Cambodia’s property market saw a moment of reprieve in July 2021 with bumps in online searches for real estate and subsequent inquiries for projects continuing to market their discounts and flexible payment terms. This comes off the back of a June 2021 that was reeling from Phnom Penh’s April-May lockdown.
Cambodia’s property market
Earlier in July, the government recently announced the conclusion of its mass vaccination campaign in Phnom Penh and has focused its resources on other provinces like Kandal, Siem Reap, and Sihanoukville. The government is implementing a mass vaccination campaign for children ages 12 to 17 as part of its goal to achieve herd immunity in major economic centres like Phnom Penh.
However, the recent spread of the COVID-19 delta variant has prompted health authorities to impose a new curfew in the first week of August. Google’s Mobility Tracker is starting to reflect the initial ramp up of people choosing to stay home following the new quarantine measures.
Sale prices for new developments in Cambodia remain well below pre-pandemic figures. This market continues to see adjustments as the pandemic situation in Cambodia continues to spell uncertainty in the short-term and most property seekers become more discerning in their investments.
Affordable and mid-range projects for the past year have been popular among the local market. The shift in attention by developers towards the local market has additionally highlighted the demand for flexible payment terms. Big developers are meeting this by forming partnerships with local banks to provide payment terms amenable to the majority of Khmer buyers.
July 2021 price and size breakdown for condominiums in Phnom Penh:
Most Phnom Penh developers continue to see comparably low sales activity, with a few notable exceptions. The PARC 21 Residence in Boeung Trabek surged in popularity in June-July 2021 having closed almost $1 million in deals. The Singaporean-designed project is reported to have another $800,000 worth of deals in the negotiation stage, according to its exclusive sales partner FazWaz Cambodia.
The disruption in global supply chains affected many of the new developments in Phnom Penh causing delays in construction As a result, investors still looking to invest in Cambodia have started looking at projects close to completion and even finished ones.
The Silvertown Metropolitan is a completed project in BKK1 seeing renewed attention from property investors. Developed and managed by Naki Realty, Silvertown Metropolitan is a well-known serviced apartment among high-end renters in Phnom Penh. The project recently restarted its marketing efforts as providing a foot-in-the-door in the high-end renters’ market and as a finished project – saving investors the worry of “will this project be finished?”.