Cambodia house prices expect to increase more than 7%

Developers are looking at price hikes to alleviate the pressure they experienced over the past two years 

Following Cambodia’s economic reopening and recent easing of measures in October, it is said that property developers are looking to slowly increase prices in 2022, reported Khmer Times.  

Property developers were asked about Cambodia’s reopening and potential price hikes over the next 12 months. 

“I think that most developers will raise the price when the restriction is eased,” said a property developer. “Several developers have already made plans and carefully discussed when they should raise the price.”  

“The price increase is expected,” said Ethan Liu, deputy director of marketing for Vue Aston, winner of the Best Condo Development (Phnom Penh) at the PropertyGuru Cambodia Property Awards 2021. “Phnom Penh is a fast-developing area attractive for foreign investors. The larger market is already rising, and some developers will adjust the falling prices back to pre-pandemic values.” 

“We are confident that the average increase will be more than seven percent. It will even be much easier for projects who have adapted to local needs to attract foreign investors,” said Liu. 

Over the past two years, developers had to become agile and adapt their sales and marketing strategies to meet local preferences. This was particularly challenging to those who had foreign buyers in mind when they entered the market.  

Besides the decrease in international customers that caused price drops, another reason is the intense competition to attract local investors via generous discounts and other tactics.  

More: Options for foreigners interested in purchasing property in Cambodia

Riya Kim, planning assistant for La Vista One, the Best Condo Development (Greater Phnom Penh) winner at the PropertyGuru Cambodia Property Awards 2020, said, “Housing prices saw a downward trend because most of the local market also had financial and income problems during the pandemic. Most consumers did not want to spend outside of basic necessities.” 

While property developers may be looking to increase prices, they are looking to do so gradually as the market gets back on its feet under Cambodia’s new quarantine regime.