A construction worker examines a new borey development in Phnom Penh. Hin Pisei
Real estate insiders have noted that sales of entry-level new homes have begun to pick up, a promising sign in a market that has remained largely stagnant since 2020.
They attributed the recovery to the success of the specially targeted tax policies introduced by the government.
In the decade before the 2020 Covid-19 pandemic, Cambodia’s real estate sector experienced rapid growth which outpaced the forecasts of the most optimistic economists.
However, since the pandemic struck the global economy in early 2020, the housing sector has yet to show signs of a return to its spectacular growth.
To help revive the real estate sector, the government has continuously introduced new measures, most notably a registration tax exemption on those buying homes or properties priced below $70,000.
Dith Channa, CEO of Lucky Realty Co., Ltd, told The Post on February 14 that the government measures, especially for mid-range and lower-value housing (under $70,000), are starting to help the market regain its momentum.
He also noted that recently, the government introduced additional incentives for properties priced up to $210,000.
These have helped property developers sell more properties and allowed buyers to purchase homes at lower prices.
“When expenses are lower, developers can offer further discounts to customers, making it easier for them to buy houses at better prices. The private sector individuals who are facing an economic downturn but benefiting from government support are very satisfied,” he said.
“As a professional in the real estate sector, I have observed a reasonable increase in the sale of homes priced under $70,000. I believe if the relevant ministries and institutions can further facilitate and encourage this process, it will help the land sector and developers even more,” he added.
According to Channa, to improve the real estate market and the construction sector as a whole, all developers should consider launching new, lower-priced projects or adjusting their existing developments to offer more value to buyers.
He noted that the participation of the financial sector is also crucial to helping the real estate market recover more quickly.
As Phan Phalla, secretary of state of the Ministry of Economy and Finance, addressed the February 10 “Macro-economic Management and the Budget Law for 2025” forum, he described several of the measures the government has introduced to support the real estate sector.
He noted that this included tax exemptions for developers, and reiterated the government’s interest in ensuring the full recovery of the market.
He explained that the government has made it easier for homebuyers by exempting them from registration taxes on homes priced below $70,000, and to further ease the financial burden, additional measures have been introduced for homes priced below $210,000.
“This policy was introduced during the Covid-19 period. Recently, we made further adjustments regarding tax payments and plans for receiving tax exemptions,” he said.
Sam Soknoeun, who serves as president of the Global Real Estate Association and CEO of Sam SN Realty, emphasised the importance of the government’s role in helping to revive the real estate and construction market, especially since the downturn caused by the pandemic.
He believed that government intervention will become a driving force to make the housing sector even better than before, noting that both developers and homebuyers have faced difficulties since the crisis caused by the pandemic.
“The government's intervention by exempting taxes on the sale and purchase of affordable homes is a key factor in revitalising the real estate market,” he added.
