Bonna Realty to Expand Overseas

• 31 December 2015
• Local News
• 1857 Views

While most local real estate firms are strengthening bases in the local market against incoming foreign firms pre-regional integration, Bonna Realty Group will start expanding to overseas markets.

Since 2011, Bonna Realty has been reforming its structure from a family business-based local firm to an international-standard one with the aim to reach international markets, said Sung Bonna, the company’s president and CEO.

After establishing branches in Siem Reap and Sihanoukville in 2012 and with another office opening in Battambang in April this year, the firm will soon open its first international branch in Laos as it already has existing customers and an operational structure there. It will then be moving into the Myanmar market later this year.

The company has undertaken considerable market research on ASEAN countries to recognize which countries its capacity. “While many international firms are entering Cambodia, I think like ACLEDA bank and how to penetrate overseas markets like ASEAN,” he said,

Although the company’s overseas businesses will primarily focus on brokerage services, he also welcomed the opportunities to be a developer, either through his own resources or via joint investment with overseas firms. “I know I don’t have enough resources to do that, but I want to bring a Khmer brand to reach the international arena,” he said.

Bonna Realty also has an eye on the European and Australian markets as it has already bridged partnerships with local firms there.

A medical school graduate, Bonna, on the contrary, started immersing himself into a career in property in the mid-1990s. He started his firm in 1999 with only three colleagues, and has since experienced many failures and weathered the financial crisis before being able to enjoy his fruitful business as it currently exists.

Today, Bonna Group has over 100 staff with four main subsidiaries; Bonna Realty group Co., Ltd, Bonna Business Center Co., Ltd, Bonna Plaza Co., Ltd, and Bonna Property Magazine.

Bonna, who chaired the National Valuers Association of Cambodia (NVAC) in 2008 (which was later renamed as the Cambodia Valuers and Estate Agents Association (CVEA)) for two mandates, has plans to develop some more property projects aimed at low and medium class buyers after seeing many developers focusing on high-end markets.

“My biggest dream which I was about to accomplish few years ago is the development of an iconic project like a well-known resort that can raise Cambodian pride to the world,” he said.

Despite seeing the Cambodian property market as being on the right track, he is concerned that the over-supply situation and steep price rises from 50 percent to 100 percent annually at most locations may hurt the industry in the long term.

“Now, everyone hopes ASEAN integration will bring more expats to rent or buy local properties, but if that expectation is wrong it will become the opportunity for lower class people to buy the excessive properties at a cheaper price,” he said.

His major concern about AEC is the low competitiveness of Cambodian human resources compared to other nations. Bonna called Cambodia the meat in the sandwich, located between two large, better-developed nations, Thailand and Vietnam. “If things are developed improperly, prosperity will go to both countries, not Cambodia. Looking towards the next 10 years, I don’t think there is negative problem occurring, but whether it is fast or slow depends on the real situation.”

An only son who lost his parents shortly after being born, 41-year old Bonna got married in 2001 and now has five kids. He advises people working in the real estate industry to stay honest and firm with their work and remain customer-focused. He also alerts them to be careful with changing market trends, wrong investment decisions, and market speculation.

For developers, he would like them to consider developing properties on the capital’s outskirts where a lot of land remains empty, instead of fighting to get land in the city’s downtown area. “Developers should develop their real estate projects by including ‘good public landscapes’ like gardens to attract not only residents but also tourists.

After having visited over 50 countries, he advises Cambodia’s young generations to open their minds by visiting overseas to gain international knowledge and to be ready for globalization. “When the Cambodian youth have a wide range of knowledge, they can rescue themselves when faced with a crisis”.