Apart from the economic and demographic drivers, there are a few more catalysts in place for Phnom Penh real estate.
Ambitious infrastructure plans
There is also growing investment (also led primarily by China) in projects to prepare the economy for growth and connectivity to global trade. The “Rectangular Strategy” of the last several years prioritized investment in physical infrastructure for transport, energy distribution and internet connectivity. Phnom Penh will be at the very heart of all this infrastructure development.
-->
A new canal to Phnom Penh
Cambodia has started building a massive canal to the Mekong River near Phnom Penh. Why? To reduce dependency on Vietnam which controls access to the sea from the Mekong River.
At the same time as Cambodia is building a new highway from Phnom Penh to Vietnam to increase trade, it is also hedging its bets by seeking to reduce dependence on a neighbour that has been known to meddle in its affairs in the past.
Cambodia wants to be resilient.
A massive new airport in Phnom Penh
Set to open in July 2025, the Chinese- financed Techo International Airport will replace the existing Phnom Penh International Airport. In its first phase it will be able to handle up to 13 million passengers a year, in its second phase up to 30 million passengers, and in its final phase which is planned for 2050, up to 45 million passengers a year.
Cambodia has big plans and is implementing them.
Cambodia is seen as a dollar play and safe haven in Asia
This is an ongoing catalyst. As geopolitical tensions remain high in the world, many Asian investors are happy to buy assets in Cambodia which gives them exposure to the USD. Real estate in Cambodia is effectively USD denominated.
Also, Cambodia is very easy in terms of banking, and KYC requirements when purchasing real estate. This drives a constant flow of billions of dollars of inflows into the economy as they are welcome here, as opposed to questioned in other markets.
Source: The Wandering Investor
