What Are the Best Rates for ROI, Yield, IRR and Cost-to-Performance Ratio for Condominium Investments?
By: Hoem Seiha, Partner and RE Advisor at ERA Data Intel
The ROI, Rental Yield, IRR, And Cost-to-Performance Ratio
In Phnom Penh, condominiums provide better rental yields than do any other property types, by providing 6% to 8% per annum for most of condominium projects across the city. A few projects out there could make it even up to 10% to 12% due to their good management and quality of the products they offer. This is way better than a high price shophouse or a detached villa, both of which can only run through less than 5% per annum of rental yields.
For example, if you're going to put $100,000 into a studio unit at a condo project, let's say, Le Condé BKK1, it will yield a monthly rental return of about ~$666 based on the average rental rate in the area and considering the quality of the condo which should grab an annual rent of 8% of your bought price. Here is how it comes:
Annual Rental Yield = (Monthly rent x 12) / cost of investment
Annual rental yield = 666 x 12 = 8,000
8,000 / 100,000 = 0.08 (it means 8%)
So what are the key indicators for condominium investment? Here are the key market averages you should know.
For additional details or real estate investment consultation, please contact Mr. Hoem Seiha via telephone: +855-12-699-553 / +855-10-699-553 | Telegram: t.me/Hoemseiha | E: hoem.seiha@eracambodia.com | Condo listings on Telegram channel: https://t.me/seiha_era_condo_listing
Disclaimer:
This analysis is an opinion made solely by Hoem Seiha, an independent real estate advisor and analyst for ERA Data Intel, based on some criteria and metrics deemed reliable for the current market. The opinion DOES NOT reflect any viewpoints of ERA Cambodia and therefore, we are not responsible for any loss or damage pertaining to reliance on this analysis for your investment.
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