Cambodia Real Estate Survey 2019

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Introductions
Who took the Cambodia Real Estate Survey 2019?
How is the Cambodia property market?
Market demand
Real estate financing
General situation in Cambodia
Real estate industry feedback
Conclusion
Established in 2009, Realestate.com.kh has grown to be the foremost real estate
portal in Cambodia, working with the nation's leading real estate agencies,
developers and lenders. In 2015, Australia-based DCG partnered with founder
Moek Chenda to develop the business rapidly. The platform, with content in
Khmer, English and Chinese, showcases over 25,000 properties for sale and
rent, and tens of thousands of property hunters visit the website and app each
month.
Realestate.com.kh also produces the biannual Cambodia Real Estate Magazine
in English and Chinese and hosts a series of industry shows called
Realestate.com.kh Expo. The event facilitated over US$30 million in direct sales
last year alone.
We would like to acknowledge the efforts of our team, real estate agents,
developers and sponsors, without whom this survey would not be possible.

Realestate.com.kh, Cambodia's leading real estate platform, is delighted
to share the results of this year’s Cambodia Real Estate Survey. The
survey provides valuable insight into the Kingdom’s real estate industry,
in all its diversity.
“On behalf of our
team, I would like to
thank everyone who
took the time to
complete the 2018
survey.”
“As the second survey
of its kind, this year’s
results are especially
interesting. We hope
the public and
private sectors find
the data of value in
future planning.”
Tom O’Sullivan
CEO
Realestate.com.kh
This is the third version of our annual survey. Each year, we make
changes and tweaks to our questions in order to best capture the state
of the local real estate industry. However, many of the questions we ask
are the same so that we can chart the changes occurring in real-time.
In many ways, 2019’s data show a continuation of the growth we have
seen in Cambodia over the past few years. In general, property
ownership is on the rise, average incomes are rising, and younger
people are becoming more active by both renting and owning property.
One drawback we saw this year is the perceived affordability of the
market. There was a slight move in the data where people are seeing
property as less affordable than they did last year. This, in some part,
could be due to the rising standards in the industry as more
international businesses and expats enter the country.
On the other hand, there is even more confidence this year in the
growth of the market. The majority of our respondents have seen
significant market growth over the last year, expect continued growth
and think real estate is a good investment.
Real estate developers in Cambodia are, for the most part, responding
to this changing market. They see that more people are looking to
become homeowners. This has led to an increasing amount of
affordable condominium projects offering homes under $75,000 as well
as breakneck expansion in the borey market.

With surveys like this it can be hard to distill them down into a central
message. Well, I’m going to do exactly that right now. The continuing
thread this year is about the younger generation. In most parts of the
Western world, young adults don’t start thinking about homeownership
until they are in their thirties or even forties. Here in Cambodia, this
couldn’t be further from the truth.
“This year’s survey
shows that
Cambodia’s real
estate buyers are
growing and
changing almost as
fast as the country
itself is.”
“More young families
are striving for
homeownership than
ever before.”
Tyler Lebens
Editor
Realestate.com.kh
With the Real Estate Survey 2019 we saw an increasing number of
respondents in their late teens and early twenties. While these people
are still making, on average, less than $1,000 per month (many are only
working part-time), they are showing a firm interest in the real estate
sector not only in terms of residence but also as investments.
As Cambodia urbanises, incomes grow and family sizes shrink. This
means young families are routinely bringing in $2,000 or more per
month in disposable income while simultaneously pursuing
homeownership in a safe and well-located community.
More and more, these young families are taking out mortgages in order
to buy borey homes or even small- or medium-sized condos in and
around Phnom Penh.
Whether you’re an aspiring real estate investor, a renter who is shopping
for your first home, or an international tycoon looking for the next piece
of your growing portfolio, we hope you find the data in this survey
useful and insightful.

Over 2000 people, from a variety of
backgrounds, responded to the Cambodia
Real Estate Survey 2019. Realestate.com.kh
aimed to create a question set that was
relevant to speakers of Khmer, English and
Chinese people.
Age of respondents
On the whole, this year’s respondents lined
up closely to last year’s in terms of age. The
youngest group, however, saw a big jump.
Almost three percent of respondents this
year reported their age as 20 or younger.
The same group was less than one percent
of the total last year.
As the level of education rises in the
country, more youths are entering the
workforce and actively participating in the
economy. This, no doubt, has led many to
start thinking about and researching
homeownership and other real estate
topics from a younger age.

