Cambodia has seen rapid growth in the past years, especially in the real estate sector. Thousands of new buildings are built across the country, mainly in Sihanoukville and Phnom Penh. Real estate agencies and agents play an important role as they help these projects to carry on their plans with sales.
The growth of the real estate industry has led to an increasing number of real estate agencies and agents and intense competition among them. However, some property experts say developers should consider offering an “exclusive sales agreement” to a particular agency for a better sales outcome.
According to Mr. Kim Heang, CEO of Khmer Real Estate, having one agency to represent developers is better than having multiple agencies because they will be more committed to promote and sell projects.
“With developers, I always raise the idea of no exclusivity, no deal. We want to ensure that at the end of the process, we will be compensated for our work,” he said.
“If we don’t have the exclusive right to sell the property, we might as well work as employees of the property owner,” he added.
More and more real estate agencies in Cambodia require property owners to offer them exclusive rights to sell their properties, he continued.
However, using multiple real estate agencies at a time is still a common practice among developers in Cambodia.
Korn Kungkea, CEO of ERA Cambodia, confirmed that there is indeed a new trend towards exclusivity and said it will be more common in the future, but he adds that at the moment, the majority of developers are still using multiple agencies to represent their projects.
“If the developers choose to have many agencies selling for them, the leading agencies with large teams will likely not participate,” he said.
“The agents often pay for professional photography, copywriting, or videos to promote the property. So, if there are many agencies to sell one project, they will just wait for one another to do promotion and advertisement,” he added.
Moek Chenda, founder of realestate.com.kh, Cambodia’s leading real estate-focused marketing company, said exclusive sales agreements could help promote healthy cooperation between agents and reduce unfair competition in the market.
“This method will push for better cooperation between agencies. Those agencies that have exclusive sale agreements can work together based on their resources without taking advantage of each other. For example, if one agency has a client looking for a certain property, but that agency doesn’t have anything to offer, so they can refer the client to another agency that has,” he added.
However, Mr. Chenda warns that exclusive agreement requires the agency to work hard and have a clear goal if they could not sell the property on time it will affect the company’s reputation.
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