Kim Heang, president of the Cambodian Valuers and Estate Agents Association (CVEA), on behalf of the association members has urged the government to regulate all property transactions in the upcoming management law.
The initiative would mimic the US model in theory, making all property sellers bound to use a registered real estate company to value their property before they are able to put it up for sale.
The proposal is intended to control artificial price hikes within the local market. More accurate property valuations would lead to a more sustainable market place, and grant local and international investors greater confidence to buy in, said Heang.
“Nowadays, the property owner can easily make their own ‘House for Sale’ sign,” he said.
“Generally though, when a private seller attempts to sell their own property, the price they seek is 30 to 50 per cent higher than the actual market value.”
This makes it both difficult to buy and sell, Heang adds, and creates speculation across the market.
Hence, the CVEA is calling for the government to educate the market on these problems, and ideally consider legislation, before they create the new management law.