PHNOM PENH: The real estate sector in Cambodia is still struggling to recover from the COVID-19 crisis and global recession. Experts believe that it will take longer than expected for the sector to return to its pre-crisis levels, as Cambodia also faces global economic headwinds.
Despite the numerous challenges in the global landscape, including those faced by the real estate sector, it is crucial to acknowledge that the current real estate issues in Cambodia do not possess the power to plunge the national economy into a state of crisis.
There is a number of ideas from experts sharing how Cambodia’s real estate challenges are and they also give advice and show insights into the current situation.
Oknha Lim Heng, Vice President of the Cambodia Chamber of Commerce (CCC), emphasized that while the real estate sector poses challenges, it is just one facet of the economy and should not be considered a representation of the entire economic situation. Accusing the national economy of being in crisis, either before or after the election, is unwarranted.
Oknha explained the setbacks in the real estate sector will not adversely impact other growing sectors of the economy, such as the emerging services sector recovering from COVID-19, industrial, exports, and agriculture.
Dr. Tan Monivann, a well-known real estate development expert and business tycoon in Cambodia, shared seven insights at a roundtable discussion on the real estate market in Cambodia organized by the Royal Academy of Cambodia recently.
Dr. Monivann’s insights provide valuable insights into the challenges facing the real estate sector in Cambodia and the steps that can be taken to help the sector recover.
They are Surplus supplies, Lack of proper marketing research, Copycat businesses, Lack of association membership, Developers with multiple roles, Importing materials, and Lack of a roadmap.
However, Mr. Sorn Sieb, President of the Cambodian Valuers and Estate Agents Association (CVEA) still has positive courage with the real estate sector but only advised that investors looking to invest in the real estate sector should have their own budget and consider long-term investments upwards of five years to maximize profits.
According to Mr. Sorn Sieb, investments can be categorized as short-term (one year or less), medium-term (3-5 years), or long-term (five years or more). He encourages long-term investments that are funded by one’s own budget as this offers more options to purchase properties at a reasonable price.
The real estate industry in Cambodia is currently facing several challenges. Market instability, and oversupplies of properties, including condominiums, commercial buildings, and offices, both within and outside the city, are growing and evolving too rapidly, causing saturation in the market.
