The Cambodia Housing Market has changed a lot, especially in cities like Phnom Penh. In the last ten years, house prices went up a lot. This was because of strong economic growth and more foreign money coming in. Before COVID-19, house values were going up by 8.7% every year. But COVID-19 slowed things down for a while. Now, the market is getting better. As of August 2022, the average house costs about $114,164. This shows the market is strong and might get even better as more people want to invest here1.
Also, house prices in Cambodia show us how the economy is doing and point to new trends in property. With investors coming back, the housing market is getting exciting again. It’s a good time for people looking to buy or invest. This shows how important real estate is for personal wealth and the economy2.
Key Takeaways
- The average house price in Cambodia is approximately $250,000.
- Residential and commercial land values have tripled from 2000 to 2019.
- Property prices saw up to a 50% increase between 2014 and 2016.
- Prices for condominiums in the city center start around $150,000.
- Majority of properties feature between 3 to 6 bathrooms.
- Houses typically provide an average of one parking spot per property.
- Location and infrastructure developments are crucial to property value growth.
Overview of the Cambodia Housing Market
The Cambodia Housing Market is changing a lot, with house prices and market indicators moving up. The sector’s growth connects directly to economic elements. Cities like Phnom Penh, Siem Reap, and Sihanoukville see a rise in property values. This is because of growth in areas like textiles, farming, building, and travel. These sectors are pushing the country’s economy, expected to grow by 6.2% in 20243.
This positive change is a good sign for investors. It shows a strong demand for.
Significance of House Prices as Market Indicators
In real estate, house prices show how healthy the market is. When prices go up, it typically means more demand and a stable economy. Right now, Cambodia’s real estate market could reach US $601.10 billion by 20243. There’s a growing interest from abroad, especially for condos. This surge highlights a demand for both mid-range and high-end properties4. These trends offer clues about where to invest.
The Impact of Economic Growth on Housing Prices
Economic expansion directly raises housing prices, especially in urban areas. Thanks to government actions like the 2010 Law on Foreign Ownership, investments from Southeast Asia and elsewhere have spiked. Urban expansion and improved infrastructure have led to more construction. A boom in condos shows a major shift, with foreign dollars boosting the market. This ensures a bright future for Cambodia’s housing market5
Average House Prices in Phnom Penh
The real estate market in Phnom Penh is shifting, showing changes in house prices. There’s a rise in property costs driven by different factors.
Annual Price Increases and Trends
Premium areas like Daun Penh and Chamkarmon see housing prices climb. Here, costs per square meter range from $1,500 to over $3,500. A 5% price jump is expected in 2023 due to economic growth and better infrastructure.6
Rapid urban growth and foreign investments in housing push this increase. These factors make Phnom Penh’s real estate more valuable.
Factors Contributing to Price Rises
Many reasons push property prices up in Phnom Penh. The growing middle class wants homes in new developments, raising prices. The World Bank forecasts a 5.5% economic growth in 2023, boosting the housing demand7.
Being close to major roads and urban facilities also hikes prices. These aspects make properties more expensive.
The luxury housing sector is thriving, despite the condo market’s oversupply. Still, prime spots near water bodies fetch higher prices. These factors shape Phnom Penh’s housing price trends.
Cambodia Housing Market: Current Price Comparison
The Cambodia housing market shows a wide range of housing prices. For investors and homebuyers, it’s crucial to know these prices. They vary greatly depending on the location and type of property.
Typical Costs for Different Property Types
In early 2024, house prices in Cambodia span from $125,000 to about $600,000. The average property price stands at around $250,000. This info is key for buyers to understand what’s available. The condo market is also growing, with 2,200 units released in the first half of 2024. This gives buyers more options8 and9.
Price Variations Across Different Districts
Price differences in Cambodia are stark between urban and suburban areas. In Chamkarmon district, commercial land can go up to $5,000 per square meter. In contrast, suburban boreys are between $1,000 to $1,500 per square meter. This shows the high demand for properties in both city and suburbs.
