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Phnom Penh property price crash?


Yme

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This says property prices in Cambodia could fall by as much as 50% du t the constant release of new accommodation priced in the $100,000+ range. It points out a few projets that have stopped also. There does seem to be a lot of empty property according this. Possible? 


"Additionally 2016 saw 11,550 new units released for presale, with link type houses accounting for 89.1 per cent, or 10,290 units. However, only 51 per cent were sold. Of the 100,278 strata housing units available at the end of 2016, VTrust says only 67 per cent or some 68,190 had found buyers."

"The view of a burgeoning oversupply in the Phnom Penh property market are echoed by Knight Frank in its 
Cambodia Real Estate Highlights H2 2016 report. In it the international property consultancy giant forewarns of an additional 1,053 more serviced apartment units coming online by the end of this year, adding to the existing recorded pool of 4,214 units available right now."

 

Is The Phnom Penh Property Market Headed For a Massive Crash?

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I think the big problem is that there has been massive construction of "luxury" condos/apartments for which there is no market.

 

Ordinary house/flat rental prices have been pretty stable, are already pretty reasonable, and there is no glut of them - places are available but not huge numbers vacant. It is these new, overpriced things that are sitting empty.

 

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19 hours ago, Sheryl said:

I think the big problem is that there has been massive construction of "luxury" condos/apartments for which there is no market.

 

Ordinary house/flat rental prices have been pretty stable, are already pretty reasonable, and there is no glut of them - places are available but not huge numbers vacant. It is these new, overpriced things that are sitting empty.

 


Even the boreys didn't have a high clearance rate last year according to that article. But you are correct. All these $100,000+ condos in a country where the minimum wage is $150 a month. It's not like Phnom Penh has the infrastructure, entertainment, or commerce that Bangkok, KL, or Jakarta have. Not many lights on in those luxury places at night time. Must be pretty eerie being one of only perhaps 20 in a building designed for a couple of hundred. 

 

 

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Also from what I see, wealthy Cambodians aren't buying these places, they still opt for houses even if that means  being on the outskirts of the city.

 

Cambodians aren't accustomed to high rise living and it has not remotely caught on.

 

There is also some doubt in many people's minds as to the quality/safety if construction...and who wants to be dependent on elevators in a city that  power outages a few times a year?

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Added to that, who wants to live on the 16th floor when the fire service ladder will only reach the fifth?


Skilled workers and Cambodia, or compliance and Cambodia (and lots of other pairings with 'Cambodia') are an oxymoron. The last electrician we had totally dismantled an electric insect killer to change the globes (and then couldn't get it back together). 

 

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  • 3 weeks later...
On 3/31/2017 at 4:39 PM, Sheryl said:

I think the big problem is that there has been massive construction of "luxury" condos/apartments for which there is no market.

 

Ordinary house/flat rental prices have been pretty stable, are already pretty reasonable, and there is no glut of them - places are available but not huge numbers vacant. It is these new, overpriced things that are sitting empty.

 

Greed Glut??

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