Condominium supply in Phnom Penh will increase by almost 120% this year, leading to a slight decline in rental prices, according to a forecast report by CBRE Cambodia.

The report obtained by The Phnom Penh Post says the number of condos in the capital will rise by 119.5% by the end of this year, from 14,173 units at the end of last year to 31,112 units.

The number of “affordable” condos will grow approximately 100%. Mid-range condos will increase 78%, while the high-end segment will grow 243%, according to the report.

The report continued that the affordable segment will make up 23% of market share, with mid-range constituting 43%, and high-end condos increasing to 34% of the market.

CBRE Cambodia director Ann Sothida said at the Fearless Forecast 2019 event in Phnom Penh on Wednesday that about 2000 condo units will be added to the market this year, causing rental rates to fall around 5%.

At present, the average cost to rent a condominium is between $10 and $15 per sqm per month. Sothida said that by the end of this year, prices will fall about 5% due to the high supply.

Sothida said, however, that sales could still increase more than forecast since, of the projects to be completed this year, more than 50% have already been sold.

The CBRE report predicts that this year, the cost of purchasing condominiums will average $1,600 to $3,100 per sqm.