Talk of condominium oversupply has been dominating the real estate industry in Phnom Penh, but the glut has now spilled over to other types of housing within the capital.
Market experts and surveyors have been closely following the fluctuating trends of residential property uptakes, and outlined the key differences between the already established condo oversupply and, now, the borey oversupply.
A report published by property evaluation firm VTrust Appraisal last month confirmed the state of a borey oversupply, with roughly 33,000 units left unsold at the end of 2016. However, this is not deterring developers, with around 28,000 units set to be added to existing stock this year.
According to Hoem Seiha, director of research at VTrust Appraisal, there isn’t a pressing need to be overly concerned with this excess.
“This [oversupply] will ease by the next couple of years due to the strong demand among the middle to upper-middle class. The remaining units will be taken out of the market in the next couple of years, given the current market absorption.”
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