Where should international investors invest in Cambodia?

Did you know that foreigners can own 100% of a business in Cambodia and there are no trade restrictions? And there is no price control in place ! 

Cambodia, often known as the Kingdom of Cambodia, is a Southeast Asian country located in the southern part of the Indochina peninsula, surrounded by Thailand, Laos, and Vietnam. 

#What can a foreigner buy in Cambodia?

Foreigners can buy or invest in Cambodian real estate, however there are some limitations. Foreigners are only allowed to own up to 70% of any building on the first floor or higher (not the ground floor), and they are not authorized to buy landed property. Furthermore, there is no requirement for a minimum investment amount; all they need is a valid passport and, of course, cash. When it comes to property investment, there are no mortgage options available for foreigners, except for few established developers that offer short-term financing.

#So, where should you investing in Cambodia?

The three key cities where the majority of international investors will focus their efforts are as follows:

*Phnom Penh

For the past few years, all main Phnom Penh real estate markets have been overcrowded. Massive construction in the city, from luxury to affordable housing, from local developers as well as China, Hong Kong, Singapore, and Malaysia.

The average apartment costs roughly USD2,000 per square meter. Depending on the size and location of the property, average apartment prices range from USD$90,000 to $300,000 USD. Depending on the property characteristics, the rental market might bring anything from USD500 to USD2,000 per month. The rental yield might easily reach 6 to 8% per year in most cases. 

*Siem Reap

Siem Reap is Cambodia's second largest city and a popular tourist destination, mainly for its world's largest religious complex, Angkor Wat. It is one of Asia's most popular tourist destinations, attracting over 2 million visitors each year. As a result, tourism is one of the city's key economic drivers, providing numerous job possibilities for locals. 

As a result, the city has a large rental market that caters to both locals and foreign tourists looking for a short-term vacation house. Though there aren't as many luxury projects in Siem Reap as there are in Phnom Penh, there are still plenty of flats in and around the city center, and property prices are slightly lower. Depending on the size and location of the flat, the median price ranges from USD$68,000 to 163,000. The average monthly rent is roughly USD400 to 450, depending on the size, location, and furnishings of the flat.

*Sihanoukville 

Sihanoukville is a coastal city in Cambodia, about four hours from Phnom Penh and surrounded by an almost continuous stretch of beaches. It is home to some of Asia's most beautiful beaches as well as a leading seaside resort. It also features some of the most affordable beachfront and beach view properties in Asia. Thousands of mainland Chinese laborers, developers, and investors flocked to this city in recent years until the Cambodian government banned gaming licenses.

The Chinese presence in Sihanoukville accounted for about 90% of the overall expat population in the city, causing property values to treble between 2016 and 2018 and rental yields to reach double digits. However, since the internet gambling industry was outlawed earlier this year, property sales and rentals appear to have suffered significantly. Apartment prices in Sihanoukville range from USD$90,000 to 180,000, with the median property price now hovering at USD$116,000.

Source : Juwai