rogerrabbit wrote:

MikeD wrote: ↑Thu Jun 20, 2019 6:57 pm Arm...do you expect prices to fall given the continued oversupply of condo projects. Would it ne reasonable to assume 80% of the buyers are from overseas, particularly from China, driving up the prices? What is the local mortgage rate for $75,000? Do most buyers take out loans from local banks?

Most condos are bought with cash, not with loan money. Some boreys (landed houses in gated communities) are bought with loan money though, but condos no. Prices will only fall on projects that are in bad locations. Rental prices though will and have already started to fall even in central locations. But the rents have been really high in Phnom Penh earlier.

Some? Try "most". Are for prices falling it's anyone's guess. They'll probably stagnate for a while once the world economy slows down, but I'm not sure if they'll really drop. A lot of things here don't make sense, but what makes sense or is logical for our Western minds don't really apply here. Land/condo prices are high, and that's that.

As for banks, pretty sure Prasac still offers 7-8%.

Of the regular larger banks, ABA offer 4% on 12 month USD fixed deposit.
Canadia have a promo offering 5.25% for 12 month USD fixed deposit.

Not sure what to make of that disparity. Canadia getting desperate ?

offroadscholar wrote: ↑Sun Jun 23, 2019 7:59 am Of the regular larger banks, ABA offer 4% on 12 month USD fixed deposit.
Canadia have a promo offering 5.25% for 12 month USD fixed deposit.

Not sure what to make of that disparity. Canadia getting desperate ?

As for putting your money in a fixed deposit to earn interest that could fund paying rent, verses buying a Condo in Snooky or PP, thats a hard one when it comes to comparing the risk/return.

MikeD wrote: ↑Sat Jun 22, 2019 6:55 pm I dont find 9% unheard of. My question is, can i make this kind of interest safely and who can i loan money to?

The short answer ix no.
When I wrote about 8-9%, I was talking about loan rates that the banks charge mortgage loan borrowers. For you, this is just background info on the housing market in Cambodia, as I assume you would be buying with cash and as a foreigner you wouldn't get a mortgage loan from a bank in any case.
If you're interested in fixed term deposits with banks and MDIs, search my posts, there is a recent thread on that, again based on the NBC's 2018 document. Basically, the top rates are 7-8% (less 6% or 15% tax) but there are risks. The banks offer less than the MDIs (3-4%), they are risky too, in some ways more risky than the MFIs, in some ways less.

Bitte_Kein_Lexus wrote: ↑Sun Jun 23, 2019 7:37 am

rogerrabbit wrote:

MikeD wrote: ↑Thu Jun 20, 2019 6:57 pm Arm...do you expect prices to fall given the continued oversupply of condo projects. Would it ne reasonable to assume 80% of the buyers are from overseas, particularly from China, driving up the prices? What is the local mortgage rate for $75,000? Do most buyers take out loans from local banks?

Most condos are bought with cash, not with loan money. Some boreys (landed houses in gated communities) are bought with loan money though, but condos no. Prices will only fall on projects that are in bad locations. Rental prices though will and have already started to fall even in central locations. But the rents have been really high in Phnom Penh earlier.

Some? Try "most". Are for prices falling it's anyone's guess. They'll probably stagnate for a while once the world economy slows down, but I'm not sure if they'll really drop. A lot of things here don't make sense, but what makes sense or is logical for our Western minds don't really apply here. Land/condo prices are high, and that's that.

As for banks, pretty sure Prasac still offers 7-8%.

Totally agree with the bold part.

And I believe Sathapana bank also offers 7-8%.

MikeD wrote: ↑Sat Jun 22, 2019 6:55 pm I dont find 9% unheard of. My question is, can i make this kind of interest safely and who can i loan money to?

No, armchairlawyer foolishly and repeatedly claims this is a standard rate "reputable banks" routinely offer to locals who need a mortgage. Whereas the rate is 15-20% per year, assuming you can get a mortgage at all.

It's even more funny to see him getting his pants in a twist when he's exposed as a clueless moron.

rogerrabbit wrote: ↑Sun Jun 23, 2019 2:49 pm

Bitte_Kein_Lexus wrote: ↑Sun Jun 23, 2019 7:37 am

rogerrabbit wrote:

MikeD wrote: ↑Thu Jun 20, 2019 6:57 pm Arm...do you expect prices to fall given the continued oversupply of condo projects. Would it ne reasonable to assume 80% of the buyers are from overseas, particularly from China, driving up the prices? What is the local mortgage rate for $75,000? Do most buyers take out loans from local banks?

