Election worries not hurting real estate
Election worries not hurting real estate
Despite the July 29 national elections having drawn criticism at home and abroad, Cambodia’s property market seems immune to a potential downturn as land sales continue to rise and new projects keep changing the Kingdom’s skyline.
Mong Martin, an investor currently working on a project in Kampong Speu province, said Cambodians are increasingly aware of the elections but have also grown tired of the country’s political scene.
“They do not take political issues as the main thing as was the case before, so there will be no social inactivity, which can cause economic activity to become stuck.
“Cambodians are not putting their heart into politics anymore . . . so I do not think there will be any problems stopping the sale of land or real estate,” he said.
Aside from land sales, housing development projects have also been on the rise with no slowdown expected in the coming months.
Lay Naroeun, assistant chairman of housing project the River Center City, says the luxury project in Kandal province’s Takhmao town just south of the capital, is moving ahead as scheduled.
“Comparing sales now and before the 2013 national election, I think currently we are doing better. This is because before the 2013 elections, sales were down so much that people didn’t want to spend money to buy anything.”
Currently, the company has sold more than 80 percent of its 68 apartments in the project. “Customers who come to buy the homes have not expressed any concerns about the upcoming elections,” he said.
The River Center City was developed by Tang Kung Group, which invested over $100 million on an area of more than 15,000 square metres, off the Takhmao River, in Kandal.
The project includes commercial space, a shopping mall and 27-storeys of condominiums.
Many business owners also consider it an opportune time to invest for future profits. Cheat Sambath, who flips real estate in his free time, said that sometimes risks can turn into opportunities.
“They did not dare [to invest], I did. This is the right time for me to buy a good and affordable place,” he said.
In addition to ongoing projects, many firms have announced new development ventures such as the Palm, Yuetai the Garden and Royal One.
A report by the Ministry of Land Management, Urban Planning and Construction said that in last year’s tax returns on property transfers brought in around $78 billion.
The president of the Cambodian Valuers and Estate Agents Association, Kim Heang, said in the past two decades, elections were always preceded by a sluggish or silent market, but that the pattern didn’t seem to hold for next month’s elections.
“Previously, when voting approached, buying and selling of land were completely stalled and prices also were down. But now, things are not the same as before. “Today, the price of land has increased steadily, and I cannot find land to sell to customers. It’s really strange,” he said.