Nationality
The survey was relevant to anyone
connected to the real estate industry in
Cambodia. That said, the market is quite
diverse, with both locals and foreigners
occupying many roles.
Nearly 74 percent of the respondents were
Cambodian. The foreign demographic was
mostly made up of Asian expatriates,
though Westerners were also represented.
Purchasing power
Past Realestate.com.kh surveys have almost
always shown an upward shift in
purchasing power. This year, however,
something different has occurred.
We did see growth in the lower-middle
brackets. Yet there was a spike in those
making $500 or less per month. This could
be due to the participation of younger
respondents, many of whom work only
part-time.
2018 2019

It’s no surprise that those working in the
real estate industry represented the largest
single group of respondents. Indeed, those
in banking and finance stay on top of the
news coming out of the property sector.
Many of these people use
Realestate.com.kh for that express
purpose.
Proportions for each industry were similar
to those of the respondents last year.
However, we saw growth in the number of
students who answered our questions.
This growth isn’t surprising given the
previous questions about age and income.
The fact that these young people are
educating themselves on real estate is
exciting for the country.

Living situation
Similar to last year, the majority of
respondents claimed to live with their
partners or spouses. On the other hand, a
slightly larger percentage of respondents
claimed to live with their family, parents or
grandparents.
There are two clear reasons for this
movement: First, many of those living with a
spouse last year have since started families
of their own. Additionally, because of a
more active and aware young generation,
more people in their late teens or early
twenties are keeping themselves informed
about the real estate industry.

Affordability
As the property market continues to grow
and mature, many in the country can see
prices rising. Yet, over half of our
respondents still perceive the market to be
affordable.
The scales are tipping somewhat, as fewer
people this year perceived affordability.
However, most people are confident that
prices will rise and investments in the
country will remain stable.
Is property in Cambodia
affordable?

Property possession
With this question, we wanted to know
whether respondents were
homeowners, on the way to becoming
homeowners or renters.
23.4%
19%
50.8%
Unsurprisingly, homeownership grew
slightly from last year. With the growing
number of affordable projects in the
market, more people are getting a
chance to own property. This push for
homeownership is also apparent in the
number of people who said they are
renting but have a desire to own; over
23 percent responded as such.
7.5%
12%
18.2%
20%
48%
2018
2019
Do you own or rent?
●
Full Owners
Is it a better time to buy or
sell property? ● Renters
●
Own with loan
●
Buy a Property
●
Renters but would like to
own a house
●
Sell a Property
Is it a better time to buy or sell?
24%
2019
Buyers have expressed continued confidence in the
property market, similarly to last year. Three-quarters of
survey takers said it was a better time to buy property
than sell it.
75%
The bullish sentiments continue the trend of the last few
as people see development grow and prices rise.

Will growth continue?
Looking more closely at perceptions of the
property market, it’s clear that consumers
think the expansion will continue. Nearly 85
percent said prices have increased over the
last year, while over 77 percent think they
will increase over the next year.
A whopping 86 percent of respondents
claimed that buying real estate is a good
investment. Indeed, real estate is one of
the main avenues for investment in the
country. Less than 14 percent of
respondents had reservations about
investing in real estate.
How have property
prices changed over
the past year?
How will prices change
over the next year?
●
Increased
●
Increase
●
Decreased
●
Decrease
●
Stayed the same
●
Stay the same
1.8%
13.6%
16%
7.6%
14.5%
9%
13%
2018
2018
79%
2019
78%
2019
77.7%
84.4%
1.8%
Is buying real estate a
good investment?
1.8%
●
●
●
Yes
Not really
No
2019

Do you plan to buy property?
As the Cambodia property market opens up
and diversifies, it seems that more people
are planning to buy property. Over 78
percent of respondents plan to buy this
year. What’s more, a significant proportion
of these people will be first-time buyers.
With more inclusion in the real estate industry,
we are also seeing more participation in the
banking and lending sectors. Over 75 percent of
those planning to buy this year will need a loan
for their purchase. This illustrates growing
confidence in the country’s banking sector.
Do you plan to buy property
this year?
Will you need a loan for your
next property purchase?
●
Yes
●
No
●
Yes
●
No
21.5%
26%
2018
24.4%
74%
2019
75.2%
78%

What type of property will
you buy?
What type of property will you buy?
The Cambodian property market has many
distinct sections. Interestingly, nearly all the
consumer segments were represented
equally among respondents. Over 27
percent of people said they plan on buying
a borey home this year. Just over 25
percent, meanwhile, said they were
planning to buy a condo in a new
development. Almost the same proportion
had plans to buy an independent house or
villa. Around 20 percent had plans to buy
land.
These numbers show both the diversity of
property buyers and demand in the
country. No single type of property
dominates the market, and different kinds
have different appealing aspects.
Property in borey
Condo in new development
Land
Independent house or villa
Commercial space
0.7%
25.8%
27.7%
20%
25.5%
Will your property be a personal
residence or investment?
Personal residence
Investment
We then wanted to know whether people
who plan to buy this year are looking for a
personal residence or an investment
property. The results echoed previous
questions with strong evidence for a high
level of confidence in the market.
34.4%
65.5%
Over 65 percent of respondents plan to buy
property as an investment this year. The
rest, meanwhile are looking to buy real
estate that will become their primary
residence. There are many opportunities
for investment in the sector, and they are
growing more numerous every day.

