Property-bubble worries prompt sit-down

[geovalin]

Sor Chandara and Ananth Baliga

Amid rising fears of a potential bubble in Cambodia’s real estate sector, the government has called a meeting next week to address concerns of overheating in the sector, as high prices fuel anxiety of increased speculation in the market and a lack of demand-driven growth.

The Ministry of Economy and Finance has invited all relevant stakeholders, including the Ministry of Land Management, Urban Planning and Construction, the National Bank of Cambodia and private developers, to a meeting on August 18 to assess possible risks to Cambodia’s fast-growing construction and real estate sector.

“If prices are reasonable for the [purchasing] ability of the buyer, it is OK, but we are afraid that the high price is the result of speculation,” said Mey Vann, director of financial industry at the Ministry of Economy and Finance.

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