Cambodia’s ‘raging’ property boom could soon be back, with the country slowly recovering from the adverse effects of the COVID-19 pandemic.
The pandemic forced the cancellation or postponement of many property projects whose construction was supposed to start this year and in 2020.
For the past two years, very few apartments, hotels, condominiums and other real estate projects were built in Phnom Penh, Sihanoukville, Siem Reap and other urban areas, with the Kingdom reeling from successive outbreaks and lockdowns.
These few projects include Borey Nadi by GC, a 34-hectare development in the Chroy Changvar area of Phnom Penh, which broke ground in July.
Another project that commenced at the height of the pandemic was TKS Residence, a property development located 1.5 kilometres away from the Phnom Penh International Airport. Construction is ongoing at the site, according to a source from the company.
“We are adapting to a difficult time. The situation will get better once the pandemic is over,” Thierry Tea, CEO of Negocia Properties, said in an earlier interview. Negocia Properties is the developer of TKS Residence.
In early November, Borey Ly Navuth, a borey project along Phnom Penh’s Veng Sreng Boulevard, had its groundbreaking. Construction is also ongoing at the site and the developer recently announced the grand opening of the property’s head office and sales launch.
With the pandemic now behind them, property developers are also going ahead with the full launch of their projects.
One of these is L’attrait, a high-end Japanese developed condominium building in the BKK 1 area of Phnom Penh. L’attrait officially opened in July, but only became fully operational four months later.
The project has been heavily impacted by the COVID-19 pandemic, particularly at the final stage of construction when supply chain disruption proved particularly challenging in ensuring that everything could be delivered on-time, according to project developer LAPD.
“I am delighted to announce the completion of our project. The path has certainly not been an easy one for us. There was a lot of skepticism upon launching our project. The pandemic toward the end of our timeline gave us more challenges.” Shinji Muto, CEO of LAPD, said.
Russel Tizon, General Manager of Prestige Homes (Cambodia), said he is optimistic of the future.
“In my opinion, there will be more projects to 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.
Recently, according to him, Chip Mong Land, a top real estate player in the Kingdom, announced plans to transform the Chroy Changva district of Phnom Penh, especially the area along National Road 6A into a new civilised city – with their Park Land 6A development.
“Recent business expansion announcements from Chip Mong Retail also shows that the real estate giant is not slowing down. The company has made major moves by launching a number of developments including Chip Mong 271 Mega Mall and Chip Mong 598 Mall, expected to be completed in Year 2022,” Tizon added.
The regional property outlook is also optimistic, to say the least.
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.