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The upcoming SEA Games, set to happen in Cambodia in May 2023 is expected to bring forth a promising future for the Cambodian property market. IQI Cambodia’s Head of Country, Chandy Mann shares his insights on what to expect in the real estate market leading up to the anticipated sports event.
Below are 5 ways the SEA Games can help boost the Cambodian property market:
1. SEA Games is the best time to invest
With the advent of the SEA Games 2023 that will be hosted in Cambodia, the country sees an even better opportunity to boost the property market, with an expected influx of investors coming in from all over the world.
With the ASEAN Summit approaching in November 2022, Cambodia has seized the opportunity to cooperate with other ASEAN countries to boost its property market.
Currently, Cambodia’s top 5 foreign investors hail from China, Japan, South Korea, Malaysia and Singapore respectively. Japan, in particular, has recently set up a Toyota factory in Phnom Penh in September 2022, along with other vehicle assembly plants. With this, more foreign workers are expected to come into the country, thus increasing the demand for rentals.
2. Popular areas for investment
Cambodia’s hottest areas for property investment for locals and foreign investors alike are Phnom Penh, the Phnom Penh suburbs, Sihanoukville and Siem Reap.
Land and residential properties are the most sought-after properties by investors, especially 2-4 bedroom units, says IQI Cambodia’s Chandy Mann.
3. Increasing rental prices
Travel conditions are improving, and more people are traveling around the globe. This is also true for Cambodia, especially with the upcoming SEA Games. With this, the demand for rentals are expected to boost.
Rental prices are expected to increase by 15% – 20%, making it a promising and profitable opportunity for investors planning to invest in Cambodia. However, the Cambodian government will keep a close eye on these prices to avoid exorbitant rates, as well as attract even more tenants, local and foreign.
4. Boost in transaction value
Up until July 2022, Cambodia has seen a transaction value of $4 billion in the property industry, with the construction sector making up $1.4 billion of the total value.
Coming up to the SEA Games, IQI’s Chandy Mann expects a boost of up to $6 billion in transaction volume, with investors purchasing land to establish special economic zones.
5. Inflation-proof investment
If you’re looking for a safe investment option during inflation, investing in Cambodian real estate can give you the security you need.
Investing in real estate in Cambodia offers steady returns. Cambodia uses the US dollar as its medium of currency, allowing it to be a stable and steady option for investors due to its safety against inflation.
Conclusion
The Cambodian property market is seeing a promising growth thanks to the improving COVID-19 conditions and the upcoming SEA Games. It’s a better time than ever to invest in Cambodian real estate!
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