Cambodian property proves popular with Chinese buyers as mainland investment drives economic growth

Demand for housing pushes rental yield in Cambodia’s capital Phnom Penh to 8 to 10 per cent. But market observers warn of ‘oversaturation in the high-end segment’ that could depress prices.

Cambodia’s housing market is on a roll.

A thriving job market as a result of the booming economy has boosted demand for housing. This has pushed rental yields to 8 to 10 per cent, and asset appreciation to 15 per cent per year, making the Southeast Asian nation’s property sector an ideal bet for Chinese investors seeking overseas assets as a hedge against yuan devaluation, say market observers.

The country’s gross domestic product grew 7.5 per cent and exports surged 17.6 per cent last year, thanks to massive inflow of Chinese investment in infrastructure projects on the back of the Belt and Road Initiative, and factories relocating from the mainland to take advantage of the cheap labour and dodge punitive tariffs imposed by Washington in the ongoing US-China trade war.

In full: https://www.scmp.com/property/international/article/3013103/cambodian-property-proves-popular-chinese-buyers-mainland

© 2019, The Cambodia Daily. All rights reserved No part of this article may be reproduced in print, electronically, broadcast, rewritten or redistributed without written permission.