Logo

Recent Articles

Outward Urban Expansion of Phnom Penh, with Hoem Seiha of VTrust Appraisal
Outward Urban Expansion of Phnom Penh, with Hoem Seiha of VTrust Appraisal
June 6, 2022, 5:05 p.m.
Realestate News
Phnom Penh is now home to 2.2 million residents, with an annual growth of 3.9 percent. With this fast growth of population, the central business districts of the capital, namely Chamkarmon, Daun Penh, Tuol Kouk, and Prampir Meakkakra (a.k.a "7 Makara" in uniform name), saw a slight decrease of population due to the fact that many residents relocated to the suburbs or outskirts of the city, even though the suburbs or outskirts saw a steady increase year over year. We are seeing an outward urban expansion of Phnom Penh. First, this outward urban expansion of Phnom Penh is occurring because central business districts have been surging in land and property prices and as a result owners might have enjoyed this opportunity and sold out for a considerably high price. Then, they use the money to buy property in the outskirts where land and houses are much lower, with leftover profited amount probably used to expand businesses or save for other things. Second, since property in the central business districts are most sought after, they can rent or lease to tenants who use it for business purposes. Then these property owners relocate to the outskirts and settle down there, enjoying their rents with a good price. According to the Cambodia Economic Census 2011, on average up to 55 percent of business establishments in the four mentioned districts had rented locations there for their business operations, higher than did in Dangkao district, the less-commercial area, only about 27 percent. Third, this urban expansion of Phnom Penh may be caused by traffic pressure and rat-race in the central business districts pushingย some people to relocate to the suburbs, where they can enjoy more peaceful and calm environment. Even though people have been moving out to the suburbs, central business districts are not quiet. In fact, businesses of all types have been there, patronaged by, for example, expats and working local people during the day. That is the reason we've seen people commute in large numbers from the surburbs and outskirts in the morning and leave for home after work in the evening, causing traffic jams only at the so-called 'rush hours'. Lastly, landed borey housing developments scattered throughout many of the outskirts of the capital, with a large take-up rate on pre-completion and completion, proves that the city is sprawling and the population gather pace at the suburbs to ease traffic and enjoy new communities out there. By Mr Hoem Seiha,ย Director of Research | VTrust Appraisal Co., Ltd
Dr. Sopon Pornchokcha: Exclusive Q & A on Cambodian Real Estate and Valuation
Dr. Sopon Pornchokcha: Exclusive Q & A on Cambodian Real Estate and Valuation
June 6, 2022, 5:06 p.m.
Realestate News
Realestate.com.kh caught up withย Dr. Sopon Pornchokchai, Ph.D., D.FIABCI, CRS, MRICS, President of AREA, Bangkok, Thailand, last time he visited the Kingdom, to get his view on the Cambodian property sphere.ย 1) What is your real estate experience in Thailand, and in Cambodia? Tell us about your career so far.I was involved in real estate since 1982 as a lecturer, planner, researcher and valuer - but I am not a broker nor a developer, so that I can stay academically and professionally neutral. I visited Cambodia in 2000 and have conducted surveys on housing estates in Phnom Penh since 2004. I have came back on many occasions to lecture for the Cambodian Ministry of Finance as well as the Cambodian Valuers and Estate Agents Association (CVEA) since 2010. 2) Why are you so interested in the Cambodian real estate sector? Why is this such an exciting market?Cambodia is a great country where there was once a big empire with a lot of historical heritage and culture to learn. In terms of real estate, Cambodia is one of the most booming countries in the region at this moment.3) What are the current issues in the Cambodian valuation industry?Since I came to teach valuation in Cambodia, I have observed that this profession has been developed very quickly. ย This comes from the great efforts of the related government agency, namely, the Ministry of Finance, as well as the leaders of the industry, namely the presidents and board members of the CVEA who have helped establish the industry very strongly with the help of the many individual companies within it. ย However, good and reasonable transaction data must be disclosed in order to have reliable sources of information for valuation, transaction and taxation purposes. 4) How can these issues be resolved into the future? In your opinion.The government must enforce the proper tax and land laws. Everyone must pay tax in accordance with their real transacted value. This tax must not be levied too highly though. It could be as low as 0.1 percent. However, in the case of annual property tax, the central government must allow local authorities to tax people themselves. Meanwhile, the budget which came from indirect taxes from the Central Government must be minimized. Then a good system of taxation and a sound property database can be established. 5) Why are valuation standards so important for a sustainable real estate market?Actually, valuation standards are the same everywhere in the world. It is rooted in economic concepts and there are only very slight differences in different standards worldwide. With that in mind, don't let those more advanced countries fool us into assuming that we are substandard. The matter should be more focussed on the indemnity insurance and proper control of the practices of the professionals in our country. 6) How is the Thailand real estate market different to Cambodia?Thailand and Cambodia were very similar some 60 years ago. Cambodia was even considered the โ€œParis of the East.โ€ Due to civil wars, Cambodia stopped their development. However, today, Cambodia is learning from other neighbouring countries very quickly and will be developed at the same pace with others soon. In real estate, landed shophouses are still popular in Phnom Penh (35% of the stock); whereas, condominiums are the majority of developments in Bangkok (60%). Also, Thailand has a lot more commercial properties due to the fact that people have higher purchasing power.7) How is the Thailand real estate market the same as Cambodia?The similarities between the two countries is the lifestyle and the housing preferences. We are on the same path of development, albeit Thailand sits a bit in advance. In Thailand, we are now in a rather 'dark' age where politics and economy are both slow and problematic. Whereas, Cambodia has a better political atmosphere for the future. Yet, Phnom Penh's real estate markets may reach a peak and cool down somewhat in the near future.
Sky Tree Condominium Press Conference, on Realestate.com.khTV
Sky Tree Condominium Press Conference, on Realestate.com.khTV
June 6, 2022, 5:06 p.m.
