The Borey Bubble
For a decade, the 'Borey' (gated community) layout was the safest asset class in Cambodia. However, aggressive expansion into peri-urban zones without supporting infrastructure has led to a supply glut. We verify that over 30% of launched projects in 2022 are now effectively stalled.
Key Risk Factors
- Installment Fatigue: Buyers who utilized developer-financing (often 12-15% interest) are defaulting as the real economy slows.
- Shadow Banking: Many developers relied on "customer deposits" as working capital. As sales slowed, construction funds evaporated, creating a death spiral.
We advise strictly avoiding uncompleted stock in the <$100k segment. The secondary market for completed units offers a 20-30% discount to developer price lists.