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Slide 1 Slide 2 Slide 3 Slide 4. Previous slide. Next slide. Follow Us On Instagram. One of the most pressing causes for concern is the lack of affordable housing in Phnom Penh, which is forcing many mid- to low-income Cambodians to move to the outskirts of the city.

According to conservative government estimates, this will create demand for an additional , homes within the next 13 years. The Cambodian government recognises the emerging housing crisis in its capital. In it responded by releasing the National Housing Policy, which states that all city dwellers have the right to adequate housing.

While few of the large real estate projects in Phnom Penh provide exact figures on the nationality of their tenants, it is estimated that about 90 per cent of units are sold to Chinese citizens.

The luxurious, Western-style design of many of the Chinese-built apartments is also out of sync with traditional Cambodian architecture and can be unappealing even to middle- and upper-class Cambodians.

As a result, Chinese real estate development projects in Phnom Penh frequently do not integrate with the broader urban fabric and instead form satellite cities within the capital that are largely disconnected from their wider surroundings.

The construction of these projects also often requires the displacement of previous residents and the infilling of lakes, to the detriment of the existing urban infrastructure. Another concern is the true intentions behind Chinese real estate investments in Cambodia. Observers note that more than half of the luxury apartments and condominiums in Phnom Penh bought by Chinese nationals are paid for in cash.

Being primarily a cash economy, Cambodia has lax internal banking controls and few enforced policies against money laundering.

This would be an appealing environment to any wealthy Chinese businessperson who wants to usher their excess money out of reach of the Chinese government, which has been targeting corruption on an unprecedented scale in recent years.

This means Chinese investment in the Phnom Penh real estate market is unlikely to be sensitive to Cambodian demand.



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