Property Reviews
Realestate News
Yesterday,ย J & L Property Development officially announced the launch of Sky Tree Condominium in Phnom Penhโ€™s Russey Keo district. J & L Property Development haveย over 20 years of local experience in Cambodia โ€“ and are working in strategic partnership with the world-renowned constructor MCC International Corporationย of Beijing, China; Urban Architecture, the most innovative and respected architecture company in the Cambodian market; Knight Frank, the renowned UK real estate consultancy firm; Century 21 Cambodia; CBRE Cambodia; Matsu Propertyย of Taiwan; &, of course, Realestate.com.kh, the premiere real estate search website and media agency in Cambodia.LEARN MORE ABOUT THIS EXCITING PROJECT: SKY TREE CONDOMINIUMย Guests of honor includedย Mr. Scott Wu, General Manager of J & L Property Development Co. Ltd,ย Mr Chen Shaochun, President of MCC International Corporation Ltd., and Mr. Sun Qingdong, Vice President of MCC International Corporation Ltd. As Mr Scott Wu, General Manager of J & L Property Development, said at yesterdays conference, "J & L Property Development is the mainย facilitator and ownerย of the Sky Tree Condominium project, bringing in world re-known and highly respected specialized partners in developing, planning, constructing, managing the various stages from start to completion, launching of project in accordance with the needs and means of the country, international standards and in a timely manner.ย J & L has a vision to help Cambodia to bring the country's image into the world property markets, and to do so is creating a world class product by collaborating with renownedย partners." J&L wish to make affordability of owning a condo, as a prime objective, by lowering prices as much as possible, suited to the local demand and financial means, but meanwhile maintaining a high quality finished condo product. J & L will provide a "one-stop" solution by bringing a foreign bank into the partnership to provide "hassle- free" housing loan directly to the buyers and investors of units at SKY TREE project. Local and International buyers are only required to pay an initial deposit of 10% of the total purchase price. This is affordable for local buyers. Buyers then have access to finance for the rest of the payment, with 40ย months of interest free finance to pay the balance 20% of the purchase price, then 70% bank loan available for all buyers for the remaining balance, with up to 15 years repayment. Sky Tree Condominium units start from just $89,440 NET. J & Lโ€™s founder, Mr. Simon, had a wish to create a healthy lifestyle for those living in the city of Phnom Penh, by introducing high technology based parts and materials imported from overseas, such as eco-friendly materials, air-tight window frames, tinted window glass frames, green features and nature built within the development.LEARN MORE ABOUT THIS EXCITING PROJECT: SKY TREE CONDOMINIUMย J & L Property Development wish to be a "catalyst" in quickly developing Phnom Penh into the world market for property investment; and is approaching major players in key markets in order to combine their regional expertise and expose the Phnom Penh market to their huge networks. J &ย Lย wants to ensure the safety and well being of the buyers and investors for the life of the development, and as such have partnered with one of the TOP construction companies in the world - MCC International Corporation from Beijing. The C.E.O and family will also be staying and living in the condo upon completion. Construction has already begun at the Russey Keo Site. Mr Sun Qingdong, Vice President of MCC International Corporation LTD, stated that "MCC ranked 326th among the worldโ€™s Fortune 500 companies and 10th in Engineering News-Recordโ€™s Global Top 225 Contractors.ย At MCCI, we specialize in designing and building the strongest portfolio of engineering feats around the world. MCCI has branches, subsidiaries and representative offices in Southeast Asia, Middle East, Africa, South America, etc.ย MCCI is proud to offer engineering, construction and overall strategic support for J & L Property Development Co. Ltd. Cambodiaโ€™s current and future projects." With the strategic support of MCCI Corporation, construction has already started at the site in Russey Keo, Phnom Penh - long before the saleโ€™s launch. Phase 1 will be completed by 2019, ready for handover to buyers. Mr. Melvin Baroga, Head of Design Department, Urban Architecture Co., Ltd, stated that "the design of Skytree Condominium is based on a strong desire to create an architectural impression that exemplifies grandeur. Pronounced perpendicular lines that extends from the podium up to the roof communicates a feeling of superiority from the surrounding buildings. Combination of horizontal and vertical design elements are used to communicate solidity. It creates rectilinear forms that suggests stability and permanence." "Residents can enjoy lounging by the swimming pool surrounded with greeneries or relaxing at the SPA and massage room. A mini-rainforest adjacent to the pool area is provided for those who wants to be immersed in the nature experience that Skytree has to offer. The spacious sky park on the connected roof decks is an ideal place for fitness and exercise. It offers a central space for residents to gather in the evenings," said Mr. Baroga. Although this is J & Lโ€™s first Cambodian project, it will be the start of many more to come.LEARN MORE ABOUT THIS EXCITING PROJECT: SKY TREE CONDOMINIUM
Knight Frank Asia Pacific Prime Office Rental Index 2016
Knight Frank Asia Pacific Prime Office Rental Index 2016
June 6, 2022, 5:06 p.m.
