Cambodia new project market after the COVID-19

When will the Cambodia property market be restored? Will housing prices rise or fall after the pandemic? Is Cambodia property worth to invest?

Real estate in Cambodia will heat up slowly

It is not clear whether the Cambodian government will have further bailout plans, but the real estate industry is Cambodia ’s national pillar industry, and real estate is needed to promote the development of other industries. For a long time, Cambodia will still strongly support the development of this industry.

Therefore, the downturn in the new project market is short-lived. The increase in domestic rigid demand and policy support will heat up the market gradually.

Real estate will not appears overheat phenomena

From 2006 to 2007, Cambodian real estate developed rapidly. In the global financial crisis of 2008, Cambodia ’s real estate industry was hit severe, and new project prices continued to decline. From 2013 to 2018, the Cambodian new project market has advanced by leaps and bounds, projects have increased significantly, and housing price growth has also led the world. After these two rounds of development, the price increase of new project in Cambodia has slowed down significantly in 2019, and the market has declined. In 2020, the Cambodia real estate industry has entered a stage of slow development.

The International Monetary Fund (IMF) expects Cambodia ’s GDP growth rate to be 1.0% in 2020 and will soar to 8.5% in 2021. Industry Real estate insider said that if the forecast is accurate, then Cambodia's economy may recover in the second half of 2020 or 2021, and the real estate sector is also expected to recover at this time.

Therefore, after the impact of the pandemic, the new project market in Cambodia is relatively mild, and there will be no explosive development in the short term.

Secondly, after the pandemic, the global economy has a long recovery process.

Overseas property investment may be affected

The global economy is shrinking, overseas buyers are facing greater financial pressure, and they may reduce their investment plans. With the impact of the Cambodian economy, investors will also reconsider the investment possibilities in the Cambodia real estate market.

After the pandemic ended, the number of overseas investors decreased, and the slowdown in the new project is inevitable. The market will also further cool down and return to normal.

Cambodia's real estate investment advantage is still obvious

The new project market in Cambodia is a new hot spot for investment in Southeast Asia. Investment advantages still exist. In the long run, there is still a lot of investment space.

Cambodia local buyers are gradually increasing, rigid demand will become the main force in the future market, the new project market will not shrink, but the development rate is slowing down.

Secondly, the benefits of no foreign exchange control, unlimited purchases, low housing prices, high occupancy rates, high rental returns, dollar-denominated asset, etc. are still very attractive to real estate investors. If the Cambodia economy can maintain stable growth, the new project market will also usher in new development.