Oversupply, Liquidity Reduction, and Construction Delays Pose Greatest Threats to Real Estate Market in 2021

• 7 April 2021
• Local News
• 4772 Views

Among other projected risks, oversupply, reduction of liquidity, and construction delays have been the top three concerns that pose greatest threats to the real estate market in 2021, according to CBRE Cambodia’s recent survey.

The survey also listed out other risks such as the threat of international sanctions, lack of infrastructure capacity, domestic regulatory change, construction disasters, and geopolitical risks.

Nevertheless, threats caused by international sanctions and domestic regulatory changes have become less of a worry among the public in 2021 compared to the survey’s result last year. Meanwhile, concerns related to geopolitical risks have slightly increased.

Despite the long-term projected risks, the market at the moment is under quite severe pressure from the recent surge of the COVID-19 community outbreak.

“The start of the year indicated a brighter outlook for the market as corporations, retailers and individuals started to enact long-delayed plans to expand their holdings. However, this positive trend has reversed since the February 20th Event. Our figures indicate a strong reduction in demand across almost all sectors,” said Managing Director of CBRE Cambodia James Hodge.

“The good news is that deals struck before the outbreak continue to move forward, but the dearth of interest since late February will mean a bleak outlook for at least the first half of the second quarter, especially whilst COVID-related travel restrictions continue to cap levels of business activity and keep domestic spending and tourism at a lower-than-normal level,” he added.

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