Property Wire
Asian property markets are falling victim to the global credit crisis and seeking ways of lessening the impact at a local level.
In Cambodia the real estate boom which began in 2007 is over according to a leading economist and in the Philippines real estate professionals are calling for investment trusts to be approved in a bid to boost the market.
'Our property markets are closely connected with the stock markets in South Korea and other Asian countries. If these markets fall, we are affected,' Kang Chandararot, head economist at the Cambodia Institute of Development Study.
'Also South Korean and other Asian markets are very closely connected to the US and these countries are our biggest investors. We will see a recession in the short term, perhaps in six to 12 months,' he added.
The South Korean government issued a statement this week urging banks to sell foreign assets to increase liquidity. South Korea is Cambodia's biggest investor and a fall in South Korea would be especially harmful to local growth.
No figures on the depth of the decline are available, but industry experts said the impact could be felt soon. Cheam Yeap, chairman of the National Banking and Finance Committee, said the global finance crisis might affect the real estate market, but not the economy as a whole as it is sufficiently diversified in tourism, agriculture and garment manufacturing to withstand the downturn.
Property firms in the Philippines believe that establishing real estate investment trusts (REITs), will help to boost the local market. Jaime Ayala, president of Ayala Land, Inc., said it would open up another avenue to raise capital and give the public a new investment vehicle.
'It will be a win-win situation. It will allow us to get more capital to allow us to develop more projects, and at the same time, this will be a nice form of investment for the public,' he said.
'This will spur economic activity since this will give investors good yields. This will also give property companies a chance to develop more projects,' said Jeffrey C. Lim, chief finance officer of SM Prime Holdings.
A bill allowing the introduction of REITs is currently going through the House and Senate.
In Cambodia the real estate boom which began in 2007 is over according to a leading economist and in the Philippines real estate professionals are calling for investment trusts to be approved in a bid to boost the market.
'Our property markets are closely connected with the stock markets in South Korea and other Asian countries. If these markets fall, we are affected,' Kang Chandararot, head economist at the Cambodia Institute of Development Study.
'Also South Korean and other Asian markets are very closely connected to the US and these countries are our biggest investors. We will see a recession in the short term, perhaps in six to 12 months,' he added.
The South Korean government issued a statement this week urging banks to sell foreign assets to increase liquidity. South Korea is Cambodia's biggest investor and a fall in South Korea would be especially harmful to local growth.
No figures on the depth of the decline are available, but industry experts said the impact could be felt soon. Cheam Yeap, chairman of the National Banking and Finance Committee, said the global finance crisis might affect the real estate market, but not the economy as a whole as it is sufficiently diversified in tourism, agriculture and garment manufacturing to withstand the downturn.
Property firms in the Philippines believe that establishing real estate investment trusts (REITs), will help to boost the local market. Jaime Ayala, president of Ayala Land, Inc., said it would open up another avenue to raise capital and give the public a new investment vehicle.
'It will be a win-win situation. It will allow us to get more capital to allow us to develop more projects, and at the same time, this will be a nice form of investment for the public,' he said.
'This will spur economic activity since this will give investors good yields. This will also give property companies a chance to develop more projects,' said Jeffrey C. Lim, chief finance officer of SM Prime Holdings.
A bill allowing the introduction of REITs is currently going through the House and Senate.
6 comments:
If American are traveling in our country, it means good thing. Freedom retains and people are free to do thing as they normally do. God Bless America!
People are free to do what they normally in Cambodia too. What is your point?
We have rice field, field to plant biofuel, we have fish for our peple to eat, we will have oil and we have resources (human and materials) and we have real smiling temples who attract tourists to visit us, so what are we to worry about? Thai encroachment? That is rubbish. Push them out to back off from our boder that's it. Stop being affected from other people's problem. Investing in Cambodia is stable. In Cambodia life is easy. Even without electricity, khmer can live peacefully, no heating system, it is fine. We have everything. Food price increase, is a good point that farmer can earn more to boost their income. Go for it, plant more and plant also biofuel, do work hard, so khmers will earn more. Khmer economy not depends on foreign investment - just remember that. Did the khmer empire need investors to come to invest during that period of time. May be trade, but not depend on those trader's money. Come on be a bit realistic.
Prum Bayon
The Cambodian government will be screwed when the US and other rich countries stop visiting and spending their money in the country.
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Recently an insurance company nearly wind up....
A bank is nearly bankrupt......filing chapter 11 protection.
How it affect you? Did you buy insurance? Did you buy mini note or bonds?
Who fault?
They bailout trouble finance company, but they will not bail out your credit card bills……And the bill out of company is still not enough yet…….Should they have use the bail out $$ to pump into all different industries……You got no choice, and no point pointing finger but you can prevent similar things from happen again……
The top management of the Public listed company ( belong to "public" ) monthly salary should be tied a portion of it to the shares price ( IPO or ave 5 years ).... so when the shares price drop, it don't just penalise the investors, but those who don't take care of the company.....If this rule is pass on, without any need of further regulation, all industries ( as long as it is public listed ) will be self regulated......because the top management will be concern about their own pay check…… And they are still spend big money on hotel stay and luxury function……..
Meanwhile if company was being acquired, there will be a great movement in terms of staff……eventually staff suffer also.
Are you a partisan?
Sign a petition to your favourite president candidate, congress member, House of representative again and ask for their views to not just comment on this, and what regulations they are going to commit and implementation the regulation, I believe should vote for the one who come suggest good implementation and let’s see who back up, which don’t implement after just mentioning in the election campaign.....If you agree on my point, please share with many people as possible.... Finance and Media are the two only industries can shaken politics ( Maybe Hackers can ), please help to highlight also...
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http://remindmyselfinstock.blogspot.com/
Facebook, come and join as a friend and share with your friends…..
Remind.myself@yahoo.com
Actually, S Korea will increase it's investments in Cambodia due to the financial crisis in my opinion. They see Cambodia a ripe for the picking even at what Khmers see as high prices. Real estate investment will increase no slow down because it's a sound hedge verses capitol markets which are up and down. Cambodian land is still a bargain compared to prices in Thailand and even VN.
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