The Cambodia Securities Exchange (CSX). Heng Chivoan
Real estate developer JS Land Plc, listed on the Cambodia Securities Exchange’s (CSX) Growth Board, reported “considerable” growth in their business performance last year, despite the slowdown in the real estate and construction sector.
In the company’s March 15 filing with the local bourse, it reported that as of December 31, 2023, it had made “significant” progress with 98.77% construction completion and had sold 83% of units at The Garden Residency 2 (TGR 2).
It also noted property sales of 8,727,943,000 riel ($2.155 million) and other income of 649,624,000 riel ($160,402), marking an increase of 464,711,000 riel ($114,745), or 251.31%, compared to the fourth quarter of fiscal year 2022.
The company reported a total comprehensive loss of 2,329,246,000 riel ($575,128), an increase of 1,613,187,000 riel ($398,322), or 225.29% compared to Q4 FY 2022. The losses were primarily attributed to impairments on inventories, 640,770,000 riel ($158,216), and investment properties, 984,303,000 riel ($243,040).
“Our financial position remains strong as of December 31 2023, with total assets amounting to 93,388,708,000 riel [$23.06 million]. This includes non-current assets of 56,613,381,000 riel [$13.979 million] and current assets of 36,775,327,000 riel [$9.08 million].
“Total equity amounted to 15,248,401,000 riel [$3.765 million] in the fourth quarter of 2023, marking an increase of 86.03% compared to 7,051,508,000 riel [$1.741 million] in the year 2022,” it said.
JS Land executive chairman Koy Le San noted in the report that the condominium market continued to face challenges in the fourth quarter of 2023, owing to supply exceeding demand.
“Despite numerous challenges, we achieved our project goals with the completion of TGR 2 ahead of schedule. We are dedicated to enhancing profitability and delivering improved results with each passing quarter,” he added.
Sorn Seap, president of the Cambodian Valuers and Estate Agents Association (CVEA), said the sector has not shown significant improvement since the start of 2024 compared to 2023.
While noting some positive signs in specific areas such as the condominium and rental accommodation market within the tourism sector, he pointed out that the market for buying and selling land and retail space was still underperforming.
Seap emphasised that the market is heavily influenced by global and regional economic growth and is currently not in a position to recover swiftly.
“Everything always has a history and a journey. For the Cambodian real estate market, I believe improvement will come around 2026-27, possibly mirroring the peak conditions of 2018-19,” he stated at a recent roundtable discussion on the 2024 Economic and Real Estate Situation organised by the Club of Cambodian Journalists (CCJ).
Seap, with nearly two decades of expertise in the field, commented that the situation in the coastal province of Preah Sihanouk, which currently has many unfinished projects, will eventually resolve.
“The real estate and construction sector in Preah Sihanouk will experience rapid growth in the future. This belief is based on the patterns observed in the Chinese real estate market, where rapid development often begins in coastal cities,” he explained.
According to Seap, the most promising real estate markets are those with well-developed transportation infrastructure, electricity, water, safety and the potential for owners to earn quick returns or high profits.
