The last sunset in 2021 is an infinite nostalgia for the past; the first ray of sunshine in 2022 is an enduring vision for a better future. On the occasion of the New Year, even how hard 2021, it will be the past, please accept my sincere wishes: Happy New Year! Meanwhile, looking forward to 2022, how will the real estate market trend in Cambodia? We also look ahead to seeing prosperity, healthy, and success in the new coming year.
The real estate sector has been one of the hardest hits, and it continues to be walloped by the COVID-19 pandemic today since the massive COVID-19 outbreak in Cambodia in the past two years. Since the government of Cambodia decided to reopen the country in November this year to ease the epidemic’s economic impact, hoping to promote the return of foreign investors so that various industries can recover one after another.
Cambodia today, with the majority of people across the country are fully vaccinated against COVID-19, coupled with the country’s reopening, the local real estate brokers believe that land and affordable housing will continue to perform well in 2022 and beyond. It’s also acknowledged that developers can work with banks to offer flexible payment options and longer loan terms. In addition, condo projects priced between $50,000 and $100,000 are also expected to do well in 2022.
After the spread of the Covid-19 pandemic in Cambodia in 2020 and 2021, the real estate industry has shown signs of slow sales in almost all types of properties, especially Its high-end condos, because these types of properties are heavily reliant on foreign buyers and investors. The land or affordable housing in the $50,000-$80,000 range, even in bad times, is still doing well. Because the primary target customer for this type of property is local buyers.
In the past two years, investors who buy land and the impact of COVID-19 will be the hardest hit because we cannot predict when the economy and the real estate sector will return to their pre-crisis period. The future is still uncertain, depending on how things improve in Cambodia and worldwide. Foreign investors may come back if things improve, and condo projects may see more sales.
By this year, we believe the housing market in the suburbs of Phnom Penh will be in high demand with the expansion of the city and the development of infrastructure, especially national roads and ring roads. In the future, most lower and middle-income households will no longer afford expensive housing in the city center.
The domestic construction and property business executers pointed out that they did not expect the market to return to 2019 levels; whether the market will recover in 2022 and beyond depends on three key factors, but uncertainty remains. The future is entirely uncertain. The reopening of the country is a good sign. However, if foreign investors do not come back as the first key factor, the market will remain stagnant given the small size of the domestic market.
Most hope that wealthy businesses or people living abroad will consider investing in Cambodia in such hard times. The market will improve next year because there will be a domestic cash flow. At the same time, wealthy local businesses or people in Cambodia should continue to invest further to keep the market developing. Due to regional developments, real estate sub-sectors such as land and terraced housing estates can perform well during the COVID-19 pandemic.
