Don't overlook that! Large risks may occur for condo project buyers

In Cambodia, the development of condominiums is still low and there is no supply beyond the market. And the condominium sector is booming right now, with many developers both local and foreign invest in condominium construction in Cambodia to meet real and future needs.

In line with the current condo market, buyers should also be aware of the potential risks that we face when buying. There are 5 things that investors or condo buyers should think over on these negative affections :

1.       On sale before build: The owner of a condominium project has put up its project before commencing construction, which is a risk for buyers or investors. This indicates that if there are any problems, such as lack of financing for the project, and the impasse, the investor will lose.

2.       Buy when condo market prices rise: Most condo buyers or condo investors buy when the project is under construction, and that investor has seen the market price of condominiums rise while under construction. But if there is a drop in market prices in that period, we have to wait for the price to rise again in order to get income.

3.       Construction Issues: The project you are investing in is not sure that it can be built on the right date, Some projects have experienced construction problems or natural hazards while under construction, which delayed construction or suspended construction. This costs you time to invest in profits.

4.       Payable and non-refundable: Investors or buyers of condominium projects cannot get a refund. While you buy a condo, if you have a problem, or you change your plan to buy a condo, you need to take back the money you paid, but can't get it back, so you lose the money you paid on that project.

5.       Rental prices fell beyond expectations: Condo investors expect the rents in the area to be fairly expensive. But after the end of construction, condo rentals have dropped because of factors such as more competitors expanding the market. Condo investment is expensive but rents fall, leaving the condo market unbalanced. And now we see in the condominium market in Thailand that the demand for condominiums exceeds the market, which makes rental prices lower because of more options and more competition. But Cambodia is not yet ready for a market saturated with demand.(This news came from Business-Cambodia.com)