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.

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Positioned in the heart of Cambodia’s south-central region, Phnom Penh resides at the convergence of the Tonlé Sap, Mekong, and Bassac rivers. These majestic waterways serve as invaluable resources, nurturing freshwater and river ecosystems, adorning the city with nature’s beauty, and fostering a prosperous cultural tapestry cherished by the people of Phnom Penh, both past and present.

The city is divided into 14 districts, locally known as Khans. These include Khan Boeng Keng Kang, Khan Doun Penh, Khan Kamboul, Khan Chamkar Mon, Khan Chbar Ampov, Khan Chroy Changvar, Khan Dangkao, Khan Mean Chey, Khan Pou Senchey, Khan Prampir Makara, Khan Russey Keo, Khan Sen Sok, Khan Tuol Kouk, and Khan Prek Pnov.

Of all the districts, Khan Daun Penh, located at the heart of the city, stands out as a prime prospect for land investment and real estate opportunities, albeit with sky-high prices.

Recent findings from a study conducted by CVEA for the first half of the year reveal a range of prices within Khan Daun Penh. The lowest recorded price per square meter stands at $2100 per sqm, while the highest goes as far as $13000 per sqm. These rates vary based on location, whether the land is situated on a main road or a sub-main road.

Within the boundaries of Daun Penh, three specific areas or “sangkat” boast the maximum land prices (main road). In descending order, these are sangkat Chamkarmon, sangkat Phsar Kanal, and sangkat Phsar Thmey, fetching prices of $9200, $12000, and $13000 per square meter, respectively.

For land situated on the sub-main roads, the maximum prices across all sangkats in Khan Daun Penh range from $4000 to $5400 per square meter, representing a slight difference from the main road rates.

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.

The post Most expensive land prices in Daun Penh: The top 3 areas revealed first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

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.

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According to data from the Ministry of Land Management, Urban Planning, and Construction, the ministry has issued permits to more than 57,000 construction companies across the country over the last two decades, based on total investment in the construction sector for the last two years. Last two-decade, sector has earned more than $ 66 billion and employs 150,000 people daily.

According to Mr. Chrek Soknim, president of the Cambodian Valuers and Estate Agents Association (CVEA) , international investors like the Chinese have come to invest in Cambodia’s construction sector, particularly in Sihanoukville, Phnom Penh, and some other potential provinces. More investment projects are expected to be awarded to the construction industry by the end of this year.

Mr. Chrek Soknim stated that the current real estate situation in Cambodia’s market gradually recovering, such as the sale of land, Borey, and condominiums, where the majority of these activities take place. As a local business owner. However, he still encourages people who can afford to buy a condo or apartment to stay because the price during the Covid-19 is lower than the market price.

Separately, the Phnom Penh Capital Administration recently stated that by the beginning of 2022, Phnom Penh to have 310 Borey buildings and apartment complexes, as well as 1,603 high-rise buildings, with 225 of them reaching 20 floors or higher. Building. In Sihanoukville, 278 buildings are finished and operational, while 251 are finished but not yet operational.

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• The implementation of the “Mondulkiri Tourism Development Master Plan (2021–2035) has been officially announced.

• Airport projects will be restarted and there will be more travel, which will increase demand for lodging and food, causing demand for real estate to rise and prices to rise as well.

• As planned, Mondulkiri Airport is expected to cost $80 million and will be built on a 300-hectare plot of land about 20 kilometers from Sen Monorom.

PHNOM PENH: The Royal Government has officially announced the implementation of the “Mondulkiri Tourism Development Master Plan (2021–2035), so that the works on rebuilding the airport’s infrastructure has begun again.

According to Neang Vannak, deputy director and spokesperson for the Mondulkiri provincial administration, the airport construction is currently underway, with major road infrastructure already under construction.

“They’re gradually clearing the entrance now,” he explained. At the same time, the airport’s border has been established, and it is being built gradually in general, but it has yet to be announced, the construction is not yet complete, and there are specific plans, “he said.

According to Neang Vannak, the Royal Government, as well as the provincial administration, have plans to develop both infrastructure and tourist areas throughout the province in order for it to become Cambodia’s fourth economic pole.

Mr. Chrek Soknim, President of the Cambodian Valuers and Estate Agents Association (CVEA), stated that the land sector in Mondulkiri will improve once the airport construction project begins due to the airport’s presence. There will be more travel, which will increase demand for lodging and food, causing demand for real estate to rise and prices to rise as well.

According to Mr. Ky Sereywat, an economist at the Royal Academy of Cambodia, the announcement of the Mondulkiri Tourism Development Master Plan (2021–2035) and the construction of the airport are expected to raise property prices and spark an economic boom in the region.

As a result, it will be possible to create jobs in the area, improve economic flow, and promote education in the area so that people can benefit economically, he said.

Mondulkiri Airport is expected to cost more than $80 million and will be built on a 300-hectare plot of land about 20 kilometers from Sen Monorom.

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• Between 2015 and 2030, the demand for housing in Cambodia is approximately 800,000 units, as per the Royal Government’s policy plan, which means an average annual demand of 50,000 to 60,000 units.

• According to the Ministry of Land Management, Urban Planning, and Construction, with the increasing population, housing demand will reach about 50,000 units per year.

