PHNOM PENH: The real estate industry 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.
During a recent roundtable discussion on the “Real Estate Market Situation in Cambodia,” Mr. Sorn Sieb, President of the Cambodian Valuers and Estate Agents Association (CVEA) 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.
Mr. Sorn Sieb also noted that there are two types of demand for properties, domestic and foreign, which developers must consider when constructing properties. Unfortunately, some developers only focus on foreign markets and fail to meet the needs of local consumers, resulting in oversupply and market saturation, which can be further exacerbated during crises such as the global Covid-19 pandemic.
Mr. Sorn Sieb was elected by the 13th General Assembly of the CVEA (Cambodian Valuers and Estate Agents Association) to succeed Mr. Chrek Soknim as Association President on 22, December 2022. The new chairman will be in office from 2023 to 2024.