A property flyer at the office of Bonna Realty Group in Phnom Penh on Monday advertises a multimillion-dollar development reduced in price by more than 50 percent. (Photo by: Rick Valenzuela)Tuesday, 06 April 2010
Soeun Say
The Phnom Penh Post
Commentators say slump could reverse itself in the next year
Commercial and residential land prices dropped between 2 percent and 3 percent quarter on quarter, said Sung Bonna, president of the association.
He warned that values are likely to continue their slide through mid-year before rising again.
Commercial land in Phnom Penh was estimated to be worth $2,650 per square metre this quarter, down from $3,000, for the same period in 2009.
Residential land was valuated at $1,550 per square metre, down from $1,800, for the same period last year.
“Now it is reaching the bottom, then it will start to increase again,” Sung Bonna said.
He added that local and foreign investors alike remain tentative.
Today’s market is a buyer’s market, he said, in which people who have specific requirements or budget constraints can find what they are looking for, and some property speculation takes place.
The sector has started to have “more and more transactions compared to 2009”, Sung Bonna said.
“I hope it will recover over the next two years, but that it is not a boom like in 2007 and mid-2008,” he added
Meanwhile, the government has issued a directive to control property developers and is passing a law allowing some residential property ownership for foreigners. Both measures could “pave the way to boost foreign investment and real estate prices across the country”, Bonna said.
The National Assembly passed the property law on Monday after debating the proposals.
Sung Bonna said residential and commercial land in Phnom Penh had dropped in value between 40 percent and 50 percent from a peak in mid-2008.
Residential, commercial and industrial land on the outskirts lost 50 percent of its value over the same period, he said.
At Cambodia Properties Ltd, Seng Sopheak, a valuation manager, said land and housing prices had already stabilized, though his trade volume dropped 20 percent year on year.
Less optimistically, Sear Chailin, director of Visal Real Estate, said he did not predict a recovery in the sector until the third quarter of the year.
Valuation aside, investors remain shaken by the economic crisis.
More than half of 75 Cambodian respondents in a survey told Indochina Research earlier this year they will wait two more years to invest in property.
I hope it will recover over the next two year, but that it is not a boom like in 2007....LAND prices continued to fall in the first quarter of the year, according to the National Valuers Association, but analysts say the market could improve over the next 12 months.
Commercial and residential land prices dropped between 2 percent and 3 percent quarter on quarter, said Sung Bonna, president of the association.
He warned that values are likely to continue their slide through mid-year before rising again.
Commercial land in Phnom Penh was estimated to be worth $2,650 per square metre this quarter, down from $3,000, for the same period in 2009.
Residential land was valuated at $1,550 per square metre, down from $1,800, for the same period last year.
“Now it is reaching the bottom, then it will start to increase again,” Sung Bonna said.
He added that local and foreign investors alike remain tentative.
Today’s market is a buyer’s market, he said, in which people who have specific requirements or budget constraints can find what they are looking for, and some property speculation takes place.
The sector has started to have “more and more transactions compared to 2009”, Sung Bonna said.
“I hope it will recover over the next two years, but that it is not a boom like in 2007 and mid-2008,” he added
Meanwhile, the government has issued a directive to control property developers and is passing a law allowing some residential property ownership for foreigners. Both measures could “pave the way to boost foreign investment and real estate prices across the country”, Bonna said.
The National Assembly passed the property law on Monday after debating the proposals.
Sung Bonna said residential and commercial land in Phnom Penh had dropped in value between 40 percent and 50 percent from a peak in mid-2008.
Residential, commercial and industrial land on the outskirts lost 50 percent of its value over the same period, he said.
At Cambodia Properties Ltd, Seng Sopheak, a valuation manager, said land and housing prices had already stabilized, though his trade volume dropped 20 percent year on year.
Less optimistically, Sear Chailin, director of Visal Real Estate, said he did not predict a recovery in the sector until the third quarter of the year.
Valuation aside, investors remain shaken by the economic crisis.
More than half of 75 Cambodian respondents in a survey told Indochina Research earlier this year they will wait two more years to invest in property.
6 comments:
Just for your information, fools!
American property market is not up yet? And Cambodia has to wait it turn after not Thailand but Vietname!!!!!
Go ask you PhD priminister fool "the country would not affected by world financial crises!" while no one use Riel in Cambodia!
I hope Cambodian real estate will fall to the lowest so all Khmer can afford it. The price there is ridiculous! It's relatively or over USA price market, heck I rather buy real estate in USA for $1 million.
I must warn that Cambodian land will fall flat to where it was ten years ago due to the people income. In overseas, lands price are also go down in price because of their government have changed taxed laws so to get more revenue as their export revenues have came down by global problem. Look at the USA a very nice house worth only US$ 300,000-US$450,000.
With Cambodian net GDP only about US$150 per person, it need 300 years for a family to be able to buy a house now.
Last price increased was affected by general election, by corrupted moneys which corrupted officials have brough back from Singapore US$ 800 millions for fears of frozen by USA government.
Areak Prey
If you are not CPP members such as Mr Son Chhay, you will risk your land be confiscicated. How can a sqm of land worth US$1550.00? Look at Mr Son Chhay land was paid only US$ 0.50/sqm? How do they justify for this price? and why landgrabbed if the land is really worth US$ 1550? Why they didn't tell the stealers to pay this price to their victims if there is a such price?
Many former MP of SRP have jumped ship to CPP because they worried they would loose their lands through landgrabbed.
Areak Prey
It will continue to go down further between $1780 and $2050/m2 for prime location in PP by the end 2010-April 2011.
It will pick up value but not more than $2360/m2 in early 2012 and will continue to hang over around this price for three more years.
Thanks for your comments Areak Prey!
The $200 per meter in Australia, you can get a readily developed land with all facilities in metrpolitian areas.
What sort of income you can earn after you own a peace of land at $2360 per meter,quite possible if you had a job @ $150 per month.
It is just does't add up.
What a clown!
These people are still good at exploding in number unrealistically
Neang SA
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