As more people move to cities, demand for property rises. This will likely push up prices and costs in the housing market. For investors, understanding this trend is critical. It helps when deciding to invest in Cambodia’s real estate market, be it for living or commercial purposes.
For more details, check out Cambodian real estate analysis. Also, explore international investment opportunities in Cambodian properties.
Affordable Housing in Cambodia
In cities like Phnom Penh, finding affordable housing is a big challenge for many. The number of city dwellers in Cambodia is expected to reach 7.92 million by 2030. This will be 44% of the population10. To meet this demand, homes need to cost between USD 15,000 and USD 35,00011. Developers are now seeing the need for more budget-friendly options.
Opportunities for Budget-Conscious Buyers
New kinds of homes, called boreys, are emerging as affordable choices. They start at $100,000 in the city but are cheaper in the suburbs. Still, with 60% of Cambodians finding housing unaffordable and 31% of their income going on it11, the need for cheaper homes is clear. The government’s 2017 plan aims to help, but success has been limited so far11.
Market Demand for Affordable Options
The need for low-cost homes continues to grow as 318,000 households will look for affordable housing by 2035. Many will need homes under $33,00010. As the efforts to solve this issue progress, more people might get access to affordable, quality homes. For details on this topic, visit affordable housing in Phnom Penh.
FAQ
What are the current housing prices in Cambodia?
As of August 2022, in Phnom Penh, the average property cost is about 4,164. House prices range from 5,000 to nearly 0,000. This depends on the location and type of property.
How has the COVID-19 pandemic affected the Cambodia housing market?
Early in 2020, property prices dropped briefly due to COVID-19. By 2022, with the economy getting better and more foreign money coming in, prices started to rise again.
What factors influence housing prices in Cambodia?
Various things impact housing prices in Cambodia. These include the property’s location and type, the fast pace of city growth, investment from abroad, and local demand. This demand is especially growing among the middle class.
Are there affordable housing options in Cambodia?
Absolutely. There’s a big demand for affordable homes. Developers are creating budget-friendly projects. Prices for boreys start at about 0,000 in the city. They are even cheaper outside the city.
What are some property investment opportunities in Cambodia?
With housing prices going up and more demand from buyers in and outside of Cambodia, many investment chances are cropping up. This is particularly true in new developments and tall buildings in cities.
How do rental prices compare to purchasing property in Cambodia?
Rental prices change a lot based on where and what you rent. While buying a property might cost between 5,000 and over 0,000, renting is usually less expensive. This makes renting a good choice for many people.
What is the outlook for the housing market in Cambodia?
The future looks bright for Cambodia’s housing market. It’s expected to grow due to stable economic conditions, supportive government policies, and continuous foreign investment. This growth is helped along by the increasing demand for homes from the middle class.
Source Links
- https://www.realestate.com.kh/buy/house/
- https://ips-cambodia.com/cambodia-property-rates/
- https://ips-cambodia.com/property-market-analysis-projections-for-cambodia-in-2024/
- https://bambooroutes.com/blogs/news/cambodia-real-estate-market
- https://www.hausples.com.pg/investment-guide/property-types-market-trends/
- https://twocantravel.com/cost-live-phnom-penh-cambodia/
- https://www.phnompenhpost.com/post-property/real-estate-challenges-likely-24
- https://b2b-cambodia.com/news/cbre-cambodia-real-estate-mid-year-review-2024/
- https://cambodiainvestmentreview.com/2024/07/17/phnom-penh-real-estate-cbre-mid-year-review-2024-economic-indicators-and-market-trends/
- https://www.habitat.org/sites/default/files/documents/Cambodia brief on policy ask_FINAL_20231024_2.pdf
- https://cambodia.peopleinneed.net/media/publications/1861/file/exe_tups_1_affordable-housing-and-urban-sustainabilty_5.pdf
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