Cambodia Investment Review
In episode 131 of the Rising Giants podcast, Max Thornton and Kalousek welcomed Tom O’Sullivan, Director of realestate.com.kh. Tom recounts his transformative journey since moving to Cambodia in 2013, initially to help start a social enterprise training restaurant, before venturing into the real estate industry. The umbrella company DGB which began in Papua New Guinea with a real estate portal before expanding to Cambodia, Bangladesh, Indonesia, and the Philippines.
Reflecting on his move to Cambodia, Tom shares, “I came here in 2013 after finishing my commerce degree in Melbourne. My first stop was in Battambang to help run an NGO project—a social enterprise training restaurant. It’s still open today, which is a testament to its success in the hospitality industry.” Despite the initial culture shock and skepticism from friends, Tom embraced the experience, noting the predominantly French NGO workers and teachers in Battambang’s expat community.
Attracting Investors & Growing The Business
A pivotal moment came through a high school friend’s venture in Papua New Guinea, which led to the establishment of realestate.com.kh in Cambodia. “When the opportunity arose to expand into more markets, it was the perfect time, given my presence in Cambodia,” Tom explained. This expansion was crucial in attracting investors and growing the business.
Tom acknowledges the importance of professional networks in Phnom Penh, which he initially undervalued. “Business chambers and networks could have fast-tracked my progress,” he admitted. Learning the intricacies of Cambodia’s real estate market and the tech platform’s workings were among the early challenges. They began with a Customer Relationship Management (CRM) system, gradually gaining enough listings to launch the platform.
Discussing the business model’s evolution, Tom said, “Our initial model involved agencies paying to have their agents listed. We started with a freemium model, but observing global trends, we shifted towards monetizing transactions on our platform.” This shift became crucial during COVID-19, which saw a dramatic drop in subscription revenue. Adopting a transaction-based model, inspired by a successful venture in Thailand, helped them pivot effectively.
Content Educate Both Local & International Buyers
Tom emphasized the importance of education and trust in building customer loyalty. “We published educational content to build our brand and educate both local and international buyers on the benefits of using our platform,” he noted. His remuneration also evolved from sweat equity to a fair market rate, reflecting the company’s growth and strong market position.
Under the umbrella of Digital Classifieds Group (DCG), realestate.com.kh has expanded into multiple markets, including Papua New Guinea, Bangladesh, the Philippines, and Indonesia. “We’ve learned a lot from each platform, improving our offerings and adopting new ideas,” Tom remarked.
On the current Cambodian market, Tom highlighted significant developments from 2015 to 2017, driven by international interest and local market growth. However, an oversupply issue emerged by 2019, compounded by the COVID-19 pandemic. “The market saw a lot of revenge spending post-COVID, but by 2023, the trend reversed, leading to a challenging environment,” he explained. Quality projects in prime locations continue to perform well, while there is a growing focus on the local market.
A Possible Public Listing In Australia By 2025
Looking ahead, Tom outlined their long-term vision, which includes potential mergers, acquisitions, and a possible public listing in Australia by 2025. “We’re focused on becoming as efficient as possible and motivated by the journey,” he stated.
On a personal note, Tom shared insights from his routine during COVID-19. “Morning exercise and meditation have become vital parts of my day,” he said. Reflecting on advice, he mentioned, “A problem is half solved when you talk to someone, and few things worth doing are easy.”
Tom’s story illustrates the dynamic evolution of realestate.com.kh and the broader real estate landscape in Cambodia, marked by adaptation, education, and a strategic vision for the future.
