Real estate crash anyone?
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- I Am Losing It All to the Internet
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Real estate crash anyone?
Looking around the city it seems there's not a day goes by when I'm not confronted by new apartment/condo developments. Those huge cement pump trucks are everywhere.
Now, maybe I'm being pessimistic but I just don't see the market for all of these thousands of condos that are being built.
Really.
There aren't that many Chinese in town to buy, even with reversing the one child policy.
So are we going to see a real estate crash here - similar to Bangkok circa 97?
If so then surely all those people putting down payments on off plan condos are really taking a risk?
Just look at Gold Tower 42 - any hope for that in sight? Even the St 240 condos are only just recently completed after being sold off plan 6 or 7 years ago.
Or will we just see the ridiculously wealthy continue to build, build, build and weather the coming storm? Which areas will be hit worst? I can't see BKK 1 being able to sustain the amount of new condos let alone the rest of the city. One good thing is potentially the silly rental prices some landlords ask will drop. Or is that just wishful thinking?
Now, maybe I'm being pessimistic but I just don't see the market for all of these thousands of condos that are being built.
Really.
There aren't that many Chinese in town to buy, even with reversing the one child policy.
So are we going to see a real estate crash here - similar to Bangkok circa 97?
If so then surely all those people putting down payments on off plan condos are really taking a risk?
Just look at Gold Tower 42 - any hope for that in sight? Even the St 240 condos are only just recently completed after being sold off plan 6 or 7 years ago.
Or will we just see the ridiculously wealthy continue to build, build, build and weather the coming storm? Which areas will be hit worst? I can't see BKK 1 being able to sustain the amount of new condos let alone the rest of the city. One good thing is potentially the silly rental prices some landlords ask will drop. Or is that just wishful thinking?
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- Making Khmer girls cry since 2003
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Really?Just Robbed wrote: Now, maybe I'm being pessimistic but I just don't see the market for all of these thousands of condos that are being built.
Really.
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- Steve Zodiac
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I wish they would build condos in Siem Reap, there are hundred of hotels already with many lying empty for the most part of the year & yet hundreds more being built, but virtually no condos/apartments for sale.
Who was the guy on here that used to boast about how much he would be making by buying off plan in PP? The numbers sounded pure comedy. It was as if the sales people had brainwashed him.
http://www.khmertimeskh.com/news/17533/ ... a--report/
Return on investment for condominiums is higher in Cambodia than other Asian markets, a report from local real-estate research firm Century 21 Mekong said yesterday.
Return on investment (RoI) for condos in Cambodia is about 7.5 percent annually, compared to 6.5 and 5.5 percent in Thailand and Japan, respectively. RoI is lower in China and Hong Kong Special Administrative Region, at 2.7 and 3.3 percent respectively. Investment in condominiums in the Philippines has an average annual RoI of 7.1 percent, according to the report.
Independent economist Srey Chanthy disagrees with this assessment. He said the property market has been expanding too fast for several years.
“Accelerated development of the condo or real estate sector started back in 2010. Over the last six years or so, the development of the sector has been extremely fast. Current and future supply of condo or apartment units is and will exceed demand, even if the effect of the AEC is taken into consideration,” Mr. Chanthy said.
Really?Just Robbed wrote: There aren't that many Chinese in town to buy, even with reversing the one child policy.
pew, pew, pew, pew!
It was a board member named Florida, said he would double his money from Dec 13 to Dec 14
http://www.khmer440.com/chat_forum/view ... o&start=12
https://constructingcambodia.wordpress. ... h-riviera/
http://www.khmer440.com/chat_forum/view ... o&start=12
https://constructingcambodia.wordpress. ... h-riviera/
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- MerkinMaker
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I think there are enough people in Phnom Penh that can afford a $150-250k condo, just look at how many $30-100k cars there are rolling around.
The problem is that most people would still prefer a wedding cake villa in Sen Sok over a condo in the city center.
But just as Khmers are just starting to realize that a new Mazda is a better buy than a second hand high mileage Range Rover, I think they will realize that a two hour plus daily commute isn't worth it. The traffic over the last few days is a taste of things to come.
I think buying a condo in the right location for the right price is a sound medium term investment. Especially if there's a small correction and the prices for centrally located buildings goes sub $1500 m/2.
The problem is that most people would still prefer a wedding cake villa in Sen Sok over a condo in the city center.
But just as Khmers are just starting to realize that a new Mazda is a better buy than a second hand high mileage Range Rover, I think they will realize that a two hour plus daily commute isn't worth it. The traffic over the last few days is a taste of things to come.
I think buying a condo in the right location for the right price is a sound medium term investment. Especially if there's a small correction and the prices for centrally located buildings goes sub $1500 m/2.
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- I Am Losing It All to the Internet
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There would have to be more than a small correction for prices to plummet from 3k psm on Norodom to less than 1.5k.
There aren't enough barangs or middle class khmer to fill all the units being built. Look at some of the completed housing units out toul Kork way - they are half empty. Adding more condos in an increasingly busier city center just creates chaos.
There aren't enough barangs or middle class khmer to fill all the units being built. Look at some of the completed housing units out toul Kork way - they are half empty. Adding more condos in an increasingly busier city center just creates chaos.
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- I Have Not Been Outside Today
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House next door just bought for $350,000. by chinese for like 3x what its worth .
i'm the one who has to die when it's time for me to die, so let me live my life the way i want to
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I think in most cities, units are bought with the assumption that (EDC, in this case) energy is reliable.
False assumption here.
When that becomes general knowledge...and people realise they are subject to the frequent vagaries of diesel-powered generators...
False assumption here.
When that becomes general knowledge...and people realise they are subject to the frequent vagaries of diesel-powered generators...
ירי ילדים והפצצת אזרחים דורש אומץ, כמו גם הטרדה מינית של עובדי ההוראה.
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- MerkinMaker
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I'm still bullish on local demand increasing for centrally located condos.
Of course everyone would rather live in a house than a condo. But the commute times is what will trigger the shift.
Let's say you have $150k to purchase a property today. The choice would be between a very centrally located 90m2 condo with a single parking space or a semi detached house with 200m2 of floor space and two parking spaces in a borei which is a 30 minute commute to the center during peak time on a normal day.
At the moment it's a no brainer, you take that house. But you don't need much imagination to see that what were 30 minute commute times turning into 60 minute commutes on a good day in the next year or two.
Once that happens, the condos start looking much more attractive.
Of course everyone would rather live in a house than a condo. But the commute times is what will trigger the shift.
Let's say you have $150k to purchase a property today. The choice would be between a very centrally located 90m2 condo with a single parking space or a semi detached house with 200m2 of floor space and two parking spaces in a borei which is a 30 minute commute to the center during peak time on a normal day.
At the moment it's a no brainer, you take that house. But you don't need much imagination to see that what were 30 minute commute times turning into 60 minute commutes on a good day in the next year or two.
Once that happens, the condos start looking much more attractive.
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