According to the latest report by CBRE Cambodia, as of Q4 2019, there are 17,995 condo units in Phnom Penh, a 27% increase from the same period in 2018 where there were 57 completed projects, offering 14,170 units.
Condominiums are still new to Cambodia. Yet they are becoming an integral part of the real estate sector. For now, Boreys seem to be the most demanded form of housing among locals.
1. Saving time for productivity
Living in a condominium can help save time for working professionals. Commutes are shorter if you live closer to where you work. Cambodia’s population is rapidly urbanising, especially those between the age of 25 and 40. These people want to improve their careers and build businesses. Being in the city helps them achieve these goals.
2. Less housework
Condos are relatively small compared to villas and standalone houses. There are no courtyards or driveways to take care of. This means residents spend less time cleaning and maintaining their homes. Furthermore, many condos offer cleaning services and utilities. Fewer hassles mean more time for yourself or your pursuits.
3. More amenities
Condominiums offer more luxuries than other home types. Having a gym, pool and meeting room right in your building means you don’t have to travel as much. Plus, most also feature advanced safety features like CCTV and security staff. This means you have fewer things to manage while still retaining peace of mind.
4. A sense of community
Neighbours can help you when you accidentally get locked out of your condo. Or maybe they become friends and you take turns hosting weekend barbecues. Condo buildings give you a chance to connect with other people who live in the same community.
5. Facilities at your fingertips
Condominiums are often built in the CBD of a city. This means residents have access to everything the urban area has to offer. They can get there quickly, too.
In Phnom Penh and Sihanoukville, central condos have access to tons of schools, hospitals, government offices, markets, restaurants, banks and much more.
6. Buying a condo more beneficial than renting a luxury home
For the same level of luxury, it can be better in the long run to buy a condo than renting a home. Monthly payments will be similar, but with the condo you will get future returns. For example, if you rent a twin villa, you have to spend between $1,500 and $2,000 a month. Mortgages on condos, on the other hand, can be found for under $1,000 per month.
7. Return on investment
Condominiums can offer profits in two different ways. First, they simply appreciate in value as the years go by. Maybe you will choose to live there for 10 or 20 years. When you decide to sell you will get more than you paid. Secondly, you can lease the condo out instead of living there. Rental rates in Cambodia’s cities can range from $500 to $2,500. This means you can start getting returns of around 8% and 10% per year.
8. Little maintenance
Condominiums do not require constant repairs. They are small and maintenance is usually covered, at least in part, by the building management.
9. Low starting price
Condos are relatively affordable compared to landed properties. Indeed, in Cambodia, they are much cheaper than in other areas of Asia. Many condo units for sale in Phnom Penh sell for just around $60,000 per unit. It is a bit higher for units within the vicinity of the city’s CBD such as Chamkarmon district, on average a starting price is 100k for a one-bedroom unit.
Overall, a condo offers more flexibility than landed property. The buying process is quicker and there are many choices and price points. Though boreys are growing in popularity in the outer regions and suburbs, although condos will soon dominate the city’s streets.