Chamkarmon district has surely been seeing a continuous rise of land prices year after year, BKK, Toul Tumpung and surrounding areas proving to be a haven for foreigners and very wealthy Khmer. But, according to a recent report and commentary from experts within the industry, lack of infrastructure capacity, and trends among locals moving to the city’s outer reaches, will eventually slow Chamkarmon development growth.According to a report from the VTRUST Journal of Real Estate released on October 26 this year, Phnom Penh’s land prices have risen by approximately 10 per cent year after year. In Chamkarmon this climb has been the most extreme. In Chamkarmon district, especially BKK, sub streets cost around $2,000 to $3,500 per square metre, and land along major streets costs about $4,000 to $6,000 per square metre.With property demand continuing to grow within the Chamkarmon district, specifically within Boeng Keng Kang, Tuol Tumpung, Tuol Svay Prey and Oulampik in the first half of 2015, 20 new developments worth over $3.2 billion have been approved to start construction within the Chamkarmon district. These new developments are expected to reach an estimated value of $3.6 billion this year. From 2011 to 2014, according to the report, developments were valued up to only $2.2 billion each year.However, according to Hoem Seiha in a recent Phnom Penh Post report, the director of research for VTrust Appraisal Co., Ltd., eventually this lack of infrastructure will cause land prices to stabilize in the longer term.“With 20 per cent car ownership per household in the city and the ever-increasing rate of the white collar class who commute from different areas to downtown Phnom Penh, the lack of adequate parking solutions will be the daunting challenge for business communities in the CBD,” he said in a recent interview.As a result of this, the outskirts of Phnom Penh will cause future competition with the Chamkarmon district as Khmers move away from the congested inner city. Northwestern Phnom Penh is seeing massive growth, as is Northern Phnom Penh, and also land around the International Airport.As outer suburbs of  Phnom Penh gain stronger infrastructure and pools of private real estate investment funding, such as Aeon Mall 2, Chip Mong Land and New World Sen Sok in Phnom Penh Thmey, Camko City in Russey Keo and Grand Phnom Penh in Chrang Chamreh, the limitation of new development space in the Chamkarmon district will have to ease demand. The focus of the city will likely shift too, as commercial and retail spaces also continue to push outside of Chamkarmon and the CBD.

A developer in Melbourne, Australia, who has built a 72-level tower in the central city, has failed to build the underground car parking promised in the original development plans. [caption id="attachment_79012" align="aligncenter" width="300"] Illustration: Matt Golding[/caption] The developer, the Brady Group, did not provide two of the three levels of underground car parking originally promised, causing the Melbourne City Council  to now consider what enforcement action it can take against the developer.Norman Fay, Brady Group spokesman, did not dispute the developer failure to provide the promised car parking levels when challenged. Mr Fay said an application to retroactively alter the development permit was now being considered by the planning department.Brady Group originally had obtained a 2009 developer permit off planning minister Justin Madden to build the tower, with just one level of underground parking, but later got an updated permit off Matthew Guy to proceed with three levels of underground parking. It is not clear who failed to check if the  building adhered to the updated permit but, regardless, the developer is in breach of their permit.Read more of the latest and greatest real estate news right here on realestate.com.kh

Realestate.com.kh would like to present another of our featured agencies - Yong Yap Properties.Want an excited, motivated and knowledgeable company to assist you with your real estate needs? Want to deal with real, well trained and straight forward agents who know the market inside out? Want to work with a team that actually listens to your requirements???Check out Yong Yap Properties listings for rent and for sale on realestate.com.kh today Having previously worked with two other real estate agencies in Phnom Penh and being appalled by a lack of business practice and focus on client needs, Desmond Yap founded Yong Yap Properties in 2013. As a boutique real estate agency specializing in the Riverside district of Phnom Penh, Yong Yap Properties has quickly risen to become a major part of the Riverside property market, known for its realistic selection of property listings and having the most reliable and trustworthy staff in the business. [caption id="attachment_79002" align="alignleft" width="342"] Desmond Yap, Managing Director[/caption] "Yong Yap Properties understands that property is more than just knowing your budget and going through the database. It is an important decision in which we take great pride in really understanding the needs of the client and to explore all possible options." Yong Yap Properties is changing the face of real estate in Cambodia, by empowering and educating our clients to make informed property decisions. Through our well trained, highly motivated energetic team of realtors, we strive to give the best advice and in-depth market analysis that is relevant. "Our reliable staff stays in regular contact, and our established transparent systems allows for a stress free transaction process." If you are looking for a qualified upfront property consultant, contact us now and let us help you explore this Kingdom of Wonder that is Cambodia. Check out Yong Yap Properties listings for rent and for sale on realestate.com.kh today

On the eve of Halloween, Realestate.com.kh has taken a quick look at the top 3 most haunted houses in the Kingdom!#3:Famously on the market for sale in 2013 in Siem Reap, this property attracted attention for all the wrong reasons. Let’s just say the Open Home Showing was not a huge success....#2: The oh-so eery Independence Hotel in Sihanoukville was put on the world stage when a travelling poltergeist proved locals were correct when they deemed it haunted!#1: Coming in at number 1,  immortalized in the Korean horror film, “R-Point”, this haunted palace known as the Bokor Hotel was built in the 1920’s and has frightened visitors ever since atop Bokor Mountain in Kampot - until it was eventually abandoned. Happy Halloween from Realestate.com.kh and we hope all your home’s stay ghost free...

North Park Condos, the latest addition to the renowned Northbridge Community, offer an oasis of pure tranquility located perfectly in the hottest investment region of Phnom Penh City. See the listing here.North Park Condos sit at the gateway to the city on the newly developed Street 2004 - just minutes to Phnom Penh International Airport, country clubs, golf courses, department stores, restaurants, educational facilities and, thanks to the recent overhauls of the road network in the area, quick access to the city center. Cambodia’s highest quality learning environment Northbridge International School is located at this site. It offers a fully accredited western curriculum. This premier investment and development Company is recognized as the Country’s most dynamic and diversified business conglomerate. North Park Condominium buyers are guaranteed absolute security with their investment now and into the future. North Park Condos offer a balance of contemporary design and modern lifestyle amenities. It is set in a natural, open environment and located within the safe and serene grounds of Northbridge Community.  The world class facilities include a resort sized swimming pool, a children’s pool, modern gymnasium, an outdoor BBQ area and a restaurant. Inquire about North Park Condos today on Realestate.com.kh and find out more!Northbridge Community is a pristine, beautifully landscaped environment and the perfect place to raise a family.North Park Condos are an exclusive, low density, community of less than 250 Condominiums in 3 low-rise buildings, professionally constructed, and designed by renowned international architects. Large balconies and open plan living can be enjoyed in every unit and all residents possess impressive, unobstructed views across the luxurious swimming pool and tropical gardens. 24 hour security is guaranteed together with an international standard intercom system, providing controlled access to each building. 1-bedroom, 2-bedroom and 3-bedroom units are all available, with sizes ranging from 55 square meters to 245 square meters. Inquire today for more information about North Park Condos before these prime condos sell out!

