Phnom Penh: As trade war between US and Chinese is heating up, an international financial institution warns there will be negative effects on the world economy, but real estate experts in Cambodia have confirmed that Chinese investment projects in Cambodia will not be in crisis.
Country Director of CBRE Cambodia, Ms. An Sothyna, said by telephone on Oct. 15 that Chinese investor projects in Cambodia, will usually face no impact from the trade war, and investors will still continue.
What is a worry is that the Chinese government has introduced new policies by limiting foreign investment flow, but this is not only limited to Cambodia, but worldwide.
“The Chinese project is still good, problems will always be there, but the good company is still good,” she said. “The condo market is still good, with sales still successful, it depends on the quality plan,” she said. “The value and location of the project. “
According to a study by VTRUST APPRAISAL, the number of condominium units in Cambodia increased to more than 60,000 units at the end of 2017.
Many Chinese investment projects focus on overseas markets, they say. They mostly sell their projects there, she said.
Ms. Grace Rachny Fong, Director of Century21 Cambodia, said that Chinese projects in Cambodia are still doing well, with most investors focused on overseas markets, which is what current investment trends are, while Cambodians do not want to live in condos.
80% of condominiums purchased by foreigners and 20% by private investors, but in the next 10 years, she predicts, this trend will be reversed.
“China invests in Cambodia now (as it) is a good time because of the value of real estate, especially the low prices of land they can afford,” she said. “but if they wait longer, their investment will be too late. ”
President of the Association of Valuers and Real Estate Agencies of Cambodia, Dr. Kim Heang, said that the real estate market in Cambodia remained positive and sees no risk or problems with investments.
“The Chinese investment projects are still ongoing, with no impact from the crisis of the trade war between China and the United States” he said.
“I am still optimistic about the market and still see this sector continue to grow for a long time”
Chairman of the Board of Directors of Century21 Cambodia, Kuy Vat, said in July that the experience of the global economic crisis in 2008 -2009 affected Cambodia, but not so much as other countries.
The trade war between the United States and China and with the EU will certainly have an impact on the sector, but will be limited to the short term, as the government has put in place supporting policies.
“The crisis has yet to have any impact, and this situation may be a chance for the developing world, like Cambodia” he said “but it can be a crisis we cannot predict.”
Dr. Mey Kalyan, adviser to the Supreme National Economic Council, said that the US-China trade war could slow down the global economy, but the level of impact would depend on the policy of each country. “For Cambodia, it is possible to have an impact, but the government must be smart with a good relationship with all countries to develop our economy. Cambodia should flex its muscles by strengthening our economic base to develop internally. And by expanding exports to other countries.”