About Cambodia would look further into the macroeconomic view on the country.
Cambodia has experienced enormous economic growth over the past few years. From 2003 to 2007, the Cambodian economy grew by an average of 10.6% per year. Growth is concentrated in tourism and the textile sector, which is dependent on most favored nation status agreements. Economic growth slowed to 6.7% in 2008, and then contracted by 2% in 2009, due to the adverse effects of the global crisis. In 2010, the economy resumed to growth, with a GDP growth rate of 5.9%. The total number of tourist arrivals rose by 16% to 2.5 million in 2010. In 2012, the economy is expected to expand by about 6.5%, due to strong rebound in tourism, garments manufacturing, and agriculture, according to the Ministry of Economy and Finance. However, the construction sector in Phnom Penh still moving forwards to the development of both local and international standard properties even though the Cambodia property market had hit by the global financial crisis since mid2008. Those international properties such as: Sovanna international shopping mall, City mall located on Monireth Blvd currently open, Phnom Penh Tower invested by CKID, from Korea, Elite Town on Diamond Island (total land area approx: 90 hectares) opposite Naga World Hotel which financed by Canadia Bank.
Beside the property sector, there are still other sectors like tourism is also not to be overlooked, with a new airport in the coastal town of Sihanouk Ville allowing regional travelers the chance to enjoy Cambodia’s beautiful beaches as an alternative to Thailand, Bali or Malaysia, Angkor Wat, built during the glory days of the Khmer Kingdom of Angkor (900AD – 1200AD), attracts hordes of tourists, and Siem Reap is a charming city. Nevertheless, Cambodia’s population of about 15 million, the country is still dependent on foreign assistance, which accounts for about half of the government’s budget. The Cambodian economy is heavily dollarizedÍ¾ the Riel and the US dollar can be used interchangeably. However, the government has a longterm goal of reducing its reliance on the greenback, which accounts for more than 90% of all currency in circulation in the country, according to the Asian Development Bank (ADB).
As the experience from the past few years the Cambodia property market has been through up and down moments due to directly foreign investment fluctuation even though exist some local investment too. Therefore, if there’s an international investment constraint due to economic/financial crisis the property market in Cambodia is likely to turn down. Finally, since our value appraisal considers the market environment, if such situation happens our estimates should be also reviewed.