Luxury properties are in high demand in Cambodia, but the market has limited supply
As 2022 draws to a close, property sales and foreign direct investment (FDI) in Cambodia remain strong, and while domestic demand matured over the pandemic, foreigners are still key drivers of real estate investment.
Data provided by the National Bank of Cambodia (NBC) revealed that FDI inflow from last year reached USD3.5 billion and that investments were mostly from China, Japan, Malaysia, Singapore, South Korea, and Vietnam.
China accounted for 15 percent of property investments despite the zero-COVID policy while 20 percent are local buyers.
The report also showed that property buyers in Cambodia came from the US, France, Japan, Singapore, and the UK.
Sixty-five percent of investors purchased condominiums in Cambodia, followed by townhouses, shophouses, and villas.
Meanwhile, luxury housing is also an emerging property segment in Cambodia, led by high net worth individuals (HNWIs), reported the Khmer Times.
A report from 2021 suggested that there were now more than 3,000 millionaires in Cambodia, which was an increase of more than 2,000 in five years.
Luxury properties are in high demand in Cambodia, but the market has limited supply.
To appeal to the luxury market, developers are looking for a change in branding. This sector in the Cambodian real estate market is profitable and growing, and developers and marketers will play a significant role in shaping the perception of luxury housing in comparison with regular housing.
Having handled the COVID-19 pandemic exemplary and with pro-foreign investment policies, the outlook for Cambodia’s domestic market looks good, as well as its position within ASEAN.
Buyers are actively examining the luxury real estate market in the Kingdom to determine which developments may suit their high-end lifestyles and tastes for the finer things in life. The specialized and high-end luxury developments in Cambodia are profitable and have a high potential.
The Property Report editors wrote this article. For more information, email: [email protected].
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