The real estate sector in Cambodia is at the forefront of other, fast-growing and emerging sectors. However, in the face of the global economic crisis, the sector is also affected.
Three areas of real estate facing slow growth during the economic downturn, including the world, such as land prices, because this property is a strong point in the Cambodian real estate industry but less attractive if compare With other properties such as housing. Land is at a point where investors are concerned, but if Covid-19 stays quiet for another three months, land prices remain flat by 2020.
According to a Forbes article published on May 21, 2020, commercial and retail rents in Cambodia could change even with office space. Cambodian government has not yet issued a law requiring landlords to legally lower rents. Obviously, rent discounts only from negotiation between landlords and tenants.
For commercial buildings, the demand for international companies investing in Cambodia is uncertainty because they are waiting for the situation in the country, especially the lease price.
Forbes estimates that rent could ease by about 20 percent by the end of 2020.
The Cambodian retail leasing is facing a significant impact because of the closure of many restaurants, entertainment venues, bars, and pubs. So both supply and demand for the retail market will drop anywhere from 15 percent to 30 percent this year.
Lastly, the condominiums are very demanding and attractive to expat customers. Medium to high condo prices still attract foreign buyers, but with the negative view that demand for condominiums seems to be disappear. On the positive side, the demand for condominiums are from Chinese, as China’s economy is recovering.
Despite the demand from China, prices have fallen because investors are asking for discounts to avoid the investment in the condominium sector. Exact specification is not yet available in the condominium market, which may wait until the end of 2020. Forbes