As land prices increase in the Cambodian capital’s CBD, property developers are seeking open land on the outskirts of Phnom Penh. One area that has seen continuous growth in recent years is the city’s Northwestern districts of Russey Keo.For the most part, the Northwest is becoming a haven for Khmer families looking to settle outside the inner city. Stretching between two major township developments of Camko City and Grand Phnom Penh, a host of Boreys and township projects are springing up, suited to local buyers budgets and tastes, according to In Sitha, Vice President of World Trust Estate. Developments such as Peng Hout the Star Premier, New World Kilometer No.5, Borey Toul Sangke, Borey Villa Toul Sangke, Borey Vimean Phnom Penh, Borey Angkor Phnom Penh, Borey Rith, New World Toul Sangke, Borey China Town, Borey Laoar Penh Chet 1 and 2, BS Villa Phsar Touch, Flat house Mittapheap 1 & 2, Borey Beoung Chuok, Borey Lim Cheanghak (CTN), Borey Sreng Kong, Borey Moha Sethey, The Residence, Borey Rattanak, Borey Monorom, Borey LHV, Borey Hong Leng Yi, Flat House Kim Bo, Borey Mongkul Phnom Penh, Flat house GTC, Borey Komel are just a few of these new projects, offering shop houses, link houses, villas and affordable apartment properties, all aimed at local buyers.Chee Yap, Project Director at Grand Phnom Penh, a 260-hectare township project, believes that new infrastructural developments along Chea Sophara Road, Road 598 and Hanoi Road are effectively bringing the outer reaches of Russey Keo closer to the central city in terms of accessibility and vital amenities. Phnom Penh City Hall have also suggested that Angkor Boulevard, otherwise known as Camko Road, will eventually link Grand Phnom Penh and Camko City directly, speeding up commuting times to the central city dramatic for the city’s Northwestern residents. Aeon Mall 2, slated for construction along Street 1003, is likewise encouraging a flurry of investor speculation in this area.David Kim, CEO of Informax Real Estate Services, explains that this outward shift in residential offerings reflects the rising land prices in downtown Phnom Penh, such as Beung Keng Kang, Daun Penh, and Tonle Bassac. “Because the land prices and rental rates in these areas are at an all time high,” says Kim, “Khmers who own land here no longer want to stay there, as they are effectively sitting on their money. Instead, they can sell at a large profit, or rent that space at high rates of return, and settle in the Northwest.”Chroy Changvar is another area growing fast, but the need to cross the bridge to get to the city, in combination with a lack of commercial and retail ventures in the area, is at present limiting the area’s popularity for both developers and end buyers, suggests Kim. Similarly, the south of Phnom Penh, along Hun Sen Road, is also growing, but more time is needed before the infrastructure meets many buyers’ expectations. The West of Phnom Penh has the international airport and a broad array of commercial activity, but this area is less popular for development companies looking to the local market because it is now limited in regards to open and affordable land for new large scale developments. “Northwestern Phnom Penh and Russey Keo,”compares Kim, “has no bridge and neighbours Toul Kork, a booming commercial area with all amenities necessary for mass residential expansion.” For these reasons, the Northwest developments are proving more popular with Khmer buyers, and consequently a lower risk for development investors. Just a brief glance at an aerial view of the city shows that large green areas of totally undeveloped land still exist on the Northwest side of the city, meaning first stage developers can buy land cheap, fill the land and apply for necessary planning permissions and infrastructural additions from the Government, then upsell that land to sub-developers who then begin to build. The lower the original price of the land, the more affordable the final housing project can be sold for by the sub-developer. “Land is cheaper in the Northwest, hence why the finished projects are more affordable for local buyers,” concludes Kim.Yap notes that from a macro-perspective, Northwestern Phnom Penh is guaranteed to grow into the future. “In property development there is always ‘the rule of the triangle’: If you plan a residential project within equidistance of a city’s CBD and it’s International Airport, and you ensure your project reflects local demands, it will succeed. It may not succeed immediately, but as long as the city continues to grow, it will eventually succeed completely.”

Although the price of land in Phnom Penh has increased continuously until present, it has yet to have any detrimental effects on the flow of trade within the city. Quite the opposite; rising land prices have instilled confidence in the economy and encouraged foreign investors to come to Cambodia and invest their resources in the country, expanding trade and stimulating ongoing economic growth. While land prices are not on par with the region, this is not necessarily a bad thing, say experts. Chrek Sokny, CEO of Century 21 VTrust, said that in 2015 land prices had hardly climbed since the year prior, however, land prices in 2015 seem slightly higher when compared with 2013. He notes that, however, land prices in Phnom Penh vary depending on the region, with some suburbs seeing land prices increase up to 20 percent, whereas aggregate increases only reflect a 10 to 15 percent rise city-wide.      Sokny added, "The rise in land prices currently does not affect the flow of investment because the price of land in our country is a lot less expensive in comparison to neighboring countries." He continued, "The increases in the price of land of 10 to 20 percent are in line with the country’s economic growth, so it does not cause difficulty for new investors at the moment. But if it continues to rise in the next four to five years, that will hurt people who intend to invest in Cambodia."      Sorn Seap, spokesperson for the Cambodian Valuers and Estate Agents Association, raised a similar view to Sok Ny. Seap suggests that land prices are currently rising in line with economic growth because land prices generally rise or fall depending on the state of a nation’s economy.  It is clear that land in Phnom Penh has the highest value; Siem Reap and Sihanoukville follow respectively. He added that the current land price does not affect the flow of direct foreign investment into the Kingdom since there are still a huge number of investors coming into Cambodia seeking various opportunities - mostly from Japan, Korea, China, Singapore, Malaysia, Taiwan, China, Hong Kong and other regional counterparts. "Phnom Penh land price increases on average five to 15 percent per year. If it continues to rise, it will disturb the investment flows in the coming years because the market size of Cambodia, compared with the regional economy, is still small. Therefore, if the price of land were to become equal with regional prices, investors would naturally go to other countries where market opportunities are more profitable," added Seap. He continued, "I think we will be unlikely to see the impact of this phenomenon in the next five years, as the Cambodian economy is still not that robust. Investors both inside and outside the country only come in with a specific purpose and conduct detailed research before they start investing.” Sorn Seap concludes, "It's a real market now though, not an inflated one - because an inflated market would jam when there was a problem, and a real one wouldn’t." For instance, when the land price fell generally during the global financial recession in 2008, land prices along Mao Tse Tung Boulevard did not go down. In fact, in contrast, prices in this area continued to rise slowly. This is because transactions were still occurring along this street, marking it as a real and robust marketplace. “The increased price of real estate and land today is a good sign that we, as a national economy, are on the right track, and we won’t have a problem in the near future,” Seap confirmed. According to a study by World Trust Estate on the price of land in 12 Khans of Phnom Penh in the first quarter of 2015, Phnom Penh land prices have gone up between 10 and 30 percent depending on the area. The areas are defined by whether they contain commercial activities, residential property or industrial undertakings. Particularly, the commercial area along the main road in Khan Chamkarmorn this year has increased between $3,500 to $8,000/m2, compared to only $3,500 to $5,500 the previous year. Land in trade zones located along smaller roads have increased from $2,500 to $3,000/m2 last year, up to $2800 to $4,000/m2 this year. The same study found that the price of commercial land along streets in Khan Tuol Kork has increased from $3,000 to $5,000/m2 in 2014, to between $3,500 to $8,000/m2 this year. Commercial land along smaller roads have also increased to current prices of around $2,500 to $3,000/m2, compared to $1,800 to $4,000/m2 last year. Residential land has risen from $2,800 to $3,500 the year prior, to about $3,000 to $ 5,000/m2 currently. Soeng Bonna, CEO of Bonna Realty Group, said in a phone interview recently that land prices in Phnom Penh are divided into three zones: Zone 1 is the city centre, where land prices seem a little higher. Land price in the suburbs, Zone 2, are still moderate in terms of the size and strength of the economy, as well as incoming investment trends, but the price in these areas is lower compared to other countries’ examples. He said the average price of land in the city centre costs $3,000 to $5,000/m2, which is good, but lower than prices recorded in other countries. He notes that these prices reflect that it is harder to gain revenue and profit from an investment in land here in Cambodia. “Land prices in the neighboring countries are higher than ours, but they have bigger population densities, larger economies, and more investment. If we continue to think our land price is low and keep demanding an equal price, both domestic and foreign investors will lose their ability to invest in Cambodia," said Bonna. He added that prices of land in industrial zones, Zone 3, are ranging from $20 to $50/m2 which reflects the current lack of infrastructure in these areas. Realestate.com.kh is proud to support the CVEA's Property View publication. Click here to get your copy, or if you are interested to join the CVEA today. https://realestatekh.activehosted.com/form/40