Special Reports
Realestate News
The Asia Pacific region is the place to be in right now if prime office property and rental growth is what youโ€™re searching for. This is what one of the leading global property consultancy firms, Knight Frank, suggests in their Asia Pacific Prime Office Rental Index 2016 report. According to the firmโ€™s thorough research, the Asia Pacific region has seen a combination of significant progress and constant stability in the first quarter of 2016. This is despite some prominent cities experiencing troubles and slowly slipping down the index. ย  In the Multi-sector Snapshot Q1 2016 report of Cushman & Wakefield, it is stated that in Beijing, โ€œnew supply in core markets elevated the overall vacancy rate, while rents remained stable.โ€ While that may be true, Knight Frankโ€™s data provides insight as to a projected decrease in rental returns and rent prices for the rest of the year for the city. Knight Frankโ€™s report continues to explain that โ€œin the first quarter of 2016, robust leasing demand from domestic firms in the finance and technology sectors drove net absorption to outstrip new supply in Beijing, arresting the downward trend in rents.โ€ Also among the cities that saw a downward rental trend are Jakarta, Perth and Kuala Lumpur; where an expected increase in supply has forced property owners to reduce rent prices, further decreasing rental returns for their properties. This, however, did not slow down or do significant damage to the Asia Pacific Prime Office Rental Index. As the average vacancy decreased by 0.2 percentage points, the index grew by 1 percent in the first quarter and accelerated from 0.2 percent in the previous quarter. The highest contributor to this growth is probably Tokyo which showed the highest 3-month percentage increase of 3.4 percent, followed by Seoul at 2.6 percent where both cities show a projected increase for the next 12 months. As Head of Research for Knight Frank Asia Pacific, Nicholas Holt, puts it, โ€œdespite our longer term forecasts suggesting we are nearer to the top of the rental cycle in many markets, the next 12 months will see further rental growth in the majority of markets tracked as tight supply and steady demand prevails.โ€ This growth is expected to be seen across 14 out of 19 cities which include Melbourne, Sydney, Shanghai, Hong Kong, Bengaluru, Mumbai, Taipei and Bangkok. "In Southeast Asia, Phnom Penh saw rentsย remain stable even as a surge in demandย drove down the vacancy rate by 10.0ย percentage points. With landlords vyingย to secure tenants as Hongkong Landโ€™sย Exchange Square nears completion, thisย trend is expected to continue." Considering that there are still many factors like government policy changes that may affect this continuous growth, Knight Frank is confident that prime office rental will remain to have stability at the very least. Holt explains, โ€œWhile the macro-economic story across the region remains uncertain, office markets have tended to see rents hold up fairly well over recent months.โ€ Recent years have showcased both extremes in terms of economic growth and the property market. Itโ€™s had its fair share of ups and downs, but as it continues to rise, it will really be an interesting and exciting time for the Asia Pacific region as it learns to nurture and cultivate its potential through proper investments.SEE KNIGHT FRANK CAMBODIA'S PROPERTY NOW
Interior Design opening doors for young Khmer business people
Interior Design opening doors for young Khmer business people
June 7, 2022, 4:32 a.m.
Realestate News
Year after year, the standard living for locals in Cambodia, and in particular Phnom Penh, is increasing. New types of property are changing Cambodian lifestyles; such as new standards of commercial buildings, office towers and co-working spaces, supermarkets, malls, entertainment venues, and modern residential developments. These structures offer proof of an increasingly modern lifestyle being adopted by the people of Cambodia.As this standard of lifestyle rises, increasingly Cambodian property buyers are demonstrating increasing demand for properties of a high standard and high quality. Accordingly, the business competition between property developers and designers in the nation is rising fast.These days we can also see more youth in Cambodia fresh out of school joining the business sector, bringing with them ambition, innovation, and a high level of commitment to their personal and business success.One such business sector being joined by more and more young entrepreneurs is interior design, as the demand for such services grows year on year.Starting a small business in the interior design industry is particularly attractive to the young-business sector in Cambodia because entering the market comes with very little risk, compared to some other professions.A young designer can easily catch a contract for the redesign of a restaurant, entertainment venue or home without a large portfolio of projects under their name and without the need for a lot of start up capital. Assisting them also is the growing popularity of the interior design sector across Cambodia.25 year old, Mavaly Chhoeum, senior staff from Studio INT in Phnom Penh, says that, โ€œmost of our interior design and construction projects are venues such as boutique clothes shops, restaurants, spas and many more places like this. Clients usually likes the contemporary concepts, and a try to make their spaces a bit more modern.โ€She added that, โ€œinterior design is highly demanded in the Cambodian market these days and competition is getting tough. It is important to travel to learn new things as much as you can, and always be creative and not a copycat.โ€โ€œInterior design business and construction is more and more popular in Cambodiaโ€ said 29ย Heang Venvitou, co-owner of Sathapanak Design and Construction.Interior design projects involve managing the creation of unique, attractive and livable spaces inside buildings. The design might follow trends of local taste or import standards of modern lifestyle through design from other countries around the world. Functionality must always be considered too.A good interior designer will leave their signature on the place that they remodel.Now Sathapanak has a collection of projects in hand, such as: boutique clothing store AXARA, Kobe Restaurant, a Spa, Bank, villa, and condo. For the materials that they use, they generally import from Thailand, Vietnam and some material from local.Interior design is driven by a passion to create something new; and given this aim, young Khmer business people with fresh ideas are perfectly suited to catch the market share in this business sector.Before Cambodia needed to import human resources in interior design from other countries, especially neighboring countries of Vietnam and Thailand โ€“ but now young interior designers are demonstrating that this is a local industry of great worth and reliability, and one with many opportunities.Find the best real estate news on Realestate.com.khlook for real estate for rent in Phnom Penh or real estate for sale in Phnom Penh? Check out Realestate.com.kh today.
CREA News Page 2024 ENG
World Bank ends Cambodian lending freeze while Boeung Kak evictees remain landless
World Bank ends Cambodian lending freeze while Boeung Kak evictees remain landless
June 6, 2022, 5:04 p.m.
