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Cambodia: Money to spare? Grab a property bargain now
The real estate sector is one of the nation’s key economic drivers to feel a severe pinch as a result of the COVID-19 pandemic. But while it may seem counterintuitive to invest in such uncertain times, industry insiders say it could be exactly the right time to buy property.
Sean Sothea Nhem, a certified international property specialist at Keller Williams Cambodia said while the market is currently in the financial doldrums, anyone who invests could enjoy a long-term capital gain once it rebounds.
“This might be an opportunity for those who have plentiful money supplies to buy a property at a low price, knowing that it will be able to generate a profit when the crisis is over,” he said.
Sean added that a basic rule of thumb for identifying properties most likely to generate cash in the future is by looking at those that have been put on the market within the last three months and making a much lower offer than the current price. “For example, the asking price was $10,000 in January and the price in March was $5,000. The potential buyer should try to negotiate that down even lower, to around $2,500 or 50 percent less. That is how it is considered to be profitable,” he said.
The real estate sector’s woes follows a golden period for the sector, according to IPS Cambodia, a leading realtor in the country. The company estimates that between 2010-2018, property prices in the capital of Phnom Penh soared by more than 60 percent.
But Kheang Puthy, president of the Cambodia Real Estate Association, believes that the market will slowly return to a buoyancy when the pandemic is over.
“It is harder to invest right now because of social-distancing advice and staying home where possible to curb the virus spread,” he said.
Source: https://www.khmertimeskh.com/50715085/money-to-spare-grab-a-property-bargain-now/