When Dan Kreis, founder, owner and operator of Kep Lodge Eco-Resort, arrived in Kep for the first time in 2005, he found only a handful of locally-owned guesthouses, less than 10 foreign residents, no supermarket, no electricity, no local bar, a coastline littered with little more than deserted villas and an extremely small turnover of tourist traffic.Ten years on, and now selling his business at a margin that would have seemed like a fantastic joke in 2005, Kreis has witnessed, and in many ways assisted, Kep in growing to be one of Cambodia’s most highly regarded tourism destinations and an attractive real estate market. Want to buy Kep Lodge? Check out the property listing on realestate.com.kh and inquire today!What Kreis also discovered back in 2005 was an unspoilt national park with mountains and lush forests reminiscent of his homeland Switzerland. So, having since given up on launching a resort in the already-saturated Thai market, and unsold on the tourism hot pot that is Sihanoukville, Kreis found his paradise in the empty hillsides of Kep.After 6 months of searching for the ideal property, Kreis settled on a block of hillside land backing onto the Kep National Park. Here, tranquility and a view of the ocean was assured at $5 per square meter, for a long term lease of 70 years.Locals, who prefered to live along the main artery road in 2005 where prices were around $60 per square meter, warned Kreis that his tourism venture was absurd - “no tourists will want to climb up the hill to find your property,” they said, and fears still remained among some that Khmer Rouge cadre may be hiding in the mountains ranges of Kep, the region known as one of the last remaining strongholds of the regime. Kreis ignored the local critics though, believing that, “the land was ideal, surely at some point the tourists would have to arrive.”Opening with a 6 bungalow operation in 2007, having built the lodge from scratch with a local team of builders, Kep Lodge became the first western owned and operated business in Kep, and the first eco-tourism venture. Water was well sourced and filtered for guests; as electricity was very limited, water was heated solely with gas; inputs, including the Swiss-inspired menu, were almost all locally sourced; and all outputs of the business were put to use in innovative and ecologically friendly ways. One of the most exhausting tasks at this stage, recalls 46 year old Kreis, was staff training. As Kep’s local education system was near non-existent, and the tourism and construction labour pool enjoyed by Phnom Penh entrepreneurs was impossible to tap from the coast, Kreis had to train his staff extensively, always starting at absolute basics. Tellingly, the first Khmer language Kreis learnt was, “If you don’t do it right first time, you do it again!” Want to buy Kep Lodge? Check out the property listing on realestate.com.kh and inquire today!But Kreis’s job was far from done when the bungalows were built. He still had to find a way to communicate to travellers that Kep was a worthy tourism destination. Unlike today, very few tourists were aware of Kep whatsoever: it wasn't in guidebooks and it wasn’t online, and even less were aware of Kreis’s eco-lodge hidden in overgrowth halfway up the hillside.  For this challenge, Kreis swiss background in web development and tourism marketing came in handy. By 2007, Kreis had finally managed to get the internet on site via a satellite connection to a Thai internet provider. At this stage, hotel booking sites were not well developed or used in Cambodia, so Kreis had to make his own. Kreis begun to create a series of websites in a variety of languages (French, English, German) to highlight the perks of Kep as an ecotourism destination, the most famous of which being visitkep.com and keplodge.com. He also engaged facebook and other social media to advertise his village paradise, and ultimately, draw customers to Kep Lodge. His plan worked, and Kep soon begun to emerge as another stopover in the Cambodian tour. Even in 2007, the lodge enjoyed 80 percent occupancy on average across the year. “Kep’s proximity to Phnom Penh has also made it attractive to expats living in the capital,” says Kreis. These holidayers, predominantly western, come for the boutique style and comfort of Kep Lodge’s bungalows, meanwhile, respecting Kreis’s desire to let guests live close to nature.In 2015, Kep Lodge has expanded to 13 boutique bungalows, occupied almost year round, with a tropical fruit orchard, elegant restaurant and clubhouse, an infinity salt-water hillside swimming pool, and a collection of the most hospitable hotel staff you are likely to find.  Now, the land that Kreis’ dream resort sits upon is valued at up to $90 per square meter, with land by the main road in Kep as high as $150-$200 per square meter.Looking across Kep Village today, the real estate market has expanded beyond comparison too. Around 90 guesthouses are now scattered across the sleepy beach town, with over 50 restaurants and around 200 permanent expat residents - a welcome change for Kreis, who found his early years in Kep isolated from the outside world.  “In fact,” notes Kreis, “Over Pchum Ben holiday this year we saw traffic jams in Kep Village, as holiday makers from across the country took to the coast in numbers like we have never seen before.”   Want to buy Kep Lodge? Check out the property listing on realestate.com.kh and inquire today!

At the end of 2015, the 10 ASEAN nation states are on track to create the ASEAN Economic Community (AEC) as a means to support the free flow of labour across Asia, and benefit all economies falling within the AEC by sharing human resources. Cambodia is expected to gain benefits through increases in foreign direct investment into the Cambodian market -but how the AEC will change the face of the domestic Cambodian labor market remains uncertain. With the ASEAN Economic Integration at the end of this year, Cambodia seemingly must strengthen its capacity in terms of human resources and professional expertise if it is to meet the regional market’s demand when the AEC integration fully comes into play. After the integration, labor flow will increase considerably for professionals with internationally transferable skill sets, such as accountants, health professionals, engineers, researchers and tourism workers. These Cambodian professionals will now be able to apply for positions throughout the region without restriction, and potentially gain higher wages. Chan Sophal, Director of the Centre for Policy Studies in Cambodia, said the AEC will bring new labor flows to professions that require high skill labor inside and outside of Cambodia.  This means, ' ... Enterprises in need of skilled workers within Cambodia will be able to hire them more easily than at present because the potential market will be larger,” he said.    As inter-ASEAN competition increases between its members in terms of labor flows, Cambodia must strengthen the aggregate capacity of its own human resources in order to meet the competitive labor market of ASEAN in the coming years, and to ensure employment opportunities inside and outside of Cambodia. In order to strengthen the labor market for the AEC, Sophal said, “the number one priority must be to better train and educate our students. This is the only way we can compete.” In regards to whether Cambodia is ready for the ASEAN economic integration, Sophal explained that, “While I think we have strengths and weaknesses within the Cambodian market, ASEAN, fully integrated, will provide opportunities to attract domestic investment that will in return create jobs for skilled and unskilled workers within Cambodia. In addition, new competition in the labor market within Cambodia is seemingly going to be limited due to the variability of criteria that may or may not attract workers to Cambodia.” Chrek Sok Ny, CEO of Century 21 Mekong, said the present Cambodian market is getting ready for the integration in many ways: 'I think it's beneficial to bring in new technologies and methods for construction into Cambodia in regards to construction standards and levels of development. But meanwhile, the AEC will boost Cambodian economy and strengthen cultural connectivity of all member countries. There will be free flow of goods and labor, and Cambodian workers will migrate for jobs abroad; whereas skilled workers from member countries will enter Cambodia filling the increasing demand for higher skilled positions that this development demands.” A joint publication released by the ADB and ILO at the end of last year, showed that Cambodia could be one of the leading beneficiaries of the AEC through the creation of an estimated additional 1.1 million jobs by 2025. Low-skilled jobs will account for 71.2 percent of this increase, predicts the publication, meanwhile, medium-skilled professional roles may increase by around 722,000 jobs. Despite that, the same publication goes on to say that Cambodians may well lose their domestic employment opportunities if there is no improvement in the market in regards to workers’ training and education. Furthermore, domestic higher-skilled workers may still look to migrate outside of Cambodia, as opportunities for higher salaries will now be available. Realestate.com.kh is proud to support the CVEA's Property View publication. Click here to get your copy, or if you are interested to join the CVEA today.

