Developers urged to lower prices
Developers urged to lower prices
The Ministry of Economy and Finance has called on developers to lower house prices and facilitate the payments process for those recently laid off as a result of Covid-19 outbreak.In a press release on Monday, the ministry urged developers to join the government’s effort to combat the spread of the coronavirus and help ease the burden on workers that have been laid off or suspended as factories facing raw materials shortages temporarily closed.
“Real estate developers should lower housing prices to a reasonable level. The government, on its part, has already decided to exempt tax from ownership transfers involving houses valued under $70,000,” the statement said.
The Housing Development Association of Cambodia on Tuesday expressed support for the government’s call and announced it will be lowering prices by up to seven per cent.
“Our members will also provide flexible payment options for workers who have lost their jobs during this time of crisis,” it said.
Khmer Real Estate Co Ltd CEO Kim Heang cast doubt over the feasibility of the ministry’s proposal.
“I agree with the ministry’s call, but I am not sure all developers can follow the recommendation. Some owe money to the bank. How can they repay the loan if they sell the houses at a lower price?”
