Cambodia: Experts urge investment in warehouses and factories

Real estate and other property experts are calling for more investments in Cambodia’s hospitality sector, warehousing and factory renting services because of high demand but in short supply.

Sear Rithy, chairman of WorldBridge Group and a prominent property developer, said many investors are flocking to the real estate sector at the expense of hospitality and warehousing.

Speaking during the fifth property show organised by last Friday, Mr Rithy urged investors to invest in hotels in particular because they have a high-profit margin compared with condominiums.

“If you build a condo with 90 units, you may not sell it. However, if you build and invest in a hotel with 90 rooms, you can make more money because the tourism and services sector in Cambodia is experiencing healthy growth,” Mr Rithy said.

“On top of that, if your condo is neither creative nor big, it will difficult to compete with rivals,” Mr Rithy added.

“Second, there is also a lack of investment in the industry sector, particularly warehousing and factories.

“As I have a lot of experiences in the logistics sector, I recommend that if you have resources, you should build a warehouse or factory outside the city for rental so you will make a profit.”

Cheng Kheng, chairman of Cambodia Properties Ltd (CPL), agreed that there is a high demand for warehousing and factories because of economic growth and there is demand for warehousing to stock merchandise.

He said that now very few investors are considering investing in warehousing and factories.

“Nowadays, we see demand for factories and warehousing, particularly from Chinese investors as they shift production from China to Cambodia,” Mr Kheng added.

He said all existing warehouses or factories are fully rented. “The government is asking all new investors to build factories in the suburbs where the price of land is good,” he added.