There was an intriguing shift this year in
property budgets among our survey
respondents. Again this year, most people
said they were planning to spend $50,000
or less. However, this section of buyers was
down significantly from last year.
On the rise is the $50,001 to $75,000
segment. Last year, this section
represented around 20 percent of
respondents, whereas this year it was up to
almost a quarter.
Little movement in high brackets
This move reflects not only rising budgets
but also a growing amount of projects that
are enticing buyers to spend more.
No significant changes were seen in the
middle brackets. Both $75,001 to $100,000
and $100,001 to $200,000 pulled in around
12 percent each. Likewise, the two highest
segments each accounted for a relatively
small proportion of respondents.
How much are you planning
to spend on a property
purchase this year?

Where do people want to buy?
Phnom Penh is still the area in the country that commands most of the property demand. Over 77
percent of responders said they want to buy in the capital. This proportion is even up slightly from
2018’s data.
Coming up in a distant second place was Siem Reap. Just over 7 percent of respondents claimed
they want to buy there, while only 5 percent said the same for Kampot in the south.
Sihanoukville, which claimed almost 10 percent of demand in last year’s survey, captured just 4
percent this year.
Phnom Penh demand
Demand for property in different areas of the capital remained similar to where numbers stood
last year. Sen Sok and Chroy Changvar districts still command the highest demand; their leads
became even more pronounced with this year’s data.

As always, respondents overwhelmingly
said that location was their top factor when
purchasing a property in Cambodia. A
distant second was the potential for high
returns. This reflects the high percentage of
people who are planning to buy an
investment property this year.
Around 14 percent of survey respondents
claimed that infrastructure was the most
critical factor when buying property. As the
country grows and urbanises, we see more
pressure on the government to update and
maintain the Kingdom’s road systems.
After all, a property’s location depends in large
part on how easy it is to get to. The importance
of infrastructure can already be felt in the outer
areas of the capital. In these areas, land prices
can vary wildly, due in part to the fact that
some have access to main highways while
others rely on small dirt roads.
In years to come, we may see infrastructure
become even more important to buyers.
There’s also the balance between public and
private infrastructure. In many boreys, for
example, developers include parks,
playgrounds and other spaces for their
resident’s exclusive use.

Earlier in the survey, we saw that over 75
percent of respondents plan to take a loan
for their next property purchase. Diving a
little deeper, we wanted to see how much
the average purchaser planned for their
down payment.
The proportions who expected to put down
nothing or less than 10%, both shrank from
last year. This is a positive move, to be sure.
This year, the majority of our survey takers
plan to put down 30 percent.
Growth in the segment expecting to pay 30
percent is, no doubt, due to the popularity
of the borey market. Though many borey
developers offer in-house mortgages with
no set down payment, many are taking
loans through banks that still require 20 or
30 percent deposit.
Upper segments either shrunk or stayed
relatively the same as last year. In general,
most people are paying between 20 and 50
percent down payments.
9.5%
5.4%
4%
22.2%
How much will you pay as a
down payment?
15%
25%
●
No down payment
32%
20%
30.5%
36%
2019
2018
●
●
●
●
A 10% down payment
A 30% down payment
A 50% down payment
A 70%+ down payment

General situation in Cambodia
This year has been relatively quiet.
Cambodian affairs, in most cases, haven’t
caught the international press since the
general election in July of 2018.
In general, do you think Cambodia
is improving as a country?
Indeed, the vast majority of our
respondents expressed the belief that
Cambodia is improving as a country.
Foreign direct investment (FDI) is on the
rise and businesses are growing.
●
●
Yes
●
No
The situation is staying
the same
The real estate sector, too, is playing off
the breakneck progress of the nation. In
addition to rising incomes and land values,
international development companies are
coming with an increasing number of
projects.
2.3%
5.9%
Not only is this progress bringing jobs and
opportunities to the country, but it’s also
making Cambodia more competitive on a
regional level.
91.6%

