Phnom Penh condominium demand set to grow

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Re: Phnom Penh condominium demand set to grow

Post by armchairlawyer »

Duncan wrote: Mon Mar 02, 2020 9:35 pm
armchairlawyer wrote: Mon Mar 02, 2020 8:57 pm Interesting piece from the Global Times (Party-approved news) saying that the housing market in China will fall 50% in Q1 2020, but a rapid recovery thereafter (naturally).
https://www.globaltimes.cn/content/1181237.shtml
And read carefully,,, they say the market, not the price,,,,, meaning the demand / sales.
I'm surprised the headline didn't make it clearer. You're right, it would be easy to read it as referring to price.
The article does mention prices will need to be cut to some extent (temporarily of course).
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Re: PP condominium demand set to grow

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Duncan wrote: Sun Sep 22, 2019 3:05 pm
paul.smith wrote: Sun Sep 22, 2019 11:29 am The building of new condos and apartment will lead to an inevitable over supply and empty tower blocks with not enough tenants to pay the building maintence I have already seen this in Spain. Chinese money speculating on property but as other commentators have already pointed out who is going to rent and buy all these new properties?


Take a walk along riverside tonight and count how many Cambodian families have 3 or 4 kids. Everyone here is having babies, babies and more babies.
You don't need a reason, don't need money and you don't need a husband and noone says no you cannot have a baby. Cambodians maybe not very good at manafacturing things but they are good at making babies.

So there is your answer.,,, Those buildings will be empty for a while but eventually they will slowly fill up with people.
Sure, massive demand from 4 kid families for 1 single bed condo
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Re: Phnom Penh condominium demand set to grow

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Years before the condo boom here, I taught a university English course. One of my students who was majoring in architecture, was proudly showing me his blueprints for a large apartment building, so I asked him "Would you like to live in that building?" He looked at me as if I was crazy and said "No way. What if there was a fire? How could I get out?"
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Re: Phnom Penh condominium demand set to grow

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Crumbling prices, rent ruffle condo segment
Hin Pisei | Publication date 08 July 2020 | 22:37 ICT
The prolonged decline in international arrivals to Cambodia intensified by renewed Covid-19 fears has driven down condominium sales prices and rental rates in Phnom Penh, a research report said.

CBRE Cambodia, the local affiliate of US commercial real estate services and investment firm CBRE Group Inc, said the price of high-end condominium units averaged $3,041 per sqm in the second quarter of this year, down 3.98 per cent compared to the first quarter.

Mid-range condominium units averaged $2,441 per sqm, a 4.61 per cent quarter-on-quarter dip, while affordable units averaged $1,539, falling 0.65 per cent on a quarterly basis.

Monthly per-sqm rental rates during the second quarter were $13.18 for high-end units, shrinking 7.25 per cent from the first quarter, and $11.12 for affordable units, sinking 5.71 per cent.

In the first quarter, high-end units went for around $3,167 per sqm, down 0.53 per cent compared to the fourth quarter of last year. Mid-range units fetched about $2,559 per sqm, slipping 1.39 per cent, whereas affordable ones cost an average of $1,549 per sqm, inching up 0.32 per cent.

On the first quarter rental market, high-end units averaged $14.21 per sqm, down 0.4 per cent and affordable units went for around $11.79, dropping 0.6 per cent.

Though no condominium development projects were completed in the second quarter, CBRE Cambodia said, three new launches delivered an additional 2,252 units to the capital’s supply.

The three projects are Leedon Heights in Sen Sok district’s Phnom Penh Thmey commune, the Le Conde BKK1 on Street 352 between Streets 57 and 63 in Boeung Keng Kang district’s Boeung Keng Kang I commune and the Grand Condo 7 project in Chroy Changvar district’s Chroy Changvar commune.

CBRE Cambodia senior analyst Kim Kinkesa told The Post on Wednesday that the market for condominiums in Cambodia had been sluggish since the beginning of the year.

Condominiums are highly sought after by foreigners, she said. As Covid-19 makes expatriates reconsider the length of their stay in the Kingdom, the market will unavoidably be shaken up when they leave.
https://www.phnompenhpost.com/post-prop ... do-segment
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Re: Phnom Penh condominium demand set to grow

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Cambodia: Foreign money leaves trail of ghost towns
Brand new luxury condominiums are springing up across the capital Phnom Penh, but the average Cambodian cannot afford to live in them. This has increased dependency on foreign investors. Ate Hoekstra reports.
22 July 2020
Ngeth Both guards one of the many newly built high-rise condominiums in Koh Pich, a luxury district in the Cambodian capital Phnom Penh. Both's job is quiet most days. There is almost no traffic in the street, and there is hardly anyone living inside the condo.

"It's always quiet. Each day only two or three people exit the building," the security guard said.

Phnom Penh's skyline has changed dramatically in the past decade. All over the city, old buildings are rapidly being replaced by new ones.

