PM Hun Sen: Coronavirus outbreak affects Cambodia’s property sector

• Kongleaphy Keam
• 30 January 2020
• Local News
• 5357 Views

Prime Minister Samdech Hun Sen and local real estate experts have expressed concern that the coronavirus outbreak could negatively impact Cambodia’s property sector, especially the hotel business, and even possibly reduce new investment if the outbreak prolongs.

During the PM’s first official speech regarding the coronavirus situation in Cambodia on 30 January, Samdech Hun Sen said that the sharp drop in Chinese travellers to Cambodia has put the hotel business in vulnerable condition.

“The shutdown of flights from China to Cambodia has a direct impact on the Cambodian economy…This will kill the hotel sector,” said Samdech Hun Sen.

If the situation prolongs it will not only affect the hotel sector, according to the local property expert Mr Sorn Seap, but also the property market as whole in Cambodia.

“Due to the outbreak, there is less travelling, less travelling results in a slowdown of the Chinese economy, which undeniably will also affect Cambodia as well. As we all know, a large proportion of real estate including completed, ongoing, as well as planned projects, are owned by Chinese investors,” said the real estate analyst and CEO of Key Real Estate Co. Ltd.

“However, it won’t affect it much at this stage because most of the projects are planned long-term. For sure, it won’t affect the price. However, if the outbreak prolongs, it will affect investment, especially new investments,” he added.

Similarly, Ms Thida Ann, Director of CBRE Cambodia, also expressed her concern that the acceleration of the coronavirus could affect Cambodia real estate, especially regarding investment.

“The property sector in Cambodia depends quite a lot on Chinese investors. Since the outbreak strongly affects the Chinese domestic economy, people will have less incentive to invest.”

“At a superficial scale, it might affect only Chinese buyers. Less Chinese people come to Cambodia, means fewer buyers. However, at a deeper level, new investors who plan to invest, let say January this year, will indeed delay their investment. Therefore, if the outbreak continues, the investment will keep delaying,” she said.

CVEA President Mr Chrek Soknim, in an interview with RFI, also expressed a similar view saying that this outbreak could affect the real estate sector but only in the short-term.

According to the latest report, as of 30 January, there are more than 7,000 cases around the world, and Cambodia has officially confirmed one case. On 31 January the World Health Organisation declared the virus as a global health emergency.