Thursday, March 20, 2008

Speculation in real estate will kill the Cambodian people as a whole?

The word " Speculation in real estate " means hoping to make profit from buying and selling lands or house property etc... but risking loss.

In Cambodia, the value of real estate has just been appreciated very fast for recent years while its economy and insfractures are being developped gradually.
Now just for the few weeks, due to increasing in oil's price and depreciated of US dollars currency plus especially the current speculation in real estate, many Cambodian people have faced the difficulty with the increasing in price of all consumer goods that are mostly imported from neighbord countries or overseas.

Many farmers have sold their agricultural land properties and most of them got the money to purchase the consumming products that are for the unproductive investment due to lack of ideas/knowledge.

6 comments:

Anonymous said...

In addition to the "Speculation in real estate", will a factor, the economic recession in the US, could probably slow down the booming or make the bubble bust and economically kill Cambodians?

Inflation in Cambodia is damn high plus the recession. That "R" means alot of things. It could be the ordering of product to the US will be cut as a result of decreasing consumption in the US. It could be so many more negative things. What happens next is very obvious if this "R" really happen.

Anonymous said...

No. The US recession will not hurt the Cambodian real estate industry as large source of investment are from South Korea, China and elite Cambodian businessmen. Cambodia is a cash economy;and people are holding large amount of cash at home.

Yes, partly US recession will slow down Cambodian clothing exports. But, it is likely that Cambodian clothing exports -- with cheaper price due to American dollar devaluation-- are looking to direct to EU and other Asian markets as part of the global chain of Gap, Sears, Levi and many other.

Overall, the US recession will affect more Asian big exporters (China, Japan, Korea who has various export products to US markets) but will affect Cammbodian less as the country mainly export clothes.

Anonymous said...

Cambodia property prices are not based on the economy, they have already gone far beyond fundamental valuations.
What we have is a speculative rise. Foreigners have been buying property because prices have been going up. Worldwide, the property bubble is bursting, and that will affect Cambodia just as much as it affects everyone else. Time to take your money off the table, the party is over.

Anonymous said...

Having been involved in some speculation myself, I would subscribe to 12:12's view. Cash out and wait what's gonna happen.

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