Covid-19 Impact: Is it possible to recover the Cambodian real estate market fast?

A CBRE Cambodia analysis states that towards the conclusion of the first quarter, particularly apartments, the impact of the Covid-19 outbreak on property values is at the early stage.

Mid- and high-end housing prices have begun to fall, and mid-year market price per square meter declined 1.5%, whereas high-end markets have fallen 0.5%. Fell too. The volume of operations on the rental and sales market also decreased sharply, since most foreigners left Cambodia. The current immovable market in Cambodia is not overall hopeful.

# Is Cambodian market yet to stand or give up now?

The immobilization industry is different from regular consumer markets and it is impossible to generalize the operational and time consequences of rehabilitation. While various industries in Cambodia have diverse degrees of impact. The real estate sector was not significantly affected in comparison with the other consumer markets, as Cambodia's epidemic was still manageable early on.

Following the intensification of the global disease, many foreigners have been evacuated and the demand for rental has fallen. Many retailers and brokers have also stopped operations. Furthermore, diseases in several nations have hurt international investment. A downturn in operations is inevitable.

While world pandemics are not adequately controlled, Cambodia is less confident about the economic situation (IMF estimated that by 2020 Cambodia's GDP would be negative and growth would slow down to -1.5%). Immobilien market prospects Many still believe that a constructive adjustment may be made in the real estate sector. The first is the highly robust and manageable immovable market itself.

Immobilization rentals and sales markets warm up following the outbreak. While it is not clear that Cambodia's home prices will increase, possible demand may lead to additional transactions.

Secondly, the investment market is stable from a construction point of view, which is strongly linked to the real estate sector. The global construction sector's pandemic impact will likely fall by 50%, while Cambodia shows an increasing tendency, in particular housing developments, such as urban residential buildings, against the trends.

Total investment in the building sector in Cambodia has been around 2 billion US dollars, up 47% year-on-year, according to a study by the Cambodian Ministry of Finance and Economics. In all, 728 construction projects were allowed, a 28.1 per cent increase annually by the Ministry of Land Management, Urban Planning and Construction. Demand for real estate will gradually recover.

Locals in need and international investors are the largest number of tourists to Cambodia. Hard local demand remains stable in Cambodia. It has also become a major marketing source in recent years. The epidemic has improved and market demand is steadily recovering in important investing countries, such as China, Japan and South Korea.

As CBRE's Manager Ann Sothyda has indicated, the epidemic would effect all areas in Cameroon more or less, although the Immobilien industry may continue to improve in comparison with others. Immobilien will be back in fine condition soon. The increase and decrease of the property is not apparent.

The overall economy of Cambodia is dependent on foreign countries, and the revival of different sectors still rely on global pandemic control. Hope the immobilier market in Cambodia will be able to retain high earnings and overcome Covid-19 as soon as feasible in this area.

Source : CBRE, Author : Samnang, Editor-in-Chief ៖ Sunnie, Editor-in-Chief / Producer ៖ Nicole

Find a property with the compass, and all overseas stations are online simultaneously ៖ Cambodia丨Laos | Myanmar | Singapore丨Philippines丨Thailand丨UAE