- Condo supply sets to hit nearly 80 000 units by 2025
- The majority of condo buyers are Cambodians aged between 25 and 35 years old
- The bounce back of foreign direct investment will help boost condo demand in Cambodia
- ERA Cambodia aims high to capture a large market share, expanding its salespersons to 5 000 agents in the next five years.
“More people now recognize the importance of standard real estate service, which is accepted domestically and internationally for the trustworthy and high quality service”
US-based ERA Cambodia – a leading real estate company specifically focuses on selling, buying, and leasing in the condominium market – has announced an ambitious plan to expand its salespersons from the existing 1 500 to reach at 5 000 agents within the next five years.
The expansion is aiming to increase and enhance transaction efficiency, and be ready ahead for the growing demand in the upcoming year, according to Mr. Khorn Kungkea, Chairman and CEO of ERA Cambodia.
Kungkea announced the plan during the company celebrated its Career Advancement Day, which is one of the flagship events at ERA Cambodia. The event is held annually to acknowledge the achievement of agents, together with encouraging them to continue providing high-quality service in the competitive market.
He said that the company always seek to create an exciting working environment for the staff, through various training program and events, just like Career Advancement Day, to appraise the acknowledgment for the accomplishment of agents by promoting and awarding.
“Despite the pandemic, our agents still managed to provide a satisfying service to our customers. This partly thanks to more people now recognize the importance of standard real estate service, which is accepted domestically and internationally – for the trustworthy service providing to the developers and customers alike,’’ said Mr. Kungkea.
A total of 71 agents were awarded in recognition of their effort and success achieved during the first half of 2022. The awards are categorized into top achiever commissions, transactions, agents who reached one million sales in value, as well as top managers and recruiters.
Four major condo developers take part in ERA Cambodia’s Career Advancement Day for their sponsorship. Of which, Morgan EnMaison is the platinum sponsor. Another three developers namely: La Vista, R&F, and Time Square support as silver and brown sponsors, accordingly. On top of that, Z1 FINANCIAL – the first company in Southeast Asia that has developed a digital investment platform using blockchain technology to bring the tokenization concept to real estate investment – also endorses the event as a gold sponsor.
ERA Real Estate is a world-class real estate company founded in the United States in 1972. Currently, ERA has gained its foothold, supporting about 40 000 salespersons in more than 2 200 offices across 37 countries worldwide.
ERA Cambodia started its business in Cambodia since 2018, with Mr. Khorn Kungkea representing as Chief Executive Officer. The company has thus far expanded its offices to three locations – Phnom Penh, Sihanoukville, and Siem Reap with more than 1 500 professional and well-trained agents across the country. Currently, there are more than 30 high-quality condo projects worth billions of dollars are being partnered with ERA Cambodia.
As reported by real estate firms, condominiums supply is expected to increase to nearly 80 000 units by 2025, while existing supply – as of 2021 – stood at circa 30 000. This could be translated into a 160-percent hike during the course.
In its Publication Financial Stability Review 2021, the National Bank of Cambodia has stated that imported construction material has increased by 27 percent after a contraction of -12 percent in 2020.
This increase is partly due to the resuming of construction projects as investors gradually gain confidence, along with the low spread of covid-19.
Having said that, real estate insiders expect to see a strong inflow of foreign direct investment within the next six months. This will drive a high demand in condo transactions, especially among Chinese buyers.
According to Mr. Kungkea, the Cambodia condo market, which was dominated by foreign buyers in the past, has seen a remarkably increased in local buyers amid growing middle-class people in recent years. The trend is set to rise further in the upcoming years.
“During this past four years, the majority of condo buyers via our company are Cambodians aged between 25 and 35 years old, living in Phnom Penh, and Cambodians living abroad, who bought condos as an investment,” he said.
Mr. Kungkea believes that the condominium market will be in significantly higher demand in the future, and Phnom Penh will become a center for condominium supply.