Searching for expat rentals in Phnom Penh can often be a stressful and daunting task, especially if you are an expat who is new to town. Here at Realestate.com.kh, we've compiled a top 5 list of advice and tips, to ensure your next rental home search will be a great experience.There are no shortage of agents who are ready to assist you finding expat rentals in Phnom Penh - from fully registered agencies, right through to "work from home agents." In fact, you can bet even the good old tuk tuk driver will know a few places for rent if you ask them.But how do you weed out the good from the bad when searching for quality agents with expat rentals in Phnom Penh? How do you save the time & stress when searching for an expat rentals property?Ask your friends or colleagues if they know a great agent: Chances are, if they’ve been in Phnom Penh for a number of years, your friends, family and acquaintances would of dealt with several agents before, and can share their experiences with you. Find out who helped them to secure their expat rentals in Phnom Penh, and learn as much as you can from that experience.Use an a professional agency: Professional run agencies such as the “featured agents” listed at the top of Realestate.com.kh’s “Find an Agent” section, are well established, and, in some cases, this list includes some particularly expat orientated agencies.  Professional agencies with an expat focus should have a full range of listings on Realestate.com.kh and on their own website, fluent English agents, great market insight and experienced with Cambodian rental agreements.  As they offer a free service to potential tenants, professional agencies should be your first call. Some current “Featured Agents” who specialize in expat rentals in Phnom Penh include Yong Yap Property, IPS Cambodia, Knightrank Cambodia.Does the agent understand your requirements? It takes time to visit properties and you don't want to waste half a day viewing properties that are not relevant.  There are agents out there who only hear your budget of $500 and do not care that you want to live in a specific area or that a large balcony is the most important feature you require.  Ask the agent to show you photos of the property first to save time.Check their referrals: Quality agents have a track record of happy clients and would be proud to show you some positive feedback from their previous clients. If they have a testimonial section on their website or feedback on facebook, see what previous clients have said about the agent's service. Don’t forget to consider their after-sales support track record - this is often the difference between an average agent and a very good one.Attention to detail: Does the agent respond emails/phone calls in a reasonable amount of time? Does the agent show up to appointments on time?  Do they dress smartly? All these signs give you an indication of the type of agent they are, and the standard of service that they are likely to bring to you. If the agent makes the effort to present in a professional manner to you, it's a safe bet that they'll provide quality overall service.Found an agent? Now it's time to inspect the properties they recommend! Checkout our property inspection checklist now!

Bodaiju Residences is delicately infused with Japanese and French architectural elements, believes the project's Architect, while bringing the everyday conveniences expected in a modern apartment building to the capital of Cambodia. Bodaiju Residences is an ensemble of six 14-storey buildings woven into the tropical landscape. The project Bodaiju Residence was designed by Ivan Tizaniel, a French architect who has worked on projects that include The Plantation Hotel, in Phnom Penh, and the VIP terminals for both Phnom Penh and Siem Reap International airports. See the listing here. Phase 1 is selling out fast, with huge local interest from Khmer buyers!Each Bodaiju Residences unit will enjoy large covered terraces that are able to act as a second out-door living rooms. Indoor-Outdoor flow is the name of the game, as Tizaniel wished to embrace Cambodia's tropical climate. It may also be a tribute to the Cambodian lifestyle, as local families prefer the option of eating and relaxing outside or inside, depending on the weather. The residences will also host rooftop sky pools, sky parks, a gym, clubhouse, BBQ pit, mini marts, cafes and kids play space, among a host of other features. Inquire today for full information!  “Bodaiju is architecturally inspired by the local climate,” Tizianel, the proud architect said, adding that, “in tropical countries such as Cambodia, we have to provide shade within the design to protect from the sun and get natural ventilation.” One, two and three bedroom condos are all available, and on accommodating financing schemes. Inquire today for full information!  Another unique feature of Bodaiju Residences, is that the car and moto parking lots open up to the ground floor gardens, covered by additional suspended gardens and lush walkways that link all buildings on the second floor. The suspended gardens serve a dual purpose, Tizianel explains: Able to hide the parking lots and, meanwhile, create a nice landscape for the lower level apartments. “The Japanese touch is in the simplicity of details and the relationship with nature,” reflects Tizianel.     Bodaiju Residences brings nature together with the conveniences of metropolis living, in close vicinity to Cambodia’s industrial centers. Located on the outskirts of Phnom Penh, alongside Lion Mall and a quick drive to the Phnom Penh international airport, Bodaiju Residences is equally close to the Phnom Penh Special Economic Zone and other emerging hubs of industry; a great choice of new home for factory management who wish for a convenient location close to the workplace. With construction commencing now, set to be completed by 2018, the project will be built in three phases on a 23,531 square meter area of land. The first phase, which is currently being sold, will include 372 units, while the second and third phase will produce 372 and 184 units respectively.   Click Here to Contact Bodaiju Agents!     Low-entry investment in Bodaiju Residences starts at $100,000. The average net selling price of Bodaiju Residence units is $1,600 to $1,700 per square metre. The Bodaiju Residences project is the first and biggest project to be invested in outside of the city center and instead in front of Pochentong International Airport. This shall be the future focal point of Phnom Penh, and is an attractive position for investment based on rising land prices. It's proximity to both the CBD and the International Airport is an assurance for buyers that their investment will increase in value as the Cambodian economy continues to develop.         Inquire About Bodaiju Residences Today on Realestate.com.kh and find out more!

