1. Foreign buyers are now more valuable than before
Foreign buyers of overseas properties have largely driven real estate development activities in Cambodia, especially in Phnom Penh in the past 4-5 years, you may have also heard of Capital National Finance. Foreign buyers entering Cambodia typically pay a large down payment (30% to 50%) with short payment terms. Allows developers to fill their books with instant cash flow. On the other hand, while Cambodians’ annual household income has increased, most still require financial assistance from banks and generally prefer longer payment terms of around 10 years. This new status quo makes foreign buyers more valuable to developers who have struggled over the past 2 years.
2. Most quarantine measures have been lifted
Cambodian authorities have introduced new simplified rules for foreign travelers entering the country to reopen the economy. Prominent among these new regulations is that foreign-invested travelers to Cambodia only need proof of vaccination and a negative PCR test, without costly and time-consuming quarantine requirements.
3. Cambodians are more involved in the real estate market
This adds more value to the industry, who will buy these properties? The question has always been a pressing issue in the Cambodian real estate market. Foreign investors and upper-middle-class 海外置業 Cambodians tend to be the answer, but that has changed in 2 years - pretty fast when it comes to real estate. A shift in sales and marketing has led to greater participation in the housing market in most markets, which bodes well for foreign buyers as their condo investments can be more easily sold to locals looking to buy condos. Developers in partnership with local banks have made financial assistance more accessible to Cambodian buyers and made it more common in the fast-growing market. Demand contributes to a product's value proposition. Now, not only expats/foreigners have easier access to condos, but also Cambodians, so the market will become more stable and less susceptible to risks.