Expert: Condo Market Recovery Uncertain in 2022, Pending Greater Foreign Investment Inflow

• 23 December 2021
• Property Focus
• 1743 Views

Due to the impact of the COVID-19 pandemic, the condo market in Cambodia has been hit hard for two years in a row, 2020 and 2021. 2021 has been even worse than 202o given lockdowns and the widespread new variants.

Cambodian real estate expert and chairman of KW Cambodia Dr Kim Heang has projected that the condo sector market will remain stagnant in 2022 if there is no inflow of foreign buyers despite the country reopening.

“Condos in Cambodia have an average price of US$2,500/sqm or higher, which is very high for the local market. Thus, if foreign buyers do not return, the market will not improve,” said Dr Kim Heang.

“The country reopening is a good sign, but nothing is guaranteed. There is no certainty that foreign investors will return despite the country’s reopening as it also depends on the situations in their own countries. I don’t expect any new investors in 2022, hoping only for the existing ones that left to return only,” he added.

While waiting for foreign investors to return, Dr Kim Heang suggested that developers shift part of their business to the local market.

“Developers can turn to the local market by reconfiguring the location, size and price of the project. For Cambodians, they do not buy condominiums for daily living, they buy them to only live temporarily, so the location must be in the city centre,” said Dr Kim Heang.

“Besides, for Khmer buyers, condos should have 1 to 2 bedrooms, while the price should be between US$1300-1500/sqm or US$50,000-60,000/unit. If developers can do so, the market will survive for at least another short period before the foreign investors return,” he added.

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