Analysis: 7 Things to Consider About the Real Estate Landscape in Cambodia

• Proeksa Meas
• 24 January 2019
• Local News
• 3641 Views

The real estate sector in Cambodia has seven main areas to be considered, according to the results of a press conference on the real estate situation in Cambodia held on 24 January 2019.

The press conference, organised by the Club of Cambodian Journalists (CCJ) and the Cambodian Valuers and Estate Agents Association (CVEA), concluded that the current and future real estate situation in Cambodia has seven main points to consider.

According to a summary after the event ended by Mr Puy Kea, one of the speakers, those 7 points includes;

1) Location with great potential for investment that would bring great profit are in commercial areas, such as in the coastal provinces.
2) In general, a slowdown in the real estate sector usually occurs after 20 to 30 years, which means, the real estate will enjoy strong growth over that period before it will slowdown. Meanwhile, for Cambodia’s real estate sector, it has so far enjoyed strong growth within the last ten years.
3) The price of land in Cambodia is still lower compared to other countries in the region, such as Thailand and Vietnam.
4) Currently there is no sign of slowdown in Cambodia’s land sector.
5) Cambodia ranks sixth among fast-growing economies across the globe, meaning that the real estate sector continues to be healthy if the Cambodian economy continues to grow strong.
6) Investment in construction has decreased slightly in 2018, with investment capital of around US$5 billion, a decline by 18% compared to the previous year.
7) Land plot development is still a concern for the real estate sector in Cambodia, which requires caution in addition to more rules and regulations in place. However, the Ministry of Land Management Urban Planning and Construction (MLMUPC) has and is going to issue more regulations soon to ensure the sustainable development of land in Cambodia.