Phnom Penh: Similar to other sectors in Cambodia, the real estate sector which was severely affected by the global economic crisis, and for the apartment market is also affected, but the situation may start to grow in 2021.
Mr. Vorn Chanthorn, CEO of Town City Real Estate Agency, said in the morning of January 12, 2021 that the apartment market, which had declined in mid-2020, had gradually started to recover as rental prices saw also an increase.
“During the pandemic, the apartment market was not so different from other sectors,” he said. “Most apartment rentals are long-term leases, but the important thing is that most of tenants are more foreigners than locals. The rental rate may be higher, but the price is lower because the apartment owner has helped facilitate the reduction of prices by between 20-30 percent to its customers who are locals or foreigners in local, as new foreign customers have not yet returned to Cambodia.”
“Especially for the beginning of 2021, while the situation in Cambodia is improving, people are starting to go out to do business and resume work, this market demand is gradually starting to change for the better,” he said. “And prices have also risen. I think soon the apartment market will improve as some countries start vaccination, especially China, where many people come to live and work in Cambodia, most of them live in apartments.”
CBRE Cambodia Country Director Mrs. Ann Sothida said that in 2021, the real estate sector will start to grow again, but not yet strong, which will take at least another six months.
“The apartment market has also been severely affected by the pandemic because most customers are more foreigners than Cambodians in the country,” she said.
She stated that now for those who come to live in apartments are mostly Cambodians, because foreign customers have not returned, for each country has not yet opened the border. This market will be able to recover at least by the middle of 2021 after the use of effective and universal vaccines that can prevent the spread of the pandemic 100 percent, and investors as well as foreign experts will return to do business or work In Cambodia.