Real Estate Price in Recent Flood-Affected Areas to Decline Sharply for Two Years, says Expert

• 11 January 2021
• Local News
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A local real estate expert has said that the price and the sale and purchase transactions of real estate projects in the south of Phnom Penh, which were hit hard by floods in October last year, will drop significantly for at least one or two years. However, it is expected to recover after the government upgrades all the infrastructure.

Mr Sorn Seap, Founder and Director of Key Real Estate Co., Ltd., told Construction & Property Magazine that the projects that have already been developed will be strongly affected as people obviously saw that they were flooded.

“The price will drop for at least one or two years. It will be tough for the developers to sell the property at the price they want. Besides, the number of transactions will also reduce, as some investors began to hesitate to invest in the area despite its high potential,” said Mr Seap.

“Those investors will wait and see the progress of infrastructure developments and flood prevention measures by the government before deciding the invest in that area once again” he added.

Given that, Mr Seap is optimistic that the area will recover very soon as long as the government have done their infrastructure upgrading projects.

“No matter what, as for the land, it still has great potential because most flooded areas are in Dangkor district. This district has been attracting many projects with many massive infrastructures being developed there such as the second and third ring roads, as well the new airport,” said Mr Seap.

The recent flood caused by accumulative rainfall in October has damaged over 2,600 km of infrastructure nationwide and in which the south of Phnom Penh was also severely affected. (Read more)

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