Realestate News
In a statement published on its website last Thursday, the World Bank will resume lending to Cambodia, marking the first loans since the World Bank froze all new loans in 2011 surrounding controversy over the Boeung Kak Lake dispute.When the Bank announced the freeze in 2011, Country Director Annette Dixon stated: โ€œUntil an agreement is reached with the residents of Boeung Kak Lake, we do not expect to provide any new lending to Cambodia.โ€The bankโ€™s board of directors have agreed to restart lending for four Cambodian infrastructural projects as of last Thursdayโ€™s release, "aimed to bring tangible benefits for Cambodians," said Ulrich Zachau, Country Director of the World Bank for Southeast Asia. In statements this week to realestate.com.kh, the World Bank Cambodia stated that โ€œThe World Bank Group prepared the Country Engagement Note (CEN) in partnership with Cambodia, and in close dialogue with Cambodiaโ€™s development partners...The CEN envisages financing for seven investment projects, totaling about $250 million, from the International Development Association, or IDA, the Bankโ€™s fund for the poorest.โ€ย โ€œOver the next year,โ€ said the Bank, โ€œour focus will be to engage closely with all relevant stakeholders to ensure adequate completion of the preparation of planned projects.โ€ ย As a build up to recent announcements of restarting loans, the World Bank Group (WBG) had conducted a series of consultations across Cambodia last year, from June 29 to July 13, inviting a range of stakeholders to exchange their opinions with the Bank regarding Cambodiaโ€™s development opportunities and potential issues in coming years.While the consultation process included 17 face-to-face meetings with 635 stakeholders, including national and sub-national government officials and representatives, parliamentarians, private sector and civil society representatives, development partners and UN agencies, according to a summary of the Bankโ€™s website, the remaining evictees and community leaders of Boeung Kak were not involved in the process at any point.ย According to a host of NGO representatives, community leaders and past and present evictees of Boeung Kak Lake, such a new loan would undermine the World Bank directorโ€™s statements, the Inspection Panel Report 2011, and the 2014 Consolidated Appropriations Act - US regulation that calls for remedial action from the Bank regarding the Boeung Kak case, supported by the US Treasury, one of the Bankโ€™s largest funding sources.ย Eang Vuthy, executive director for Equitable Cambodia, who has met with the Bankโ€™s Washington office on several occasions, the latest in early 2015 with World Bank management staff, says the Bank has consistently cited the same excuse for inaction over the Boeung Kak issue: โ€œNothing can be done without Government cooperation.โ€ In statements this week to realestate.com.kh, the World Bank Cambodia has said that, โ€œLand issues remain an important development agenda for Cambodia. Fair and peaceful resolution of land conflict is critical to Cambodiaโ€™s sustained economic and social development. We welcome the substantial progress made to date in the provision of land titles in the Boeung Kak Lake area, where only a few remaining families remain in negotiations with the Municipality of Phnom Penh over size of land titles now.โ€
LE URBAN ECO PARK: A New Home For Sustainable Green Living in Cambodia
LE URBAN ECO PARK: A New Home For Sustainable Green Living in Cambodia
June 6, 2022, 5:06 p.m.
Property Reviews
Realestate News
Phnom Penh, May 17, 2016:ย C.I.A.C. Investment is pleased to announce the development of Cambodiaโ€™s first ecologically friendly satellite town โ€“ โ€˜Le Urban Eco Parkโ€™.ย Promoting a greener standard of work and living space, this mixed-use development project along National Road 3 is just 15 minutes from Phnom Penh International Airport and about 30 minutes from the city center. ย Le Urban Eco Park is founded on the principles of creating a unique and integrated community that incorporates industrial, commercial, and residential areas, whilst pioneering a new approach to environmental responsibility. Inspired by a vision where communities thrive in harmonious balance with the environment, and driven by pragmatism and energy efficient planning, the team at C.I.A.C. has combined sustainable practices with technological innovation to lighten their carbon footprint throughout the entire site. ย Le Urban Eco Park boasts buildings and workspaces designed to save energy, manage resources, and mitigate waste.ย SEE THE FULL LISTING AND INQUIRE FOR MORE DETAILS TODAYResidents and businesses benefit from significantly lower utility costs as a result of the developerโ€™s energy efficient design, which include solar powered water heating systems, advanced lighting controls, keycard entry system, and Singapore standard water treatment system. ย Le Urban Eco Park is an integrated community that promotes the wellbeing of its residents with a greener and cleaner living environment.ย  The use of natural light and found elements, such as bamboo, helps the park to create a cooler, brighter, and more energy efficient environment, while providing a modern look and feel. ย In addition, the developer has purposefully reserved over 30% of the green spaces to be used for public parks, recreation, and leisure areas. ย The aesthetics of this groundbreaking design concept will benefit everyone living and working in this eco-friendly environment.ย  โ€œWith more than 20 years of experience in real estate and industrial development in Cambodia, we wanted to raise the bar and initiate a unique new concept with energy conservation and long-term sustainability as our priorities.ย We believe that everyone should have an obligation to protect the environment. ย As the developer, we are dedicated to being responsible members of our community. ย We are mindful about how we use water resources, what materials we use, how we treat waste, and try to source as much as we can locally to further support the surrounding communities.ย We also want the staff to work in more comfortable surroundings, which means a clean, green, and healthy environment. ย We believe that a good work environment leads to better productivity.ย At Le Urban Eco Park, sustainability is integrated, intuitive, and innovative,โ€ saidย Kelvin Chua, Sales & Marketing Director of Le Urban Eco Park.ย  C.I.A.C. Investment is proud to announce that the Eco Parkโ€™s industrial facilities have been awarded the Green Mark Gold Certification by the BCA (The Building and Construction Authority) operating under Singaporeโ€™s Ministry of National Development. ย These built to order facilities come complete with employee accommodation, canteens, and rest areas, and span over a total area covering 18 hectares, with units of up to 100,000 square meters available for lease or purchase.ย  The residential apartment condominiums are freehold tenure with no foreign ownership restrictions. ย They guarantee returns of 30% over 5 years, provide attractive rental yields and high capital appreciation. ย Bank financed home loans are available for interested buyers with 25 year term at a competitive 9% p.a. interest rate. ย Construction of the units is nearly complete, with key handover expected to take place before the end of 2016.ย  The development will also feature a brand new retail experience, the โ€˜Eco Park Mallโ€™, combining commercial and retail shop houses, food and beverage kiosks, within a mixed-use commercial and residential area. The mall, the first of its kind in the area, is open to the public and will target youth and lifestyle retail businesses, technology, convenience, and fashion accessory shops and bring them to Cambodiaโ€™s next generation of young consumers, families, and travellers. ย Shop houses are available for sale off-plan and will officially launch June 8th, 2016, with construction slated to be complete by mid 2017. About Le Urban Eco Park:ย Le Urban Eco Park is conceptualized and developed by C.I.A.C. Investment Limited, a subsidiary of Ocean Sky Investment Pte Ltd., Singapore. With over 20 yearsโ€™ experience in real estate and industrial development in Cambodia, the companyโ€™s green efforts extend beyond operational aspects of development, to having a more sustainable and positive impact on the environment.SEE THE FULL LISTING AND INQUIRE FOR MORE DETAILS TODAY
Phnom Penh Land Prices Seek Predictability, says Key Real Estate
Phnom Penh Land Prices Seek Predictability, says Key Real Estate
June 6, 2022, 5:05 p.m.
