March 31, 2022
Phnom Penh’s property market is picking up
with renewed confidence from property buyers both local and abroad. The
Cambodia Real Estate Consumer Sentiment Survey 2022, an annual study made by
Realestate.com.kh, the largest real estate online classifieds portal in the
Kingdom, was recently concluded and covered several aspects of the property
market under COVID-19.
Demographics of the Survey
The Cambodia Real Estate Survey 2022 was
completed by more than 2,300 respondents over a period of 3 weeks from January
14 to January 28 2022. The respondents are a mix of those born in Cambodia
(47%), while 29% are Asian nationals, and 23% from Western nationalities. Our
first Survey in 2016 had a 68% Cambodian response rate. After Cambodians, the
single biggest nationality of respondents was Chinese.
A More Affordable Sales Market
The survey suggests more Cambodians
believe that property is affordable now (82%) compared to 2016 (59%). However,
wages have also increased since then, so it makes sense that property is now
more affordable to buyers in Cambodia.
Realestate.com.kh website data indicates
real estate prices have generally decreased over the past 2 years. However,
depressed prices have not flowed to land and landed property (such as boreys);
in some cases, prices have increased. This was reinforced by the survey results
indicating that a third of local respondents believed prices had gone up during
the year. Therefore, it is not surprising that land remains a core investment
target for local buyers.
Land remains the most popular property
type in 2022, followed by Condominium/apartments, Villas, Shophouses, and
Linkhouses.
Condo Rentals Back On The Rise
Although house types (Shophouse,
Linkhouses, and Villas) are the most popular properties to rent, 31% of all
respondents indicated they wanted to rent a condo or apartment.
Among only the Cambodian respondents,
houses account for nearly a third of their preferences, while land also had a
strong attraction. For Chinese (60%) and Westerners (47%), condos are more
favourable, while Villas were their next biggest preference.
Of the respondents, around a tenth have a
rental budget of over $2,000 per month, indicating a healthy appetite for
high-end rentals, especially around the BKK1 area. The vast remaining majority
have a monthly budget of between $500 – $1,000, while nearly a fifth are in the
$1,000-2,000 range.
High Demand For Home Loans
In Cambodia, banks have historically
focused on existing housing stock and properties within boreys (gated
communities).
A majority (56%) of all respondents
indicated that they require a mortgage in order to purchase their property in
Cambodia. Around a third of those surveyed currently have a bank or home loan.
As more Cambodian buyers start to consider condominiums, some banks are
starting to offer special financing options for local condo buyers.
Looking for more detailed information on the Kingdom’s property market?
The Cambodia Real Estate Consumer Sentiment Survey 2022 will be published for
free-of-charge this Q2 2022 on the Realestate.com.kh website.
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