In the recent conference of about 200 foreign and Cambodian investors held by the Cambodia-China Business Association, Global Real Estate Association’s President, Mr. Lor Vichet, stated that foreign investors are finding more investment opportunities in Cambodia because of the socio-economic factors, which is more conducive to investment in real estate Cambodia.
According to the Khmer Times, the President says this is a time of exceptional investment opportunities in the real estate business due to the continuous arrival of Hong Kong, Chinese, and investors from other countries to the Cambodian market. These opportunities will propel trade to another level in real estate.
The Founding Director & Honorary President of Factory Phnom Penh & Urban Village, Mr. Ben Li, also declares that Cambodia has wonderful real estate market opportunities. Among Southeast Asian countries, Cambodia’s real estate property prices are among the lowest, and Phnom Penh’s rental yield is among the highest.
How’s Cambodia’s Real Estate Market Doing?
The frontier markets of Asia are snowballing. Investing in real estate and a business set up in Cambodia is arguably one of the best options for foreigners. Cambodia, a relatively small country in Southeast Asia, has experienced rapid economic growth since the Khmer Rouge disbanded over two decades ago.
The strong ties between Cambodia, China, and Japan will attract investors for hotel, casino, condominium, and residential property investments. Two new airports are being built in Sihanoukville and Siem Reap, which has increased real estate demand. Residential investments are very promising, and they are considered “safe.” As 2023 approaches, Sihanoukville real estate is projected to grow unabated.
Property investment in Cambodia is a good way to benefit from the country’s current growth. Cambodia has not had a single recession in the last 20 years, and the Asian financial crisis didn’t affect it in the past. Aside from that, it ignored early 2000s technology bubbles and even weathered the recent financial crisis.
While no country is recession-proof, Cambodia is fairly close since it depends less on global economic activity than many frontier markets.
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Future of Real Estate Sector in Cambodia in 2030
Cambodia’s economy is expected to grow strongly in the next 10 years due to the increased income of Cambodians and the stable economic conditions, attracting foreign investors. According to the published Ministry of Economy and Finance forecast, Cambodia’s real estate market will grow by 2.4% in 2021 and 4.8% in the coming years, with continuous domestic investment and foreign investment.
The peak in investment activity, especially from Chinese investors, will occur after the Chinese new year.” said Mr. Soknim.
Future projections of Sub Sectors are :
Condo
In 2020 and 2021, this sector saw the most severe impact, with the market almost stopping moving due to foreign investors’ reliance. Some projects with foreign developers have been suspended, while others have been paused. “This sector hopes foreign investors will return, but localities must reorganize their location, size, and price to succeed.
According to Dr. Kim Heang, Khmer condominiums must be in the city center, with decent room sizes and affordable prices.
Borey
Despite the strong market for Boreys in 2022, the market is expected to remain strong for the next 5-10 years, as low to mid-range types will remain in high demand. Boreys in strong demand will sell for $50,000 to $100,000. Many Cambodians have middle and low incomes. In this regard, residential projects with unit prices under US$100,000 will be most feasible for them. As bank loans become more accessible, the demand for this type of borey will increase,” said Dr. Kim Heang.
Factory & Warehouse Leasing
Over the past few years, factories and warehouses for rent have gained popularity.
As far as profitability goes, this type of business can be profitable in 2022 and beyond, depending on location and land size.
Home For Vacation
Building vacation homes for sale, especially in tourist attractions, has recently gained popularity. “There are indeed clients in this segment, but they are mainly rich people over 50 years old, so it will take some more time for vacation homes to grow, at least another five to ten years, ” said Dr. Kim.
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Cambodians add market value to the real estate sector by being more involved in the property market.
The question “Who will buy these properties?” is one of Cambodia’s pressing real estate concerns. In the last two years, foreign investors and middle-to-upper-class Cambodians have taken over that role, a remarkable milestone in the real estate market. “As sales and marketing have changed, more people have become involved in the property market.” This is good news for foreign investors since they can sell their condo investments to locals more efficiently.”
“Now that condos are more accessible to Cambodians and not for just ex-pats/foreigners, the market will be more stable for investing and less subject to risk,”
Conclusion
As one of Cambodia’s most renowned real estate agents, IPS Cambodia assists you in determining whether it’s the right time to invest.
Still, if you are struggling to make an appropriate decision, immediately contact experts from the IPS.