As the real estate industry in Cambodia
grows, Realestate.com.kh wishes to be a
positive force in improving the sector.
Paramount in this progress is keeping up
with customer and client demands.
Cambodia, as a country, is in the midst of
an amazing period of growth. But pivotal to
this growth is the bolstering of human
resources, training and feedback, both
internally and externally.
This year, we again asked respondents
about the changes they most wanted to see
in the industry.
Answers were largely similar to those last
year. Most people are calling for mandatory
real estate agent licensure. This information
falls directly in line with the need for
training and education throughout the
nation.
As a testament to the industry’s growing
professionalism, Realestate.com.kh has
worked with the Ministry of Economy and
Finance (MEF) and the Cambodian Valuers
and Estate Agents Association (CVEA) to
establish the Cambodia Real Estate Awards.
This event serves to celebrate the nation’s
finest real estate professionals.

Following along this call for more training
and education, we asked our responders
what they value most in a real estate agent.
Specifically, what factor do they look for
most as the indicator of a good agent?
Nearly 38 percent of respondents said that
honesty was the top quality they looked for
in a good real estate agent. Almost 27
percent, meanwhile, prized professionalism
as the top factor when choosing an agent.
Under Cambodian law, agents must have
the proper licence. The MEF, CVEA and
Realestate.com.kh are all going to great
lengths to ensure agents are getting the
right accreditation.
Additionally, both the MEF and CVEA have
this year established industry-leading
courses to provide education to the sector’s
professionals.
Factors people consider when choosing
a real estate agent
(in order of most importance to least)

Pulling back the camera, we wanted
to see how Realestate.com.kh stacks
up to other resources for property in
Cambodia.
Where do you get information about
Cambodian property?
(number of respondents)
Of course, there is a substantial
selection bias here. Regular site
visitors were the primary
demographic for survey
respondents. Yet, it is interesting to
see what other places our users get
information about real estate in the
country.
Unsurprisingly, the lion’s share of
respondents get their real estate
information online.
Print media like newspapers and
magazines were a driving force in
Cambodia just a few years ago.
However, only a small percentage of
our respondents reported that they
looked to print for real estate
information.
What do you use
Realestate.com.kh for?
(number of respondents)
To look at how our own visitors are
using Realestate.com.kh, we asked
them what they use the site for. Most
respondents said they used the site
to search for properties for sale,
while many also said they use it for
property news.

Young generation fuels rise of middle
class
This year’s Cambodia Real Estate Survey
shows that the property market in the
Kingdom is stronger than ever. Incomes in
the country are rising and more people are
looking to the sector for both residence and
investment purposes.
Amid an updating and diversifying economy,
the demographics of the country are shifting
as well. This year, this was apparent in how
our respondents answered the questions in
our survey. More young people in their late
teens and early twenties are becoming active
in the economy and preparing for adulthood
and future homeownership.
Meanwhile, more people are entering the
middle class in the country and looking for
affordable avenues toward homeownership.
Many of these people are shopping for
homes in boreys on the outskirts of the city.
This option gives them the chance to own a
home for less than $100,000.
Indeed, there is still a massive amount of
confidence backing Cambodia’s real estate
sector. People understand that prices have
been on the rise, and the majority are
confident that they will continue to rise as the
months go on.
Much of this confidence, no doubt, comes from
the huge influx of foreign direct investment
(FDI) in Cambodia. People are aware that
international businesses see the potential for
massive growth in the country.
There are, however, a few drawbacks to this
rapid growth. Despite a strong sense of
confidence that real estate is a good
investment, many think that prices are
becoming unaffordable.
What comes next?
If Cambodia’s real estate market in 2018 were
summed up in just a few words, most industry
figures would mention the rise of Sihanoukville,
new condo projects and borey developments
on the outskirts of Phnom Penh.

While these three areas are still relevant today,
they have each headed in slightly different
directions.
Sihanoukville, which was previously the hub of
land speculation, has now become the prime
location for hospitality developments like
resorts and hotels. In the coming year, many of
these projects will be officially complete and
start welcoming visitors, renters and owners
alike.
Condos, which in past years were marketed
almost exclusively to foreigners in the country,
are now being offered at more affordable price
points. This means more Cambodians will be
both buying and renting these units.
Boreys, on the other hand, have always
been geared toward local buyers. In the
coming year, we will see the continued
expansion of the borey sector in terms of
price point, location and offerings.
As the economy and real estate market of
Cambodia continue to grow and diversify,
Realestate.com.kh plans to remain a
steadfast resource for everyone in the
industry.
We would like to thank everyone who took
the time to complete the survey.
For media or other enquiries, please email:
info@realestate.com.kh

For media and other enquiries, please email:
info@realestate.com.kh
+855(0)17436756