The kingdom is gradually transforming to become the best place for expats and local investors
Albeit the economic uncertainties that come with the pandemic, Minister of Economy and Finance Aun Pornmoniroth shared his optimism regarding the Cambodian real estate market, stating that investors can still benefit from its moderately low prices particularly in areas that have received growing interest and witnessed a progressive surge in investment activity, reported The Phnom Penh Post.
At the 23rd ASEAN Valuers Association Congress held in Cambodia last November 2021, the Minister said: “The country’s real estate sector still has high potential and reasonable low prices for investment compared to neighbouring countries. I am very optimistic about real estate market opportunities in Cambodia.”
Top relocation destination
According to the Annual Global Retirement Index by International Living (IL), Cambodia (tied with Bolivia) is the 3rd cheapest place in the world to live in 2022.
With its thriving economy, the country’s capital is a bustling metropolis filled with high-end restaurants, malls, skyscrapers, and an improving healthcare system.
“Phnom Penh is the most expensive place to live in the country, but you can still live well for a fraction of the cost that you would spend ‘back home’,” says IL Southeast Asia Correspondent Wendy Justice. Rent can range from less than USD500 per month for low budget homes or USD1,500 per month for apartments with international standards.
Whereas for smaller towns and cities like Battambang – the second largest city in the country near the Thai border in the northwest corner – the rent can be a bargain, starting at USD225.
The cost of living in Cambodia is quite reasonable, making it one of the most ideal countries for individuals or families looking to relocate. For an expat couple, it ranges from USD1,150 to USD1,900 and a third less for those who are single.
Investment in flourishing localities
Areas ripe for property investment potential are Siem Reap with its historical tourist sights, Preak Sihanouk province which is set to become a Model Multi-Purpose Special Economic Zone, Kandal province with its upcoming new airport and major development projects, Bavet town in Svay Rieng province which sits on the fringe of Vietnam, and Poipet town in Banteay Meanchey province on the border of Thailand.
As expected, the capital Phnom Penh is on the list, boasting 2021 PropertyGuru Cambodia Property Award-winning developments, such as Chankiri Palm Creek by Urbanland (Best Housing Development – Cambodia), Mekong City by Mekong Land Development Co., Ltd (Best Residential Interior Design), and Prince Happiness Plaza by Prince Real Estate (Cambodia) Group Co., Ltd. (Best Mixed Use Development).
Within the capital, Khmer Times named Chamkarmon as the most searched district in 2021 due to its proximity to up and coming areas like Chbar Ampov and Meanchey, as well as the Central Business Districts of BKK1 and Daun Penh.
Local investors on the rise
With international borders closed, developers were impelled to reevaluate their sales and marketing strategies to meet the preferences of the local buyers, including lowering their prices.
“With the crisis, we don’t have those overseas investors anymore but a growing number of Cambodian buyers looking to buy properties under market value, particularly lands, landed properties, and boreys,” said Malay Nop, Phnom Penh branch manager of IPS Cambodia.
Demand for higher quality units
Whilst the local residential sector will be receiving fewer new launches in 2022 to help consume the oversupplied units, homebuyers’ demand will be shifting to wanting more creative, higher quality units, revealed Construction & Property, citing the latest data from CBRE.
To cater to this demand, developers in 2022 will pull back from the mid-range segment’s growing competition and will be focusing their energies on delivering higher quality developments with unique differentiation.
In the next 12 months, developers have disclosed their plans to increase prices, with the economy recovering, businesses starting to operate full-time, and vaccination drives in full swing.
“The larger market is already rising, and some developers will adjust the falling prices back to pre-pandemic values,” said Ethan Liu of The Peninsula Capital Co., Ltd’s Vue Aston (winner of Best Condo Development – Cambodia at the 2021 PropertyGuru Cambodia Property Awards).
Yet despite the forthcoming price hike, IPS Cambodia’s Nop believes that the market is still currently on the buyer’s side, encouraging them to invest now as long as the prospected developer holds good property management and pricing record.
“A product’s value proposition is helped by the demand. Now that condos are more accessible to not just expats/foreigners but more so to Cambodians, the more stable and less prone to risk the market is going to be,” added local real estate investment specialist Peter Guboglo.
Know of outstanding residential, commercial, or industrial projects in Cambodia? Nominate them for the 7th annual PropertyGuru Cambodia Property Awards on or before 8 July 2022. To know more, visit asiapropertyawards.com/award/cambodia/.
Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email: [email protected].
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