The real estate in Cambodia is saturated
In every society, especially when it comes to economic sectors, there are periods of extreme success in financial terms, and lean periods, in which a good level of profit cannot be established to the point of bringing the entire deficit into deficit. system.
We are well aware that our sector, the real estate sector, is closely linked to the economic trend, which is why, a hypothetical crisis, would directly and immediately affect the national real estate. Today we will analyze a very particular case, which is leaving the economists and industry experts very hesitant. The nation that is the protagonist of our column is Cambodia, a rich land that is famous for its unspoiled landscapes, and for a history that has its roots in the oldest civilizations ever.
Well, it seems that in Cambodia the real estate is going through a period of crisis. Although in fact it is an area that is in great demand especially by tourists, the impossibility for potential buyers to identify a congenial offer remains as a problem. On the other hand in addition, even the owners of the buildings that decide to look out on the brick market, encounter some not insignificant difficulties, as it increases the lack of interest in the area and the properties present in the area mentioned above.
To avoid the possibility of a recovery, the increase in nominal property prices is added, already starting from the first quarter of the current year. This is 4 percentage points, but they have invested all the types of real estate on the market.
This has therefore led to a strong weakening of the negotiations themselves, with a very strong collapse (at a numerical level) of the sales contracts. In particular, the Phnom Penh apartment market could further cool down, reaching staggering levels, by the end of the year. The cause falls mainly in the disproportionate offer of apartments in the city. According to CBRE Cambodia, three condominium projects were completed in the first three months of 2019.
In detail, we recall the presence of 1,091 units, which increased the total offer by almost 10 percentage points. A considerable rate compared to previous years. But it's not over here; another 1,169 units have recently been launched on 5 new projects.
Let us not forget, moreover, that the World Bank has strongly advised the Cambodian government to monitor the building and real estate boom in the country with particular attention, since it would risk causing a situation so burdensome as to prevent many recovery solutions. They therefore propose policies aimed at contributing to the reduction of the opening of new construction sites, destined not to have an effective response in the real estate market.
It is therefore hoped that the recovery does not start so much from the demand, but from a "turnaround in the offer, calibrated according to a clientele evidently distant from what is the current proposal in the Cambodian real estate market.
We are well aware that our sector, the real estate sector, is closely linked to the economic trend, which is why, a hypothetical crisis, would directly and immediately affect the national real estate. Today we will analyze a very particular case, which is leaving the economists and industry experts very hesitant. The nation that is the protagonist of our column is Cambodia, a rich land that is famous for its unspoiled landscapes, and for a history that has its roots in the oldest civilizations ever.
Well, it seems that in Cambodia the real estate is going through a period of crisis. Although in fact it is an area that is in great demand especially by tourists, the impossibility for potential buyers to identify a congenial offer remains as a problem. On the other hand in addition, even the owners of the buildings that decide to look out on the brick market, encounter some not insignificant difficulties, as it increases the lack of interest in the area and the properties present in the area mentioned above.
To avoid the possibility of a recovery, the increase in nominal property prices is added, already starting from the first quarter of the current year. This is 4 percentage points, but they have invested all the types of real estate on the market.
This has therefore led to a strong weakening of the negotiations themselves, with a very strong collapse (at a numerical level) of the sales contracts. In particular, the Phnom Penh apartment market could further cool down, reaching staggering levels, by the end of the year. The cause falls mainly in the disproportionate offer of apartments in the city. According to CBRE Cambodia, three condominium projects were completed in the first three months of 2019.
In detail, we recall the presence of 1,091 units, which increased the total offer by almost 10 percentage points. A considerable rate compared to previous years. But it's not over here; another 1,169 units have recently been launched on 5 new projects.
Let us not forget, moreover, that the World Bank has strongly advised the Cambodian government to monitor the building and real estate boom in the country with particular attention, since it would risk causing a situation so burdensome as to prevent many recovery solutions. They therefore propose policies aimed at contributing to the reduction of the opening of new construction sites, destined not to have an effective response in the real estate market.
It is therefore hoped that the recovery does not start so much from the demand, but from a "turnaround in the offer, calibrated according to a clientele evidently distant from what is the current proposal in the Cambodian real estate market.
