Cambodia is watching its property boom carefully following the onset of the global financial crisis.By Chun Sakada, VOA Khmer
Original report from Phnom Penh
03 November 2008
Property prices in Cambodia's once-booming real estate market haven fallen by as much as 20 percent since June, a real estate expert said Monday.
The global financial crisis, the Thai-Cambodia border standoff and loan restrictions set out by commercial banks were all contributing to a fall in prices, said Sung Bonna, president of the National Valuers Association of Cambodia.
"The drop may continue for a long or short time," he said in opening remarks at a real estate investment training course in Phnom Penh. "It is up to the reform of the Cambodian situation. Some crises will be solved."
Between June and October, values in property fell between 10 percent and 20 percent, he said.
"When the decline is going on and on, we are very concerned about the real estate price in Cambodia," he said. "But we hope it will recover soon."
Cambodia in recent years has experienced a boom in property prices, leading many rural and urban residents to sell off their land at very high prices, raising rents and values, and boosting the construction sector.
But the property bubble was now of concern, especially considering the bust of the US housing market, which has led to a global financial crisis, said Finance Minister Keat Chhon.
"The real estate market in Cambodia is also indirectly affected by this world crisis," he said. "Starting from this bad experience facing the world, Cambodia is paying her critical caution in the process of the developing real estate sector in Cambodia."
The falling property prices are expected to stunt Cambodia's economic growth, he said, acknowledging that both the economic crisis and the border standoff, which has continued since mid-July, were factors in the drop.
Neither were in the hands of Cambodia to fix, he said.
"Cambodia is a political hostage to Thailand's internal conflict," he said, referring to a mass movement of opposition supporters who are calling for a change of government in Bangkok.
The global financial crisis, the Thai-Cambodia border standoff and loan restrictions set out by commercial banks were all contributing to a fall in prices, said Sung Bonna, president of the National Valuers Association of Cambodia.
"The drop may continue for a long or short time," he said in opening remarks at a real estate investment training course in Phnom Penh. "It is up to the reform of the Cambodian situation. Some crises will be solved."
Between June and October, values in property fell between 10 percent and 20 percent, he said.
"When the decline is going on and on, we are very concerned about the real estate price in Cambodia," he said. "But we hope it will recover soon."
Cambodia in recent years has experienced a boom in property prices, leading many rural and urban residents to sell off their land at very high prices, raising rents and values, and boosting the construction sector.
But the property bubble was now of concern, especially considering the bust of the US housing market, which has led to a global financial crisis, said Finance Minister Keat Chhon.
"The real estate market in Cambodia is also indirectly affected by this world crisis," he said. "Starting from this bad experience facing the world, Cambodia is paying her critical caution in the process of the developing real estate sector in Cambodia."
The falling property prices are expected to stunt Cambodia's economic growth, he said, acknowledging that both the economic crisis and the border standoff, which has continued since mid-July, were factors in the drop.
Neither were in the hands of Cambodia to fix, he said.
"Cambodia is a political hostage to Thailand's internal conflict," he said, referring to a mass movement of opposition supporters who are calling for a change of government in Bangkok.
11 comments:
I think it's good news. Stupid prices of land kept going up, the poor couldn't afford to rent. I'm glad it's not going up anymore. Those who sold the land got lucky, ha ha. Those who are stupid to buy, ha ha for you too.
Actually, this is bad news. Usually, when real-estate comes down, so as the number of job and economy will come down. It going to hurt. There will be some latency before everyone will felt it.
Thus, the government need to do all it can to restore the stability of the country and motive further investment and development. I hope it's not too late yet.
I agree with 6:57AM, this is bad news. Real-estate prices go up because investment in many ventures require land as capital. These investments stimulate the economy and keeps it running. When property prices go down, it usually signals that there is a lack of growth and demand for land and furthers the onslaught of dwindling development.
The fall of land and house prices should be good for the less well-off. More of them can afford to own land and houses, which is a good thing for the nation.
LAO Mong Hay, Hong Kong
What goes up must come down but it does not mean there is a decrease in price of property nor a reduction in economic growth. Yet, it is just slower in any circumstance due to a low season of economic investment. Property holders are waiting for the investors. Whereas the potential investors are looking forwards to the government as well as the financial sector reforms. How long the bad situation goes, it is still my question.
A good government should be able to maintain the price of real estate to be affordable and yet improving other areas such as jobs and production for exports. Thus it will improve living costs for others especially low income earners.
I heard from one of the many speeches of Samdech Hun Sen "Cambodia economy will not be affected by the global financial crisis because Cambodia has not had stock market yet"
He sadi that very bravely and stupidily.
But what is this guy, Keth Chhun talking about? Did this guy consult with the multi Phd Samdech Hen Sen before speaking in this article?
FULL OF SHIT!
Actually, a common people can foresee the influence of the global financial crisis over Cambodia's economy. But if he is asked how, i am sure he will not know unlike Pig Phd CPP people who can say "might is right". Kieth Chhun? Don't ask this old guy about impact. He will give you a shit that "Everything is fine". He is not capable to influence even over gas providers in Cambodia. Head of Kieth Chhun is full of shit. Look at the situation right now: a slow in economic growth, a decrease in capital investment, an increase in loan restriction, thai-cambodian border standoff, real estate business is no longer a bomb, what else? Perhaps Mr Kieth Chhun did not see these problems or he thought these are small or even did not exist in his eyes. fuck u, u should not be entitled to the minister of MEF.
According to 11:31, the US government is a fuck up government.
Why should Cambodians buy their own land in the first place? A good government is a government that can be self economically and produce own goods. A greedy government is the one always depended on foreign donations and fill up their pocket and slave their own people for quick money. In actual these people are not even Cambodian.
The US has been depending on China quite a bit.
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