By Kong Soriya
Phnom Penh, Khmer citizens, artists and especially rich people have begun to invest in the real estate sector, especially in the land sector over the last few years.
On social media, posting news related to land subdivision, sale of commercial buildings and residential, has kept growing from day to day.
Why do more people start to mobilize resources to invest in the sector? Dr. Kim Heang, CEO of KW Cambodia, said that investment in the sector, seeing them as profitable and making a lot of money out of the sector, but not all investors receive the return of investment from their investments. There will be many small companies would be closed as major international companies come to Cambodia, and investors will choose big companies to be members to sell their projects.
“Investing in the sector, if doing correctly, will gain profitable result, they will profit and avoid risks,” Dr. Kim Heang said.
Mr. Nget Chou, an economist at Emerging Market Consulting, said investors in the sector do not have to rely on luck, but have to rely on clear information and properly consider relevant information, and investment plans to avoid risks before deciding to invest.
“Obtaining accurate information, properly studying its investment plans and properly studying the market it will make the investment reduce problem,” Mr. Nget said.
The president of Cambodia Valuers and Estate Agents Mr Chrek Soknim said that the investment in the industry is very profitable, making a lot of money, but if singers earn between $200 and $400 per night, they have land subdivision project worth $30,000 to $ 40,000. He added why do not They Invest?
“If those who split the plots of land and don’t sell well, why do they still invest and if there is no demand, it is not booming, unless there is a demand for supply. In Cambodia, low-income and middle-class people are still so large, so land subdivision are still selling well,” Mr. Soknim said.
However, Chrek Soknim said, however, the land subdivision buyers face some problem because they buy more land with many ownerships in one area, so housing construction can be in disorder, but to avoid risk in the sector the buyers make sure that the land they buy is abide by the law. he added if the land is with the hard title, are there any business license for the land subdivision, or the land subdivision businessmen hold a soft title, and then there will be problems later, so the study of the legal process is really important.
