Cambodia's residential market is expected to begin the year growing at a slower pace that year-ago readings – as fears of a protracted Covid-19 pandemic stagnate prices – but close out 2021 with a modest boost, according to industry insiders.
The general consensus is that growth will not surpass 2019 levels at any point of the year, as the Kingdom anxiously awaits the return of short-term visitors to spur the rental market and overall real estate sector.
Kim Kinkesa, senior manager of CBRE Cambodia, the local affiliate of US commercial real estate services and investment firm CBRE Group Inc, said the uptrend in the residential market was largely driven by increased interest from investors and local customers.
She was speaking to The Post on the sidelines of “Fearless Forecast 2021”, CBRE Cambodia’s yearly flagship event on February 17.
“There may be a few snags for the [luxury] condo and apartment markets, which often rely on foreign customers, but other than that, there won’t be much of an issue,” Kinkesa said. “The residential market in 2021 will overall be better compared to 2020, especially for borei [gated-community projects] and apartments.”
With many customers hesitant and in wait-and-see mode during the first months of Covid-19 vaccinations, she said housing prices will remain sluggish in the short-term and begin to rise in the second half.
Global Real Estate Association president Sam Soknoeun said the residential market has shown gradual improvement since the end of last year after Covid-19 stalled the sector for some time. But that growth pales in comparison with early-2020 levels, he said.
“As housing is a necessary demand for locals, it will increase further in 2021,” he said, stressing: “I believe that by the end of 2021, not only the housing sector, but the real estate sector in Cambodia as a whole will grow significantly.”