PHNOM PENH: As the COVID-19 crisis worsens, the global economic crisis has raised concerns about its impact on Cambodia's economic recovery and real estate sector. Because of these issues, the growth of Cambodia's real estate sector in 2022 will be slower than in 2021.

According to Tycoon Ly Hour, president of the Cambodian Association of Housing Developers, responding to Property Area, said that housing sales have tightened due to the economic crisis, causing sales of housing projects this year to fall.

The price of gasoline has risen dramatically since the outbreak of the war between Russia and Ukraine, affecting the manufacturing sector and driving up transportation costs. This has resulted in price increases for almost all commodities, including steel and construction materials, the majority of which are imported from the construction sector.

Although the prices of steel and other construction materials had risen sharply, the tycoon stated that the prices of homes for sale could not be raised, while housing sales in Cambodia had dropped significantly.

While the price of various construction materials is rising, Tycoon Ly Hour stated that for housing projects that have been put up for sale, both the old project and the new project cannot be sold at an increase in the price of construction materials. The asking price will make the buyer wary.

“The price of goods rises, the price of construction rises, the price of transportation rises, which affects construction,” he explained. We cannot raise the price of our house while it is for sale and under construction.

“New projects, in particular, are difficult to implement because the real estate market is also difficult due to the overall impact of the global economy.”

“The Russian-Ukrainian war crisis affects everyone.” When it comes to the global economy, sales are always constrained. We won't be able to sell if we raise the price too much. “Ask if we can sell expensive items if we believe we are selling them.”

He stated that the construction project that has already been released has no plans to delay construction, but if it is a new project, they may consider delaying the sale opening. Because of these issues, the growth of Cambodia's real estate sector in 2022 will be slower than in 2021.