PHNOM PENH: According to an expert, the real estate industry in Cambodia is expected to make a swift recovery following the announcement of major infrastructure projects.
President of the CVEA (Cambodian Valuers and Estate Agents Association), Mr. Sorn Sieb, stated in an interview with CNC that the government’s investment in transportation infrastructure projects will lead to faster and inexpensive transportation of goods and people.
This will ultimately benefit the economy, leading to the growth of real estate where development and infrastructure take place. Mr. Sorn Sieb cited past examples such as developed roads, the third ring road, airports, and finished roads in Sihanoukville and Siem Reap where the real estate market thrived.
He also highlighted the two recent major transport projects announced by the Royal Government – the canal project to connect the Bassac River with the sea and the Phnom Penh-Bavet Expressway project.
According to him, these projects will lead to a massive increase in land prices, especially in ports and waterways which will become significant commercial areas. The Phnom Penh-Bavet Expressway project, in particular, is believed to be an important economic corridor project that connects to Vietnam, a country with high growth potential in the ASEAN region, which could provide several benefits to Cambodia’s trade and economy, including the real estate industry.
Depending on factors such as the impact of conflicts between Russia and Ukraine and the recovery of major economies like the United States, China, and Europe, the real estate sector could experience a recovery in 2024 or 2025, as noted by the speaker.
In May 2023, a significant project for the transportation of goods, the construction of a waterway connecting the Tonle Bassac River to the Sea of Cambodia, received approval from the Council of Ministers chaired by Prime Minister of Cambodia, Samdech Techo Hun Sen. This project is estimated to cost around $1.7 billion and will take four years to complete.
Furthermore, the second major construction project is the Phnom Penh-Bavet Expressway, with an investment of about $1.4 billion by the China Road and Bridge Corporation (CRBC). Moreover, the proposal is also in place to build the third expressway, Phnom Penh-Siem Reap, to conduct the feasibility study’s conclusion by the end of May, and sign the Memorandum of Understanding (MoU) soon.