Another glitzy condo sets up in BKK1, but occupancy is dismal

TrendycommuneBoeungKengKang1isnowhometothelatestresidenceintown.PlatinumBay,a32-storeycondo,hasofficiallyopenedthedoorstoits222-unitbuilding.WhilefinishingtoucheswillbecompletebytheendofMay,buyershavealreadystartedtomovein–althoughthenumberispaltry.Atpresent,only10unitsareoccupied.

Thedeveloper,TangChenInvestmentCo.,couldnotbereachedforcommentonthecondo’stotaloccupancyrate.PlatinumBay,whichannounceditsprojectin2013,wasinitiallyslatedfora2015completion.

KekNarinn,CEOofFocusProperty,whoseofficeresidesinBKK1,saidearlierthisweekthattheroomrateinthecommunehastakenaslowdipduetotheriseofnewcondosandapartmentsallopeningtheirdoorswithinmonthsofeachother.Despitethis,hesaid,judgingfromtheoveralloccupancyrate,BKK1stillranksthehighestamongallofPhnomPenh’smainresidentialdistricts.Thisratecorrespondstoalmost90percentoccupancy.

Condoandapartmentownersaregoingforwardwithpreservingtheircurrentpricingwithoutofferingdiscounts,butthiscomeswithaddedservicesandamenities,becausecompetitionisincreasinglytoughernowwiththesupplyofhomesspiking,”Narinnadded.

Onamonthlyrentalbasis,accordingtoNarinn,high-endapartmentsinBKK1cancommand$1,500foraone-bedroomunit,upto$2,500foratwo-bedroom,andbetween$2,500and$3,500forathree-bedroomapartment.

WhileBKK1continuestoenjoyhigheroccupancyratesforitsresidencesthanotherareas,CEOofCentury21MekongChrekSoknimsaidadeeperlookhastobetakenfromadevelopers’perspective.Investorsareshiftingstrategies,withthefirstwavehavingmainlytargetedtheforeignerandexpatmarket.Today’sinvestors,however,arefindingmoresubstantialvalueinprioritisingthelocalmarket,withtheprovisionoflower-pricedcondosandapartments.

Still,themindsetoflocalsperseveresinthattheyarestillattachedtotheirshophouseandflathousedwellingswhencomparedtothefairlynewconceptofhigh-rises.

NotmanyCambodianpeoplearereadytoleavethecomfortsoftheirhomesandmoveintocondos.Thecountryneedsanotherdecadeforthepeopletocometotermswiththeidea,beeducated,andhavetheirmentalityaboutthissectorchanged,”saidSoknim.

KimHeang,headoftheCambodianValuersandEstateAgentsAssociation(CVEA),notedthatiftheBKK1areawasshowingitscurrentlackofdemandforapartments,andcondosalescontinueddwindling,nootherareainPhnomPenhwouldbesparedthesameconditions.

Headded, Therentrateandthequalityofthebuildingareacceptableinthecurrentclimate.

Therearenoproblemsinthepresent,butthefutureoftheseresidencesholdsgreatuncertainty.