Real estate market in Cambodia imminent
Before the July 27’s general election, the value of the property market – land and houses – was increasing throughout Cambodia. Land disputes are happening across the country, especially in provinces. The land disputes led to violation and people have been killed. Grabbing land is going up.
Increasing the price of land, the poor villagers were happy with selling their farm land used for planting rice, and crops. The farming land has been bought by land speculators such as the rich, powerful and the middle class. In the future, the poor will face difficulties in the landless for farming rice.
Before and after the national election, the land price is staying quiet. By the way, it is because the military standoff between Cambodia and Thailand at Prear Vihear temple broken out since July 15.
Real estate and property experts said that, the property market in Cambodia was in difficulties at present and predicted a slump in prices of up to 40 or 50 percent in some areas before it settles. The experts added that the fall of land and property price is because of the Global economic downturn and the National Bank of Cambodia’s new policy by increasing the minimum of reserve requirement in order to combat the inflation that led to reduce credit for the real estate investors in Cambodia.
Decreasing the price of property and real estate is affecting the people who borrowed money from bank at high interest. They will sell their land in low price in order to pay bank interest.
By the way, the real estate experts said when the price of land drops, agricultural product prices go up. And it would be good for the real investors who want to change land into a product.
Nowadays, the demand is low and there are too many sellers. On the other hand, the land sellers are still holding out for the high price but no buyers.
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The price of the land & building will go down faster in a few more years. It happens in Singapore today and 2010 the land properties will be over supplies. Same same in cambodia in a few years there will be over supplies.
Then more middle class people will be able to own the properties
I don’t think that the land will be over supplies. The land never grow but the people and population do grow. The fact, I agree with you that Cambodia land will be lower in the future. As you can see the land of Cambodia was hitting up because mouth to mouth not by the fact of Economy like European.
In here, the real estate properties go up or down by Economy and not really being forced by some big balls.
But what the heak, I guess Cambodia properties will still remain strong although it wasn’t like the early of 2008. As you can see, we have a great weather, a lot of unique places for tourists ( like Angkor Wat, Preah Vihea…ect ) and build fortune businesses, almost every infrastructures shoot up like a missile- the only thing Cambodia is bad is because of some bad leader and it leads to corruption, terrifying… and so on…If we can minus this, Cambodia will be one of a nice place in the world to visit and make business for the people from out side.