) saw a gradual increase throughout the year. Market Trends.

Key highlights for Phnom Penh housing market:

• 3-bedroom house median prices surged in Q1 2020 but saw a steep decline in Q3 2020
• 2-bedroom house median prices saw a gradual increase in the first half of 2020
• Por Sen Chey, Chbar Ampov, and Chroy Changvar offer the lowest median sale prices for landed properties in Phnom Penh
• Median house prices, overall, saw prices double in a span of a year despite COVID-19

Road infrastructure development (e.g. ring roads and national roads) in the surrounding areas of major population centers like Phnom Penh have contributed greatly to the appreciation of land prices and landed properties. The government has also indicated that infrastructure development will continue despite COVID-19.

While more Cambodians are starting to appreciate condominium living, a large portion of the market still holds land and landed properties at a high value. This market preference pushes developers to deliver a continuous supply of boreys (especially affordable to mid-range) throughout 2020.

The locations of boreys are mainly scattered across the outskirts/suburban areas of Phnom Penh. In terms of prices, the districts of Por Sen Chey, Chbar Ampov, and Chroy Changvar offer the lowest median prices. These prices, however, are bound to see an increase in the coming years as more commercial and infrastructure developments are announced.

Cambodia’s landed real estate market is showing gradual recovery fueled by increasing demand from local buyers for affordable housing and landed properties. This growth will likely continue as COVID-19 cases are under control and infrastructure developments increase the residential & commercial viability of more areas around Phnom Penh.

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