Realestate News
Rising again from an economic depression in 2008, Cambodia has resolved to rise above expectations and circumstance. According to Director of Key Real Estate, Sorn Seap, in his presentation at the Real Estate Market and Outlook Conference (REMOC) 2016, this has manifested and converted into promising Phnom Penh land price figures in the years following the economic upset. Though, he suggests we are now in the middle of a golden economic era, Cambodia still has its fair share of things to address for sustainable success in the Phnom Penh land market. In a sector as big as the land market, progress does not come without sacrificing a few details. This is especially true in the Phnom Penh area where progress is most prolific. As foreign investors move in and new developments such as bridges and roads are built, a display of both positive and negative impacts has become apparent, says Sorn.One such impact is the decreased rate of progress in the condominium market at the start of 2016. Asia Real Estate general manager, Po Eavkong, in his interview with the Phnom Penh Post, said that sales decreased 30 per cent because of a high supply of units and high saturation of developments across the city. This has forced developers to reduce unit prices. This was a similar conclusion made by Hoem Seiha, the director of research for VTrust Appraisal, during his presentation at the REMOC2016 conference, too.While other segments reap rewards for their early developments coming online while the market is strong, it is the developers launching now that may experience the effects of the plummeting statistics. Another concern Seap mentions that may affect the Phnom Penh land market is the increase in Phnom Penh land prices generally. Phnom Penh has been one of the most sought after areas to invest in to buy undeveloped land to build properties on. Many foreign investors have been quick to grab the free land in Phnom Penh, and with no shortage of upfront capital to spend. Unfortunately, along with the high demand came higher and higher Phnom Penh land prices. The CVEA, in discussions last December, talked about the Phnom Penh land market prices. The 80+ real estate and valuation companies that make up the Association came to an agreement that Phnom Penhโ€™s average land market price for 2015 was about $3,050 per square meter. However, this is more than double the amount from a report released by VTrust Appraisal in its Journal of Real Estate โ€“ Volume 1, Issue 2 โ€“ where the average asking price was only at $1,140 per square meter.But this may not affect foreign companies looking to place their money in the local land market. Phnom Penh land prices are still relatively low compared to neighboring countries. The effects will more likely be felt by local developers and investors who are planning to purchase in the area of Phnom Penh. Further, it is felt by the lower class buyers now essentially blocked from the inner city Phnom Penh land market by high costs of entry. Though this may cause difficulties with future projects, this will also mean good news for suburbs of Phnom Penh that have garnered less attention than the four major areas of Phnom Penh dominated by investment thus far, namely Chamkarmorn, Daun Penh, Toul Kork and 7 Makara. Traditionally less-popular areas of the Phnom Penh land market will now receive the necessary support for them to gain investment in their real estate development, suggests Sorn. As development moves further away from the CBD, there will come a time that land prices will lower somewhat in the prime quarters and reach an equilibrium that is both beneficial and stable for the whole of the city; and the Cambodian real estate market generally.The first quarter seems like it has hit a roadblock of sorts, but with a change in strategy and government/private sector policies, a lot can happen in the remaining quarters of 2016.
Phnom Penh Serviced Apartments Market, with CBRE Cambodia
Phnom Penh Serviced Apartments Market, with CBRE Cambodia
June 6, 2022, 5:05 p.m.
Realestate News
One segment growing in leaps and bounds in Cambodia is the Phnom Penh serviced apartments market. While the condominium market in Phnom Penh is showing early signs of a slowdown in growth compared to previous years, the Phnom Penh serviced apartments market segment shows no sign of stopping any time soon. As Thida Ann, senior associate director of CBRE Cambodia, puts it in her presentation at the Real Estate Market & Outlook Conference (REMOC) 2016, Phnom Penh has the largest share of supply and according to the CBRE Market research, occupancy across the whole market of Phnom Penh is at 85.83%.This high occupancy rate and low supply ratio is great news for potential serviced apartment developers, whether from the local or international sphere.WANT TO RENT PHNOM PENH SERVICED APARTMENTS?The CBRE Cambodia Q4 2015 report places 35,000 expats applying for permits to work in Cambodia, while the supply of Phnom Penh serviced apartments is only at 6,494. This means only 18.55 percent of these expats have readily available serviced apartments for their stay in Cambodia. This is the same reason why price per square meter is notably high in the Phnom Penh serviced apartments market. Though there are ongoing serviced apartment developments in this market to help provide competitive prices for potential customers, Ann notes there are ongoing projects that will be completed soon to further supplement the market. Further, the ongoing potential for Phnom Penh serviced apartments shows a highly optimistic outlook.Earlier developments in the Phnom Penh serviced apartments market provide a preview as to what future renters may expect in the next few years, suggests Ann; such as the Suncity serviced apartments, Skyline serviced apartments, Maline serviced apartments and Central Mansions. These serviced apartments have already provided many people with homes and have given their investors a great return for the investments they had placed into the development of the property a few years back. Ann further explains that Phnom Penh has the lowest rental rates for Grade-A serviced apartments ranging from 1- to 3-bedrooms in Mainland Southeast Asia. This is as compared to Yangon, Ho Chi Minh, Hanoi and Bangkok; who also have growing serviced apartment markets. Ann further explains that not many apartments accept short-term lease for less than three months. Tenants will lose their deposit if they move out before the lease expires. This provides stability and ample security for the landlords, but can limit the choices for short-term renters. ย Ann adds that there is a misconception that the price will solely dictate the success of Phnom Penh serviced apartments as they come online. Rather, she clarifies that if you put the right property, at the right location and manage it well, the apartment will always have a good chance of success. Toul Kork is growing fast in general and will soon need a larger supply of serviced apartments; and Daun Penh is showing particularly high occupancy rates.CBRE Cambodia have a highly positive perception of the Phnom Penh serviced apartments market; but Ann still warns that developers must be aware that there are still challenges in the Phnom Penh serviced apartments market that they should approach with caution; such as a lack of quality property management, concierge services and a lack of parking spaces.As the real estate industry and construction segment moves forward, if developers play their cards right, the Phnom Penh serviced apartments market will play a big role in their pursuit of success.WANT TO RENT PHNOM PENH SERVICED APARTMENTS?
