Kevin was so curious about his first flight to Phnom Penh 2 days ago.However, later he put down $2000 for his first Cambodia apartment.
In recent years, With the rapidly development of Cambodia , the property of Cambodia is getting hotter and hotter.As wen known that more and more international developer and investor are attracted by free hold and remarkable trntal return ,and the positive policy provided by government.
The commercial housing market in
Phnom Penh, Cambodia is in its infancy.
Cambodia is known to the world for its mysterious Angkor Wat.
Locals who have lived in terrace houses for generations (similar to China's homestead houses) have faced a mysterious building in recent years facing a towering modern building.
On December 26, 2018, on the Russian Avenue between the city and the international airport in Phnom Penh, the new building “Jinbian Impression” developed by the Shanghai Group was holding an opening ceremony for the marketing center.
This 16327 square meter real estate project with an investment of about 100 million US dollars is only a "small plate" in China's second and third tier cities. However, for Cambodia, local officials called it a "bright sum".
Kunsheng, the mayor of Phnom Penh, who came to attend the ceremony, said: “Phnom Penh currently has 212 communities and 1,100 high-rise buildings. In 2018, it received 1,102 new construction projects with a total construction area of 5 million m2. The investment amount exceeds 2.3 billion US dollars."
This means that the $100 million project is already one-third of the city's construction projects that year.
Mayor Kun Sheng visited the sand table of the Phnom Penh Impression Project.
According to public information, Cambodia has increased its GDP by more than 7% for five consecutive years. In 2017, it was also known as the “Asian economic tiger”.
The huge labor force and consumer market brought about by the demographic dividend have become the basis for the rapid and stable development of the Cambodian economy. As the capital, Phnom Penh has been assessed by the World Bank as the fastest growing and fourth fastest growing city in the ASEAN member countries, bringing together 85% of Cambodia's economic and educational resources, which has also driven demand for real estate.
From the public speech of Mayor Kun Sheng, the local government does not hide the welcome to real estate investors.
In his speech, Kun
Sheng frankly stated that the Royal Government of Cambodia is striving to
attract domestic and foreign investment, especially to increase the number of
investors in the real estate sector. “The real estate industry and construction
industry are important cornerstones of Cambodia’s economic development.” Phnom
Penh City welcomes the beginning of its urbanization.
In half of year 2018 Fong Lun founder of Wan Thun Group said: If you want to find the direction of transformation, you can go to the place where the per capita GDP is 3,000 US dollars, like Phnom Penh, Bangkok, and make money with your eyes closed. His sentence seems to be being verified.
The reporter saw at the scene that on the day of the opening of the project marketing center, many international investors have been attracted, and even one buyer bought 19 units of the entire floor of the 9th floor of the building. In addition, many overseas buyers who came to Cambodia for the first time have all paid $2,000 for booking units.
"In fact, compared to Kuala Lumpur and Bangkok, the current housing prices in Phnom Penh are still relatively low in Southeast Asia. For example, the impression of Phnom Penh, located in the central area of Phnom Penh and the airport, the Senate District between the Phnom Penh Special Economic Zone, the price is about 2,000 US dollars / square meter. A buyer named Kevin told reporters that he regarded Phnom Penh as China in more than a decade ago. Urbanization has just begun, real estate has just started, and there is still room for the future.
Another investor from a moderately developed country told reporters that she was most concerned about the local demographic dividend. “The population is growing so fast. After the urbanization is started in the future, there will be a market for real estate.” It is understood that in 2013-2017, Cambodia’s population grew by 112%, ranking third in the world’s population growth rankings and Southeast Asia’s first. The population growth in Phnom Penh is the number one in the world.
Today there are more and more real estate projects in Phnom Penh.
Southern reporters visited Phnom Penh City and found that more and more real estate projects have emerged in the city, ranging in price from 2000-4000 US dollars per square meter. For example, next to the impression of Phnom Penh, the “Prince International Plaza” built by the local developer Taizi Group is also under construction, and the opposite is a project developed by a Korean company.
In the urban area of Phnom Penh, the “Prince Central Square”, also created by local developers, attracts buyers through monthly rents to the monthly supply of gimmicks. Its billboards claim to buy a 53-square-meter one-bedroom and two-bedroom apartment, 20 years. The monthly supply is only $782, but the rent for rentback can reach $930/month with a return of 8.8%.
Another project, “PEAK”, which was participated by the Capital Land Group, broke the news that the Shangri-La Hotel has settled in, even if the price is high, it attracts many international investors.
It is worth noting that as the commercial housing market in Cambodia is still in its infancy, there is no perfect transaction statistics. However, according to Liu Wei, a local real estate market practitioner, with the arrival of more and more foreigners, the price of Phnom Penh has increased by about 15% every year since 2015.
However, it has also been suggested that the income level of local people in Phnom Penh is still low, and the price of 2000 US dollars per square meter is unaffordable for most locals. At present, the hot market will be the "self-defeating" of overseas buyers.
Liu Wei told reporters that local people in Phnom Penh have low spending power and are accustomed to living in townhouses. They rarely choose to buy commercial housing, and the local secondary market is not yet mature. But with permanent property rights and a rental return of 7-10%, the new homes in the area really attract attention from all over the world.
“There are few new houses available here. Now there are so many “gold rushers” who come here to trade and open factories all over the world. It is not easy to rent a house, and the rent is particularly high. In the newly developed project in Phnom Penh, the proportion of investors from overseas is also among buyers. More than 80%." Liu Wei said.
Liu Feng, president of the Shanghai Group, believes that the rapid development of the Phnom Penh economy has created a rising local middle class and attracted a large number of international elites to develop and settle. They are aiming at this demand.