Tuesday, May 20, 2008

Property sales slowdown recently in Cambodia

According to Phnom Penh Post's related article dated on May 16-29, 2008: "Property sales hit a bump as elections nears".

Cambodia’s red hot property market has cooled significantly as investors fretting over the outcome of July national elections curb a buying spree that has seen land prices more than quadruple in some parts of the country, realtors and lawmakers say.

“In general, businesspeople involved in real estate are waiting to see what the situation is after the national election”, Bonna told the Post, adding that without buyers, property sellers have been forced to cap prices. “Also the rainy season isn’t a good time to go out and see land”, he added.

Realtors, however, including Bonna, predict the elections would register as only a small blip on the long-term pattern of rising Cambodian property prices.

“I think real estate will remain a tool that helps the country develop”, said Cheng Kheng, owner of Cambodia Properties Limited (CPL), adding that he expected prices to resume climbing a few months after the polls, once concerns over restructuring subside.

According to Kheng, many of the bigger spenders in Cambodia’s real estate sector have political party affiliations that were demanding more of their time as the election approached.

“I think people who have a lot of money to buy are busy campaigning for the election.”

But the real estate sector slowdown has also hurt an unprecedented building boom that was a key factor behind Cambodia’s recent double-digit economic growth.

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