Cambodia Needs More Condos, Say Real Estate Experts

Phnom Penh: As more foreign investors flock to Cambodia, they see real estate rental demand, especially with condominiums and apartments. The market has grown, especially with condos, that some areas that can not meet the demand. Experts suggest further investment to meet demand over the next five to ten years.

Although the cost of condo rentals seems stable, the group renting apartments in the suburbs is mostly Chinese. Some say that rental prices have increased by nearly 50%. A Khmer citizen only pays around $ 300 per month, but renting to Chinese tenants can be $ 500 per month for apartments on small roads around Russian Blvd or Veng Sreng Street.

Oknha Noun Rithy, general director of KFA (Khmer Founder Appraisal), said that currently some condominiums have 100 per cent occupancy and nothing available for renting.

Oknha Noun Rithy continued, “As noted, we see that despite the high demand and the cost of renting, we see that condo prices are not fluctuating, they are worth the same as last year. “

He added that nowadays, there is a need to invest more in condominiums to rent and sell to the needy. Most are foreigners and few Cambodians because they have not changed the mindset of preferring not to live in highrise buildings.

He added that for rent on apartments and villas, there was also an increase in activity, especially in the province Preah Sihanouk, however, the activity may shrink in the next two or three years. The increase of rental of apartments and villas in Sihanoukville due to the influx of Chinese investors has seen soaring rental costs. The trend may slow, because they need accommodation in the center of downtown.

For Cambodians who want to rent a house to live and work in Sihanoukville, they are forced to rent in the suburbs, because of the high costs in the middle of the city.

He adds that renting a house, whether a flat or a villa to a high-value foreigner, is a big benefit for local people and homeowners can rent another cheaper place and save money.

Mr. Seng Seap, managing director of Real Estate, also said that the real estate has many needs, especially in the commercial sector.

The Director of Real Estate Company, said: “Speaking of Kampong Saom, the majority of rents are focused on accommodation such as apartments and villas, without these there would be not much to offer to investors. ”

In the future, renting a villa on Kompong Som can be expected to decrease after the buildings under construction are finished, he said.

However, while the price is high and there is a lot of demand, real estate owners should not risk leasing to others. They should find a lawyer who has specific skills to be a witness and prepare a lease document to avoid problems in the future.

“Before, there are 2 floors, I rent only about $ 300 a month for Cambodian people. But recently, my house on the small street near the airport can rent up to $ 500 month to Chinese .” said Siv Ench, who has a lot of flat-to-rent apartments near Phnom Penh International Airport.

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