With the ongoing coronavirus pandemic, coupled with an online gambling ban that went into effect on January 1, growth in the casino hotspot of Bavet town in Svay Rieng province has slowed down to a crawl.
Bavet is Svay Rieng's number two urban area and shares a border with Vietnam’s Tay Ninh and Long An provinces – also known by their respective Khmer names Rong Damrei and Kampong Ko.
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It comprises five communes – Bati, Bavet, Chrak M’tes, Prasat, Prey Angkunh – that are further divided into 35 administrative villages, and has emerged as a centre for development projects such as casinos, hotels, restaurants and special economic zones.
But on March 18, Vietnam suspended the entry of all foreigners into the country to curb the spread of Covid-19, which has severely limited the flow of people and goods across the border.
Kim Heang, regional operating principal of Keller Williams (KW) Cambodia, who hails from Bavet, told The Post on Wednesday that the town’s real estate market has reached a stagnant stage, especially the high-end property segment.
He said the real estate market thrives in tandem with human activity – when there are no people passing through and staying, the market is adversely affected.
“There are no high-end real estate transactions at this time. The real estate market in Bavet now is not in good shape,” said Heang.
The lower-end of the market is doing better, he said, noting that transactions of houses and small plots of land were still muted.
Adding a note of optimism, Heang pointed out that the market would rebound once the Covid-19 outbreak begins to slow down, but that its recovery will be stifled if the government does not lift its online casino ban.
The Vietnamese side plans to open the border from July 1, he said.
Real estate investment agency Khmer Foundation Appraisals Co Ltd president and CEO Noun Rithy noted that the market’s gradual decline began in August, following a directive signed by Prime Minister Hun Sen which stopped the government from issuing licences for internet gambling operations.
As silence hangs thick in the air in Bavet, he said, property prices have taken a 20 to 30 per cent plunge compared to the same period last year.
“However, the decline at this time will reverse once Covid-19 disappears.
“As Cambodia is central to the ASEAN connectivity plan and Bavet is a key cross-border checkpoint, I am confident that the real estate sector there will recover soon,” said Rithy.
He added that political stability, the improvement of the investment policy, a young labour force and a rising skills level will attract more foreign investors to all sectors, which will further nourish the real estate boom in the Kingdom.
The government’s decision to ban all types of online gambling businesses in Cambodia aims to strengthen the national economy, without relying on the online gambling industry, which would put the Kingdom at greater risk of national security threats, money laundering and terrorism financing.
KW Cambodia’s Heang estimated that land will sell for around $500 per sqm in Bavet’s central business district post-recovery, and $150 per sqm in residential areas.
