PHNOM PENH: Cambodia hosted the virtual 23rd Congress of the Association of ASEAN Assessors on Thursday November 25, over a video conferencing platform. Speaking at the opening ceremony for the event was Minister of Economy and Finance, Aun Pornmoniroth, who remarked that Cambodia’s real estate sector continues to show high investment potential despite still adapting to the new normal of the COVID-19 pandemic, especially in comparison to its neighboring countries.
He added that potential investment areas include Phnom Penh and Kandal Province, where new international airport projects are being implemented. He also gave mention to areas such as Sihanoukville, which is being transformed into a multi-purpose special economic zone (SEZ) and Siem Reap, which is a historical tourist site. Other cities he mentioned included Bavet in Svay Rieng Province, and Poipet in Banteay Meanchey Province.
The Executive Vice President of the Cambodian Association of Appraisers and Real Estate Agents, Sorn Sieb, said that the average price of an apartment in Cambodia is between $40,000 and $100,000, which he said is quite affordable. He also mentioned the average price per square meter for a condo is between $1,600 and $2,500.
He added that Cambodia is currently developing and constructing many infrastructures such as the Phnom Penh-Sihanoukville Expressway, the new international airport project, the inter-country railway projects connecting Cambodia with Thailand and Vietnam, and the Phnom Penh-Bavet Expressway. He said that these new infrastructures, along with many other development projects, will increase property prices in Cambodia in the future.
According to the Ministry of Economy, the real estate sector in Cambodia is projected to recover at a slower pace of 2.4% in 2021, and 4.8% in 2022 following the effects of the pandemic. This recovery rate is seeing a gradual increase as foreign investment inflows begin increasing again along with demand. The Ministry predicts that domestic, low- and medium-cost real estate in Cambodia will continue to grow well.
However, Minister Aun Pornmoniroth stated that such predictions are still speculative, and there is still the risk of facing an even more aggressive outbreak of COVID-19. He highlighted how new mutant virus strains have already made their way across different Asian countries, even leading to some countries turning into COVID-19 hotspots despite previously having a good handle of the situation.