The Cambodian Real Estate Sector "Big Picture"
The Cambodian Real Estate Sector "Big Picture"
June 7, 2022, 2:58 a.m.
Realestate News
With the decline of investment opportunities and political stability in neighboring countries and traditional hubs of international real estate investment, more and more foreign investors are closing in on the Kingdom of Cambodia and the Cambodian real estate sector. As this vehicle for growth continues, it pays to step back and consider the major victories and potential pitfalls of the Cambodian real estate sector as a whole. Despite beginning from a highly distressed market around 25 years ago, Cambodia has slowly moved through the ranks and emerged as one of Asiaโ€™s fastest growing economies. One reason for this is because of revisions to government policy that have made business transactions much easier, convenient and increasingly transparent. This isnโ€™t only profitable for the international market, but also for the local developers and consultancies who have been working to make the construction and Cambodian real estate sector a major contributor to macro-growth of the Cambodian economy.The governmentโ€™s efforts to assist this sector to thrive has resulted in increased gross domestic product - where in 2015, the World Bank declared that the countryโ€™s GDP rose from roughly $16 billion to $18 billion; with construction as the overriding driver behind this growth. The Asian Development Outlook by ADB also mentioned that โ€œCambodian economy remains strong, despite a slight growth for 2015 and 2016 due to economic disturbances, with a forecast at 7 percent GDP growth in 2015 and 7.2 percent in 2016.โ€ In his talk at the Real Estate Market & Outlook Conference 2016 (REMOC), Hoem Seiha, the director of research for VTrust Appraisal, explains that this may be one of the contributing factors to the continuous progression of population incomes; which grew from $102 per capita in 2009 to $136 per capita in 2013. This is confirmed through a research report made by the National Institute of Statistics. This has led to a rising of the middle class as well, mentioned Hoem, increasing consumer spending across the board.As 2016 rolls on, Hoem also believes that commercial properties are now reaping the fruits of their construction cost and labor as new commercial developments are seeing more and more income from a larger share of the population. Some of these developments include the Sovanna Mall, Canadia Tower, Phnom Penh Tower, Vattanac Capital Tower and the AEON shopping mall. To confirm this point, CBRE Cambodia has projected that about 300,000sqm of net leasable retail areas will be available for commercial occupation by the closing of 2016.Shop houses and villas within โ€œboreyโ€ land projects still remain the preferred option for Cambodian buyers; who see in-house financing deals from developers and staggered payment terms as a key advantage when looking for a new family home. Shophouse flats which have multiple floors, one of which opens to the street, also remain a popular choice for local investors and buyers, such as newly-wed couples, because these can be used for both residential and business opportunities. Cambodianโ€™s generally want an opportunity to own their own business, even on a small scale - and these types of properties allow for this. There is, however, a slight change of pace for the Cambodian real estate sector as condominium sales have slowed and may continue to slow, notes Hoem. According to Century 21 Cambodia, the Sales-to-Stock ratio in the condo sector took a knock from 25 percent to 7 percent in 2015 to 2016 alone. But it may be too early to tell if this will be the case for the whole year or not. Hoem states that this effect may be due to the fact that the condominium market has an excessive supply given local uptake, and a demand that has become predominantly dependent on foreign buyers. This is due to the average price per unit being out of reach for most locals, a lack of appropriate financing options for local needs and a lack of demand for non-landed properties according to domestic Cambodian tastes and preferences. As Cambodia reaches for its full potential, there are still a few threats that it has to acknowledge and learn from. Learning from these indicators is necessary for Cambodia and the Cambodian real estate sector to maintain economic progress and a competitive edge. One thing is for sure though โ€“ its future remains exciting!
The Charm of Cambodia for Property Investment
The Charm of Cambodia for Property Investment
June 6, 2022, 5:06 p.m.
