Compass Real Estate > Cambodia Real Estate Information > Others > Cambodia Top Real Estate Entrepreneurs Forum: Cambodian property market will start to rebound in 2023, and all real estate companies are ready!

Cambodia Top Real Estate Entrepreneurs Forum: Cambodian property market will start to rebound in 2023, and all real estate companies are ready!

2023-03-23
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Summary:From March 17-19th, 2023, the three-day Cambodia-Chinese Property Auto Lifestyle Expo was successfully concluded at the Olympia Mall in Phnom Penh. As an important part of the exhibition, the Cambodia Top Real Estate Entrepreneurs Forum also attracted countless people's attention.

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From March 17-19th, 2023, the three-day Cambodia-Chinese Property Auto Lifestyle Expo was successfully concluded at the Olympia Mall in Phnom Penh. As an important part of the exhibition, the Cambodia Top Real Estate Entrepreneurs Forum also attracted countless people's attention.

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Since the outbreak of Covid-19 in 2020, the global economy has been impacted. Due to Cambodia's long-term dependence on tourism and foreign investment, the real estate market has declined in the past three years, and some projects have even stopped construction and sales. Against this background, the first Cambodia Top Real Estate Entrepreneurs Forum in 2023 gathered many industry experts to share their common experiences of real estate entrepreneurs in the past three years of Covid-19.

They are Mr. Carl, general manager of Morgan Group, Mr. Charlie, chairman of Platinum Coast, Mr. Shengwei Zhao, deputy general manager of ONE70, Mrs. Cynthia, marketing director of La Vista One, and Mr. Rocky, general manager of One House as the moderator of this forum.

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Cambodian property market will start to rebound in 2023

Or usher in the golden 20 years


As we all know, real estate is closely related to the economic environment.

From 2012 to 2019, Cambodia's economy entered a "golden period of development", and its GDP once exceeded 7%. In the meantime, Cambodia opened its first real estate sector in 2016, which attracted the attention of the world, and attracted foreign investment to rise vigorously, reaching its first peak in 2019. With the arrival of the Covid-19, Cambodia's economy has been ups and downs under the global trend, and its real estate industry has also been in a downturn.


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Mr. Carl, general manager of Morgan Group, reviewed Cambodia's economic development and real estate industry development in the past 10 years through several sets of concise data analysis, and he pointed out that 2023 will be a good time for Cambodia's real estate industry to bottom out.

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▲Mr. Carl, general manager of Morgan Group

Why? He summed up the following three elements:

1. Demographic Dividend

He always believes that Cambodia's population structure has obvious advantages. In 2022, the average age of the Cambodian population was between 26 and 27 years old, the elderly population is low, and most of them are young people and minors with high labor force and consumption demand.

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2. The tourism industry in Cambodia has fully recovered

Tourism is a major industry in Cambodia. Since its opening to the world in 2022, Cambodia's tourism industry has risen rapidly. It is estimated that the number of tourists in 2023 will reach 4 million, including 1 million Chinese tourists. The full recovery of Cambodia's tourism industry means that Cambodia's economic development will also fully recover, and the opportunities for the real estate industry will increase accordingly.

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3. The revitalization policy of the government

After the epidemic, the Cambodian government implemented a series of drastic policies in order to quickly boost the economy, including adjusting the "financial and economic structure" to make it more defensive; strengthening techno-economic development, optimizing Cambodia's regional supply chains and technologies; Expand infrastructure and domestic demand; Develop advantageous economies such as tourism, promote urban construction and real estate development, etc. At the same time, Cambodia will usher in many high-profile events in 2023, such as the grand holding of the 32nd Southeast Asian Games, the 7th national election, the construction of the Cambodia-Korea Friendship Bridge, the financing for the first high-speed rail, etc, these will bring more opportunities to the real estate industry. 

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The professionals present all agreed with the view that Cambodia’s real estate industry will recover in 2023. Charlie, the chairman of Platinum Coast, also made a detailed explanation of the "Kondratiev Wave", and concluded that Cambodia is about to start the golden 20 years of real estate.

Mr. Charlie said that there are many cycles in people's lives, such as the rotation of the seasons, the rising and setting of the sun, the temperature changes, and so on.

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▲Mr. Charlie, chairman of Platinum Coast

Among them, a climate cycle is about 500 years, and a dynasty is about 200-300 years. Whether it is the Internet, e-commerce, or live broadcasting, they all develop within a certain period, while the development cycle of the construction and real estate industry is 20 years (Kuznets cycle).

From 1975 to 1997, the real estate development of the "Four Asian Tigers" reached its peak; in China, from 1997 to 2019, the real estate industry reached its peak. He believes that Cambodia's real estate industry also has a golden 20 years of development.

