Take advantage of the real estate market trends in Cambodia. What are savvy buyers looking for in Phnom Penh’s property market?
Despite the world enduring a 2-year plague, which has now nearly completely subsided in the Kingdom, Cambodia is still in the midst of a historical real estate boom, especially the property market in Phnom Penh. The country has never seen this level of rapid housing development ever in its history. Since 2015 when Cambodia was reclassified by the World Bank as a “lower middle-income nation”, the floodgates have opened for more foreign direct investment in every business sector, including property development. There are Chinese, Korean, Singaporean, Japanese, and even American developers (Borey Williams) building boreys, condos, and apartment buildings all around the country, but most intensely in the capital city Phnom Penh. For buyers looking for housing in Phnom Penh, these are the key points that savvy home buyers are looking to take advantage of.
All-inclusive neighborhood experience
Boreys and condos alike are competing to have the most dynamic living experience, far above and beyond housing only. Boreys in particular are creating a wide array of mixed-use spaces inside of their gated communities including schools, clinics, parks, pools, markets, food and beverage outlets, and shopping malls or plazas. Many borey developments are in up-and-coming areas of the city which offer excellent deals, but the area in general may lack these facilities. Therefore, it is best for buyers to look for reputable developers that have much more to offer than housing only. These extra facilities also increase the overall value of homes in the neighborhoods, making your home a profitable real estate investment.
Houses with Large Lots
Housing in Phnom Penh has for years trended toward the shophouse or flat (townhome) style home which are all linked together in long smothering blocks of homes. Neighborhoods that are predominantly made up of these flat style homes have next to zero green space and trees, and actually have far less airflow throughout the community because of these homes acting as wind barriers blocking essential fresh air into the neighborhood. Home buyers in Phnom Penh are now looking for single family “villa” homes that have a private yard, grassed in lawn, and are not attached to their neighbor’s homes like a row of linked flats. In up-and-coming areas like the western Kambol district of Phnom Penh, land prices have maintained at very reasonable prices resulting in developers providing bigger lot sizes and bigger home sizes for lower prices than districts closer to Phnom Penh city center. Bottom line, look for developments that sell these detached villa style homes that have large private lots.
Better deals, slightly off the beaten path
The price of land in Cambodia is one of the most volatile variables that will affect your home price. For example, the price of raw land on a main thoroughfare may be priced at $200 or $300 per square meter. However, travel only 1 or 2 kilometers off the main road and land prices can be less than half of that. Therefore, housing developments on the main road may have over-inflated prices simply because they are attached to a main road. Comparable size homes with the same size lot only a couple minutes away may present a savings of 20%-40% or more. Road work in Cambodia is continuous and new roadways are being opened every month around the city. So don’t be too concerned about buying a home in an area where the road is not expanded or paved yet. You can get an excellent deal on a home in an up-and-coming area of Phnom Penh, especially if it’s just a bit off the main road. This continued infrastructure development is another driving factor behind the positive property market in Phnom Penh.
Check out some excellent deals for new homes in Phnom Penh at www.boreywilliams.com. Borey Williams is an American style home builder, with lots of different floorplans, each with a large grassed in lawn, tons of amenities in the community, and priced for much less than most builders in the city.