Phnom Penh: There are at least five factors that motivate Cambodians living in Phnom Penh and its suburbs to buy condominiums in the next five years, according to Mr. Sam Sok Noeun, President of Global Real Estate Association and President of Kw Sam Sn Realty Co., Ltd.
Mr. Sam Sok Noeun said that in the next 5 years, Cambodians will have a tendency to change from buying land to buying more condominiums, and some developers will be able to turn their attention to the development of affordable condominium projects to meet the actual market needs.
According to the real estate expert, there are five factors that motivate Cambodians living in the city and suburbs to turn to buying condominiums. Those factors include:
First. The growing population of the city, which causes the city traffic to become more congested, making it difficult to travel from one place to another, resulting in longer travel times.
Second. The development of plots of land and the development of Borey projects more than 40 kilometers away from the city make it difficult for buyers to build houses, which in addition to spending a lot of money to build a house, also requires a lot of time traveling to enter the city to work and do business daily.
Third, land development projects may face difficulties in the future, which are related to the construction of infrastructure, roads, sewerage, electricity, etc.
Fourth. At the same time, as political stability stabilizes, Cambodia’s economy will improve in the future. Condos with many facilities such as a fitness center, steam sauna, swimming pool, supermarket and restaurants make life easier.
Fifth. Because the developer as well as the sales agent offers easy terms of purchase and cooperation from the bank that offers long-term payments or loans from banks with low interest rates and favors customers in installments. The monthly minimum and reasonable is similar to the installment payment of the lot or about the same as monthly rent.
According to real estate experts in Cambodia, during the time when Cambodia was suffering from the COVID-19 disease, most of the customers who bought condos were Cambodians.
*Note that ‘experts’ have widely differing view on the issue of condo developments which have sprung up across the city in recent years-with more being announced every month. There have also been several well-publicized financial scandals, unfinished projects and reports of excess over-supply compared with market demand.