Real estate transactions are showing signs of slowing down and may move to​ pause in the future

At the same time, several key sectors of Cambodia are affected by the Coronavirus, or Covid-19,It is observed that the leaders of these institutions have shown their projections of impact levels.But for the construction and real estate sector, experts see that the purchase-sale have some downside.Even worse, if the Coronavirus or Covid-19  continues to linger for a long time and continue to spread, then construction projects will be put on hold and the completed construction project will also have to wait for a follow-up period and resume its journey later.

Var Virak, director of Century 21 Fortuna Investment, said on March 5"In terms of the construction of the big buildings, so far there has been no reduction in the impact of the Corona virus. But now, for purchase-sale transaction, there seems to be some downside.So when the deal is reduced, I think from now or in the future ,there will be some constructions which will be cut.And for projects need to delivery, they will be suspended and any project that's built and not needed, they don't push it forward,have to wait and see first."

Although it is not possible to assess the magnitude of the impact in the construction and real estate sector in such a short period of time, the expert sees that if this Covid-19 has any control over time, The construction and real estate sector may recover in the next half year as the major projects are bought by Chinese investors and Chinese tourists mostly.He continued“Until now, we cannot predict the impact of the construction sector in Cambodia because it is just beginning to look a little bit longer. But if it (corona-virus infection) takes longer then it might be affected. But if the disease is managed in a short time, then the situation will return in the next half year. "

He added that the big buyers of property in Cambodia are mostly Chinese investors and Chinese tourists so if they do not come to buy property in Cambodia, it will affect the purchase of property, accommodation, hotels and other services. 

Chrek Soknim, president of the Cambodian Valuers and Estate Agents Association, said that the Kingdom's real estate sector was in early 2002.We have seen a number of challenges that have taken place in Cambodia as well as in the world ,the group is focusing on the real estate industry in Cambodia.He said "We saw some challenges, like in the beginning of the year we had a global New Year holiday, then the Chinese New Year and finally came the big challenge with the Corona virus. The Corona virus has impacted Cambodia's real estate in the short term. But these problems come back when they get the vaccination  or we can control it."

According to the association's president, although the Cambodian real estate sector is suffering from the negative effect of the coronavirus for local buyers, there is still normal activity.He confirmed that “During the short-term challenges facing the real estate sector, there are opportunities and challenges for investors in the real estate sector in Cambodia.In the short term, I see that the current trend of buying and selling for locals is quite normal, but for foreigners there are some failures."

Deputy Prime Minister Chea Sophara, Minister of Land Management, Urban Planning and Construction, said at the Meeting to Review the Working Results of 2019 and Directions of 2020 of Housing Association of Cambodia“National economic growth is growing at a rate of 7.1% per year and real estate can be said to be one of the main sector of the economy in 2019.In this regard, investment in the Kingdom of Cambodia is up to US $ 1 billion in 2019, compared with 5.5 billion USD in 2018, up from year to year is up to 90%."(This news came from Koh Santepheap.com)