Cambodian real estate activity nudged forward despite an ongoing global perfect storm. According to a recently published report by the Ministry of Economy and Finance (MEF), the real estate sector grew by 2.5% largely stymied by slowdowns in the high-end condominium market.
The same report, however, highlights that activities (sale and rent) for other segments such as affordable and mid-range will continue to drive growth for the rest of the year. Overall, the first four months of 2022 recorded a 6.7% increase in home sales across condos and villas.
The report also shed light on Cambodia’s construction industry which only grew 3% due to decline in projects meant for tourism and trade. According to the MEF report, the number of construction projects approved specifically for trade and tourism decreased by 36% and 20%, respectively.
Phnom Penh’s skyline is ever changing with healthy demand from locals and foreign investors alike. Photo by Sony Tep from Khmer Times.
Residential construction, particularly in the affordable and mid-range sector, have been the key drivers in the Kingdom’s construction sector as of late. Construction activity for residential villas increased by 60% while construction for apartments increased by a massive 183% in the first 5 months of 2022.
Worth noting was the recently concluded EXPO 2022, organized by Realestate.com.kh, Cambodia’s largest real estate classified’s portal, which attracted over 12,000 attendees and $30 million in sales over the course of 2 days. Realestate.com.kh also mentioned in their post-event marketing that developers are still receiving inquiries weeks after the event.
The success of the event stands testament to a continued and healthy real estate demand in the Kingdom’s property sector primarily stemming from the local middle-class and keen foreign regional investors.
Cambodia’s real estate market has been a key contributor to the country’s GDP growth for the past decade. This year, the WorldBank forecasts a 4.5% growth while the ADB expects a 5.3% growth in 2022. Growing local demand for residential property will likely drive growth in real estate for the rest of 2022.