Ask an expert about the most attractive things about Cambodia, and most of them will tell you about the lower cost of living in Cambodia. According to the Annual Global Retirement Index, Cambodia will be the 3rd cheapest place in the world in 2022 Prices in Cambodia.
The Cambodian economy’s major income source is the real estate sector, and the Southeast Asian economy is also ranked among the top investment destinations due to its economic growth. But the real estate sector in Cambodia was hit hard by the Covid-19 pandemic in 2020, witnessing numerous drastic changes. After the reopening in November 2021, many analysts have increased their prices for the upcoming years.
Even though real estate prices have fluctuated from 2019-2020, they are still affordable compared to average property prices worldwide. Investors increasingly show interest in the country, driving the real estate sector forward to its finest.
If you plan to invest in Cambodian properties, you must assist yourself with a trustworthy real estate agent to know the real market’s face values. Let’s look at the country’s revised housing and property prices to know how much you can save by living in Cambodia compared to other parts of the world.
Current Property Prices in Cambodia:
Despite the risks post-pandemic and fluctuating prices, investors have significantly benefited from the boom. Compared to the other ASEAN countries, properties in Cambodia can be purchased even for less than $1500 per square meter. Properties in the Phnom Penh urban regions can range from $500 to $12,000, depending on the preference and popularity of the areas.
After the relief in pandemic restrictions on travel, tourists, and the economic sector, the demands for commercial, residential, and industrial space have increased. Real estate properties can be converted into living spaces, residential units, or offices, considering property investment a safe bet. Moreover, Cambodia and China relations will continue to attract foreign investors from the United States, Europe, the Middle East, and Asia, stimulating the real estate demands.
Cost of a House in Cambodia:
|Property Rates Inside the City||Current Year||Last Year|
|Commercial Land Per sq. metre||$5000||$4500|
|Residential Land Per sq. metre||$2500||$2000|
|Single Unit Apartment 1 Bedroom||$1,50,000||$1,30,000|
Rental Prices Fluctuations:
Rent for Houses:
There has not been much change for all those planning to rent two-bedroom houses since March 2021. The average price remains the same at around $500. At the same time, the price increased by 10% in April 2021 to $550 but quickly reverted to the original in the following month.
Rental prices for three-bedroom prices rose to $950 in March 2021 but then quickly fell by 34.75% to $620 in the next month. These prices fluctuated again in May and October but then reduced again in September and December. The last price recorded for a 3-bedroom apartment was $600.
Read Here: Selling Your House: 7 Tips And Tricks To Getting The Most Money
Rent for Apartments and Condominiums:
Rent for one-bedroom apartments and condos has not changed much since March 2021, and the average price has remained at $475 over these months. The median value decreased to $350 but rose to $425 the following month.
Two-bedroom condos and apartments decreased from $750 to $550 from March 2021 to April 2021 but rose to $750 in the ensuing months.
Three-bedroom prices also decreased by 50% from $1200 to $600 from March 2021 to September 2021, rose to the original in November, and were at a hike in February 2022 at $1225.
How Much Does It Cost to Buy a House in Cambodia?
|Property Rates Inside the City||10 Years||Current Prices|
|Single Unit Apartment 1 Bedroom||$20,000||$1,50,000|
|Single Unit Apartment 3 Bedroom||$50,000||$3,50,000|
|Villa for Sale 3 Bedrooms||$80,000||$6,00,000|
How Much Does It Cost to Buy Land in Cambodia?
|Over the Course of 2021-2022||Average Values|
Cost of Living in Cambodia:
|Rent for Two Bedroom Furnished Apartment||$381|
|Pay TV Standard Package||$5|
|Electricity including AC and other Charges||$92|
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Key Changes to the Property Market After Covid-19:
Cambodia’s Deputy Prime Minister and Minister of Economy and Finance, Aun Pornmoniroth, have addressed that:
- The real estate sector will recover from the pandemic effects,
- The country will also witness a gradual increase in foreign investment inflows,
- Real estate units’ costs will rise in the kingdom.
Realestate.com.kh has also discussed key changes driving the property market due to Covid-19 in Cambodia. These are:
- Prices have adjusted with a downfall to meet the local budgets.
- Local Developer’s target audience has transitioned from foreign buyers to local Cambodian property buyers.
- Short-term payment plans are extended with longer deadlines to suit the preferences of investors.
- Property developers have partnered with local banks to facilitate and help investors with long-term payment plans to suit Cambodian property buyers.
CVEA (Cambodian Valuers and Estate Agents Association) added that Cambodia would see a 30% to 40% rise in foreign investments after the Chinese New Year, marking considerable real estate growth in 2022.
Cambodian Real Estate Economic Recovery 2022:
According to Khmer Times, Cambodia’s economy will recover at the rate of 2.4% in 2021. At the same time, Cambodia’s real estate sector will recover at the rate of 2.4% in 2021 and 4.8% in 2022 in the wake of weaker foreign direct investment, and demand for affordable housing continues to show stronger growth.
Several Cambodian regions are also highlighted for their real estate investment potential in the upcoming years:
- Preah Sihanouk is planned to be developed into a Model Multi-Purpose Special Economic Zone.
- Phnom Penh and the surrounding areas of Kandal will also see new infrastructure projects, such as the new international airport under construction and other development projects.
- Siem Reap will boast historical tourist spots and has planned major road infrastructure development projects.
These newly planned developmental and residential projects will boost these areas’ prices, providing investors with a profitable opportunity.
The Cambodian real estate market has witnessed significant price fluctuations from 2021-2022. Therefore, to proceed with informed and safe decisions, buyers must be informed about the latest trends to make the best move.
IPS Cambodia is one of the renowned and awarded real-estate agents in Cambodia that will help you with the best selections and safe decisions. The local experts will assist you throughout the process and shortlist the best options according to your preferences
If you are struggling with your investments, connect with the experts for the best decisions.