Cambodian real estate can have many ways to play!

In recent years, Cambodia has become a highlight of economic development in Southeast Asia, known as the "new tiger of Asian economy". Like the rapid development of the country, Cambodia's real estate industry is also experiencing a "shaking" transformation.

In Cambodia, housing prices in many cities, such as Phnom Penh and West Port, are rising steadily. Compared with previous years, the value-added rate has reached 35%. The rate of return on rent in Phnom Penh is about 8%. The annual increase in housing prices is about 20%.

Why is Cambodia's market so hot?

Cambodia's booming property market began in May 2010. Prior to that, Cambodia had very little real estate investment. Because foreigners can not acquire property rights in Cambodia, a large number of foreign investment can only be expected to "house" sigh, and only rely on Cambodia's limited capital and population can not drive the real estate market.

In May 2010, the Cambodian Government promulgated the Aliens Real Estate Property Law, which stipulates that foreigners and their own nationals enjoy the same permanent property rights treatment of Cambodian real estate. At the same time, Cambodia does not have excessive luxury taxes and fees. Cambodia also has one big advantage over other countries in Southeast Asia: trading in dollars. For the overseas market, this undoubtedly increases the stability of property value. The "gold seekers" from Singapore, Taiwan, Korea and Japan have come to Cambodia to invest and buy property.

The real estate market in Cambodia was completely changed by the large-scale arrival of Chinese capital in 2016. In 2017, the total foreign investment in Cambodia reached 5.2 billion US dollars, about 44% more than the $3.6 billion in 2016, of which China's investment reached 1.43 billion US dollars, accounting for 27%, nearly six times that of Singapore's second place ($252 million).

According to the report of the Ministry of Land Planning and Construction of Cambodia, from 2000 to September 2017, there were 287 real estate projects developed by foreign-funded companies in Cambodia, with a total investment of US$4.297 billion. Among them, 110 projects were owned by Chinese-funded companies, with a total investment of US$1.656 billion, making Cambodia the largest source of investment in the real estate industry.

It is reported that although Cambodia's real estate market still has foreign capital such as Singapore and South Korea, Chinese capital is undoubtedly the leader. "Compared with two years ago, Phnom Penh has a large area of green space, which are real estate projects developed by Chinese enterprises."

Foreign capital has entered Cambodia's real estate market in large quantities. In addition to the property rights preferences provided by the Aliens'Ownership Act, Cambodia's foreign exchange policy is also a major driving factor. Cambodia's foreign exchange policy is 100% open. Compared with other countries'strict foreign exchange control, Cambodia's foreign exchange policy freedom is quite attractive.

Take Phnom Penh, the capital, for example, where land prices are rising by about 15% and rents by about 6% to 8%. Moreover, the rentable apartments in Phnom Penh are far less than the resident foreigners. With the open foreign exchange policy, there is a huge return on investment in real estate in Cambodia.

Active leasing market

In Cambodia, more and more investors have made profits by buying real estate for rent. But in order to get the best return, we need to understand the real estate market and the factors that promote the rental market in detail.

The local rental market is divided into two parts: Cambodians and foreigners. At present, the rise of Cambodia's new rich class is indeed conducive to the development of the real estate market, but for the rental market, the target customer group is still mainly foreigners.

Therefore, in order to achieve capital growth and ensure the best return, the property must meet the needs of foreign tenants.

In Phnom Penh, foreigners mainly come from staff of foreign enterprises. Today, with the strong development of Cambodian economy, more and more foreign-funded enterprises have been stationed in Phnom Penh. According to incomplete statistics, there are 120,000 foreigners holding business visas in Phnom Penh, and the number is still rising.

These foreigners gathered in the capital's most central and prosperous ares,such as Boeung Keng Kang 1 to Boeung Kang 3, Sang Park, Diamond Island and other areas. In addition to the above areas, there are other secondary markets around Phnom Penh, and the potential for future development should not be underestimated.

Unlike other major Asian business centers such as Hong Kong, Singapore and Tokyo, the location of foreign tenants in Phnom Penh is limited by their overall budget.

However,it should be noted that rent is not their priority.

They prefer furnished houses, especially those with good overall quality and fine decoration. The aim of foreign tenants is to build a modern and practical house.

Shitonghk003 is very necessary for investors to grasp the rental preferences of foreigners.At the same time , it needs to be clear that Phnom Penh has a strong potential for real estate investment . For a long time to come ,it is more to suitable for investment.You only need to know what kind of real estate to invest and which area is the most suitable.