Existing project will be new trend in real estate market

Why buyers prefer existing projects ?

Existing projects refer to properties that have passed the acceptance check of the delivery standard, and the buyers can move in the project after signing the sales contract.

Existing projects are real to buyers, you can see the real building , the layout of the project, the quality of the project, and the decoration. The buyer can inspect the real situation of the project. For buyers, existing project are more trustworthy.

Secondly, the existing projects can be rented out in a short time, and they can be used as soon as possible to make profits.

For buyers, existing projects are more worth to invest than forward delivery project, but for developers, selling existing homes is not easy.

Forward delivery project sales mode are pre-sale system, developers can get deposit received payment in advance, developer could recover most or even all costs in advance, which is more conducive to developer financing. If there is no certain financial strength, the sales of existing projects will have great pressure on developers. Therefore, most of the projects in China and Southeast Asia are forward delivery project sales mode, and the existing projects on the market are   precious.

In fact, in Europe and the United States, most of the existing projects are sold. The proportion of pre-sale projects is very small, and it is very different from the pre-sale system in Asia and other places. For example, although the United States has a pre-sale system, it only needs to pay a small deposit in the early stage, and the developer of the pre-sale funds cannot directly collect it. Instead, it enters a third-party custody account and transfers it to the developer after the project is delivered. It is not a matter of rapid financing, and there are relatively few cases of project construction suspense. Due to the capital markets in Europe and the United States are developed, and real estate development is mature.

The pre-sale mode are common in Asia, including China, Singapore, Thailand and Malaysia. Due to the underdeveloped capital market, pre-sale financing accounted for a large proportion compare with developed country.

Cambodia's real estate industry is developing rapidly, but the overall situation is still in the early stages. Most of new projects are pre-sales mode, and it is difficult to achieve large-scale existing home sales in the short term. However, there are currently a small number of existing apartments on the market, and there are also chartered houses, that is, buy and receive rent, and the income is instant. It is a good choice for investment in Southeast Asian real estate.