Here’re 3 main factors that make land prices in Cambodia continue to rise:
As you know, Cambodia is one of the countries in ASEAN that has been experiencing good economic growth in recent years. Cambodia’s gross domestic product (GDP) is expected to be around 7.0% for 2019 and about 6.8% by 2020. According to a report by the Asian Development Bank (ADB).
What are the main factors that make land prices in Cambodia continue to rise
In the period from the economic crisis between 2008 to 2009, the Royal Government of Cambodia has been striving to gradually improve the country’s economy until now, Cambodia can maintain economic growth at 7.0% in 5 years. Consecutive years.
Cambodia is valued by the world to be able to become an economic dragon in ASEAN countries in the next 10 years. The four sectors still play an important role in Cambodia’s economic development: agriculture, textiles (garment factories), tourism and construction (real estate).
1. Foreign direct investment
According to a report by the Council for the Development of Cambodia, in the first half of 2019, Cambodia approved the establishment of 153 new investment projects under an investment of more than $ 5 billion, and this project created 167,330 jobs. Compared to the same period in 2018, there are 105 projects with a total investment of more than $ 3.5 million.
Looking back at the construction and real estate sector, from year to year, construction and development activities in this sector have been very attractive to both local and foreign investors.
The influx of foreign investors to invest and invest in Cambodia, as the country is showing a lot of positive signals in investment, especially in the last three years have seen the flow of Chinese investors to Cambodia to work. Invest in major sectors such as condominiums, hotels, guesthouses, commercial buildings, supermarkets, factories and casinos, with millions of dollars invested in each project.
The construction sector, through the Ministry of Land Management, Urban Planning and Construction, released the following construction reports:
Nationwide construction data in 2018 was 3,290 projects with an area of 12,378,119 square meters, with an estimated investment of 5,755,070,120 dollars compared to the same period in 2017. 3,418 projects with an area of 11,381,883 square meters, with an estimated investment of 6,798,663,125 USD, a decrease of 15.35%.
Analysts see that although investment projects appear to have declined slightly for 2018, they expect that in 2019, investment in the real estate sector will increase due to the growth of Chinese investors in both Phnom Penh and Sihanoukville. Sihanouk. Experts see that in 2019, there will be an increase in investment capital due to the current political situation in the country, the economic situation is still at 7.0%, construction and development activities are busy, the influx of investors to invest more. This gives rise to signs of real estate and construction, and land prices continue to rise year on year.
As observed in recent years, the influx of Chinese investors has come to invest and do business in Cambodia, especially in Sihanoukville, which is expected to build and develop in This year 2019 has a remarkable momentum, so experts expect that in 2019, investment in construction and real estate will really increase.
The influx of Chinese and Korean investors is increasing, especially Chinese investors over the last three years, who have focused on investing in condominiums, casinos, special economic zones, factories, handicrafts, hotels and guesthouses.
2. Growing demand and improving infrastructure
It is noted that land prices continue to rise year by year due to the country’s steady economic growth and rich natural resources, investment opportunities, construction activities and projects. Population (population growth of 16.49 million people in 2019) Demand is still high, supply is still good, infrastructure (maze, waterway, land and air) helps to provide all kinds of transportation, especially national road network No. 4, which connects Phnom Penh to Sihanoukville International Port, and what is more special is the project to build an expressway that connects Phnom Penh to Sihanoukville and another line connecting Phnom Penh to Bavet, which is An important part facilitates all kinds of transport and traffic activities.
3 main factors that make land prices in Cambodia continue to rise
3. Political stability
The good political situation does not intimidate both local and foreign investors, and on the other hand, land prices in Cambodia still seem low compared to other ASEAN countries: China, Thailand, Korea, Taiwan, the Philippines, Hong Kong, Vietnam, Malaysia and so on. .
According to Chinese investment experts, Cambodia has another 30 years to develop the country into what is now Hong Kong or Singapore. This means that there are still 30 years of investment opportunities for local and foreign investors, and land prices continue to rise in line with the economy and the country’s development process.
land prices in Cambodia continue to rise
The above presentation is a validation factor that confirms the argument that property (land) prices can continue to rise in all parts of Cambodia, especially