Condo prices lowered to attract locals, says study

[The Phnom Penh Post] Developers’ efforts to target local buyers have resulted in reduced prices for mid-range and affordable condos, according to a recent study.

Prices of mid-range and affordable dwellings in condo developments dropped by one percent in the first six months of this year, compared to 2016.

The study, prepared by property and investment firm CBRE, examines price trends in new-build developments in Cambodia. It found that the lower end of the condo market had seen a small price dip, as sales teams offer incentives to local buyers.

Purchasing habits also appear to be changing, with many more people buying units in completed projects rather than buying off-plan.

The study also says that those who do buy are intent on occupying properties themselves rather than ‘flipping’ them or renting them out.

Sunn Huot, marketing director of the Olympia City project, said that in his developments most of the buyers are local. “Out of all the condo buyers, 70 percent are Cambodian who bought them to either establish the units as a living space or to rent them out.” Sunn also added that the state of this year’s market is not significantly different from last year’s.

The CBRE study found that average prices of high-end condos remained stable at $3,108 per square metre, with mid-range condos averaging $2,659 and $1,498 per square metre for condos at the lower end of the price range.

Sales have been slowing, but not too significantly. Given the looser market conditions, some developers have switched to increasingly commercial marketing strategies, including discounw ts on quoted prices of between two and ten percent.