Expert: Five Key Drivers Boosting Cambodian Real Estate Market in 2021

• 20 January 2021
• Local News
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The President of the Cambodian Valuers and Estate Agents Association (CVEA) Mr Chrek Soknim has said that there are five key drivers which have been stabilising the Cambodian real estate market in 2020 and will also help boost the market in 2021.

“The first important factor is the strong financial institutions, which keep injecting loans and capital into this market. Despite the COVID-19 crisis, investors still can get capital from banks to continue trading,” said Mr Soknim.

“Another factor is the strong local demand. Although foreign investment has declined, local developers and investors continue to buy and sell property, especially in areas such as the outskirts of Phnom Penh, Kampong Speu, Kampot, Kep, among other potential areas,” he added.

Mr Soknum added that COVID-19 is a short-term issue, while most real estate buyers invest for long-term profit. Thus, the pandemic does not discourage them from buying, rather encouraging them due to the low price.

“Meanwhile, the fourth factor is that Cambodia has yet to have a land-use masterplan. Therefore, the opportunity is everywhere. You can always make profits if you can invest in the future potential government development areas,” said Mr Soknim.

And last but not least, he also pointed out that the effective government’s policy to assist in development is also another important factor.

According to Soknim, real estate transactions in 2020 decreased by 15% – 20%, but the average price remains robust. Meanwhile, CBRE Cambodia also predicted that the sector will grow by 60% in 2021. (Read more and more)

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