Analysts reflect on kingdom’s prospects following the National Assembly election
With the general elections over, Cambodia’s property market may yet enjoy a long spell of progress, leading market observers told Realestate.com.kh.
Cambodia will benefit from greater foreign investor confidence as a result of perceived political stability following the polls, according to Soth Virak, CEO of the consultancy Huttons CPL.
“I think Cambodia’s real estate industry will keep moving forward in the next five years,” he said.
The long-ruling Cambodian People’s Party (CPP) claimed an overwhelming 100 parliamentary seats in last month’s polls, extending their mandate to another half decade.
Investors take political stability into account as the “main factor” when choosing a property market, Soth Virak added. China will remain Cambodia’s top property investor in the next five years, followed by Japan, Korea, Malaysia and Vietnam.
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Political pundits have accused the CPP, led by Prime Minister Hun Sen, of receiving backing from Beijing.
Overall, the outlook for foreign investment in the Khmer property sector appears positive in years to come, with Chinese demand maintaining its sphere of influence over the industry.
“Investment in manufacturing and infrastructure will still be largely dominated by foreign players,” said James Hodge, associate director at CBRE Cambodia.
“Project launches may continue to be small in number but the scale of the projects is set to increase, especially as the large Chinese developers establish themselves and their brands in the Cambodian market.”
More than 10 million square meters will be added to Cambodian property supply every year in the next few years, Soth Virak predicted.
(Source: PropertyGuru’s Property Report)