Tuesday, October 22, 2013

Should Cambodian housing development be strictly regulated?


As we all know that currently in Cambodia particularly in Phnom Penh, many new houses being built inside “Borey” or outside and kept growing like mushroom. There is a question to ask whether those housing developments are currently regulated strictly by the government or not? 

The important thing about the strict regulation and law enforcement by the government on the property developers or house builders is to protect the home buyers especially for the Cambodian next generations as well as the local community from the following critical issues:

  • Property title deed of development areas is being pledged as collateral to the banks
  • The property development without proper master plan, ie. wider access road, sewage system, electricity and water connection
  • Being trapped paying very high mortgage rates to the property developers, that some of them are providing housing shark loans to the home buyers…and as by laws, they have no right to do this kind of mortgage or housing loans, which is normally extended from the commercial banks or related financial institutions under the regulation of the National Bank of Cambodia
  • There is no hard title deed for each subdivided unit house built, that should be prepared beforehand or during the development stage by the property developers, the hard title deed must be issued to home buyers, who can later use it as collateral if they want to have mortgage or housing loans from the banks with the acceptable interest rates.
 



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