Thailand
Cambodia: ‘Pandemic fuels demand for management of property’
The pandemic has increased pressure on building operators, resulting in an all-time high in demand for property management, US-based commercial real estate and service and investment firm CBRE – the largest in the world – said yesterday.
CBRE said that while the pandemic has slowed the start of construction projects, those in the pipeline present a significant challenge to the real estate industry in resourcing the operations of these buildings.
The surge in demand for property management services has created challenges for the segment, particularly regarding the limited supply of trained manpower and resources needed to run the property. As a result, property management teams are responding by increasing training and finding new efficient ways to free up resources.
“With increased pressure on balance sheets and to professionalise services, developers and tenants are focusing on their core businesses and desire to be released from the burden of day-to-day operations of a building,” the firm said.
Shivali Chaman, CBRE Cambodia’s head of property management, added that her firm’s research indicates that “tenants think the human side of their building’s management is the most important reason they would stay within a property”.
“We really see a rapid change in the requirements of property management. Developers and investors are increasingly aware of the impact that quality property management can have on tenant retention and in maintaining their project’s profit and loss,” Chaman said.
She added that the pandemic has brought greater pressure on operators who are trying to meet the demand to tighten belts and control costs. Chaman said the current situation demands that buildings are cleaner, have heightened security and sometimes limit the number of visitors.
“Of course, no property manager can forget about the basics, but increasingly their services need to cover both operating complex building management and [property technology] solutions and creating bespoke customer service processes that offer a hotel-level experience,” Chaman added.
Chaman’s insight are in line with the local real estate sector’s response to the pandemic. Sales of mid-range and high-end property have dropped by 1.6 percent and 1.9 percent in the last quarter respectively. The price for affordable (low-income family) units, however, fell by nearly 6 percent. The firm noted that vaccine rollouts indicate an end to the pandemic, which will result in an overall resurgence within real estate markets.
The are currently 279 major projects under construction in the capital.
As the supply of property continues to grow, the complexity and aspirations of the projects are increasing as well, according to CBRE.
Developers are introducing new technology, requiring them to achieve operational success, opening up opportunities for individuals with a background in information technology, hospitality and accounting to enter the real estate sector.
Source: https://www.khmertimeskh.com/50826486/pandemic-fuels-demand-for-management-of-property/