PHNOM PENH (Xinhua): Oversupply and a lack of foreign buyers are pushing down condominium prices across the range from high-end to affordable in Phnom Penh, capital of Cambodia, local media reported Wednesday (Oct 13).
Data released by real estate company CBRE-Cambodia showed that sales prices had fallen by between 1.8 per cent and 3 per cent across all grades in the third quarter of the year, compared with the previous quarter, the Khmer Times reported.
"High end condominium prices right now are looking at around US$2,700 per square meter," the newspaper quoted Kinkesa Kim, senior manager of the firm's research and consulting services, as saying.
"For the mid-range we are looking at a price of around $2,300 and around $1,300 for the affordable segment," she said.
The lack of foreigners in Phnom Penh is hurting condo sales and online events are doing little to increase business so many developers are turning to look at local buyers, according to Kim.
"Overseas sales are particularly challenging because of the restrictions on travel and we have heard a lot from developers that this is not helping at all," she said.
Kim said many condominium developers are finding it hard to attract locals because they like investing in landed property.
As for the rental market, she said there was a big drop in the prices landlords could charge in the third quarter. Rents have dropped by between 5.6 and 7.8 per cent quarter-on-quarter.
There may be a rebound at the end of the fourth quarter and going into next year as the country is expected to ease entry restrictions on foreigners, with the government considering whether to issue tourist visas and cut the 14-day quarantine in half as early as next month.