A losing game

Jul 01, 2013 | Comments 0

With less than four weeks to the general election, and by all predictions, the start of President Hun Sen's fourth term in office, real estate analysts expect little will change in the country's emerging market.

According to an article from The Cambodia Daily, the stability that has resulted from more than 20 years of Cambodian People's Party (CPP) rule has given foreign and local investors enough confidence to embark on large scale infrastructure and property projects, something which was rare just five or ten year ago. Especially land and property investments are popular with land prices in Phnom Penh having in some instances increased by 25 percent in the past six months, according to data from Bonna Realty Group, a local realtor. Land prices in central areas currently sell for US$3,300 per square metre, which is comparable to pre-2008 levels.

Property and infrastructure development is commonly regarded as welcome signs that a country is progressing but in many cases corruption and mismanagement become the order of the day and in the case of Cambodia, one can't quite mention land and infrastructure development without also having to mention illegal land grabs and human rights abuses, both of which are unfortunately also closely linked to the CCP.

So while the flurry of project launches of late may exist on the back of political stability, local and foreign investors should make the coming election, and Hun Sen's victory, an opportunity to shed light on some of the graver events taking place, and demand more transparency and better practices.

 

Filed Under: Editor's view

Article source: http://www.thethailandlinks.com/2013/07/02/a-losing-game/