Just read an article from straits times that the apartment vacancy rates has reached about 9.2% in the second quarter of 2015, the highest since 9.8% rate at end 2005. This is mainly due to the record high number of home completions (19,941 private homes were completed last year and a further 42,606 private homes expected to be completed next year or so) in an attempt by the government to cool the blooming residential market.
So what is in for the landlords?
1) More landlords will face problems leasing out their apartments.
2) More Landlords may default on their mortgage loans
3) In the longer run, we can expect the rental yield to fall.
This is definitely not an ideal situation for investors/ landlords to be. Since this is the case, shouldn't we be looking to invest elsewhere where we can earn a decent rental yield return and at the same time there is capital growth potential.
The Peak Cambodia - One of the Most Anticipated Launch in Phnom Penh City, Cambodia is one investment that offers decent rental yield return with capital growth potential. Reports have indicated that the average rental yield in Phnom Penh City has reached an average of 10 percent in recent years, and with more foreign investments coming in, property prices are also expected to increase. Phnom Penh City, Capital of Cambodia, is facing a situation where there is more demand than supply for their residential market (as with growing middle class population and more expatriates relocating there). This is a good opportunity for investors to take advantage of the first mover advantage before the property prices in Phnom Penh City increases!
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