report released this week by property and asset valuation company, VTrust Appraisal, focused specifically on the state of Phnom Penh’s borey market for 2016, revealing a mixed bag of results in terms of how the industry was faring.
A highlight of the report, titled Phnom Penh Housing Market and Outlook Report 2016, was how only 51 percent of the total units launched for sale in 2016 were sold.
Of the entire borey market supply of 100,278 units, 67 percent was sold. This left a total of approximately 33,100 units unsold at the end of last year.
That, however, proves not a deterrence to the onslaught of units to come online this year. The report stated that 28,097 completed housing units will be adding on to the existing supply.
While the borey market enjoyed a robust sales growth of 41 percent in 2015, it fell by exactly the same percentage in 2016, “causing the housing stock figures to float high in 2016”.
Borey sales’ health started declining in mid-2016, with many developers devising new financing strategies in a bid to appeal more to prospective buyers, as reported previously by Post Property. These included monthly payments as a substitute for the usual down payment which required buyers to purchase a unit first, as well as a 30-year payment scheme which cuts out the traditional 30 to 40 percent down payment plan.
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