In a private event on
Thursday, Property marketplace Realestate.com.kh said that it is seeing a lot
of interest from expats and locals in buying condos at its J-Tower 3, which is
touted to become the tallest building in Phnom Penh.
“There has been a lot of interest in J-Tower 3. And this is
reflective of the growth in the condominium market over the years,” Simon
Griffiths, head of real estate, Realestate.com.kh, told Khmer Times. The
property, which will have 77 floors at a towering 320 metres, will also be
unique in that it will be positioning itself primarily for the luxury market
with only 3BHK condos. The developer – Tanichu Assetment Co, Ltd, is
constructing this building on a site that’s nearly 2,000 square metres in South
BKK1, Tonle Bassac, Phnom Penh.
“We are aware that the norm among condo developers is to play it
safe by offering affordable options i.e. studio apartments and 2BHKs. But we
wanted to focus primarily on 3BHK apartments. And so all the 360 units we’d be
offering — that are between 166-178 square metres — will be 3BHK,” said Vatey
Mom, general manager, Realestate.com.kh. “We also wanted the place to have a
luxurious feel, so the ceiling height in each apartment would be as high as
3-4.5 metres,” said Mom.
“Another reason why we would prefer to go for 3BHK is because
these units attract longer-term tenants and increased rental stability – as it
is often families, C-suite executives and long-term expats who end up renting
them. Rental yields for 3BHKs, outperform studio apartments, 1BHK, 2BHK by 1-2
percent. Also 3BHKs only make up 18 percent of the total condo market in Phnom
Penh. Our studies show that a building with only 3BHKs will have a lower
density (less residents) than a property with more studios and 1BHKs –
resulting in increased livability,” said Vatey Mom, GM, Realestate.com.kh.
The rise in property development in the region is due to
initiatives from the government, said industry players. “As to demand there are
also cultural changes; we see more youngsters coming to the city, living away
from their parents. Cambodia offers more job opportunities – all this
contributes to higher demand for condos,” said Sophoan Roth, CEO and Country
Head, Maybank Cambodia.
The condominium market has grown steadily from just under 1,000
units in 2013. Between 2013 and 2015 as many as 55 condominium projects were
launched. By 2016, there were nearly 5,000 completed condominium units
available in Phnom Penh. But there was more sharp growth after that.
Year-over-year there was a 67 percent increase in construction so that by 2017
there were more than 8,000 condominium units that were completed.
There is also now a more diverse mix of developers participating
in the market, said Vatey Mom, general manager, Realestate.com.kh. In the first
phase between 2013 and 2016, there were developers from South Korea, Singapore,
Japan, Taiwan and Cambodia participating in condo development. Since 2016,
Chinese developers have taken the lead in investing in this space; even though
there is continued participation from developers from other countries in
Cambodia.
Now there are more than 50,000 completed condominiums in Phnom
Penh.
Covid did have an impact, said Griffiths with the number of new
condominium projects dropping between 2021-22 to only 3 launches a year. “Covid
also saw a change in supply overshooting demand resulting in some price
corrections. Average square metre for high-end condos fell to $2,650 from
$3,500. Condos were forced to go to pre-Covid level pricing to honour
commitments with existing buyers,” he said. Pre-Covid, in 2016 condos would
fetch as high as $4,000 per square metre. “Today new projects are getting launched
with competitive pricing. In some cases you even see 2013-level pricing.”
“We’ve studied the recovery cycle in the property markets of the
UK and Singapore and we are confident Cambodia will make a similar recovery,”
Griffiths added.
J-Tower 3 plans to have parking available from its 2nd-10th
floor. A playground on its 11 floor. A green park and indoor pool on 26, 27th
floor. Another indoor pool, kids pool and main lobby between the 49th and 50th
floor.
Also premium residences or penthouse suits between the 70th and
76th floors. Its Sky Bar and Infinity Pool will be on the 77th floor, offering
a panoramic view of the city. “We plan to have the construction completed by
the fourth quarter of 2028,” said Griffiths. As a special offer, the starting
price for these units at J-Tower 3 will be $330,000 which works to about $1,800
per square metres. Deposit required is about 10 percent with a monthly EMI of
$3,000.
All units in J-Tower 2 apparently sold out within five weeks from the start of sales, said the team from Realestate.kh.com
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