There has clearly been serious economic damage from Covid and usually this would eventually lead to distressed property sellers having to sell in a hurry and thus a drop in house prices.
From what I can gather in Cambodia prices haven't dropped let alone crashed. Is it just because of a lack of debt so nobody is defaulting on their payments? Or just the class of people with house payments not really affected economically?
The economy will surely get worse and many people must surely be almost tapped out. Will the housing market go down? Will it totally capitulate? When do you think this will happen?
Are house prices dropping because of Covid?
Anon for this post
Prices actually rose during the first year of the outbreak, two of my properties picked up 20% in value and I made a healthy profit sale in August, although the process of paperwork was damn slow.
Personally I think the market is destined to crash but not for another 5-10 years barring a really big hiccup in the world financial system. Mindset of people even today is buy buy buy, and I see no sign of an immediate future change in attitude.
Prices actually rose during the first year of the outbreak, two of my properties picked up 20% in value and I made a healthy profit sale in August, although the process of paperwork was damn slow.
Personally I think the market is destined to crash but not for another 5-10 years barring a really big hiccup in the world financial system. Mindset of people even today is buy buy buy, and I see no sign of an immediate future change in attitude.
Even my mother-in-law who I would have classified as "very poor" owns her own house - there's no bank mortgage to pay, no borrowings. So even she can afford to just eat bobor once a week if push came to shove, like she did in KR times. There are those even worse off for sure, but I think many Cambodians have lived well within their means as far as property goes. The ones in trouble are those with car loans or MFI "business loans". There is worse to come this year/next year as the effect fully kicks in with prolonged unemployment, but I don't think the property market which has an excess of capacity x10 anyway will be too badly affected beyond those building empty Condos (i.e. Chinese companies will go bust). Casual observation, I'm sure there are property experts lurking here also who can chip in.
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Meum est propositum in taberna mori,
ut sint Guinness proxima morientis ori.
tunc cantabunt letius angelorum chori:
"Sit Deus propitius huic potatori."
ut sint Guinness proxima morientis ori.
tunc cantabunt letius angelorum chori:
"Sit Deus propitius huic potatori."
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I very much doubt they will,
Just look at UK and US housing markets they're booming as governments constantly print money (look at M1 money stock).
With the way Cambodia is so closely aligned with the US dollar, I'd expect land prices to soar. Although with geopolitical tensions and with the inevitable alliance between China and the US if war was to break out it may not be the smartest investment.
Just look at UK and US housing markets they're booming as governments constantly print money (look at M1 money stock).
With the way Cambodia is so closely aligned with the US dollar, I'd expect land prices to soar. Although with geopolitical tensions and with the inevitable alliance between China and the US if war was to break out it may not be the smartest investment.
House/condo prices have been pretty stable and will continue to be so. Most of the owners don't have much loan money in properties in Cambodia. Like Guest poster says, property crash might happen in future, but most likely still take at least 10 years and this need some bigger global economic trouble.
Land prices though have dropped in some areas. For example in Kampot land prices have drop 30-50%, basically back to 2018 levels.
Land prices though have dropped in some areas. For example in Kampot land prices have drop 30-50%, basically back to 2018 levels.
Yes I get why asset prices would increase in countries where governments are spunking trillions on inflating the economy. Not sure that Cambodians have gotten anywhere near that amount of support though.Go Programmer wrote: ↑Fri Apr 16, 2021 9:34 pmJust look at UK and US housing markets they're booming as governments constantly print money (look at M1 money stock).
In the West almost everyone owes money on their home, if they lose their job then their home is in danger. This can be a vicious cycle bringing house price crashes. In Cambodia most people have no debt on their home so it shouldn't be possible, the same way most of the mom&pop shops will survive also - the proprietors don't have to pay rent.
The question is how many Cambodians these days do actually have debt they are struggling to repay. There are a lot of Borey developments offering finance, apartments bought off plan etc. It's not like 20 years ago - there are a lot of people needing to make monthly payments on property. I'm just not sure what the scale is and if it can tilt the market.
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There are definitely some good deals to be made for those with spare change. However, anyone who knows Khmers knows that they can be very stubborn in their pricing schemes. Covid has helped the housing market in certain ways. It was way too hot and a bubble about to burst back in late 2019 when this all started. This sort of pre-emptively helped stop a sector meltdown, so by the time this is all over it'll be ready for a slow rebound.
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