One of the main concerns for anyone looking to purchase property in Cambodia – or anywhere else for that matter – is whether their investment is safe. Buying a house, condo or land often involves a significant initial capital investment so you really do want to make sure that you are making the right purchase. This article looks at whether there is a Cambodia real estate bubble.
What Is a Real Estate Bubble?
There is nothing new about bubbles. They go back at least to the South Sea Bubble in 1711, although that was a joint stock company raised to alleviate the UK national debt rather that a property company.
The idea is that prices rise at a unsustainable rate just like bubbles. As like bubbles they are eventually going to burst, leaving investors with a massive loss.
Is There a Cambodia Real Estate Bubble?
So, is the Cambodian property market rising at a such an unsustainable rate that the good times will eventually burst, leaving investors with much more than egg on their faces?
The answer, fortunately, is no. And you don’t have to just take our word for it.
Cambodia is a growing population. The UNDP has estimated that by 2030 there will be a million home gap in the Cambodian housing market. This is predominantly in the affordable housing segment. That means that an additional 100,000 new housing units are required to be built each year in Cambodia, just to keep pace with demand.
Sustainable Growth not Bubble
Cambodia’s annual GDP growth is predicted to be 5.5% for 2022. What we are seeing in the Cambodian property market is sustained, fast, natural growth not a bubble. Fortunately there are many players in the market with new projects launching all the time. This means it is an excellent market in which to invest your money.