Real Estate Projects Remain In Place While Real Estate Buying and Selling Transactions are Still Quiet

The current situation of the real estate market in Cambodia is quiet; there is little exchange flow from foreign customers as global challenges continue to negatively affect the real estate market in Cambodia. However, the construction of old projects is still ongoing, and real estate transactions are still limited from local clients. This is what Chrek Soknim, CEO at Century 21 MEKONG and member of the CVEA board of directors talked yesterday.

Soknim claimed that the overseas market is not very active at present, and the risk of restrictions on bank loans is also an important factor that has caused the current real estate buying and selling transaction in Cambodia to slow down. Coupled with some reports that major real estate companies in China as well as other countries have collapsed, this has made investors more cautious. Therefore, buying and selling real estate from now on is a bit stressful for investors, but it is also a good opportunity for those who have cash to buy real estate to make a profit.

He said that now, housing developers continue to invest in the sector, but the growth of construction has been reduced to some extent, and they are starting construction to meet actual needs. So, some small construction projects are still underway to continue construction on their old projects. Overall, construction activities are still going on, but the flow of real estate is stagnant and cautious.

Property prices vary by property type, but the average price of a villa in Cambodia today is between $150,000 and $300,000, while affordable condos are still available and there are still some buying and selling transactions as well, this is Soknim's confirmation.

He thinks that the supply of real estate in Cambodia today is not enough because the population continues to grow and the number of housing units per year is still small compared to demand. Cambodia needs 50,000 houses per year to supply the market demand throughout the country.

He also added that the challenge for project developers is when the project is already built but there is a small number of sales, so some companies have decided to temporarily suspend construction, while others are decreasing construction by building on a small scale to supply only practical needs.