Most condos are bought with cash, not with loan money. Some boreys (landed houses in gated communities) are bought with loan money though, but condos no. Prices will only fall on projects that are in bad locations. Rental prices though will and have already started to fall even in central locations. But the rents have been really high in Phnom Penh earlier.

Some? Try "most". Are for prices falling it's anyone's guess. They'll probably stagnate for a while once the world economy slows down, but I'm not sure if they'll really drop. A lot of things here don't make sense, but what makes sense or is logical for our Western minds don't really apply here. Land/condo prices are high, and that's that.

As for banks, pretty sure Prasac still offers 7-8%.

Totally agree with the bold part.

And I believe Sathapana bank also offers 7-8%.

Not anymore, 1% on a normal bank book these days. Used to be 4.25%.

logos wrote: ↑Sun Jun 23, 2019 4:31 pm

MikeD wrote: ↑Sat Jun 22, 2019 6:55 pm I dont find 9% unheard of. My question is, can i make this kind of interest safely and who can i loan money to?

No, armchairlawyer foolishly and repeatedly claims this is a standard rate "reputable banks" routinely offer to locals who need a mortgage. Whereas the rate is 15-20% per year, assuming you can get a mortgage at all.

It's even more funny to see him getting his pants in a twist when he's exposed as a clueless moron.

I say you are wrong but if you can calm down enough to supply specific data, I'd be happy to be the one to be proved wrong . You need to know that you can't expose anything without coming up with some hard facts.

Kammekor wrote:

rogerrabbit wrote: ↑Sun Jun 23, 2019 2:49 pm

Bitte_Kein_Lexus wrote: ↑Sun Jun 23, 2019 7:37 am

rogerrabbit wrote:

MikeD wrote: ↑Thu Jun 20, 2019 6:57 pm Arm...do you expect prices to fall given the continued oversupply of condo projects. Would it ne reasonable to assume 80% of the buyers are from overseas, particularly from China, driving up the prices? What is the local mortgage rate for $75,000? Do most buyers take out loans from local banks?

Most condos are bought with cash, not with loan money. Some boreys (landed houses in gated communities) are bought with loan money though, but condos no. Prices will only fall on projects that are in bad locations. Rental prices though will and have already started to fall even in central locations. But the rents have been really high in Phnom Penh earlier.

Some? Try "most". Are for prices falling it's anyone's guess. They'll probably stagnate for a while once the world economy slows down, but I'm not sure if they'll really drop. A lot of things here don't make sense, but what makes sense or is logical for our Western minds don't really apply here. Land/condo prices are high, and that's that.

As for banks, pretty sure Prasac still offers 7-8%.

Totally agree with the bold part.

And I believe Sathapana bank also offers 7-8%.

Not anymore, 1% on a normal bank book these days. Used to be 4.25%.

I'm not sure what you're referring to regarding my post. Deposit rates? In a normal checking account, sure, maybe 1%. However, we're talking about savings accounts, aren't we (who would park savings in a checking account?)? Still easy to fetch 6-8% in US and Riel. I don't make a distinction between banks and MFI given that most of them now basically offer the same services. I have accounts with three banks, but I don't park cash in ABA or ANZ savings accounts...

As for mortgages, they're still well over 12% as far as I know. I was at Borey Peng Huot HQ just two days ago and they're the only ones I've seen with a killer deal (6.5% with Hong Leong bank). Most other mortgages will be north of 12%.

armchairlawyer wrote: ↑Thu Jun 20, 2019 7:53 pm

MikeD wrote: ↑Thu Jun 20, 2019 6:57 pm Arm...do you expect prices to fall given the continued oversupply of condo projects. Would it ne reasonable to assume 80% of the buyers are from overseas, particularly from China, driving up the prices? What is the local mortgage rate for $75,000? Do most buyers take out loans from local banks?

I don't know. The NBC clearly thinks there is a good chance of a fall in condo prices. The stats on the numbers of new units about to hit the market are pretty amazing. Loans can come from local banks or from the developer (the NBC comments on the risks associated with that). Rates are about 8-9% when from a reputable bank. Cambodians prefer to buy borey houses than condos. Given dollar shortages in China and difficulties in getting tenants for condos, sales to overseas buyers may be getting difficult.
There is another recent thread on Chinese investments in Cambodia.

How can loans be so low? When banks and finance companies pay between 5-8% interest>
I'd think ( maybe wrong) there will be a real over supply of condos in both places ur asking about