Realestate News
Talks of growth in Cambodia has made it a hot-spot for foreign property investment in the last few years, and the nation is receiving worldwide interest from property developers and investors. Known for its beautiful culture, awe-inspiring beaches, mystical forests and rivers, and enormous temple complexes, itโ€™s easy to understand why everyone wants a piece of it.ย But more than the aesthetic beauty of the country, there are a few other things that give Cambodia its property investment charm:U.S. Dollar Based Investment:Cambodia has used the U.S. dollar as one of its main currencies for a long time now, over 20 years in fact. The government explains that the US$ provides stability in the market with ease of conversion from Riel (the local currency). This makes transactions less complicated for investors and offers a currency option that faces very few transfer restrictions around the world. There are no restrictions for exchanging US$, making it a highly-free flowing currency, and a global currency showing superior stability to all others over recent years. Transferring funds from abroad into Cambodia is very easy and able to be done with very little process. Meanwhile, when you resell your property in Cambodia, you can transfer your money outside of the country very easily, simply by showing your receipt of sale. Many regional banks that have opened in Cambodia also offer ample support for foreign investors who wish to enter the growing real estate market of Cambodia.Early Development Phase:Even though the Cambodian real estate industry has come a long way in the preceding years, there is still a large chunk of undeveloped land and untapped districts able to be utilized by investors and developers from overseas. Most developments in recent years have focused on the capital Phnom Penh, the beach town of Sihanoukville and the tourist destination Siem Reap; but Cambodia still has huge potential for growth in other regions, and investors are welcome to join in when they bring FDI, infrastructural support and experience.Impressive Growth in GDP:Research from a large variety of sources has demonstrated a consistent average GDP growth of 7 to 7.5 percent in the last 5 years for Cambodia. This has allowed the Kingdom to rank 21st in this measure of growth worldwide, and the 1st in the Southeast Asian region โ€“ further solidifying its integrity for potential growth into the future. While the bulk of this GDP has traditionally come from garment manufacturing, the economy is entering a phase of diversification and value-adding upskilling which is set to take the economy to a new level of sustainability, for both investors and Cambodian nationals. In fact, last year construction was the largest engine of GDP growth in Cambodia - a testament to the emergence of a booming real estate industry. Appreciation gains for Cambodian real estate are much more attractive than other established markets thanks to the nationโ€™s consistently fast growing economy and GDP. Buyers of property in Phnom Penh, for instance, can safely expect 6 to 8 percent appreciation each year.Secure Assets:Development in policies regarding strata titles, whereby foreign investors can purchase co-ownership in a property as a workaround of the Cambodian State Constitution, has proven to be a profitable decision for its economy and a key for foreigners looking at entering the real estate market. Long term lease policies have likewise allowed huge opportunities for international investors to enter the market and these have provided security sufficient to encourage more and more inward investment.Strategic Trade Location and Logistical Integration:Lying between equally competitive and growing neighbor countries, Cambodia is located alongside Thailand and Vietnam. Meanwhile, the economy sits between the two giants of China and India, with consistently growing partnerships with both. It has also joined ASEAN and has established highly beneficial trade agreements with Europe, North America and Australasia. Infrastructure and trade services have been one of the things Cambodia has pushed very hard on in recent years. That is why it has continued to build better roads, railways, bridges and deep sea ports. It has also continued to develop its international flight connections across the country so as to integrate fast transport and travel for investors. As part of Chinaโ€™s โ€œOne Belt One Roadโ€ policy, the country will also soon see interconnecting railways across the Asian region and into Europe.Political Stability: The fact that the Kingdom has had one prime minister for almost a quarter century means that there has been, and will continue to be, consistency and continuity in its highly investor friendly policies and political practice. In fact, the current prime minister represents the longest-ruling non-royal leader in South East Asia. Out of the ASEAN nations, Cambodia has demonstrated itself to be within the top 3 in regards to political stability. Retirees' Mecca:Cambodia boasts a low cost and high-standard of living for retirees; offering a great lifestyle at a fraction of what it would normally cost in other places in the region, and tiny compared to highly developed economies. This is what makes it a perfect retirement spot for foreigners. This is becoming increasingly so as the nation's logistical connections, health system, schools, visa support systems and infrastructure grows in leaps and bounds. People:According to the Population Division of the United Nationsโ€™ Department of Economic and Social Affairs, Cambodia has about 15,700,000 people, and these people are the Kingdomโ€™s greatest asset in terms of growth. They are not merely spectators to growth; they are the drivers of economic progress - given that 70% of this population is under 30 years of age! Aside from that, the people of Cambodia are also naturally friendly and welcoming, and most understand the value of partnering with internationals for benefits in terms of sharing worldly experience, education and economic benefits. ย  These are just some of the things that have given Cambodia its charm for investors in the last decade. And as more and more people see the great accomplishments in its past developments and its full potential beginning to emerge, it will soon grow even more attractive for property investment opportunities, whether at a personal or at a business scale. Nevertheless, for the most appreciation, NOW is the time to consider investing in Cambodian real estate! FIND A PROPERTY NOW!
Century21 Cambodia Embark on a Global Strategic Business Development Tour
Century21 Cambodia Embark on a Global Strategic Business Development Tour
June 6, 2022, 5:05 p.m.
Realestate News
The Global Strategic Business Development (GSBD) Team at Century 21 Cambodia will soon embark on a month-long โ€œGlobal Strategic Business Development Tourโ€ whereby they will visit China, Hong Kong, Macau, Taiwan, Thailand, Singapore, Japan, Malaysia and Indonesia, promoting Real Estate investment opportunities in Cambodia. The tour team will consist of Mr Kuy Vat, Chairman/CEO Century21 Cambodia; Mr Seraj Sutton, Director of Global Strategic Business Development at Century21 Cambodia; and Mr SamAth Him Sprung, Director of Global Strategic Business Development at Century21 Cambodia. Century21 Cambodia, through their tour series, wish to be a catalyst in spotlighting Cambodia in the world market for property investment; and will be approaching major players in key markets in order to combine their regional expertise and to expose the Cambodia market to the huge Century21 Global Network. Even while Cambodiaโ€™s construction and economic boom continues, many perceptions of the wealth of the country and the potential for returns on investment are still being overlooked in major global markets, despite nearly two decades of swift economic growth. While the Century21 Overseas tour seeks to identify investment opportunities abroad, it also seeks to alter this mindset and funnel investment capital back to the Cambodian property sector. With up to 80ย percentย of Cambodian new development projects being bought by International buyers, property developers in Cambodia must educate the global market on the benefits of investing in the Kingdom. Through this tour, Century21 Cambodia is pioneering this mission, and a mission that will bring benefits not only to Century21 offices in Cambodia - but the entire property market sector in Cambodia! Mr Seraj Sutton, Director of Global Strategic Business Development at Century21 Cambodia, said that, โ€œWe at Century21 Cambodia are very excited and feel quite positive about the way real estate market in Cambodia is developing and are proud to present Cambodia to the world.โ€ The month long expedition is to promote Cambodian-based property investment opportunities to the International investors and also to identify overseas investment opportunities for Cambodian-based property investors; The investment tour will provide a unique opportunity for personal interaction to close the gap between the investor and the opportunity. In each of the 9 countries they will visit in phase one of the Business Development Tour, the Century21 Cambodia team will harness the Century21 Global Family Network in each of these countries, tapping each country franchisesโ€™ network of investors, property owners and sellers. With 7,100 offices, across 78 countries and over 100,000 Professional sales agents, the Century21 Global Family is well positioned to promote new real estate developments in Cambodia to surrounding countries. After the Century21 Cambodia Asian Business Development Tour is complete, they will then look to wider global markets to share information about Cambodian property investment, namely they will visit Australia, USA, Belgium and France.