Realestate.com.kh understands that the Phnom Penh rental market can be a little daunting for expats fresh to the Kingdom looking for a new home. In light of this, Realestate.com.kh has taken a survey of the average prices of rental properties in Phnom Penh, and let you know what differently classified Phnom Penh rental properties are likely to provide.Not surprising, Phnom Penh offers a host of real estate options for expat renters - whether it be a traditional wooden Khmer-style townhouse, a classic French-inspired Villa home, or a state of the art condominium unit, built by an international investment company. Clever expat or local renters can win in the Phnom Penh market place if they know what is available, and what reflects a reasonable price for those properties. The following should be a good start, thanks to Realestate.com.kh! We can break the Phnom Penh rentals market into four broad categories: Full-Serviced Apartments, Western Apartments, Khmer-Style Shophouses, and Renovated Shophouses.Let’s explore the attributes of each type of Phnom Penh rental property, and the average cost of leasing in different areas of town.1) Serviced Apartments in Phnom Penh: Luxury is increasingly in demand in Phnom Penh - but as the supply of luxury serviced apartments begins to exceed demand, luxury can also be very affordable. Full-service apartments provide almost everything you could want in a Phnom Penh apartment.Expect, at minimum, western style architecture and interior layouts, natural light, views, modern equipped kitchen including an oven, modern bathrooms, and expansive closets. Services such as laundry, Internet, cable, water, and even concierge services are included in the new breed of serviced apartments around Phnom Penh. Most of these accommodations also include one or more elevators, security, car, bike, and moto parking, gyms and/or swimming pools. Expect organized rent collection and hasty replies to your maintenance requests. You will almost certainly have air con.Serviced apartments are generally easy to find in the city, but expect prices to be higher than other types of accommodation, and don’t be surprised if vacancy rates low. Service apartments are somewhat impersonal, compared to other types of Phnom Penh rentals. Due to their size and relative vacancies, it may be more difficult to get to know your neighbors or your landlord. For a young professional or family, however, this extra space and privacy may be appreciated. They are also generally high rise apartments, so chances are you can land a great view of the city! Rough Price Range for 1 Bedroom Service Apartments:CBD - Chamkarmon, Daun Penh = $1000 – $1700 per month;Outskirts - Toul Kork, Sen Sok, Olympic, Toul Tom Poung = $800 – $1200 per month.2) Western Style Apartments in Phnom Penh:A “Western Style” apartment is a term that is thrown around a lot on the Phnom Penh rental market – and those properties fitting this description can vary widely. A “western” apartment can in fact represent anything from a few apartment units on the third floor, to a unit within a high-rise multi-unit tower. However, generally, those properties termed as western-style apartments in Phnom Penh have more amenities than those sold as Khmer-style units.So called “Western apartments” are generally newly constructed, have windows in every room and plenty of natural light, western style toilets and a kitchen with full cooking amenities; this should include all standard appliances and plenty of cabinet space, counter space, and an integrated cooktop. Often these apartment’s bathrooms will include a hot shower, a bathtub and floor tiles. A western style apartment should have a larger living space with somewhat modern lighting fixtures.Western apartments will also generally be furnished, and with furnishing such as plush sofa’s – as opposed to purely wooden furniture preferred in traditional khmer houses. Internet, cable, water and sometimes cleaning are generally included in the rental rate. Some of these properties will have elevators and might even have shared rooftop terrace areas. Expect parking for bicycles and motos. You should always get an air conditioner – in fact, this can be the sole reason the seller has called it “western.” Essentially, the “Western” label should lead you to believe that the construction is of a higher standard, as is the overall security of the building.For a foreigner there is also the benefit of having many foreign tenants, making it easy to make friends when your first settle in. Owners of western apartments are generally more experienced with this market and will follow through with your rental maintenance requests. Price Range For 1 Bedroom Western Apartments (non serviced):CBD - Chamkarmon, Daun Penh = $600 – $1000 per month;Outskirts - Toul Kork, Sen Sok, Olympic, Toul Tom Poung = $500 – $700 per month. 3) Khmer-style Shop House: A Khmer-style shophouse is still one of the most common property types in Phnom Penh, found in nearly every Phnom Penh neighborhood. They can also be built into three or four-story low-rise row homes. A shophouse, khmer style, is generally about four meters in width and roughly 16 meters long. The doors to enter will be in the front or back of the shop house, and the walls on either side will almost always have no windows. In a khmer-style shophouse, bedrooms won’t generally have windows, and if they do, they will face toward the interior of the home as opposed to the outside – thus, generally providing no natural light.Bedrooms will normally have movable dressers or rattan shelving, as opposed to inbuilt storage space provided in the more modern designs of apartments. Kitchen layouts in Khmer-style shop houses are generally fairly basic too. Expect to see a sink or two and a one burner gas cooktop. Don’t expect an oven and you will be lucky if you get much cabinet space.Don’t expect hot water, anywhere in the house. Bathrooms generally won’t have a separate shower or windows - but will be well equipped with floor to ceiling tiles, and the infamous bum gun. Bathrooms are just “wet rooms” without a separate shower in many cases. Home furnishings are seldom included, and if they are, expect them to be either rattan or wood. Expect, in terms of furnishings, no more than chairs, coffee table, and a table for eating.Although basic shop houses are still surprisingly popular with foreign renters, ultimately, their simplicity creates a kind of charm – and the price gap between these common shop houses, and new serviced units entering the market, are incomparable. Those that accept these shophouses for long term rents are generally expecting the landlord to make improvements or are being permitted by the landlord to make changes and modifications to the home themselves. With the right design and decoration, this style of house can be tailored to your preferences, and made to look much more valuable than their rental price. Expect to live close to your neighbors and get to know your neighborhood – which is a valuable experience for many expat renters. Rough Price Range For 1 Bedroom Khmer-style Shop Houses:CBD - Chamkarmon, Daun Penh = $300 - $400 per month;Outskirts - Toul Kork, Sen Sok, Olympic, Toul Tom Poung = $300 and under per month.4) Renovated Shop House:A renovated shop house, basically a khmer shop house that has undergone a makeover, can be harder to find in Phnom Penh. But when you find the right renovated shop house, you can get the authentic khmer style of living, with all the western amenities at hand. Adding to your search, the renovated shop house can often appear camouflaged from the outside as they generally have the same construction and outward appearances as the standard Khmer-style shop house.However, look inside to discover a gem – as the owner has in fact renovated the apartment interior with Western finishes, fixtures and amenities, yet still encapsulated in the same 4 x 16 meter layout. Keep your eyes peeled for new floors, added windows, and updated lighting fixtures. Other home furnishings will be newer – such as plush couches/sofas, and maybe a glass coffee table. A clear sign that a shop house has been renovated are the addition of external windows in the bedroom, facing the outside.Bedrooms may also have added features since the renovation, such as built-in closets, built-in shelving and air-conditioning. Renovated shop house kitchens will usually have cabinets for storage, and newer, western style appliances. Still, be aware that furnishings and construction may be cheap and require maintenance.Renovated shop house are great for foreigners who want to live comfortably on a budget while meanwhile maintaining the charm and community of living in a Khmer-style shop house. Owners are quite often friendly to expats and eager to please throughout the contract. More importantly - the prices are affordable. Rough Price Range For 1 Bedroom Renovated Shop Houses:CBD - Chamkarmon, Daun Penh = $600 - $700 per month;Outskirts - Toul Kork, Sen Sok, Olympic, Toul Tom Poung = $400 - $600 per month.Learn more about the Phnom Penh Market here. Check out our pre-signing checklist for rental properties now!

Although a relative newcomer the market, Bodaiju Residences has already sold over 60 per cent of Phase 1, according to Tomohiro Yakushi, vice president of the Japanese developer Creed Group. See the listing here.Yakushi believes that the reason for this is that most new developments across Phnom Penh aim solely to capture foreign investors but, Bodaiju Residences, the largest development in Cambodia by a Japanese Company, has gained huge interest by local investors and home owners who understand market potential and the need for well-financed projects in Cambodia, especially those located in strategic areas.In fact, Her Excellency Louk Sovanna from the newly formed KH Niron Investment company, a local property investor, has already announced that they have purchased 37 units at a total cost of around $5 million, according to a recent report in the Phnom Penh Post.“Unlike other condominium projects that mainly target foreigners, we aim to target locals pursuing home ownership and high standards of living,” said Yakushi. Bodaiju Residences have already gained local confidence:  the key to success in the Cambodian new developments market.“We mainly want local people to live here - not only foreign investors buying and selling condo units. We want to add real value,” Yakushi said. Hence, the majority of sales thus far are local Cambodians, at around 65 percent of Phase 1 sales; in addition, Korean buyers represent 15% of phase 1 sales, Japanese equate to 10%, Singaporean, 5%, and the remaining 5% of the units have been sold to other nationalities. This demographic will provide a multicultural and vibrant community in Bodaiju Residences.Inquire about Bodaiju Residences today on Realestate.com.kh and find out more!Based on current sales success, the Creed group predicts that at least 75 per cent of sales in Phase 1 will be complete in October 2015, according to a recent interview with the Phnom Penh Post.Creed is also making financing available, for local and international buyers. In fact, financing is available for up to 90 per cent of the property value by ORO Financecorp—a subsidiary of Creed Group— meaning that property investors can acquire loans starting from as low as 5 per cent interest.“This means that the low-entry investment starts at $100,000,” Yakushi adds. The average net selling price of Bodaiju units is $1,600 to $1,700 per square metre.The Bodaiju Residences project is the first and biggest project to be invested in outside of the city center and instead in front of Pochentong International Airport. This shall be the future focal point of Phnom Penh, and is an attractive position for investment based on rising land prices. It is a widely known developer's rule that very few property markets around the world fail to grow in areas near international airports.Inquire about Bodaiju Residences today on Realestate.com.kh and find out more!

