Cambodia’s once ‘raging’ property boom, which constitutes the bulk of the approves construction projects, could soon be back, with the country slowly recovering from the adverse effects of the COVID-19 pandemic.
A total of 3925 construction projects were registered in the first 11 months of this year.
Figures from the Ministry of Economy and Finance issued recently showed that the amount of registered construction projects was $10.35 billion.
Of the total registered construction projects, more than 86 percent are residential construction projects.
The construction projects cover an estimated 12 million square meters and comprise residential projects, integrated residential building projects, multi-functional integrated building projects, industrial building projects, commercial and tourist building projects.
The pandemic forced the cancellation or postponement of many property projects whose construction was supposed to start this year and in 2020.
Russel Tizon, General Manager of Prestige Homes (Cambodia), said “In my opinion, there will be more projects in Cambodia. During the worse situation of the pandemic in 2020-2021, it gave real estate developers ample time to incubate or plan for new projects,” he said.
“The market continues to see major developers introduce new projects with a timeline for completion from Year 2023 to Year 2025. This is the time real estate experts forecast the market will start to recover,” Tizon added.
Christine Li, Head of Research, Knight Frank Asia-Pacific, said: “The world and the Asia-Pacific region are now better equipped to cope with new variants, as vaccinations and oral medication for COVID-19 continue to gather pace. Although we will be witnessing some knee-jerk reactions, over the next 12 months, we still expect most governments to move beyond lockdowns and transition to an endemic stage.”
“A wide range of indicators are pointing towards rebound and recovery in 2022, as Asia-Pacific enters a new cycle of growth driven by low interest rates and high inward investment. With these fundamentals in place, pent-up demand will fuel value growth across the region’s residential and commercial sectors,” she added.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.
