Did the price of old apartments drop since they can't be owned by foreigners anymore?
Did the price of old apartments drop since they can't be owned by foreigners anymore?
Did the price of old apartments see any noticeable drop since they can't be owned by foreigners anymore and their ownership transfer is now taxed?
Not sure if there's anything like a drop but it's certainly even more of a buyers'market now. However those places were relatively cheap in the first place and the supply has always been very abundant, so to me it mostly means prices will take an even longer time to go up.
The window of opportunity to buy one of those was fairly short (from the beginning of 2013 to mid 2016 ?) so the influx & influence of foreigners on market prices must have been marginal at best. What would be tough would be to recoup your investment if you have upgraded them, as I'm not sure many local buyers would be ready to splurge on a "luxury" renovated apartment.
OTOH if you own a renovated property, let's say you bought a flat for 30-50k and renovated it well for 10-20k, rental returns are probably better than on newly built places that are fetching much higher selling prices to the point of ridiculous , at least on paper.
The window of opportunity to buy one of those was fairly short (from the beginning of 2013 to mid 2016 ?) so the influx & influence of foreigners on market prices must have been marginal at best. What would be tough would be to recoup your investment if you have upgraded them, as I'm not sure many local buyers would be ready to splurge on a "luxury" renovated apartment.
OTOH if you own a renovated property, let's say you bought a flat for 30-50k and renovated it well for 10-20k, rental returns are probably better than on newly built places that are fetching much higher selling prices to the point of ridiculous , at least on paper.
I haven't been involved with old units for a while, if you choose well you can get a good ROI but they are often a pain to manage, especially if the khmers in the other units are problematic.
I was wondering if it was a good time to consider buying an old unit but apparently prices aren't much better than before.
I was wondering if it was a good time to consider buying an old unit but apparently prices aren't much better than before.
I recently asked Starkmonster ( someone who I go to about inner city real estate as he has extensive experience buying , renovating and selling and a keen sense of the market ) about this place ;
http://elevatedrealtyco.com/phnom-penh- ... has-97000/
His comments ( which I hope he does not mind me posting ) :
Sounds on the high side to me. That ad is more about what it doesn't tell you or show you than what it does, I would send them an email first and ask for:
How many m2
What floor is it on
Picture of the bedroom
Picture of the bathroom
Picture of the kitchen area
Height of the ceiling in the bedroom
What's above the bedroom? Tin roof will be very hot
Picture of the entrance from the street
Picture of the stairwell
Where is the nearest secure moto/car parking
That fit out is nice, but super cheap. They've just gutted it, painted it, put new floor tiles down, and added some tasteful furniture. You shouldn't be paying a premium for any of that.
I think the arse is going to fall of these Daun Penh hovel refits. There are so many condo's going up now and lots of them are selling central one bedroom studio units for around $120k with car parking. All those buildings in Daun Penh are falling apart, they almost all have serious plumbing and damp problems and an insecure stairwell that smells of piss. Add to that the fact that there are hardly any overnight parking spots in that area, they generally aren't very attractive anymore.
I know guys that are sitting on units they bought for 20k and renovated for 10k years ago. They are nice and yes id buy one at 40-50 but not 100K. Unfortunately i do not really like the new condos so it would be nice to think that the market in the old unrenovated ones will seriously correct and you might be able to get one again for 30k or so. I'd like to have a bolthole in the city.
http://elevatedrealtyco.com/phnom-penh- ... has-97000/
His comments ( which I hope he does not mind me posting ) :
Sounds on the high side to me. That ad is more about what it doesn't tell you or show you than what it does, I would send them an email first and ask for:
How many m2
What floor is it on
Picture of the bedroom
Picture of the bathroom
Picture of the kitchen area
Height of the ceiling in the bedroom
What's above the bedroom? Tin roof will be very hot
Picture of the entrance from the street
Picture of the stairwell
Where is the nearest secure moto/car parking
That fit out is nice, but super cheap. They've just gutted it, painted it, put new floor tiles down, and added some tasteful furniture. You shouldn't be paying a premium for any of that.
I think the arse is going to fall of these Daun Penh hovel refits. There are so many condo's going up now and lots of them are selling central one bedroom studio units for around $120k with car parking. All those buildings in Daun Penh are falling apart, they almost all have serious plumbing and damp problems and an insecure stairwell that smells of piss. Add to that the fact that there are hardly any overnight parking spots in that area, they generally aren't very attractive anymore.
I know guys that are sitting on units they bought for 20k and renovated for 10k years ago. They are nice and yes id buy one at 40-50 but not 100K. Unfortunately i do not really like the new condos so it would be nice to think that the market in the old unrenovated ones will seriously correct and you might be able to get one again for 30k or so. I'd like to have a bolthole in the city.
Rated R for Ricecakes
I dont think the price of old or reno apartments will drop much, however you may see more on the market for sale until after the 2018 elections. Cambodians will never drop the price to make a sale, they would just sit on it hoping the price will go up.
Next year may be the ideal time to buy.
Next year may be the ideal time to buy.
