Experts: SHV’s Current Economic Slowdown Ending of First Growth cycle; Next Cycle Could be 5 times Higher

• 20 May 2021
• Local News
• 5455 Views

Real estate experts have predicted that the current slowdown in investment activities in Sihanoukville is just the end of the first growth cycle, with yet more investment waves to come soon with at least five times the current investment value.

Experts shared their forecasts during a forum to discuss the real estate market status, which was organised by Cambodian Valuers and Estate Agents Association (CVEA) on 19 May.

Chairman of the Board of Directors of CVEA and CEO of Realtor 168 Co., Ltd Mr Lim Socheat said that the current status of Sihanoukville is just the first wave of Chinese investment.

“The first wave mainly focused on tourism sectors including projects such hotels and casinos. Due to some changes in law, this type of investment tends to stand still. However, if we observe the overall master plan of both China and Cambodia, the real direction is to turn Sihanoukville into an industrial hub,” said Mr Socheat.

“Driving from Phnom Penh to Sihanoukville, on the right side of NR4, the government has reserved it for industrial development. Meanwhile, the left-hand side from Ream onward is blocked for tourism development,” he added.

Mr Socheat emphasised that based on the long-vision plan, the second and third investment waves will come very soon. If that happened, Sihanoukville will grow at least five times bigger than its current size.

Founder and Director of Key Real Estate Co., Ltd. Mr Sorn Seap also forecast that after the COVID-19 pandemic subsides, which is expected to be next year, investors in the four major sectors will return to Sihanoukville.

Sihanoukville is a high potential province given the newly upgraded infrastructure, roads, expressway, ports, airport, oil industries, special economic zones, and beaches, among others. I think the province will soon catch its momentum,” said Mr Seap.

Other local real estate experts also used to define this current economic slowdown in Sihanoukville a painful adjustment but toward sustainable development. (Read more)

The vice-chairman of the Cambodian Constructors Association and CEO of Muhibbah Engineering (Cambodia) Oknha Hann Khieng, also defined the online gaming crackdown policy as an ‘Investor Filtering Policy”, meaning pushing out illegal, and absorbing better quality investors.

• Analysis