With the general elections looming, real estate sector insiders yesterday dismissed the possibility of a downturn in the industry due to political instability, arguing that the outlook for the property market remains strong.
Speaking at the groundbreaking ceremony of a luxury villa project on Wednesday in Phnom Penh, Minister of Land Management Chea Sophara said the national elections in July will have no significant effect on growth in the property sector.
“Not much will change in the real estate sector as local and international companies keep on building, particularly in Sihanoukville and Phnom Penh, and investors remain confident in the local market,” the minister said.
“It is the right time to invest in the country. Our economy is stable, and it will continue to be in the future,” Mr Sophara said.
Dith Channa, CEO of Lucky Realty, concurred.
“I think the political situation will not influence the housing market because Cambodians will keep on buying property,” Mr Channa said.
“The housing market will continue to prosper. The number of people coming into the city is increasing, as well as the number of newly-wed couples that need a house.
“There is plenty of profits to be made now in the housing market because prices are on the rise. Developers need to find the right project to match buyers’ demands.”
Sear Chailin, CEO of CL Realty Co., Ltd, said the country is now economically stable, which is drawing more investors.
“The situation in the real estate sector is very positive, due to the government’s investor-friendly policies. It makes us one of the most attractive countries in Asean,” he said.
Last year, the combined value of approved construction projects reached $6.42 billion, an increase of 22.31 percent year-on-year, according to official figures.
Across the country, 3,052 new construction projects, equaling 10.74 million square metres, broke ground, with the ministry granting construction licenses to 275 companies.