[PHNOM PENH POST]
RENTAL prices for residential units remained stable this year since
recovering in mid-2010, though both the number of home-seekers and
vacancies increased, according to industry insiders.
Prices for
residential units increased by up to 35 percent from 2005 to mid-2008,
but fell around 15 percent during the financial crisis, only recovering
in the second half of last year, National Valuers Association of
Cambodia statistics show.
“We saw a slight increase in demand in
the first half of 2011, but this will change when supply goes up,” said
NVAC Secretary Keuk Narin.
“In my opinion, if demand increases, prices will remain stable, as the supply is also growing.”
Average rental prices remained stable in the second quarter of 2011, NVAC statistics show.
A
three bedroom grade A, or top quality, in central apartment fetched an
average of between US$3,000 and $4,000, the same as the previous period.
Cambodia Property Ltd Co Property Manager Mang Sovandara said the firm was not concerned by slow growth in the property market.
“Our company research shows that prices for residential rentals remain stable, but housing demand increased.”
He added that the growth in demand will certainly affect rental prices.
“Once more competitors enter the market, we should expect to see a decline in rental costs.”
The
firm, which currently has 80 apartments and 500 villas for rent in the
capital, has seen its three-bedroom apartments fetch up to $5,000 per
month, he said.
Luxury apartments in the city’s BKK1 district
remain popular and are in constant demand, according to Yim Sitha, owner
of Hampton’s Apartments, which comprises 52 units.
“We saw that
prices in the apartment rental market stayed unchanged, but did note
that the number of available apartments and home-seekers grow.”
The company has no concerns about several new competitors set to enter the Phnom Penh market this year, she claimed.
“We are in a prime location, provide a good service and have no intentions of decreasing our prices.”
She
added that Hampton’s current rental price averages between $1,500 to
$3,000 and “most of the clients are European nationals.”
Private landlords also agree that the growing number of home-seekers is beneficial.
“With
increasing clients coming from South Korea, Vietnam and China, I
believe this will be a good year for renting out an apartment,” said Sam
Sinoeun, the owner of a three-bedroom furnished apartment in the Boeung
Keng Kang II district.
Now we should have nothing to worry since the modality of renting apartments is being used by everybody in the world! So, of course, as long as demand remains, prices will be stabe. Last year I got an apartment for rent in buenos aires and the price continues being the same this year!
ReplyDeleteKirsten
When the economy is so poor these things can happen. When signing a apartment rental agreement and one doesn't see a concession it is not necessarily the landlord's fault. Things usually happen in a cascade format. The property taxes could have increased as well as the facility upkeep. One just has to look at the larger picture to understand things better.
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