The State of Cambodia’s Real Estate Market in 2020
Cambodia’s real estate market is no longer a secret as it has caught the attention of every investment fund in the world. The question is, what now when everyone’s looking at its directions and want a piece of the action?
Here’s what will prevail in 2020 and will have the most influence on the Cambodia real estate market.
#1 Local real estate investments are on the rise
Cambodia’s economy is also set to rise in 2020, the same as it did in the last dozen or so years. The newly created middle class is growing in numbers. That means more and more people can afford to have their own home.
As a result, there is an increased demand for mid-price housing and apartments. That demand might be insignificant five or six years ago. But nowadays, it represents the prevailing factor in this segment of the real estate market.
#2 Young people making splashes
Cambodia’s rural youth is flooding the cities in pursuit of new opportunities and employment. Fortunately for them, the economy is growing at quite a pace (6.8%), and there is always work to be found. At the same time, they are not migrating to other countries for work and prosperity.
That created a demand for affordable housing. Most young people are in pursuit of one or two-bedroom apartments, close to a transit station, and to be affordable. The demand for affordable housing has never been greater than in 2018 and 2019. The demand will be ongoing in 2020, and the developers are already aware of that.
#3 Expatriates are growing in numbers
According to official statistics, well over 150,000 expatriates are living in Cambodia. Most of them are situated in urban areas and modern homes featuring western amenities. Their numbers increased along with the country’s economic growth.
Their influence is felt most on the mid-range and high price properties within the biggest cities. Phnom Penh is where the majority of all expatriates work and live. Their influence on these segments of the real estate market will be felt throughout 2020 as well.
#4 No signs of a real estate bubble
A real estate bubble is the greatest fear of all analysts and real estate experts. That is why they constantly crunch numbers and analyze data, hoping that they can get some early warning if the market starts heading in that direction.
The way things are, and from the available data, there are absolutely no signs. According to experts from the World Bank, Cambodia has one of the healthiest real estate markets in the region.
#5 Demand and supply are in perfect harmony
Official data from both local and federal sources point to a harmonious relationship between demand and supply. The only area in which the demand is much greater than the supply is the affordable housing segment.
But, it seems that the supply will meet the demand in 2020 as many new affordable housing projects are on the way. That means a lot of new one-bedroom and two-bedroom apartments on the way.