• During the COVID-19 crisis, Cambodia has received 39 housing development projects in the last six months, showing that Phnom Penh city is expanding and becoming bigger.

PHNOM PENH: According to the Ministry of Land Management, Urban Planning, and Construction, Cambodia’s population growth, particularly in urban areas, has resulted in a steady increase in housing demand of approximately 50,000 units per year.

Mr. Ly Raksmey, Undersecretary of State for Land Management, Urban Planning, and Construction, stated at the 2022 Real Estate Awards Ceremony on the evening of April 7, 2022, that population growth in some towns and cities, particularly Phnom Penh, is driving up demand for housing.

According to the Royal Government’s policy plan, which has the Ministry of Land Management, Urban Planning, and Construction as its staff, the demand for housing in Cambodia in the 15 years from 2015 to 2030 is approximately 800,000 units, with an average annual demand of 50,000 to 60,000 units.

He went on to say that the annual growth of more than 50,000 housing units has given Cambodian housing developers, both domestic and foreign, the opportunity to develop to meet their needs while also making the housing market more viable for continuous growth.

According to a CBRE Cambodia report and study, despite the country’s COVID-19 crisis, Cambodia has received 39 housing development projects in the last six months, including Phnom Penh. The housing development project is now enlarging Phnom Penh city.

Despite the fact that Cambodia has been dealing with the Covid-19 crisis for more than two years, Mr. Chrek Soknim, president of the Cambodian Valuers and Estate Agents Association (CVEA), said the property market in Cambodia was still functioning, particularly demand from locals.

“Local demand for housing has resulted in the development of a series of new housing projects that keep the sector afloat,” he said.

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MONDULKIRI: The Mondulkiri airport project, which had been expected to open in early 2022, has been postponed indefinitely, impacting the province’s land sector.

Meak Rithy Chey, head of Century 21 Zillion Holding’s Mondulkiri division, responded with the Property Area that since the project started and before it was postponed, many local investors rashly went to Mondulkiri to invest in land for sale and development.

However, after the project was postponed, the land sector in Mondulkiri province began to be negatively impacted progressively, “he stated.

“People who used to look for land in Mondulkiri have progressively retreated, and the project they stated will begin development in early 2022,” he added, adding that the cost of land has not decreased considerably. “It’s a touch depressed.”

He went on to say that local investors make up the majority of land and real estate investment in Mondulkiri, with no international investors yet. The majority of investment projects in Mondulkiri are hotels, restaurants, and resorts of various types.

According to Mr. Chrek Soknim, President of the Cambodian Valuers and Estate Agents Association (CVEA), Mondulkiri is a prospective natural resort province. As a result, resorts and tourism-related industries such as hotels, guesthouses, and restaurants will be built in the province.

“In the future, foreign investors may come to Mondulkiri to invest in their individual talents, and the government has developed more convenient routes from Phnom Penh and other provinces to Mondulkiri,” he said.

The construction of Mondulkiri Airport has been delayed because of the COVID-19 issue, according to Sin Chanserivutha, spokeswoman for the Secretary of State for Civil Aviation. Chinese experts have been unable to examine the project’s progress.

However, he stated that Cambodia’s other international airport developments are proceeding satisfactorily, such as the new Siem Reap International Airport Development Project and the Techo International Airport Development Project in Phnom Penh.

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• Investors need a method for beginning from scratch to identify sources of information relevant to our investment potential in areas like residential or land types, or sort of investment, type of company,

PHNOM PENH: Mr. Chrek Soknim, President of the Cambodian Valuers and Estate Agents Association (CVEA), today outlined three critical principles for successful investment and significant returns with the propertyarea media.

Mr. Chrek Soknim stated that the following three tactics have been implemented and yielded positive results:

1. Individual Investment

This is a sort of investment in which two to ten people form a partnership and pool their money to buy real estate for investment, with the goal of sharing profits in the future by dividing dividends according to the percentage of the joint capital.

What steps are required to minimize hazards and increase success rates? The answer is in grouping, which includes a division of power, performance, responsibilities, and work.

Teamwork allows team members to refine and nourish their skills so that they can see the bigger picture of the industry and advance more quickly.

2. Small Group Investment

Most licensed companies have the right to handle the financial funds obtained through joint ventures of small partners to form capital for investment in large, successful projects of this type of investment. Most of the time, a licensed organization that manages the financial fund makes a clear assumption of time.

3. Joint Venture with Licensed Financial Fund Management Firms

Investors need a method for beginning from scratch to identify sources of information relevant to our investment potential in areas like residential or land types, or sort of investment, type of company, must be based on the interests and additional consultations of Cambodian real estate agents who are members of the association, which includes more than 120 businesses and over 3,000 agents throughout Cambodia.

Mr. Chrek Soknim remarked that while all three investment bases above have the same chance of receiving dividends, it is critical to study, analyze, and gather knowledge before opting to invest in one of the most significant. Engage enough people or hire a lawyer to protect and defend your interests.

He added: “More importantly, you can consult with members of the Cambodian Valuers and Estate Agents Association (CVEA) at no expense for information sources and the drafting of essential paperwork.”

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