Low Sales Rate Hits Phnom Penh Condominium Market
With record units of residential properties available to the public in Phnom Penh, sales rates have fallen to a new low, with many empty homes in Phnom Penh which are mostly unsold or without residents.
Due to COVID-19, we can foresee the postponement of new launches and discounts on unsold units which will hit the real estate sector hard. Some developers have postponed their launches indefinitely because it is difficult to estimate how long the COVID-19 outbreak will last. For some of the new launches, sales activities and campaigns have stopped. For others that remain open, sales offices have also seen fewer walk-in customers.
As condominiums are mostly used for investment purposes, while low-rise residential units such as townhouses, shophouses and villas are mostly used for residential purpose, investors should invest in condominiums carefully during this situation. As a result, developers should shift their overall development portfolio to the low-rise housing market where demand for single-detached houses and townhouses etc. is driven entirely by local Cambodian end-users and owner-occupier purchasers.
Reference by : Construction & Property