Cambodian Real Estate Development Trend in the Next Five Years: More Diversified Quality Improvement.

Over the past five years, Cambodian real estate has developed rapidly. With the inflow of a large amount of investment (mainly from China), real estate construction projects are developing like a raging fire. Construction projects in Phnom Penh, Siem Reap, Sihanoukville, Poipet, Bavet, Kep and other areas are growing vigorously.

Recently, a large number of residential, commercial and mixed-use real estate development projects in Phnom Penh have been completed, under construction or in the stage of capital recruitment and planning.

Therefore, the supply of residential property such as Phnom Penh Apartment is very stable and continues to increase. Cambodia has become one of the fastest growing economies in Southeast Asia. More and more Cambodians have been able to lift themselves out of poverty. As a result, the demand for real estate is increasing.

The value of real estate in Cambodia, especially in the most developed areas, is growing, although lower than that in neighbouring countries.

Cambodia's real estate industry has good prospects for foreign investment.

Despite the predictions that the real estate market will collapse in the near future, local real estate experts are generally optimistic about the direction of Cambodian real estate development. In the next five years, Cambodian real estate development will focus mainly on apartment and Borey residential development projects, foreign direct investment, land prices, demand and supply.

Soth Virak, chief executive of Huttons CPL, said the development of Cambodia's real estate market benefited from a stable political environment and foreign investors'continued confidence in its investment. The just-concluded national elections gave the Cambodian People's Party five years of national rule.

"I think the real estate market in Cambodia will continue to move forward in the next five years," he said.

Virak explains that real estate investors usually consider factors such as economic, social, technological and political stability. He also stressed that political stability was their most important factor.

James Hodge, deputy director of Shibang Weilishi, agrees with Virak's view that Cambodia's real estate market will be available at all levels in the coming years and will be comparable in quality with the major real estate markets in ASEAN countries.

He stressed that "in the future, developers who provide international service apartments will be more common. Some forward-looking real estate companies will prosper and become industry leaders. Virak believes that the current growth in the supply of real estate will continue in the foreseeable future.

"The supply of real estate will continue to increase, and more than 10 million square meters of new houses are expected to enter the market every year," he said.

James Hodge, deputy director of Shibang Weilishi in Cambodia, agrees with Virak. "Supply in all sectors of the real estate industry is on the rise," he said. At present, with the strong development of the economy, there is no sign of a slowdown in this trend.

James adds, "The number of projects may not be large, but the scale of projects is growing. This is especially true when large Chinese developers enter the Cambodian market and establish a reputation.

The two experts also agreed that housing demand will not decrease in the short term.

Virak said both local and foreign residents will continue to buy homes in Cambodia. Among them, interest-free or low-interest middle and low-end real estate project demand will be considerable.

James said that in the next five years, demand for and supply of home purchases from local and China will be the main factors affecting Cambodia's real estate market.

James also said that the prospects for foreign investment in Cambodia's real estate market are very good.

"Investment in the production and infrastructure sectors will continue to be dominated by foreign investors," he said.

Virak agrees that China will be the leading investor in Cambodia's real estate market in the next five years, followed by Japan, South Korea, Malaysia and Vietnam.