Demand for Property Management Increases as Condo Market Hits New High
Due to the rapid growth of the Cambodian economy and multiple condominiums and other dwellings being built, one after the other, the development and building industry is in real need of property management companies to manage these properties. These new modern buildings need property management services such as the maintenance of fireplaces, elevators and of course security for parking garages.
The real need is due to lack of maintenance that is being implemented once these buildings are completed, consumers complain. Even though these complaints are aired, the building and development teams in the country are taking action to rectify this, and big corporations such as CBRE Cambodia are including these services with new buildings that are built.
Real Estate Agents have their hands full
A local Phnom Penh real estate agent, Kim Heang, commented that real estate agencies have too much on their plates and that the maintenance of buildings, and other services such as security, becomes too much for them to take care of as well. Taking care of valuations, buying, selling, and renting of these properties has its own requirements and responsibilities, and that of maintenance and other amenities are not up to real estate companies.
Heang is also the owner of a property management company, Property Innovation, which is currently in the process of managing the Royal One building.
Property Management and Foreign Companies
Because estate agencies do not have the means or experience to facilitate these services, and due to the fact that they simply do not have enough people to do so, they are looking at foreign companies to invest in Cambodia to offer property management services.
Lack of knowledge and experience
Even though it is a requirement that the development company responsible for building the condo or flat complex, is traditionally held responsible for the maintenance of buildings, it is argued that these companies do not have the know-how or experience to do so.
New Investment Opportunities
The need for property management companies to take care of newly resurrected condos and apartments has brought about a new sector of services in which foreign companies can easily enter the market. A requirement in order for these companies to legally act as property managing companies in Cambodia is for them to have a legal license, allowing them to manage a property.
For more information on other investment opportunities in Phnom Penh and specifically Cambodia, read this article discussing the profitability of entering this market.