PHNOM PENH: Last week, Dr. Kim Heang, President of KW Cambodia, stated during a discussion with Co-founder and CEO of Propertyarea.asia that Cambodia’s economy has grown by around 7% in the last 20 years. Cambodia is transitioning from a third to a lower middle-income country, with the goal of becoming a higher middle-income or higher-income country in the future.
Another factor is that Cambodia is politically stable. Unlike some people who have never known Cambodia, they talk nonsense, but Cambodian politics is very stable under the leadership of Samdech Techo. “Land investment is very popular in Cambodia, with around 70% of the rich becoming wealthy as a result of land,” he added.
Oknha Dr. Kim Heang went on to say that the second important factor is the inflow of foreign investment because Cambodians are open-minded, friendly, and able to learn all languages, making Cambodia appealing. Foreign investment should be combined with stable economic growth, good investment policies, and fundamentals.
He added that three types of investment capital can help the Cambodian economy grow more. Firstly, local investors who invest money, because there are many local rich people in Cambodia, and releasing more investment will help the economy.
Second, foreign investment, with Chinese investors playing a significant role in the economy, particularly in the real estate sector, and third, when our prime minister was visiting the United States and Switzerland. Samdech Techo, Cambodian prime minister will consider the possibility of issuing identity cards to Cambodians living abroad, which is a long-awaited sign.
Finally, Mr. Oknha added, “Having these three sources of capital will help our economy grow even faster.”
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Cambodia’s real estate will grow by 5.2 percent next year
PHNOM PENH: The Royal Government of Cambodia forecasts that the Cambodian real estate sector will continue to recover at a growth rate of 5.2 percent in 2023 due to the anticipated recovery in real estate transactions. This is according to the report of the Ministry of Economy and Finance.
The recent report on the macroeconomic policy framework and public financial policy for the preparation of the draft financial law for management 2023 includes a forecast of the Cambodian real estate sector.
Due to the expectation of a slower recovery in purchasing activity, the report said, “the real estate sub-sector is projected to continue to recover at a lower growth rate of 2.5 percent in 2022 and 5.2 percent in 2023.” “Selling and renting high-end properties such as condominiums and apartments, while domestic investment and demand for low-and medium-cost residential real estate is expected to grow strongly.”
However, similar to the construction sub-sector, the real estate sub-sector is highly correlated with the financial sector, both inside and outside the banking system (loans provided by developers).
In this regard, the Royal Government will continue to closely monitor the development of this sub-sector and will implement various intervention measures to mitigate potential risks.