Property market remains stable during election

Property market remains stable during election

Although the country’s latest election campaign has arrived, experts say the property market has not declined, unlike during previous elections.

Political factors, knowledge and experience of the past have played an important role for buying and selling property in Cambodia.

The property market is different showing different sign to that of the previous four elections (in 1993, 1998, 2003 and 2008), said Dith Channa, general manager of VMC Real Estate Cambodia, adding that previously, three to six months before polling, real estate sales were always down, because buyers were waiting for the election results.

“Although the fifth parliamentary elections will be held in July 28, buying and selling properties has not gone down from early 2012, especially in the first half of 2013,” he said.

The factors keeping the real estate sales on the rise include three main reasons; first, the trust in political stability from people and the politicians’ maturity; secondly, capital investment increase from more local investors such as Vattanak, and Canadia banks, as well as the development of construction residences, boreys, warehouses and commercial hubs; third, the increase in foreign investors such as from Malaysia, the UK, China, and Korea, especially in 2013.

Chailin Sear, CEO of CL Realty C. said “The stable political factor has played an important role in helping promote the value of properties now. The upcoming elections do not make people worried about the political chaos; therefore, purchasing and selling are better,” he said.

Although the elections in Cambodia are seemingly better, feelings are still somewhat precautionary in Cambodians’ minds, especially after the fourth parliamentary elections in 2008 when many property investors were in the red due to political deadlock and the effects of the global financial crisis.

Po Eavkong, managing director of Asia Real Estate Cambodia said the election process does not affect the sales of real estate; what affects the buying and selling now is the price, because most property owners now have set the price very high, making buyers hesitate,

“In general, I observe that buying and selling the properties do not change because many consumers come to seek Asian Real Estate company services every day,” he said.

“However, now those who want to buy a small number of properties also decide to delay because they are worried about the document process as well,” Earvkong Kong said

However Sorn Seap, general manager of KEY Real Estate disagreed, saying the buying of property during the election campaign this year seems quieter than normal.

“Consumers seeking information from KEY Real Estate often look at the locations we show them, but when it comes to the purchase contract some of them seem hesitant, saying they have to wait and see the post-election situation first,” he said.

phnompenh post