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Cambodia’s property boom continues despite pandemic

Jason Boken / Khmer Times Share:
The Peak, under construction, right in the heart on Phnom Penh. KT/Pann Rachana

The Kingdom of Cambodia is a consistent performer in residential property, with interest from an increasing number of investors from mainland China, Hong Kong and the people of Cambodia, largely in the capital Phnom Penh.

Having harnessed the attention of residential investors for at least the last three years, Cambodia’s construction boom continues without any signs of dwindling.

Even with the supply chain disruptions caused by COVID-19, real estate services firm CBRE still projects a 34 percent increase in condominium supply this year (down from the 55 percent earlier forecast for 2020). The firm is expecting a total of 28,000 units to have been completed by the end of the year, up from the current supply of 21,000 units as of the second quarter of the year (Q2).

Until a slowdown evident over the last 12 months, developers had been particularly active in Cambodia’s condominium sector and CBRE sees signs of a resurgence in this side of the market.

“The beginning of economic recovery in China has proved positive for Cambodia, with investors beginning to return to both Sihanoukville and Phnom Penh. While the global travel restrictions are causing delays, it seems international interest has begun to return,” the firm notes in its Q2 market report.

James Hodge, senior director, CBRE Cambodia, said: “Cambodia still represents good value for investors. The price isn’t too high at around US$1,800-2,000 per square metre for a good quality project.  Assets here are held in US dollars, which is also attractive       for many.”

Investors can also take confidence in Cambodian Government measures to improve the quality of construction of new projects.

In the opinion of Reid Kirchenbauer, founder of Invest Asian, property is one of the best ways to profit from Cambodia’s “unparalleled” economic growth since the Khmer Rouge were stopped more than 40 years ago.

“Cambodia has not suffered much of a recession in many years,” Kirchenbauer notes in a report. “It skipped the Asian Financial Crisis of the 1990s, ignored the tech bubble of the early 2000s and even outgrew the 2008 financial crisis.”

With a feeling of confidence in the air comes a development that is on track to be one of Cambodia’s biggest projects, The Peak.

The Peak Cambodia is a Prestigious four-in-one integrated mixed-development comprising of residential apartments, business offices, retail and the world-renowned Shangri-La Hotel – all within the same development.

The Peak comes clad in stylish bronze, a definitive colour of luxury. The two towers comprising about 500 units each are paragons of dynamic architecture, specially crafted to bring out the finest of the site and its surroundings.

Overlooking the skyline of Diamond Island onto the Mekong River, The Peak is also near to AEON 1 mall, Naga World Casino Hotel, the Convention Centre and embassies, making it one of the best choices of property to invest in, in Phnom Penh, Cambodia’s vibrant and burgeoning capital city.

 

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