Property prices in Cambodia's once-booming real estate
market haven fallen by as much as 20 percent since June, a real estate expert
The global financial crisis, the Thai-Cambodia border
standoff and loan restrictions set out by commercial banks were all
contributing to a fall in prices, said Sung Bonna, president of the National
Valuers Association of Cambodia.
"The drop may continue for a long or short time," he said in
opening remarks at a real estate investment training course in Phnom Penh. "It is up to the reform of the
Cambodian situation. Some crises will be solved."
Between June and October, values in property fell between 10
percent and 20 percent, he said.
"When the decline is going on and on, we are very concerned
about the real estate price in Cambodia,"
he said. "But we hope it will recover soon."
in recent years has experienced a boom in property prices, leading many rural
and urban residents to sell off their land at very high prices, raising rents
and values, and boosting the construction sector.
But the property bubble was now of concern, especially
considering the bust of the US
housing market, which has led to a global financial crisis, said Finance
Minister Keat Chhon.
"The real estate market in Cambodia is also indirectly
affected by this world crisis," he said. "Starting from this bad experience
facing the world, Cambodia
is paying her critical caution in the process of the developing real estate
sector in Cambodia."
The falling property prices are expected to stunt Cambodia's
economic growth, he said, acknowledging that both the economic crisis and the
border standoff, which has continued since mid-July, were factors in the drop.
Neither were in the hands of Cambodia to fix, he said.
is a political hostage to Thailand's
internal conflict," he said, referring to a mass movement of opposition
supporters who are calling for a change of government in Bangkok.