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At the same time, the per capita GDP is 1700-1900 US dollars, which is also an important measurement point at the beginning of the real estate development cycle, China achieved it in 2005. Cambodia’s current GDP is around 1800 US dollars, and it is about to start the golden 20 years of real estate, so Cambodia is in its best period. Combined with factors such as the "Demographic dividend" mentioned by Mr. Carl,, it will inevitably show explosive development.

Mr. Haobin Lin, project director of Cambodia My 2nd Home (CM2H), once again confirmed the views shared by the first two professionals from the aspects of Cambodia's economy, Phnom Penh's economic situation, degree of internationalization, and infrastructure facilities.

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▲Mr. Haobin Lin, project director of CM2H


International Market VS Local Market

After 3 years, real estate companies are ready


Through the analysis of industry veterans, it can be seen that practitioners are still full of confidence in Cambodia's real estate industry. The three-year Covid-19 has also brought many changes and trials to various real estate companies, and internal training and external expansion have become the basic way.

In this regard, Mr. Charlie believes that giving different values and making excellent products will naturally gain excellent customers.

For Mrs. Cynthia, marketing director of La Vista One, she said that: returning to the essence, focusing on the local market, establishing a brand, paying attention to prices, and expanding channels to face the Covid-19 period.

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▲Mrs. Cynthia, marketing director of La vista one

Mr. Shengwei Zhao, deputy general manager of ONE70 also agrees with this, he said: "Before Covid-19, we focused on the Chinese market. After Covid 19, we were very passive. By adjusting the positioning and embracing the local market, we finally achieved 70% of buyers are local customers, 20% of buyers are foreign customers, and 10% of buyers are Chinese customers through our efforts .”

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▲Mr. Shengwei Zhao, deputy general manager of ONE70

Since 2019, the Morgan Group has formed a strong local self-development team, with streamlined staffs and undiminished performance, which makes Mr. Carl quite proud.

Now, Covid-19 is over, and those who can persevere are all elites with extraordinary abilities. In the face of 2023, which is full of opportunities, they all said that everything is ready!

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▲Mr. Rocky , general manager of One House

Mr. Shengwei Zhao first said that after Covid-19 is over, US dollar assets will be more attractive to the people and Cambodia is the only US dollar asset country in Southeast Asia, so it is full of confidence in the future

Mr. Charlie said that during the three years of the Covid-19, the local market has shown signs of weakness during the multi-project and multi-round sales process. After the order is restored, we should fully expand the overseas market.

In this regard, Cynthia and Carl not only agree, but they are also ready.

As known, La Vista One will increase investment in the Chinese market after the fully opens from Covid-19, while Morgan Group has begun to deploy in the international market during the Covid-19, by opening showrooms in South Korea, Singapore, and Vietnam, and will also open in Shanghai, Japan in the future, planned to connect with the international market.

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Overseas Investment

Safety and caution are the first priority


Under the environment where the economies of various countries are beginning to recover, optimizing the allocation of overseas assets has become a top priority for many middle-high level people, but they are just afraid that "a drowning man will catch at a straw", for this reason, four industry veterans have held high the banner of “safety and caution”, hoping that investors from all over the world can invest rationally.

Mr. Carl first said that there are several key factors when choosing to invest in real estate overseas. The first is the safety of the developer, the second is the safety of the land, whether there are land disputes or safety issues caused by legal factors, and the third is the safety of the house, whether it can be built safely and handover.

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Mr. Charlie also believes that now is the stage of defense. One is to ensure the safety of your assets, the other is to maintain the current assets, and the third is to reduce leverage and ensure cash flow.

Mr. Shengwei Zhao believes that it is crucial to have a clear understanding of one's own position; the second is to lower expectations, and it is more important to ensure security benefits at the current stage.

Mrs. Cynthia also suggested covering your pockets, keeping your eyes open, improving your cognition, and choosing investment products more correctly.

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This "Cambodia Top Real Estate Entrepreneurs Forum" ended successfully with the support of industry experts and real estate enterprise representatives. Discussion on "new trends and patterns of Cambodian real estate market after Covid-19"  has come to an end, and more exciting forums are coming soon at【COMPASS REAL ESTATE】, so stay tuned!

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Disclaimer: The re-forward articles on Compass website are for the purpose of conveying more information, and it does not mean that the Compass website agrees with its views or confirms the authenticity of its content. Article noted as "Source: Compass original", please note that the source from Compass. The content of the article is for reference only and should not consider as investment advice, and it does not mean that Compass agree with its views.

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