The Unassuming Economist

The IMF’s latest report on Cambodia says:

“Real-estate sector risks. Capital continues to flow into the construction sector driven by regional investors and strong demand for residential and retail space. Significant data gaps, including on property prices, complicate the assessment of risks. There is anecdotal evidence that growing oversupply is dampening prices of high-end apartments, while, given the segmented nature of the market, property prices for retail and residential properties remain robust. As a result, affordability of residential housing is being eroded. Credit growth to the real estate sector, a key transmission channel linking credit and economic growth, has averaged around 35 percent since 2016, driven by few banks. Further heightening risks, real-estate developers are reportedly offering mortgages with looser lending conditions, an activity that remains unmonitored and unregulated.”