Have you any idea how real estate is doing in Cambodia as of recently and how many people want investment in Cambodia in that particular sector? Cambodia’s real estate sector is booming and property investment is what people are striving towards nowadays. Even though boys are the most in-demand housing options for locals, but still millennials and young adults everywhere prefer condominiums or apartments more. According to a fourth-quarter report of 2019 by CBRE Cambodia, there was a 27% increase in condo units, exactly from Q4 of 2018 (Khmer Times, 2020). Those are just 2019 stats, the numbers will only keep increasing annually, till recently which is 2021.
With that said, Cambodia property investment should all lean more towards condos and apartments, for the young adults and millennials are the future. Then again, one should be able to differentiate condos and apartments before such property investment in Cambodia starts happening. The easiest difference between condos and apartments is condos are owned/sold and apartments are rented. Hence here comes the question we have all been waiting for “Which one is a better investment?”.
This article would make you fully aware of the best kind of property investment in Cambodia would be. Whether the investment should be in a condo or apartment? The simple answer would be “Condo”. Wait, hear us out, there will be enough reasons below to support this statement of ours. But before that, let’s talk firstly about who is best for which type of property:
Who’s best for condos:
- Those who plan to have a permanent home or place to stay for a long time;
- Those who want to own equity;
- Those who have good bank credits (qualified for a mortgage);
- Those who love modern interior for their home; and
- Those who want an extra income by renting.
Who’s best for apartments:
- Those who like to move and hate living in a permanent place;
- Those who enjoy traveling;
- Those who aren’t on good credit terms with the bank (not qualified for a mortgage);
- Those who enjoy amenities; and
- Those who want a lower cost of living (fewer expenses).
Now that we have figured out who’s better suited for which property type, whether it is a condo or apartment, it’s time to list down the pros and cons of each. In order for you to understand why a condo is actually the better property investment in Cambodia.
Pros of Condos
- Affordability – This is not to say that condominiums cost less than any other housing options, but generally speaking condos in comparison to an actual house is way more affordable. Why get a house that costs at least twice the amount of a condo, when it serves the same purpose?
- Amenities – Also another reason why condos are more superior to houses, is because they have great amenities. Instead of a front or backyard, with condos, you get a fitness center, spa, rooftop bar, restaurant, green space, playground, mart and not to mention cleaners, doorman, and security guards. If that doesn’t do it for you, what will?
- Customization/Flexibility – The freedom and power possessed in your hands for your individual unit, you are free to customize it, design, and décor it whichever way you want. Due to the fact that you own it and so painting the walls a different color or decorating the room in a particular theme, you do whatever you want with your space.
- Solid Investment – Once you own a real estate asset that’s the best kind of investment in Cambodia hands down. The reason why is that real estate appreciates in value as time goes on. So, futuristically speaking, within 5 years or so this condo would be worth twice or more the amount you paid for. Moreover, you could also rent it out.
- Proximity – Because many condos are located in urbanized or suburban areas, traveling distances from home to work or school would be less of a hassle. Thus, saving much on transportation fees and saving time and energy as well. Since everything is essentially easily found in cities, such as schools, businesses, offices, restaurants, hospitals, and many more.
Cons of Condos
- HOA Dues – Even though HOA dues (Homeowner Association dues) come as a benefit for condos because it’s a fee paid to keep the interior maintenance of the building. However, this fee might keep on increasing over time and this is usually because of the amenities offered by the building.
- Limited privacy – Although you have your own individual/private space which is the unit you bought, you still are typically living in wall-to-wall proximity with your neighbors. If you have a soundproof wall, then good for you but there are only some places that offer soundproof walls. So, you might end up hearing unwanted noises and also unintentionally cause unwanted noises to your neighbors as well.
- Limited rules – Now this is only the case for a few condominiums, but not for most. There might be a few condos out there with strict rules, such as curfews, deadline due fees, pets, or even a certain extent to how you decorate your own private home. Those are the very few condos out there, that you should evaluate carefully.
Pros of Apartment
- Amenities – The same goes for apartments, there are amenities such as swimming pools, sky-bars, patio, mart, gym, doorman, cleaners, security guard and etc. Somewhat, this is something condos and apartments have in common.
- Maintenance – Something to keep in mind is, apartments are of very low maintenance because the landlord takes care of everything. All you’re in charge of is paying rent on time and not destroying anything.
- Relocating – With an apartment, you’re paying monthly rent, thus meaning you won’t be tied down in one place. You have the freedom to move and stay wherever you want. Hence, for people who enjoy traveling or people who have businesses to take care of overseas for quite some time, renting an apartment is the best choice for them.
- Proximity – Another common thing apartments and condos have, is that they both aren’t normally located in the rural area. But, more built-in the cities and suburbs.
Cons of Apartment
- Fewer perks – As said, amenities to are found in apartments. However, those amenities found in apartments are nowhere comparable to condos. Apartment amenities are just the basic, whereas condos are luxurious and lavish.
- Sounds – Since you are living wall to wall, you are definitely going to hear unwanted sounds and that’s just something you have to learn to live with. Also, this definitely depends on what type of neighbors you are lucky to have lived next door to you.
- Zero ownership – You’re renting someone’s space to live in, thus that means you are using someone’s equity and not your own. So, the freedom that comes along with owning your own equity, you have absolutely no idea of. Moreover, if you want to customize the living spaces that you rented, guess what the answer would be, sure it’s no. You have no control nor the rights, you might be violating rules and regulations set out by the owners, so be vary of that.
After all these valid reasons being elaborated and pointed out, you probably know have the proper knowledge as to why the better investment in Cambodia is condominiums. Especially as you can see, the locations of them, the amenities they offer, the profitable demands if you wanted to buy it to rent it out and most important of all the cost of the investment. All these pros definitely outweigh the cons and condos should be Cambodia’s property investment of choice.
Finally, we have come to the end of this very convincing article on “Which one is the better investment in Cambodia (Phnom Penh), condos or apartments?”. Due to all the facts being covered and explained already, such as the pros and cons of them both, plus throwing in the suggestions for who is better suited for what property type too. Thanks to all of those being properly stated in above, we still stand by and support the statement that condo is the superior investment. Mainly because it would just appreciate in value as the years go by and is also an affordable luxury. So, the best investment in Cambodia or Cambodia’s property investment that is the most superior, once again, is condos.