Thursday, 7 May 2009

Property prices fall more than one-third, say realtors

Photo by: Sovann philong
A "for fale" sign hangs in Phnom Penh on Tuesday. Real estate agents reported that property lost nearly one-third of its value at the start of 2009 as the global economic slowdown takes its toll on Cambodia’s economy.


The Phnom Penh Post
http://www.phnompenhpost.com/

Written by Soeun Say
Thursday, 07 May 2009

Real estate prices continue to fall, even after double-digit declines in last part of 2008, but dealers expect recovery to begin later this year

CAMBODIA'S real estate market lost more than a third of its value in the first three months of 2009 compared with the same period last year, due to the impact of the global financial crisis, say real estate developers.

"According to our research, the real estate market dropped 40 percent in the first three months in 2009 if we compare the situation to the first three months in 2008," said Sung Bonna, CEO of Bonna Realty Group and president of the National Valuers' Association of Cambodia.

He said that land in Boeung Keng Kang I commune, worth between US$2,500 and $2,800 per square metre during the first quarter of 2008, had fallen to between $1,600 and $2,000 in the same period this year.

World financial instabilities were the main cause of the decline, he said, but added that the sector should recover by 2011.
"I think that property will regain its value when the world economy recovers," Sung Bonna said.

Varied impact in the region
But the global crisis has had uneven effects, he said, with Vietnam having largely avoided a devaluation, while Thailand had experienced a contraction in the sector due to the economic crisis and the effects of domestic political instability.

Local developers echoed Sung Bonna's outlook, saying development projects conceived during the real-estate boom had been undermined by a widespread contraction in local markets.

Leav Vanny, project manager of Kaing Meng City, a

--------------------------------------------------------------------------------
Property will regain its value when the world economy recovers.
--------------------------------------------------------------------------------

$30 million housing development project in Kandal province's Takhmao district, said Monday that even though construction was under way, the company had had difficulty attracting clients, having experienced a "50 to 60 percent" drop in business compared to the same time last year.

"Our project is still up and running, but we cannot find clients," he said.

"Wealthy Cambodian people are still afraid [and] are hesitant to buy property. They are waiting for things to recover too."

Kong Vannsophy, general manager of Dream Town City, a $1-million project in Phnom Penh's Dangkor district, agreed the property sector was not in good shape, and that the market for both buyers and sellers was quiet.

"Our project is continuing, but there is not the rush we experienced before 2007," he said, adding that falling rental services currently made leasing a better option than acquiring property.

Chhean Dara, project manager of the $50-million Happiness City housing project in Russei Keo district, said the financial crisis had led to a precipitous drop in customer interest for the project. "The project is moving along very slowly.

"Public interest dropped 70 percent when the world's credit crisis hit, and our new villas are now for sale but no one is interested," he said.

Chhan Dara added he has even had difficulty selling off 20-hectare plots of empty land in Kampong Speu province, which have fallen from between $20,000 to $30,000 per plot to around $10,000-$15,000.

"No one is asking to buy my lots in Kampong Speu," he said. "I have to pay back my loans to the bank every month [so] I hope the real estate sector recovers soon."

However, the Kingdom's top construction official said a slowdown in the construction sector in the second half of last year was a temporary blip induced by the global financial crisis and that he expects to see rapid growth to resume by the end of 2009.

Im Chhun Lim, Minister of Land Management, Urban Planning and Construction told the Post last month that there were signs the sector was already rebounding after a number of high-profile developments were slowed, cancelled or put on hold towards the end of last year, resulting in mass layoffs across the sector.

6 comments:

Anonymous said...

Luckily, there are many methods in safely removing unwanted hair.

s Therapy Treatment line, which is a lightweight replenishing
treatment that protects and maintains hair condition. Its
intention is to offer you ideal cosmetics which are safe and substantial in quality, all the way through the world.



Feel free to visit my weblog: hair products

Anonymous said...

Mira Hair Oil is a simple item to make use of, all you have to do is to try using
1 / 2 a teaspoon or even a full teaspoon at the most plus massage the oil directly
on your scalp and hair. ) at a rate of one drop
of essential oil per tablespoon of base oil. These can be expressed in a number of ways: straight hair, slightly wavy hair, or
curly hair. However, this solution is chemical free and some people find natural products more appealing.
* Apply oil unto your hair - Run your fingertips through your hair
and rub it in an even way.

Feel free to visit my webpage :: hairstyles for men

Anonymous said...

Otherwise you may feel frustration to play these games. The reason that you should take
a look at a Joana's Star - Craft 2 guide review is obvious. In terms of sheer enjoyment, the Rollercoaster Tycoon series leads the pack. In order to compete for market shares on routes you must have a virtual airline management game account. It features its own unique economy in which players can buy and sell things they make and so on, several real world companies are actually getting into the game to offer services, such as H&R Block.

Here is my weblog: simulator

Anonymous said...

One should apply minimal pressure to lift these concrete grinders and also hold it in flat motion while working.
First, ready mixed concrete in Sunderland can help you get your construction
job done faster. Flawless Flooring's polished concrete floor product boasts durability and decorative seamless surfaces made mainly from epoxy and polyurethane materials.

Anonymous said...

What kind of favorable publicity do you think you'd get from a once-a-month letter in your local publication. by October, 2001 the US moved on the Taliban in Afghanistan. Stars and the loaded are sometimes (however, not always) capable to go beyond the holding out course of action to obtain immediate gratification. In just about every objective way that nations can be judged the US is losing the present. Lap books are another tool a teacher can use to help students create booklets that they will want to keep and review.

my blog post - egyptian newspapers

Anonymous said...

With the ability to actually alter the texture and condition of the
hair with clever and fashion-forward hair styling products,
Rusk Being products are sure to intrigue the hair product lover in all of us.
This article will explain the hair product diversion conspiracy and list ways that you can determine
whether or not the beloved salon brand you saw in Walgreens
last week was truly diverted merchandise or strategically placed by the powers
that be. Soon after this, use curl lotion all more than your hair, and
make use of mousse and squeeze this in your hair to that your curls seem flawless.


Here is my site :: hair products