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Property prices stagnant following election

New houses sit empty in Phnom Penh as buyers seem hesitant folowing the national election.
New houses sit empty in Phnom Penh as buyers seem hesitant folowing the national election. VIREAK MAI

Property prices stagnant following election

Although house prices increased sharply in early 2013, they have remained stagnant following the national election last month.

Kuy Vat, the President and CEO of VTrust Group, said housing prices in many projects remain unchanged, because most customers are waiting for the formation of the new government.

“Prices and purchasing increased before the election, but since this most customers have seemed hesitant, causing the price to become stagnant,” he said.

Po Eavkong, the Managing Director of Asia Real Estate Cambodia co, Ltd, said house prices during the first half of 2013 increased five to seven per cent compared with the same period last year, but prices have not changed following the election.

However, now many sellers are asking for higher than the market price, which is similar to before 2008, but the increases are not as much as in 2008.

“If the new government is formed and it is peaceful, the price of property, especially housing, will increase, but it should not be too high,” he said.

Noun Rithy, the General Manager at Bunna Reality Group Co, Ltd, disagreed, saying that prices for the first half of 2013 were 10 per cent to 25 per cent higher than during the same period last year.

He added that the rise in price is to the increased demand for housing in Phnom Penh, which is currently 100,000 housing units per year.

“The housing price is stagnant currently, not entirely because of the election, but it is also the arrival of the rainy season. I see that political issues do not change remarkably and this situation has occurred many times before.”

Ouch Pysal, assistant president of Ly Hour Group, said housing prices in Borey Vimean Phnom Penh have not increased because the construction costs have not changed.

In addition, the company has an incentive policy for customers who buy houses in Borey Vimean Phnom Penh and Borey Vimean Phnom Penh’s commercial zone.

Touch Samnang, project manager of Olympia City north of Olympic Stadium, said the price of houses in Olympia City have increased by five per cent in the first three months of the year because the project has attracted a lot of attention.

But he said sales at Olympia City have been stagnant after the election.

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