Featured Agent Profile: CBRE Cambodia
Featured Agent Profile: CBRE Cambodia
June 6, 2022, 5:05 p.m.
Realestate News
CB Richard Ellis (Cambodia) Co., Ltd. (CBRE Cambodia), first came into existence in 1993 and is now the worldโ€™s largest commercial real estate services and investment firm.CBRE has an employee count of 70,000 in 400 offices worldwide. Foreign nationals from the UK work within each subsidiary company and pass on international knowledge to local staff in offices across the globe.Attributing to its strong market growth and expansion, CBRE Cambodia launched in Phnom Penh, Cambodia, in 2008.Equipped with more than two decades of experience in the real estate industry, CBRE Cambodia has provided assistance in all different aspects of the real estate industry, all over the Kingdom. With the help of its specially trained experts, they offer services like execution for property sales and leasing, strategic advice and consultation, corporate property sales and management, full facilities and project management, all types of appraisals and valuation, mortgage banking, in-depth research and consultancy.CBRE Cambodia also have experience in a lot of types of properties and transactions, including villas, boreys, condominiums, apartments, shop houses, office leasing, industrial space, hotels, resort, land, investment, retails for rent and retails for sale.Senior Associate Director, Sothida Ann, says that, โ€œCBRE does not directly invest in or acquire projects in the market; we are a service provider using our experience and regional support to provide our clients with the soundest advice when they are looking to invest in the market. One of our main areas of work is in research to advise developers and investors on whether it is the right time to enter the market, often performing feasibility studies for the client to see if their project is viable.โ€With its goals focused on setting a strong regional presence and widely respected service record, CBRE Cambodia have attracted, and are still attracting, investors from all over the globe to the Kingdom.CBRE Cambodia represents one of the most trusted and reliable firms in the Kingdom - not just because of its years of experience globally; but because of what they have achieved in the two decades that they have operated.As a testament to its success, CBRE Cambodia has been involved with key local projects such as the Australian Embassy, Phnom Penh Tower, Hongkong Landโ€™s new development projects, Vattanac Capital Tower and Song Saa Island Resort, to name just a few.CBRE Cambodia leads the pack; because, unlike its competitors that offer only two-dimensional assistance packages for potential owners and investors, CBRE Cambodia has made certain that it can offer 360 degree assistance from step one - the time that you would need the most guidance and education - right through to final completion.CBRE Cambodiaโ€™s triumph is not only in acquiring as many investors as they can to grow their business, but in the quality of their services: an irreplaceable tool for investors and developers to find success in their current and future ventures.VIEW CBRE's BEST PROPERTIES NOW
Kingsland Global Commits to the Cambodian Market
Kingsland Global Commits to the Cambodian Market
June 6, 2022, 5:06 p.m.
Realestate News
Formed in 2015 as the holding company of Kingsland Malaysia and Kingsland Cambodia, Kingsland Global (ASX: KLO) specialises in commercial and hospitality property development across Asia.ย  Tracing its origins from Kingsland Development, which has over 37 years of experience in the property development scene in Singapore, Kingsland Global is excited to extend its property development expertise to more territories around the globe - none less than Cambodia. Entering a joint venture with a Cambodian partner, Kingsland Global is proud to announce its entry into the Cambodian property market. โ€œWe are extremely pleased to partner with Kingsland Global in this joint venture which we believe will lead to many dynamic projects now and into the future. Bringing their own brand of professionalism and strict adherence to safety standards, Kingsland Globalโ€™s values and culture โ€“ such as their daily toolbox meeting that kicks off every working day with a stringent safety check on site - will help to raise market standards across the board and greatly add value to the local community,โ€ as said Mr. Pheap Horng, Chairman, CamTrip Investment Co. Ltd., Kingsland's Cambodian JV partner. Jeremiah Lee, Managing Director of Kingsland Global, stated that,โ€œKingsland Global is particularly excited by the possibilities and opportunities that the Cambodian property market opens to us. With its fast-growing economy and promising prospects, we are confident of harnessing the benefits of Cambodiaโ€™s favourable investment climate to deliver high quality commercial and hospitality development projects in the local property scene. We believe our commitment to quality and excellence will allow us to capitalise on the limitless potential the Cambodian property market offers, especially at this point of time when it is still entering its early stages of development.โ€ Infusing value and lifestyle in all their projects, Kingsland Global has demonstrated its standard of excellence through quality projects across Asia. Kingsland Global is currently embarking on more exciting commercial projects that will allow the company to share their expertise and dedication to property development with all partners and clients. Ensuring trust and reliability remain the cornerstones of their corporate integrity, Kingsland Global strives to be Asiaโ€™s leading integrated property developer by bringing these values into the Cambodian market and every region that they expand their expertise to. Kingsland Global is proud to announce some upcoming projects in Phnom Penh. To be operated by the acclaimed hotel operator, Wangz Singapore, 228 Oknha Peich is a 13-storey boutique hotel located in Khan Daun Penh which houses many historical monuments. Slated to be completed in the 2nd quarter of 2017, this stylish hotel is equipped with multiple facilities and looks to provide tourists and business travelers with a luxurious home away from home. Another upcoming iconic development, One18 Residences is a luxurious 24-storey apartment providing quality living and hotel-like amenities right in the heart of Phnom Penh city. Look forward to a first-class residential experience like none other when the project is completed soon. For more info on Kingsland in Cambodia, please get in touch with Kingsland (KH) Development Co Ltd, #34, Street 200, Sangkat Boeung Raing, Khan Duan Penh, Phnom Penh, Cambodia (Tel) +855 77 3399 20, (Fax) +855 23 2217 07/08 or Kingsland Global Headquarters (Singapore); (Tel) +65 6362 8998, (Fax) +65 6363 7031; or email info@kingslandglobal.sg