Capital’s condo supply adds 828 units in Q3 as prices dip

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The Phnom Penh condo market has resumed after a lull and developers say they remain confident in sales. Photo supplied

The third quarter of this year saw the addition of 828 units to Phnom Penh’s condominium supply, raising the total 3.97 per cent quarter-on-quarter to 21,679, a research report from real estate service provider CBRE Cambodia said.

The Urban Village Phase I condominium was the sole project completed in the period July-September, CBRE Cambodia said.

The capital’s condominium buildings break down as 27 per cent “high-end”, 28 per cent “mid-range” and 45 per cent “affordable”, it said.

The average sales price of all three categories of condominium units dipped between one and 1.4 per cent quarter-on-quarter, it said. This follows a 0.65-4.61 per cent drop from the first quarter of this year.

Average rental prices were 0-2.88 per cent lower in the third quarter, after having slipped 0-7.25 per cent between the first and second quarters, it added.

CBRE Cambodia managing director Ann Sothida told The Post on Wednesday that the capital’s condominium market in the third quarter had begun to wake up from its Covid-19 slumber.

Though just one new project was completed in the third quarter, she said three others have been announced for construction.

She also pointed out that rents also dropped during the period.

“Developers are not concerned with condo sales at all, they remain confident in their sales in the face of Covid-19. Given the uptick in competition seen now in sales, they’ll need to adjust their strategies, such as payment methods.

“The market has resumed after a bit of a lull, but we’ll have to wait for more flight routes to reopen before we can have a boom,” Sothida said.

CBRE Cambodia also noted that no condominium developers announced new sales launches during the third quarter, while just three announced expansions – comprising more than 2,000 units.

The expansions are Urban Village Phase II, Arakawa Residences (Phase II) and Yuetai Harbour Bay (4D Tower), it said.