Budget should not be the only concern for home buyers when they are deciding on a new property! Realestate.com.kh examines the number one factors that scare buyers from investing in real estate in certain areas and localities.
Particularly high vacancy levels throughout any locality will damage the confidence levels of any investor. Low residency means hidden problems may be lurking in the area and these will make prospective buyers slow to invest in the locality/area. Maybe the infrastructure has some holes?
An open piece of land sitting at the back of a residential building is a warning sign for investors also. Why? Because it may get developed into almost anything in the future. Imagine if a noisy factory appears on the unit in the future – this will damage your quality of life and the resale value of the property. However, on the flip side of the coin, if that plot is turned into a beautiful park/garden, it could well add to the value of your land dramatically. Hence, the trick is to gauge the future ownership and intended usage of that property before you buy.
Poor Logistical Connectivity:
Lack of transport access and public transport services will lower the attraction to even the dreamiest real estate. This infrastructure is crucial! It is wonderful to live on a coastal mountain overlooking the ocean – but if a trip to the city involves a three-day horseback trek, chances are the property will lose its aura fairly quickly. In the city, real estate that is ages from metro stations, bus stops, main highways and any other crucial transport hubs will generally command a much lesser price per square metre than those that have an array of easy transport options located nearby.
Distance from Necessities/Amenities:
City properties that do not have markets, schools, hospitals, ATMs, cafes, banks, etc. within close vicinity will also generally extinguish the buyer’s interest. Too much distance from these types of amenities can affect the value of the property hugely. In the commercial sphere, buying land or real estate with access to key transit corridors, artery roads, warehousing facilities and storage options are valued highly.
Nowhere to Park:
Without ample and convenient parking zones, a new property’s value can be uncertain. Especially in cities like Phnom Penh, where many believe that personal vehicles are a necessity, parking spaces must be considered before buying a property – be it an office tower or residential premises. Tenants too must make this consideration a priority.
Frequent power cuts will adversely affect any buyer’s decision. Backup power sources such as generators on your property may provide short-term solutions, and these are extremely common throughout the Cambodian provinces, yet living in a neighborhood with frequent power cuts or dodgy power service will usually overshadow and deteriorate any positive attributes of the property.
How’s the Neighborhood?
The state of the neighborhood also affects the property buyer’s ultimate decision. No streetlights, damaged roads, poor waste disposal services and noisy features can become crucial turnoffs for new buyers and renters. Safety is very important also. Crime in the vicinity is never welcomed. Hence, localities with imbalanced neighborhoods will naturally yield lesser income and profit from property sales and rentals, and hence, are unpopular among investors – short or long term.
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