Written by Chun Sophal
The Phnom Penh Post
CAMBODIA'S sagging real estate market will not recover for two or three years, according to Hang Chuon Naron, secretary general at the Ministry of Economy and Finance
He added that the global financial crisis and the credit-fueled construction boom in Cambodia would exacerbate the problem.
"I think we will face the problem of a long-term standstill in the Cambodian real estate market," he said.
"However, it won't affect the Cambodian economy because the government doesn't allow banks to loan more than 15 percent of their total to property projects," Hang Chuon Naron added.
Cambodian commercial banks lend about US$2.5 billion per year.
Sung Bonna, president of the National Valuation Association of Cambodia, said the Cambodian real estate market is down about 20 percent this year and could drop further.
"I think that real estate market will recover next year because the global financial crisis has gradually receded," Sung Bonna said.
The real estate market in Cambodia started to decline in July this year before the national election.
Opposition lawmaker Son Chhay said foreign investment was declining quickest among Koreans and diasporic Cambodians.
"I suspect that Cambodian economic growth might drop to only five percent if the real estate market continues to deteriorate," he said.
He added that the global financial crisis and the credit-fueled construction boom in Cambodia would exacerbate the problem.
"I think we will face the problem of a long-term standstill in the Cambodian real estate market," he said.
"However, it won't affect the Cambodian economy because the government doesn't allow banks to loan more than 15 percent of their total to property projects," Hang Chuon Naron added.
Cambodian commercial banks lend about US$2.5 billion per year.
Sung Bonna, president of the National Valuation Association of Cambodia, said the Cambodian real estate market is down about 20 percent this year and could drop further.
"I think that real estate market will recover next year because the global financial crisis has gradually receded," Sung Bonna said.
The real estate market in Cambodia started to decline in July this year before the national election.
Opposition lawmaker Son Chhay said foreign investment was declining quickest among Koreans and diasporic Cambodians.
"I suspect that Cambodian economic growth might drop to only five percent if the real estate market continues to deteriorate," he said.
4 comments:
From my point of view, Cambodia economy drop at least 30%
and the real estate drops around 50% and continue dropping.
the real estate in Cambodia is too over price according to the
country.
Jealous landless motherfucker!!
who care...we ran to the states..must be fool to buy land there...and live with papapapa khmer rouge again......if uuu want go and get it my land at independent momunent......
Seriously, a comparable size houses/lots at one point cost almost the same as the ones in California??? Someone will be caught holding the bags, and unlike in many western countries, there no such thing as "foreclosure" or "bankcruptcy" to allow the stuck-in-the deep home/land owners to walk away, which means that many people will lose their life savings.
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