When we talk about Cambodia, real estate is one of the significant industries. The property market plays a vital role in the country. Over time, the country has seen consistent growth in its real estate sector.
No matter whether you are a Cambodian or a foreigner, investing in Cambodia property has excellent potential. The reason why so many investors prefer Cambodia for investment is mainly because of its booming economy. It is the country that performs well even during economic downtimes.
For example, the country had successfully surpassed significant recessions of the 2000s and 2007. The majority of countries around the world were in difficulty due to recession, while Cambodia was the one that was doing great at that time.
As we have seen, real estate is a crucial sector of this country. The country’s real estate market increased consistently. However, there was also a time when it wasn’t doing well. With the consistent increase in property prices, the time came when the real estate bubble burst. Cambodia real estate did not do well for a time bur It can recover soon.
The property market was doing well. Cambodia’s property market started to decline and see a bubble burst when the government banned online gambling. If we talk about the Cambodia economy, it is primarily depended on Chinese. Major cities like Sihanoukville heavily rely on Chinese investors and citizens. Talking about Sihanoukville, the Chinese own more than 90% of businesses in the city. It includes hotels, casinos, massage parlors, restaurants, etc. This is according to a report from Preah Sihanouk provincial authorities.
After the Cambodia government imposed a ban on Chinese-run online gambling operations, the real estate market was fallen down as much as 33%. The purpose of imposing an online gambling ban was to stop online fraud. Foreign criminals were using this method to extort money.
After prime minister Hun Sen announced the gambling ban, Chinese people investors and citizens started leaving the country. Many in the sector stated that the gambling industry in Cambodia is one of the reasons why investors and tourists from China have been coming to the country.
Just after the week of imposing the gambling ban, the Ministry of the Interior deported 150 Chinese nationals in relation to an online gambling scam operating out of Sihanoukville and Bavet. After 31st December 2019 midnight, casinos weren’t allowed to keep going their online gambling operations. After the ban, a massive number of Chinese people left the country, especially Sihanoukville. So many people lose their jobs.
However, things are changing now. We can see that Chinese investors are coming back to the country. Kheang Phearum, Preah Sihanouk provincial hall spokesman on June 15, said that over 1000 Chinese investors had returned to the province between May 23 and June 13, 2020.
“We see that COVID-19 is a global issue, but however I noted that Chinese businessmen presently are coming back to Cambodia. This is a positive sign as they haven’t given up on their businesses in Sihanoukville, so we have hope for the investment sector, the tourism sector, and the industrial sector,” he said.
We can say that ban on online gambling in Cambodia has affected the real estate market. The government imposed an online gambling ban in the month of August 2019. And Chinese business people and investors started coming back to the country from May 2020.
With an increasing number of Chinese coming back to the country and the property market is starting to recover, it can be a great idea to invest in the country’s real estate market now. Whether you are a Cambodian or foreigner, if you want to invest in real estate in Cambodia, Dragon Real Estate can help you.