Logo of Phnom Penh Post newspaper Phnom Penh Post - Experts optimistic on property sector in 2018



Experts optimistic on property sector in 2018

Green and blue mesh cover buildings under construction in Phnom Penh.
Green and blue mesh cover buildings under construction in Phnom Penh. Heng Chivoan

Experts optimistic on property sector in 2018

Experts and investors in the property sector are optimistic about the growth of the Kingdom’s real estate market in 2018 and have expressed confidence in the sector’s viability.

According to Ann Sothida, country director of CBRE Cambodia, an additional 13,000 condo units are expected to enter the market in 2018, which will attract new investment and enlarge the local rental market. Office lease demand remains healthy, with B-grade and C-grade buildings in high demand. The retail sector is also doing well, with two international shopping malls scheduled to open their doors this year.

“I think FDI flows are still stable, not plummeting, and this market is absorbing a lot of interest, helping to make the buying and selling of houses and boreys [gated communities] more profitable,” she said. “Boreys now have reasonable prices and the buying trend is still doing very well as boreys focus on local buyers.”

Grace Rachny Fong, executive president of Century21 Cambodia, said the real estate market has not changed since 2017. Two large projects will be launched this year that will solidify the market, she added, without naming the projects.

“Looking at FDI flow, I think it is stagnant and may represent a slight decrease, since investors from Europe have shown concerns,” she said. “However, investors from Asia are still coming here.”

Chrek Soknim, CEO of Century21 Mekong, said 2018 could prove difficult due to the upcoming national election and real estate prices having already peaked. He said it was unlikely that prices would rise beyond their current levels.

“Land prices will not drop, but it’s hard to sell land because the number of buyers is not increasing much,” Soknim said. “Even if prices drop they will not fall as much as they did in 2008 because in 2018 investors are using loans from banks. After 2008, investors focused on buying using cash.”

“The condo market is not at risk,” he added. “The amount of locals buying condo units has increased by 5 percent if we look at the total purchase and sales figures.”

Kim Heang, president of the Cambodian Valuers and Estate Agents Association, said he expects the price of land to change because in the last few years sellers have been able to set their own prices. Now, buyers are dictating the prices.

“The housing market is still doing well, but reasonably priced houses are in high demand,” he said.

Ly Hour, president of the Housing Development Association of Cambodia, said investment in the construction and real estate sector remained steady. Affordable housing is still in demand and the sector will continue to attract both local and international investors.

“Everything is still doing well this year, from local investors to the influx of international investors,” he said, adding that Chinese, Korean, Japanese and Singaporean investors are still coming to Cambodia.

MOST VIEWED

  • Purging Sihanoukville’s past with a new masterplan

    Amid illicit activities, haphazard development and abandoned projects, the coastal city of Sihanouk province needs a reset to move forward. A new masterplan might be the answer to shake off its seemingly mucky image to become the Shenzhen of the south Gun toting, shootouts, police

  • Chinese may be first in tourism revival: PM

    Cambodia's tourism industry is gearing up to roll out the red carpet for Chinese travellers after Prime Minister Hun Sen on September 17 indicated that the Kingdom could soon throw open its doors to international holidaymakers vaccinated against Covid-19 – starting with guests from China. Cambodia Chinese

  • Airline says ready for green light to reopen international tourism

    Sky Angkor Airline Co Ltd on September 21 said it is ready to transport South Korean and Chinese tourists to the Kingdom once the Cambodian government makes good on plans to reopen its borders to vaccinated travellers. The Siem Reap-based airline made the remark during a

  • Four-pillar approach in reopening of tourism: PM

    Cambodia is drawing up a four-strategy approach to promptly restore domestic and international tourism activity and put the industry on a transition pathway to a sustainable and inclusive model that is resistant to future crises, according to Prime Minister Hun Sen. The prime minister made

  • Tourism concerns laid bare

    To ensure the success of plans to reopen the tourism market for international visitors, Cambodia must pay utmost attention to two primary determinants – the ongoing paradigm shift in domestic tourism services towards the ‘new normal’, and the factors influencing choices of destinations among foreign holidaymakers.

  • Cambodian bride ‘badly treated, held captive’ by Chinese man seeks help

    A Cambodian woman who travelled to China to marry a Chinese man there was “badly treated” by her husband’s family and then had to be rescued and will be returned to Cambodia to ensure her safety. The rescue operation came about after the 25-year-old