PHNOM PENH: Investment in Cambodia’s real estate sector is growing in popularity and bringing many benefits to investors, but the real estate sector was severely impacted and shaken during the Covid-19 crisis. However, some investors continue to invest in real estate, despite Cambodian real estate experts advising middle- and lower-middle-income people not to do so at this time.
Oknha Nuon Rithy, CEO of Khmer Foundation Appraisal (KFA) talked over the phone with AMS and said, middle and lower middle-income earners should not invest in real estate in this circumstance because now is the time to be prepared if their case is accepted. Those who want to invest should not invest in the housing, but rather in the land to make a profit.
“If the income is below average, even paying off the house to make a profit in the future should not be okay now because it may affect their expenses,” he said. Investing in land can still be profitable because land prices have the potential to rise, and some areas are more profitable than others. For the purchase of some houses, the profit from the land is more important than the profit from the house, but some land prices rise, there are high odds, and Heng Chheng rises slowly in some areas.
“We can say that it is a good opportunity for those who have enough capital and can buy real estate, both houses, and land, and can choose a good location that can be collected as much as possible.” In this situation, however, the wealthy can purchase real estate reasonably.
Oknha Nuon Rithy, on the other hand, reminded us that not all investments in the real estate sector could be profitable for everyone. Even those with sufficient capital are not certain that they can make a profit without extensive knowledge and experience in the real estate sector. As a result, before making an investment decision, it must be carefully considered and researched in order to avoid losses.