For the past years, the Cambodian real estate industry has been growing fast. In Sihanoukville, Kep, Siem Reap, Bavet, Phnom Penh, and others, there are lots of construction going on as numerous investments mainly from China are coming in.
In Phnom Penh, there are lots of developments recently completed, on planning, in the pipeline, or underway. The buildings are either commercial, residential, or mixed. There is also a rise in the supply of apartments, condos, and other residential units. As the number of Cambodians improves their living from poor to average, the need for properties is likewise increasing.
The value of properties has gone up, especially in the highly developed part of the country. Still, it is much cheaper than in neighboring countries.
In spite of the projected market crash in the future, experts in the property industry believed that real estate in Cambodia is in the right direction. A rise in the property sector, mainly in Borey and condo developments, land price, supply, demand, and foreign direct investment, will be seen in the next five years.
The country benefits from political stability and the continued confidence that the investors are showing. The recently concluded national election makes way for the Cambodian People’s Party another 5-year to rule the nation.
What to Expect in the Coming Years?
Experts believed that by the look of the present real estate industry in Cambodia, it would keep moving and continue to grow in the next five years. When people are investing in real property, they failed to look at society, political, technology, and economic stability. They focus only on the main factor that affects political stability.
The property market in the next few years will provide better options regardless of the grades and will be very competitive when it comes to quality with other ASEAN regions. The serviced apartment owners will be more prevalent, and the advanced local real estate companies will become a market leader.
The supply will continue to rise, where over 10 million square meters will be in the market every year. There is no stopping on the supply as long as the economy continues to grow.
Even if the project launches are small in number, the projects are set to increase. Mainly there are lots of Chinese developers able to establish themselves. The demand for property in Cambodia will not slow down and will continue to rise.
The future for Cambodia real estate is very bright as both local and foreign investors will continue to buy properties in the country. Experts believed that the middle to a low-class housing project with a low-interest rate would be the primary market.
For the next five years, Chinese and local demand and supply are the influencing factors in the country’s real estate sector. The foreign investors also foresee the Cambodia property sector is very promising. The foreign investors will continue to dominate the infrastructure and manufacturing sector of the country.