Where Will We Go in 2016?

Where Will We Go in  2016?

In 2016, we expect to see a steady housing market that will grow along with the economy. I predict a healthy growth in both real estate sales and prices, similar to what we saw in 2015, although at a slightly slower pace. 2016 should be much more predictable and stable than past years.

We know that many people are looking at the future and what will happen to the economy in Cambodia. Having said this, we also can see that there is a lot of trust in the future both in the market and among the people of Cambodia.

The Cambodian economy is very stable and foreign countries are showing great trust in the nation that is reflected in a lot of investments. Cambodia has a lot to offer as a member of ASEAN with 70 percent+ of the country taken up by rural areas so there are plenty of opportunities to expand the market for the future of Cambodia and its people. Also a big factor is the very stable GDP in Cambodia with 7 percent in 2014 as well as in 2015. We expect the same in 2016.

With Cambodian home prices predicted to increase by 4 to 5 percent and a lot of new young buyers in the market, 2016 will be a great time for home sales. Increased equity, an improved economy, and feelings of financial security will lead to more people selling their homes in 2016.

All in all, the prospects for the Cambodian real estate market in 2016 all look positive, whether you are planning to buy, sell or invest.

Whether buying a condominium as your new home or as an investment for the future, buying land, buying landed properties, a borey and more…..there are so many potential opportunities.

However, we do have to keep one thing in mind: We have to improve our quality and knowledge base to be able to compete with foreign developers and investors. If we do not put everything to work we will start losing ground and this will eventually have a negative effect on the market.

We can see that investors and the government are starting to take a closer look at projects and developments to make sure they meet the required standards for approval they have the potential to be successful in the end.

The big question in the market still focuses on the many condominium projects in Phnom Penh. Is there an oversupply? The answer is simple. In the next 18 months, around 11.000 units will be released onto the market. Most of them are now being bought by investors and these will be re-sold after the projects are finished. The predicted trend will be that mainly the younger middle-class Cambodians will show great interest in the condos due to the new life style trend.

The demand for housing will keep on growing due to a large young population in Cambodia who will start their own families soon. This is an ongoing process.

For everyone that has been standing by and waiting through the economic rollercoaster of the past few years to end, the long wait is over and 2016 will be a great year to finally go forward and make your move.

 

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