Property sales plummeting October 14, 2008Posted by chandrapong007 in Cambodia, Economics.
Tags: Property market
Some brokers report as much as a 50 percent decline in home puchases amid market turmoil abroad and rising prices at home, but recovery predicted
AS the subprime mortgage market in the United States continues to fuel a global economic meltdown, Cambodia has seen the first signs of decline in its once thriving commercial and residential property markets, with sales plummeting as much as 50 percent this year, developers say.
Sorm Molika, marketing manager at the New World Group, said sales on apartments and villas this year have dropped 50 percent compared with 2007 – a trend she says began in July, when the government announced new investment guidelines for developers.
“My company has seven housing complexes in Phnom Penh,” she told the Post Sunday. “We’ve sold only 100 units, down from 300 last year.”
While sales are down, Sorm Molika says prices have nearly doubled.
Two-storey apartments in Phnom Penh last year sold for about US$66,800. As of July, they sold for $120,000, Sorm Molika said, while twin villas now sell for $170,000 – up from $90,000 last year.