Expert: Construction and real estate market to recover next year

• 2 April 2020
• Local News
• 3867 Views

Experts predict that the construction and real estate markets will recover in 2021 despite the dramatic decline since the end of 2019 resulting partially from the effects of the COVID-19 pandemic in 2020.

In an interview with RFI, Dr Ky Sereyvath, an economics professor and also Director of the Royal Academy of Cambodia’s Centre for China Studies said, “The outbreak does not damage the Cambodian economic infrastructure. It merely remains stagnated just like in the 2009 crisis. After other countries’ economies regain their momentum, as I believe, Cambodia’s economy will recover by the third or fourth quarter this year.”

“The construction and real estate sectors will not recuperate by this year for it is not a prioritized market in Cambodia. However, it will recover next year because these two sectors have seen a downturn ever since the fourth quarter of 2019,” he added.

However, Dr Kim Heang is a Real Estate Expert and President of KW Cambodia, and CEO of Khmer Real Estate, commented on the “Land sector in Cambodia after the outbreak of COVID-19 and the stamp duty tax exemption” saying it was a good opportunity to invest for the years ahead.

“During this COVID-19 crisis period, most construction and trading are suspended. … leading to more available construction contractors and workers, construction material prices are also decreased, other costs such as administrative process and fees are much easier to invest…. In a year or two after this virus crisis recovers, we could sell out with higher prices,” he said.

Dr Kim also suggested that people prepare their money to invest in the real estate sectors. He emphasized that “If we can circulate around US$3 million or US$5 million in the market, then our economy will not be stagnated. Therefore, those who have enough money should invest now as there are many plots of land on sale with more affordable prices and good locations. Yet, during this crisis, if people stop buying or selling, that is the real concern.”

According to the World Bank, Cambodia’s economic growth will decrease to 2.5% by the beginning of 2020 but will recover to 5.9% in 2021 due to the resurrection of China’s economic activities and major markets next year. (Read more)

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