Expert Warns Risks Stem from Oversupply of Vacation Homes in Cambodia

• 16 December 2021
• Local News
• 1977 Views

During the past few years, the trend of building vacation homes for sale has gained popularity, in particular at tourist attractions such as Bokor Mountain, Kampot and Kirirom. However, a real estate expert has warned that oversupply of this type of property can cause financial risks among developers given the overall economic conditions, limited average incomes of households, and low demand.

A real estate expert in Cambodia and President of KW Cambodia Dr Kim Heang said that the Cambodian economy is not ready for the vacation home market yet.

“Most Cambodians cannot afford to buy a vacation home because they cannot even afford to buy their primary house. Young to middle-age generation, who are the largest population, will keep their money to buy a primary house and a car instead of spending on a vacation home,” said Dr Heang.

“The clients for this segment do exist, but it is very small, mostly for rich people aged over 50 years old. Thus, vacation homes really need more time to grow, at least another 5 to 10 years,” he added.

Given the small market, the supply must be limited while the house itself must unique and attractive enough to get clients attention.

“If you cannot wait, and want to develop vacation homes now, to mitigate the risks, you must take into account four key factors including location, surrounding natural environment, distance from Phnom Penh, and a clear marketing strategy,” said Dr Heang.

“Of course, like its name, a vacation home must have a beautiful landscape with a nice house design. It should be nearby the water stream or mountain, but should not be too far from Phnom Penh. Only 2 hours drive is ideal,” he added.

• Analysis
• Knowledge and Key Success