Buying and selling land is a very common topic for debate and discussion among Cambodians though it is now the year for national election, national assembly election in 2008. Before, people like to talk about election and political stability, but now they like to talk about land business.

The land price has increasing day after day and it is predicted to get higher in the future while the Prime Minister Hun Sen declared about political stability and peace within his reign of power. Taking this into account, land speculation is becoming an interesting topic among Cambodians. People, in particular in Phnom Penh, are taking land buying and selling into serous account. If someone knows about lots of land selling at any where, then people go the land areas and buy some lots of land. Within this stage, we can see there are high demand of land (people are going to buy land). After this transaction, you will see that the land buyers will try to sell their land while buying land at that areas is decreasing. That is because new land buyers know that they may get profit or high profit. It makes a situation where supply is higher than demand.

According to law of demand and supply, if supply is higher than demand, there will be decrease in price. As I showed you above, the supply of land is higher than demand of land. But I noticed that the land price does not decrease, because there is high speculation from economic and political stability. High expectation in price increase makes land price increase though demand is lower than supply.

Coming to this point, I just want to express my opinion and argued that if there is still high expectation from business (get profits), the higher supply does not make price decrease.

The issue in land price is still like this. It means that expectation is still determinant factor for the increase in land price. The expectation means that there will be higher demand in land in the future as there is increase in population, economic growth, and macro-economic and political stability.