Real Estate Developers Set Plans for Post-Pandemic Expansions

• 3 December 2021
• Local News
• 1620 Views

By Eric Wong Chon Lap

Almost two years into the pandemic, although some real estate companies are still struggling to survive, or to be remain competitive in the market, major real estate developers and players have been able to quickly adapt to the unexpected situation, capitalizing on the diverse income stream they have built. Some developers have even utilized this pandemic as opportunities to expand their business operations, aiming to complete developments by the time the economy revitalizes, with more international investors travelling to Cambodia.

The market continues to see major developers introduce new projects into the market with a timeline for completion from Year 2023 to Year 2025. This is the time real estate experts forecasted the market will start to recover. Aside from the survival strategies to stay afloat during the coronavirus pandemic, these developers have made use of the Year 2020 and Year 2021 as the incubation period for their new projects.

This can be clearly seen in a number of recent announcements by top real estate players. For instance, Chip Mong Land plans to transform the Chroy Changva district of Phnom Penh, especially the area along National Road 6A into a new civilized city – with their Park Land 6A development. This development is planned to be completed around Year 2023 with confidence that COVID-19 will have subsided by then, and completed when the real estate industry rebounded.

Recent business expansion announcements from Chip Mong Retail also shows that the real estate giant is not slowing down. The company has made major moves by launching a number of developments including Chip Mong 271 Mega Mall and Chip Mong 598 Mall, expected to be completed in Year 2022. These moves show that Chip Mong Retail’s strategic plan is not only aimed towards mitigating the economic loss in the pandemic, but also towards the potential growth in the long run. Chip Mong Group is also optimistic in the hospitality industry’s recovery once the pandemic situation improves and travel restrictions ease. The Group has invested US$80-million to build the 3-star Fairfield by Marriott Phnom Penh, in association with Marriott International.

Despite the pandemic and its effects on the economy, home buyers are continuously looking for residential properties. Majority of the developers are confident that there is growing demand amongst consumers as the economy slowly recovers from the pandemic. As the COVID-19 situation de-escalates in Cambodia, the smaller real estate developers will be focusing on keeping their boats afloat, while the bigger one is bolstering their hulls. In the end, both big players and small players will flourish, as rising incomes mean that people are able to afford to spend more on housing and entertainments.

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Eric Wong has extensive experience in the field of property consulting and development sectors, primarily within the emerging markets of Southeast Asia. From the property consulting perspective, he has led market research assignments inclusive of providing descriptive, exploratory market research and analysis reports within the office, residential, hotel, and retail segments in both quantitative and qualitative methods to determine suitable development types, scale, and product mix, and address property-related matters from project positioning to absorption rates, phasing and pricing and marketing strategies, etc.

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