According to a survey conducted by Realestate.com.kh, consumer sentiments remained generally confident. The survey revealed information for developers, investors, mortgage lenders, personal and commercial buyers and insurance companies.
The survey was performed via email for both local and international respondents over a period of 2 weeks. The questionnaires were also completed by guests at the Cambodia Construction and Property Expo at the Exhibition Centre in Koh Pich back in December 2016. There were 5000 total respondents in all.
The results of the survey are as follows:
It is important to know the purchasing power of potential homebuyers because it will help developers organise their properties (product) accordingly. Mortgage lenders can also use it to understand the market conditions.
According to the survey, 34% of the respondents described local property as “moderately unaffordable”, 28% admitted they were “affordable” while 16% said they “moderately affordable”.
Market price increases
Property investments increase in the past year, leading to a significant increase in local supplies. This was reflected in the results of the survey as over half (58%) of respondents indicated that they observed a rise in the price of property over the last 12 months. In addition, 54.6% said they expected the price to continue rising in the next 12 months.
However, in spite of the rising cost about 80% of survey participants believed it was a good time to buy a property in Cambodia. While almost half (45.4%) of responded said they owned the house the currently lived in, 30% admitted they were renting with plans to buy their property soon.
The following is a list of how much respondents said they were willing to spend on a property:
67% willing to spend less than $70,000
13% have a budget between $75,000 - $100,000
13% can afford a property ranging $100,000 - $200,000
3% can afford $200,000 - $300,000
As property investors look to Cambodia for opportunities, these results paint a picture of promise for the market in the months ahead.