I read the other that there are almost half a million unsold houses and apartments in Thailand. They've been building a lot in Cambodia too. Presumable a lot stands empty as well. And the Chinese economic is doing less well, and they have started to impose stricter capital controls.
So are we looking at some kind of price correction?
Real Estate crash?
Unlike the US that has huge property taxes the KOW owners can afford to just sit on the properties. Once paid for not much out of pocket costs only dropping the price when an emergency arises. Then the cheaper price usually goes to a family member or friends.
Ι'м тнє σиє ωнσ нαѕ тσ ∂ιє ωнєи ιт'ѕ тιмє fσя мє тσ ∂ιє ѕσ ℓєт мє ℓινє му ℓιfє тнє ωαу Ι ωαит тσ - ʝJιмι Нєи∂яιχ
Who is "they"?
- vladimir
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There will be no crash.
The apartments were generally built for different reasons to those in the west, and the developers/ owners are not subject to the same economic forces.
Supply and demand means nothing here, there are thousands of new apartments, and many are empty, but rents are rising.
Go figure.
The apartments were generally built for different reasons to those in the west, and the developers/ owners are not subject to the same economic forces.
Supply and demand means nothing here, there are thousands of new apartments, and many are empty, but rents are rising.
Go figure.
ירי ילדים והפצצת אזרחים דורש אומץ, כמו גם הטרדה מינית של עובדי ההוראה.
News in Australia from Bloomberg about Cambodia having the highest household debt in the world thanks to microfinance. They say it's 8 billion and the average debt is $3500. Mostly secured by land titles. They say that the government will have to choose between backing banks or households.
Is there a crisis now and why?
Is there a crisis now and why?
Land prices may be stable or rise, but the apartments must be depreciating assets. Double so, for being so shoddy quality. I should imagine the investors would expect some return on their money, not just to see it slowly dwindle away over 10-15 years.
What reason? I expect some has to do with Chinese & Cambodian investors trying to wash black money. But even for dirty money, you'd want at least a return which is about equal to the investment. Not just to throw it into a black hole.
This report from 2017 obviously hasn't happened yet: Is the Phnom Penh property market headed for a massive crash?
- vladimir
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It's not really a black hole, it has potential to earn. And how much you want a return depends on how easily you acquired the cash in the first place, I think. If you have no option but to hide it, or it came very easy...
But if we look around ourselves, the construction guys never got the crash memo
I'd like to ask the author of that piece, Nigel Miranda what hi stake is on it now.
ירי ילדים והפצצת אזרחים דורש אומץ, כמו גם הטרדה מינית של עובדי ההוראה.
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