One of Koh Pich's condos is on the market for $1,500 (€1,322) per square meter. The total price of the eight-story building is around $1.8 million. Dubbed The Elysee, the street was inspired by French architecture to try and draw in new residents. The neighborhood has even erected a replica of the Arc de Triomphe, in the hopes residents feel they have been transported to Paris.

But many of the glistening new condos are sitting empty. Most of them are so expensive that the average Cambodian family could never afford them.

Sreynik Seng, who runs a small coffee shop in the area, told DW that most of the property there is owned by Chinese citizens. "Some of them try to rent out rooms. Others only seem to have it purely for the sake of owning it. I don't think it matters to them when their building is empty," Seng said.

Foreign direct investment (FDI) is considered very important for Cambodia's developing economy. Last year, the country received around $3.5 billion in FDI. 43% of the investment came from China — making China by far Cambodia's largest foreign investor.

Kim Heang, the CEO of Khmer Real Estate, told DW that once construction is completed, many of the Phnom Penh condos are purchased by people from China, Taiwan and Singapore. Many of them don't live in Cambodia permanently.

"Between 2013 and 2017, most buyers were foreigners. But they don't come to stay here," Heang said, adding that it leaves many condos seemingly deserted.
https://www.dw.com/en/cambodia-foreign- ... a-54255280
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Re: Phnom Penh condominium demand set to grow

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Re: Phnom Penh condominium demand set to grow

Post by Kammekor »

armchairlawyer wrote: Fri Aug 14, 2020 8:56 am Oops, condos down 50%
https://www.khmertimeskh.com/50754873/p ... 0-percent/
From the article:
Sales consultant Chan Viokha from Royal SkyLand development, a project set to have 1,440 condominiums based in Toul Tompung, said: “Our development will be ready in December 2022. There are not a lot of foreigners in Cambodia because of COVID-19. The original price of a studio was around $129,000 but now if you buy upfront with a onetime payment you will save nearly 50 percent and can buy a studio for around $59,000. We are aiming to sell to people who are already living here in Cambodia. This offer is for the first 100 condos sold.”
Would there really be anyone taking the risk of paying 59k upfront for a condo which might be finished in December 2022 under the current conditions?
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Re: Phnom Penh condominium demand set to grow

Post by Doc67 »

Kammekor wrote: Fri Aug 14, 2020 9:03 am
armchairlawyer wrote: Fri Aug 14, 2020 8:56 am Oops, condos down 50%
https://www.khmertimeskh.com/50754873/p ... 0-percent/
From the article:
Sales consultant Chan Viokha from Royal SkyLand development, a project set to have 1,440 condominiums based in Toul Tompung, said: “Our development will be ready in December 2022. There are not a lot of foreigners in Cambodia because of COVID-19. The original price of a studio was around $129,000 but now if you buy upfront with a onetime payment you will save nearly 50 percent and can buy a studio for around $59,000. We are aiming to sell to people who are already living here in Cambodia. This offer is for the first 100 condos sold.”
Would there really be anyone taking the risk of paying 59k upfront for a condo which might be finished in December 2022 under the current conditions?
They shouldn't. I doubt there is a 10% chance of that being completed by 2022.

I owned a promise of a 1 bed flat in Dubai in 2009 with a $30k deposit down, ground works completed. It was my first and only foray into off plan buying. It never completed and after mush B.S. the site was bought out by someone wearing big white robes and and the former developers vanished into thin air. Many people had much more invested on many developments, with stage payments rising up to 70% down and 30% at handover, which never came.

In this market, buy the finished article only.
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Re: Phnom Penh condominium demand set to grow

Post by Kammekor »

Doc67 wrote: Fri Aug 14, 2020 11:35 am
Kammekor wrote: Fri Aug 14, 2020 9:03 am
armchairlawyer wrote: Fri Aug 14, 2020 8:56 am Oops, condos down 50%
https://www.khmertimeskh.com/50754873/p ... 0-percent/
From the article:
Sales consultant Chan Viokha from Royal SkyLand development, a project set to have 1,440 condominiums based in Toul Tompung, said: “Our development will be ready in December 2022. There are not a lot of foreigners in Cambodia because of COVID-19. The original price of a studio was around $129,000 but now if you buy upfront with a onetime payment you will save nearly 50 percent and can buy a studio for around $59,000. We are aiming to sell to people who are already living here in Cambodia. This offer is for the first 100 condos sold.”
Would there really be anyone taking the risk of paying 59k upfront for a condo which might be finished in December 2022 under the current conditions?
They shouldn't. I doubt there is a 10% chance of that being completed by 2022.

I owned a promise of a 1 bed flat in Dubai in 2009 with a $30k deposit down, ground works completed. It was my first and only foray into off plan buying. It never completed and after mush B.S. the site was bought out by someone wearing big white robes and and the former developers vanished into thin air. Many people had much more invested on many developments, with stage payments rising up to 70% down and 30% at handover, which never came.

In this market, buy the finished article only.
It's probably a way for the builder / investor to generate cash, which would be even more worrying.
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