Does Cambodia’s investment environment good in the Southeast Asian?

To analyze the advantages of real estate investment, it is necessary to comprehensively consider the multiple factors such as local investment environment, housing prices, economic development, degree of capital opening, political situation, property market control, taxes and fees. The Compass has introduced the features of housing in Southeast Asian countries in terms of capital requirement, tax, housing prices, investment advantages in key cities, etc. Today, we will compare the advantages and disadvantages of housing purchase from the macro investment environment.

Myanmar and Laos are develop slowly and are not suitable for buying a house in terms of economic environment. Investment risks are high. Southeast Asian real estate investors mainly include Singapore, Thailand, Malaysia, Vietnam, Cambodia and the Philippines.

Singapore’s economy is well developed, and its development is better than other countries in Southeast Asia. The real estate market is mature. Therefore, Singapore’s real estate is very popular, but at the same time, Singapore’s housing prices are top level. Foreigners purchase real estate in Singapore are required to pay high stamp tax. Therefore, Singapore real estate can be bought for living, and the investment advantages are not obvious.

Apart from Singapore, Thailand is an ideal investment destination. Thailand’s political situation is stable, tourism is developed, prices are not expensive, and a large number of foreigners have lived in Thailand for a long time, and there is a big market for real estate rentals and sales. Thailand is also more welcome to foreign investment, and most of the apartment market are suitable for investment. In addition to higher prices in the core business district of Bangkok, there is available housing in other areas. Overall, Thailand's investment environment is very good.

Malaysia’s economic development is good, but there is a minimum amount for foreigners to purchase housing in the local area. The Malaysian government requires foreign buyers to only buy real estate value at least 1 million ringgit (RMB 1.64 million). The investment capital limits many people. In addition, there is a certain anti-Chinese sentiment in Malaysia, which has a certain impact on real estate investment.

The proportion of foreigners who can buy a single real estate project in Vietnam and the Philippines is relatively low. Vietnam’s capital is not open to the public, which is not conducive to capital inflows and outflows in core cities.

From the perspective of economic environment, Cambodia lags behind the above countries. Although the GDP growth rate in recent years has been very impressive, reaching about 7%, the total economic volume is still relatively low. In addition, the pillar industries are dependent on foreign investment. The pace of economic growth in Cambodia has slowed since 2019.

Economic development is backward relatively, but Cambodia's environment also has certain advantages.

For policy, since all industries in Cambodia are very dependent on foreign investment, Cambodia's investment environment is very loose, and foreigners are welcomed to invest in housing. Cambodia has no foreign exchange control and is denominated in US dollars. These two points are very advantageous in Southeast Asian countries and are conducive to real estate investment.

Cambodia’s housing policy for foreigners is even looser than Thailand. In addition to land, villas and houses on the ground floor, other properties can be purchased by person identity, unlimited purchases housing, and enjoy freehold property rights.

From the perspective of the development of the real estate market, Cambodia is in the early stage of urbanization construction. Modern residential areas will gradually replace traditional row houses. The real estate market has more room for development and real estate investment is bullish.

In the process of urbanization, increasing market demand is inevitable. Cambodia has a young population and rapid economic development. In the future, there will be a large wave of people who just need to purchase housing, and the property market is very dynamic.

Currently,Cambodia is dependent on the real estate industry to drive economic growth. The government supports the development of the construction and real estate industries firmly.