Realestate.com.kh would like to present another of our featured agencies - Century 21 Cambodia. [caption id="attachment_78813" align="aligncenter" width="580"] The Century 21 Cambodian team.[/caption] Check out Century 21 listings for rent and for sale on realestate.com.kh todayCentury 21 Real Estate was founded in 1971 and is today the largest and most recognized real estate company in the world, with 7,100 offices worldwide, in 74 countries, and more than 100,000 real estate professionals. Cambodia will be the 75th official country for Century 21 Real Estate. Century 21 Real Estate is the largest company providing comprehensive training and marketing support for its affiliated offices worldwide. As a result Century 21 Agents are recognized as the most skilled real estate professionals in the world. The Century 21 Asia Pacific countries comprise over 10,000 Century 21 agents and is regionally the strongest brand in real estate services. In addition to a strong regional presence supporting Century21 Cambodia, China has more than 15,000 Century 21 Agents and Japan has over 13,000 Century 21 Agents, making the Century 21 Brand the strongest in Asia. Kevin Goos, CEO of Century 21 Cambodia, says that, "What we are doing in Cambodia is entering the market and increasing the level of professionalism with the Cambodian agents, so they can compete on a international level and work in the global market place."  The current real estate brokerage market has remained much the same as it was before the World Economic Crisis in 2008. In 2014, with the implementation of Century 21 Real Estate in Cambodia, Century 21 Cambodia will raise the standard practice of real estate service across the entire market in Cambodia. Through Century 21 Cambodia award winning training programs and brand support, C21 will provide all the tools to make Century 21 Agents succeed in Cambodia. "We have done this in every country and it worked every time," says CEO, Kevin Goos. Century 21 Cambodia Real Estate is a business that helps local companies to take their real estate offices to the next level, to network with international buyers, and for them to use the brand that everyone knows and trusts worldwide Check out Century 21 listings for rent and for sale on realestate.com.kh today

Realestate.com.kh would like to present another of our featured agencies - Rooftop Real Estate Cambodia.Check out CDN Property listings for rent and for sale on realestate.com.kh todayEstablished in 2010, CDN Property 's philosophy of exemplary customer service is based upon the mutual trust and respect of our clients. CDN Property guide each client with our extensive knowledge of Cambodia's real estate market, and CDN Property provides all services to help, educate and inform buyers and sellers for free. CDN Property consultant real estate services include; assisting clients to sell, purchase, lease, and manager their real estate assets. Through CDN Property 's extensive alliance real estate network, they can also provide strategic planning and research, portfolio analysis, and site selection  and space location assistance. If you are looking for an experienced Realtor and current listings, CDN Property and its team of real estate professionals are focused on helping clients, old and new, buy and sell real estate that best suits their needs. [caption id="attachment_78805" align="alignleft" width="430"] Socheath Yim, Director of CDN Property[/caption] Focusing greatly on recovery, Cambodia’s economy has been increasing rapidly over the last five years. Tourism has been a great help as it contributed millions of dollars for the country’s national budget. While the international image of the country has not been fully reverted yet, investors who are aware of the nation’s efforts to recover are now pouring in money into it. Cambodia real estate is one area where the country is counting on to jump start their growth. The government is offering incentives and safety measures for future investors who are interested to invest on Cambodia real estate. One very radical move being considered by the government is to lift its rule of not allowing foreigners to own real estate property in the country. Although opening up to the foreign real estate investors is a risky attempt to salvage the country’s economy, the nobility of the purpose is something that is noteworthy. CDN Property advise clients on the acquisition and disposal of a wide range of investment land and property opportunities, throughout the key locations in Cambodia. CDN Property Management team provides a wide range of services to owners, occupiers and investors for all types of property in Phnom Penh. The CDN Property team provides property management services for offices, condominiums, apartments, housing estates and villa. The main aim of our property management is to organize and to realize successfully all the necessary operations concerning real estate. Check out CDN Property listings for rent and for sale on realestate.com.kh today

Realestate.com.kh would like to present another of our featured agencies - Towncity Real Estate Cambodia.Check out Towncity Real Estate Cambodia's listings for rent and for sale on realestate.com.kh today Towncity Real Estate's Managing Director, Mr Van Chanthorn (John), began his career in real estate in 2004. Slowly but surely he developed his list of clientele and property, and his understanding of the Cambodian real estate climate, and his operation grew dramatically. In 2013, John re-branded the business with the adoption of the name Towncity Real Estate and the incorporation of Towncity Real Estate Co, Ltd. Today, Towncity is a fully licensed real estate company by the Ministry of Economy and Finance and a member of Cambodia's Valuers and Estate Agents Association ("CVEA") in the Kingdom of Cambodia. John now leads a team of dedicated real estate professionals who are committed to excellence in real estate. The team has built an extensive database of property sales to help guide buyers and sellers achieve the best market price. While, buying property in Cambodia may be unfamiliar to Cambodians and Westerners alike, the team at Towncity can help guide you through the process, with relationships in local government, banks, the Ministry of Finance, the Ministry of Land and Management, the Bureau of Urban Planning and Construction and the Cadastral Office. The Towncity vision is simple: quite simply, to be the best real estate company in Cambodia. Van Chanthorn (John), Founder and Managing Director of Towncity Real Estate Co. Ltd. Towncity Real Estate is fully licensed by the Cambodian Ministry of Economy and Finance. Towncity Real Estate is committed to delivering outstanding service to its clients, both Cambodian and Western. Equally, they are committed to getting their clients the best possible outcome in every transaction that Towncity oversees. Check out Towncity Real Estate Cambodia's listings for rent and for sale on realestate.com.kh today