- raendi
- Bark plop plop bark woof woof
- Reactions: 56
- Posts: 1557
- Joined: Tue Mar 21, 2006 10:09 pm
- Location: Doun Penh
What is this, since when foreigner can't buy old apartment for himself?jackrossi wrote:Did the price of old apartments see any noticeable drop since they can't be owned by foreigners anymore
Pardon my engrish, thanks you.
raendi wrote:What is this, since when foreigner can't buy old apartment for himself?jackrossi wrote:Did the price of old apartments see any noticeable drop since they can't be owned by foreigners anymore
You can buy it,,, pay the money,,,, but you cannot own it in your name unless it's in a building that is registered as a co-owned building. eg, like many of the new buildings that are co-owned and have multiple owners as in condo's and apartments. The law on allowing foreigners to own properties was pushed through by and for the sake of developers wanting to sell such properties.
- raendi
- Bark plop plop bark woof woof
- Reactions: 56
- Posts: 1557
- Joined: Tue Mar 21, 2006 10:09 pm
- Location: Doun Penh
I'm still confusing about this, when law(?) like this have come/done?Duncan wrote:raendi wrote:What is this, since when foreigner can't buy old apartment for himself?jackrossi wrote:Did the price of old apartments see any noticeable drop since they can't be owned by foreigners anymore
You can buy it,,, pay the money,,,, but you cannot own it in your name
Pardon my engrish, thanks you.
The law permitting foreign ownership of condos only applies to buildings constructed after 2009, and as you say it must be registered as such. If a foreigner is registered following the purchase of any other building, then technically he is the registered possessor, not owner.Duncan wrote:raendi wrote:What is this, since when foreigner can't buy old apartment for himself?jackrossi wrote:Did the price of old apartments see any noticeable drop since they can't be owned by foreigners anymore
You can buy it,,, pay the money,,,, but you cannot own it in your name unless it's in a building that is registered as a co-owned building. eg, like many of the new buildings that are co-owned and have multiple owners as in condo's and apartments. The law on allowing foreigners to own properties was pushed through by and for the sake of developers wanting to sell such properties.
Condo prices in Asian markets like Phnom Penh and Bangkok never drop, because local owners refuse to sell in what we in the west would call a market downturn, instead holding on to them for years, even letting them lie empty.
It has begun to be enforced since a few months, now most areas will refuse to register a foreign owner to any apartment more than a decade old.raendi wrote:I'm still confusing about this, when law(?) like this have come/done?Duncan wrote:raendi wrote:What is this, since when foreigner can't buy old apartment for himself?jackrossi wrote:Did the price of old apartments see any noticeable drop since they can't be owned by foreigners anymore
You can buy it,,, pay the money,,,, but you cannot own it in your name
I partially disagree on the idea that khmers never drop a price, most of the properties I own or I owned where at a considerable discount. That said, RICH khmers are indeed very static in their valuation while poorer khmers are very dynamic on their selling prices, which are mostly based on their families fortunes or misfortunes of the moment. Since old units are in majority owned by khmers which are not very wealthy the possibility of them lowering a price due to an emergency is considerable. Instead a bkk1 villa is very unlikely to be sold at a considerably reduced price unless in case of political turmoil.Marmite wrote:Condo prices in Asian markets like Phnom Penh and Bangkok never drop, because local owners refuse to sell in what we in the west would call a market downturn, instead holding on to them for years, even letting them lie empty.
Good point. I also got heavily discounted prices for the (old) apartments I bought thanks to the tireless haggling by my ex mother-in-law, who as a litte old lady would spend hours sitting down on the floor hewing the fat with similar little old ladies on the seller's side. The key was to hide my barang face until the cash deposit was in their hands and the receipts and paperwork signed.JR wrote:RICH khmers are indeed very static in their valuation while poorer khmers are very dynamic on their selling prices,
-
- I have Cheap Mobile Internet
- Reactions: 0
- Posts: 429
- Joined: Tue Aug 09, 2011 9:22 am
It never was legal to hold soft title on an older apt. You can buy whatever you want as long as it is in your Khmer wifes name or other nominee. Things are definitely soft right now but also this is normal this time of year, regardless of political stuation.jackrossi wrote:Did the price of old apartments see any noticeable drop since they can't be owned by foreigners anymore and their ownership transfer is now taxed?
" Tho I am wise I have to wait like any other fool"
-
- Similar Topics
- Replies
- Views
- Last post
-
-
Barbados prepares to drop Queen as head of state
by Expatissimo » Thu Oct 21, 2021 11:59 pm » in 'Not' Cambodia - 0 Replies
- 1096 Views
-
Last post by Expatissimo
Thu Oct 21, 2021 11:59 pm
-
-
-
Three star general steals Chinese state-owned Kampot Special Economic Zone land
by Bong Burgundy » Sun Oct 25, 2020 4:48 pm » in Cambodia News - 12 Replies
- 3889 Views
-
Last post by Visser
Mon Oct 26, 2020 11:59 am
-
-
-
Call for foreigners to go get vaccinated
by Bong Burgundy » Fri Mar 05, 2021 3:55 pm » in Cambodia News - 252 Replies
- 46542 Views
-
Last post by Guest
Fri Feb 18, 2022 10:54 am
-
-
- 4 Replies
- 1615 Views
-
Last post by vladimir
Thu Jul 25, 2019 4:26 am