Logo of Phnom Penh Post newspaper Phnom Penh Post - Borey sales struggle as market conditions weaken further

Borey sales struggle as market conditions weaken further

Western-style design inside Borey Peng Huoth, a gated community in Phnom Penh. Post Staff
Western-style design inside Borey Peng Huoth, a gated community in Phnom Penh. Post Staff

Borey sales struggle as market conditions weaken further

Ever-increasing competition in Cambodia’s borey market is leading to less than ripe conditions for sales activity, with some boreys reporting marked drops in borey sales.

Sour Soufang, general manager of Borey Rith, located along Street 598 in the Russey Keo district, told Post Property earlier this week that the sales rate for individual houses within the borey had dropped between 25 to 30 percent when compared to the previous corresponding year.

Soufang attributed the decline to the overwhelming competition from other boreys within the vicinity, as well as people sitting in the wait-and-see mode as a result of the looming elections over the next two years.

She continued, “The citizens told me directly that they are worried about the elections, they’re worried that something would happen that would stall the construction.”

“Therefore, they’re waiting around to see what the overall situation will be like after the election.”

While at one end of the spectrum borey sales are decreasing for some complexes, house values concurrently appear to be on the rise, with the housing market situation prompting Soufang to press pause on any new construction projects this year.

“However, we will be continuing on with our plans if the market situation gets better,” she said.

Meanwhile, Nget Piseth, assistant CEO of Borey New World, said the state of borey sales this year was painstakingly slow, adding the market situation now remained far worse than it was a couple of years ago.

According to Piseth, the company has decided to halt any borey expansion plans, but will consider building new properties on land within the existing borey.

He continued, “Today’s housing market is focused on medium-priced houses, ranging from $40,000-$60,000 only.”

Piseth said the price of houses in his borey have yet to increase unlike some of the company’s competitors, but said the real struggle was the ridiculous surge of land value in Phnom Penh which was making it difficult for developers to find suitable land for investment purposes.

Ly Hour, head of the Housing Development Association of Cambodia (HDAC), denied that the borey market was struggling, describing the market conditions as “good”. Hour said what was currently important was for the developers to narrow in on its target customers and to ensure developers had adequate capital on hand to support the entire construction process.

“In my opinion, the demand will continue to increase, especially houses with an inexpensive price tag,” he said.

MOST VIEWED

  • Ministry orders all schools, public and private, to close for SEA Games

    From April 20 to May 18, all public and private educational institutions will be closed to maintain order and support Cambodia's hosting of the 32nd SEA Games and 12th ASEAN Para Games, said a directive from the Ministry of Education, Youth and Sport. Cambodia will host the

  • Newest horror film showcases unique Khmer culture, identity

    At first glance, the trailer to new horror sensation The Ritual: Black Nun looks like a western-produced feature film. As the story reveals itself to the viewers, it becomes clearer that this is a Khmer film, with a strong Cambodian identity and close links to

  • Almost 9K tourists see equinox sunrise at Angkor Wat

    Nearly 9,000 visitors – including 2,226 international tourists – gathered at Angkor Wat on March 21 to view the spring equinox sunrise, according to a senior official of the Siem Reap provinical tourism department. Ngov Seng Kak, director of the department, said a total of 8,726 people visited Angkor Wat to

  • Angkor Beer strengthens national pride with golden new look and fresher taste

    Angkor Beer – the "Gold of Angkor" – has a new look, one that is more stylish and carries a premium appeal, as well as a fresher taste and smoother flavour, making it the perfect choice for any gathering. Angkor Beer recently launched its new design, one

  • Water supply authority assures public shortages over early ‘24

    The Phnom Penh Water Supply Authority (PPWSA) asked for understanding from Phnom Penh residents in some communes where water pressure is weak. They assured residents that all supply issues will be resolved by early 2024, but have suggested that residents use water sparingly in the meantime.

  • Khmer ballet documentary debuts April 1

    A new documentary, The Perfect Motion, or Tep Hattha in Khmer, will premiere to the public on April 1. The documentary film follows two intertwined storylines: the creation of a show called Metamorphosis by the late Princess Norodom Buppha Devi (her very last production) and the