Are you an Expat expecting just a temporary stay in the Kingdom? Are you nervous about signing long-term leases when you are not sure if you can satisfy the contract length? Are you finding that most Cambodian landlords are unwilling to have tenants stay for less than six months? Here is a guide to Long v Short Term Rental Lease in Cambodia, from Realestate.com.kh.Learn more about Phnom Penh rental market and other Cambodian rental advice here.Here's a check list for securing your dream Phnom Penh rental!Benefits of a Long Term Lease:Signing a six-month or year lease locks in a rental price in a market that is growing in leaps and bounds every year.Rental rates climb 10-15% annually in Cambodia, especially in the urban and tourism centers, and as new buildings offering all types of modern amenities continue to enter the rental market, these prices will continue to rise.A long term lease will save you from a price hike when the lease term ends and you are no longer able to find an apartment of the same value for the same price.Signing a long-term lease will also grant higher negotiating power: the landlord should be more flexible because they know you will stay for a longer period of time. They may add furnishing that you request, and negotiate on set rates.Remember that most owners want to build and maintain a relationship with their tenants. A long term lease allows this trust to develop.If you end up securing a lease for longer than you are able to stay in Cambodia, many expats are seeking shorter length, sub-lease agreements. This will give you the opportunity to finish your lease agreement payments through a sub-lease with a short term tenant. It pays to check with the landlord that will be possible before signing the leasing contract.Alternative, the landlord may allow you to transfer the entire lease to a new tenant that you have found - if you can't satisfy the contract. Enjoying this guide to Long v Short Term Rental Lease in Cambodia so far, learn more about Phnom Penh rental and other Cambodian rental advice here. If I do sign a long term lease, what sort of contractual and non-contractual terms can be negotiated with the landlord?Most importantly, the monthly rental price – as despite what the landlord and agent may say, in the Cambodian market there is always an element of flexibility in it!Consider requesting the installation of window screens, new or more fans, and new or improved furniture.Rates for services, such as water, electricity and rubbish collection may sometimes been thrown into the final rental price, at no extra charge.You should check whether the landlord is open to a sub-lease if you can't stay for the whole length of the lease agreement. If they are, let them know that they will have an opportunity to screen the new sub-leasing tenant before they are accepted. Also, check whether they are open to transferring the bond to the new sub-leasing tenant. If the new landlord accepts these terms, the additional lease length shouldn't be such a risk to you.Remember, negotiation is about compromise. Consider the landlords objectives and unique circumstances - and try to compormise a rental agreement where both parties can feel satisfied. Here is some useful real estate negotiation advice. Enjoy this guide to Long v Short Term Rental Lease in Cambodia, from Realestate.com.kh? Here's a check list for securing your dream rental!

Budget should not be the only concern for home buyers when they are deciding on a new property! Realestate.com.kh examines the top factors that scare buyers from investing in real estate in certain areas and localities.Before deciding to buy or rent any new property, you must first weigh the pros and cons of not only the property that you are looking at, but also the area where that property is located. While your property might look like a steal at first, sometimes paying a bit extra to live in a more expensive area could pay off in regards to the available infrastructure and amenities.In Phnom Penh, Sihanoukville, and other centers in Cambodia, investors choose infrastructure over cheaper prices. For example, Special Economic Zones are extremely popular for foreign investors in Cambodia looking to manufacture: “Overall, an SEZ is a safe place for FDI because the conditions are found to be stable, safe and have less inherent investment and direct operational risk as opposed to locating outside of an SEZ,” said Charles Esterhoy, former-COO of Phnom Penh Special Economic Zone (PPSEZ). This is despite the fact that these areas are more expensive in regards to price per square meter.Buyers looking for a property for their own personal or business use will always prioritize the location of that new property, and social, civil and physical amenities/infrastructure available nearby.In regards to short term investors, these types of buyers still need to consider the area’s fitness. They might decide to occupy the property at some point, or alternatively, they might be dependent on rental returns from the property to sustain their investment. Regardless of the use, the capacity and attractiveness of the property becomes crucial.Below are the major factors that will discourage property buyers from investing in a particular area/locality:Vacancy:Particularly high vacancy levels throughout any locality will damage the the confidence levels of any investor. Low residency means hidden problems may be lurking in the area and these will make prospective buyers slow to invest in the locality/area. Maybe the infrastructure has some holes?Open Lot:An open piece of land sitting at the back of a residential building is warning sign for Investors also. Why? because it may get developed into almost anything in the future. Imagine if a noisy factory appears on the unit in the future - this will damage your quality of life and the resale value of the property. However, on the flip side of the coin, if that plot is turned into a beautiful park/garden, it could well add to the value of your building dramatically. Hence, the trick is when there is any free land in the neighborhood to gauge the future ownership and intended usage of that property before you buy.Poor Logistical Connectivity:Lack of transport access, and public transport services, will lower the attraction to even the dreamiest real estate. This infrastructure is crucial! It is wonderful to live on a coastal mountain overlooking the ocean - but if a trip to the city involves a 3 day horseback trek, chances are the property will lose its aura fairly quickly. In the city, real estate that is ages from metro stations, bus stops, main highways and any other crucial transport hubs will generally command much lesser price per square meter than those that have an array of easy transport options located nearby.Distance from Necessities/Amenities: City properties that do not have markets, schools, hospitals, ATMs, cafes, banks etc. in the close vicinity will also  generally extinguish the buyer’s interest. Too larger distance from these types of amenities can affect the value of the property hugely. For personal use or for an investment purpose, remoteness from basic necessities is not  an appealing factor when considering buying any house. In the commercial sphere, buying land or real estate with access to key transit corridors, artery roads, warehousing facilities and storage options are valued highly.Nowhere to Park:This is becoming an increasing problem in Phnom Penh. Without ample and convenient parking zones, a new properties value can be uncertain. Especially in cities like Phnom Penh, where many believe that personal vehicles are a necessity, parking spaces must be considered before buying into a property - be it commercial, an office tower, or residential premises. Tenants too must make this consideration a priority.Water Issues:Having a sound and reliable water supply in terms of quality and quantity is something that almost no buyer can compromise on. Hence, you should stay away from localities where the water supply is in short supply and/or poor in quality. It will naturally be extremely difficult to sell or rent a property in a dry locations.Power Outages:Frequent power cuts will adversely affect any buyer’s decision. Backup power sources such as generators on your property may provide a short term solutions, and these are extremely common throughout the Cambodian provinces, yet living in a neighborhood with frequent power cuts or dodgy power service will usually overshadow and deteriorate any positive attributes of the property.How's the Neighborhood?The state of the neighborhood also affects the property buyer’s ultimate decision. No streetlights, damaged roads, poor waste disposal services and noisy features can become crucial turn-offs for new buyers and renters. Safety is very important also. Crime in the vicinity is never welcomed. Hence, localities with imbalanced neighborhoods will naturally yield lesser income and profit from property sales and rentals, and hence, are unpopular among investors - short or long term. Want the latest on investment and infrastructure? Check out the news section of Realestate.com.kh now!

Jay Cohen, Director and Partner of Tilleke & Gibbins Cambodia, joined Ivan Cano, Content Manager of Realestate.com.kh, in sharing an introduction to Guaranteed Rental Returns.Cambodia’s property market has seen massive growth and changes over the past decade. The influx of foreign investors made the landscape quite the competitive field and many new property investment opportunities throughout the Kingdom now come with Guaranteed Rental Returns (GRR).What are Guaranteed Rental Returns?In layman's terms, GRR is a future rental income that is guaranteed by the developer or management company to the property purchaser for a contracted period of time after the purchase agreement is signed.For example:Property Price$100,000Guaranteed Rental Return (GRR)6% per yearGRR Period2 yearsExpected Rental Return$12,000 over 2 yearsSharon Liew, CEO of Huttons CPL, notes that Guaranteed Rental Returns is a reassurance scheme for new investors looking to try out a new, somewhat uncharted international market. Standard net returns being advertised in the condos and new developments market range from 4 percent to 9 percent, normally for a two to five year period.Key considerations for Guaranteed Rental ReturnsFor potential investors faced with promises of Guaranteed Rental Returns, there are several points to consider before signing that dotted line.Make sure the GRR is on a contractual documentFirstly, it is crucial to find out exactly what is underwriting the guarantee. If it is merely a paper promise it is potentially illusory - a marketing exercise that will collapse after the developments launch. However, if there is an actual contract in place, containing the potential for legal recourse should the income not be generated, the GRR presents some value.“If there is a GRR scheme, the investor needs to make sure the GRR is set out in writing,” said Jay Cohen, Partner and Director of Tilleke & Gibbins Cambodia, highlighting the importance of having the Guaranteed Rental Return rate in writing. “There needs to be some sort of contractual document that sets out the rights to the GRR”Guaranteed or Gross Rental Returns?After setting the GRR out in writing, investors need to consider additional costs that may reduce an investor’s expected return; a common mistake that some novice investors make is to take the Guaranteed Rental Returns being offered as a reference point to calculate their returns.Jay Cohen notes that investors need to be careful and understand what other costs may be imposed by the developer that may reduce their GRR. “Often in GRR schemes, there may be other costs that will reduce that amount. For example, management fees, sinking funds, utilities, furniture packages, and property taxes” he said.For example:Property Price$100,000Guaranteed Rental Return (GRR)6% per yearGRR Period2 yearsExpected Return$12,000 over 2 yearsManagement fee per month$125 ($1,500 per year - $3,000 for 2 years)Utility bill per month$80 ($960 per year - $1,920 for 2 years) Expected return: $12,000 after 2 yearsCosts over 2 years: $4,920 (Management fee + Utility bill)Net Return Return: $7,080 over 2 yearsJay emphasizes the importance of having the GRR and the associated costs of owning the property to be on a contractual document and from there, understand what is their net return over the contract’s expressed period of time.Sam Kiers, Director of Sales and Marketing at Elevated Realty, agrees: “This ultimately leads to investors seriously considering the time it takes for the investment to turn profitable.”Desmond Yap, General Manager of Yong Yap Properties, believes that if it is the developer offering GRR, it is fair to assume they have done their calculations and have ensured they will not create a loss of profit for their company. “Thus, in effect,” says Yap, “the buyer is paying for their own Guaranteed Rental Returns.”Know the going rate of similar propertiesJay Cohen notes that developers often look at surrounding properties of a similar tier along with calculating their desired ROI to come up with a GRR offer. Jay additionally impresses on investors that it is not uncommon for developers to inflate the rental guarantee figures to create a good impression on buyers considering the longer-term benefits of their investment. The opposite is true as well that a developer can undercut GRRs if they are confident they can rent/lease the property out for a much higher price.For investors, another consideration about any GRR promise should be whether the rental income figure appears realistic and achievable in the current market, keeping in mind where the property is located. If it is clearly unrealistic, the investor should foresee a dramatic reduction in returns on their unit once the guaranteed rental period ends.Sharon Liew explains that “In general, the projected GRR is usually lower than the market rental rate by about 20 percent, to protect the developer from any losses - this means, that anything higher than 20 percent (per year) is likely too good to be true.”What happens after the GRR period ends?“After a GRR period ends, the investor takes over the property and they have an obligation to lease it out themselves,” said Jay Cohen. Depending on the developer, they may offer their services to lease an investor’s property post-GRR for a nominal fee/arrangement. Jay Cohen emphasizes that this should be spelled out in a contractual document to avoid ambiguity or the requirement of additional services resulting in more fees.Do a background check on the developerIt is advisable that the buyer must consider whether the developer or their property management company in fact has the ability and resources to manage the property properly and sustain rental tenants for the property over the guaranteed period.Liew confirms that “The developer’s credibility and presence in Cambodia are extremely important, as most GRR only kicks off after the development is complete. This makes upfront rebate on Guaranteed Rental Returns a more attractive option.”Look for an experienced property management operation, with past success in the local market.“Be sure to check the validity of the GRR agreement and the quality of the management team," says Desmond Yap, “and, if possible, see how the management company is arranging their finances.”Force Majeure, enforcement, and dispute resolution of GRRsGuaranteed Rental Returns in Cambodia came at a time when the real estate market was booming. Business travelers and tourists were flying in and Cambodians from the countryside were flocking to big cities like Phnom Penh to find work - constituting a large base of property buyers and renters. But COVID-19 has disrupted this growth.So can the developer reduce the GRR under certain situations? Can the developer altogether stop paying the GRR if there’s a force majeure event? “It depends,” says Jay Cohen. He reminds investors that the GRR is a contract between the purchaser and the developer. “Whether the developer is allowed to reduce the GRR because of events like a pandemic, or a force majeure event, that really comes down to the nature of the contract”.Cambodia has legal concepts of force majeure. Jay says that developers may rely on this law but warns this may be a difficult issue as it is not clearly spelled out under Cambodian law.He suggests that a “dispute resolution” be negotiated between the investor and the developer. “Give some thought to dispute resolution,” he said, “the agreement may be regulated by Cambodian law, and may give investors the choice of the Kingdom’s courts or arbitration”.“Arbitration in Cambodia may be a good path as it’s faster. So that may be a way to enforce the agreement” he said.Recap and additional tips when considering Guaranteed Rental Return offersJay Cohen reminds investors there should be a document aside from the Sale-and-Purchase Agreement (SPA) that clearly sets out the GRR, obligations of the developer, and any other additional expenses to be shouldered by the purchaser.Additionally, even if a GRR is reasonable and competitive, they are not the sole indicators of a good investment. Saraboth Ea, Managing Director of  Maxem Property warns, “GRR needs to be considered amongst many other factors that determine whether an investment is a good value or not. This will consider the buyer's objectives and investment timeline, which varies from individual to individual.”“As the market matures,” continues Ea, “We hope to see developers put less emphasis on rental returns, and establish a good balance between local buyers who will reside in the property versus those who buy purely as an investment.”Looking at both sides of the Guaranteed Rental Returns debate, the rental guarantee is important for investors who need immediate reassurance on their investment - however, the guarantee is only as good as the strength of the company offering it. Ea says that a healthy skepticism around GRR is only natural in Cambodia, as it is a relatively new concept for local buyers and investors: “Rather than being the sole incentive for a buyer, we view it more as a gauge of the developer's confidence in their project.” Looking for property investment in Cambodia? Let us help!Article by:

Mortgages (or home loans) are an essential consideration for most people buying, selling, or simply owning a home. While the concept of borrowing from a bank or lender appears simple - home loans can be a lot harder to understand than you might first think. However, realestate.com.kh is here to help with our “mortgage matters” series. And when you are ready to consider a loan more seriously, we can even put you in touch with Cambodia’s leading lenders.Inquire for a home loan here.Drawing on  the experience of others who have mortgages (any number of your friends and family who already have a home loan), and with a little extra homework, we believe that any body can make sound financial decisions.What is a Mortgage?A mortgage is a loan, quite simply, with your house and land used as security for that loan. That means, if you don't pay back the loan in the prescribed time frame, the lender (usually a bank) has the right to foreclose your home. Foreclosing means to take possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments. Basically, the bank takes your home and sells it to settle the debt. The loan is secured by a “lien” (in other words, the "mortgage") against the property in question (your house and land). The lender still doesn't own the house, you do. But if you can't pay, they have the lien with your house as their collateral/security.  You still have full ownership rights - yet subject to the mortgage.When looking for your first mortgage is it most important to consider two things: What you can actually afford?What you can borrow?Why are these two questions different? Because, the lender/bank is never going to look at how much you spend in a month on partying with friends, or movies and dinner, or how happy you'll be with a big payment.Put in your loan requirements in realestate.com.kh's mortgage calculator now! In reality, they may well be willing to loan you considerably more than you think you can spend on your home mortgage. You must consider this seriously - because only you know how much flexibility your lifestyle and spending habits have, which ultimately determines how much you can afford when searching for a new home. If you miscalculate this - you risk not being able to satisfy payments and ultimately losing your new home.Learn more about how to budget better for you and your family here.A lender/bank will look at your income, and future income potential vs. your proposed debt, as well as your bank savings and credit history. Having considered these factors, the bank will then determine how much of a risk you'd be for the lender/bank to take on and issue a loan. Meanwhile, they look at the value of the house you want to buy, and potential future value, and compare against the interest rate of the loan you'll be getting. After this analysis, the bank/lender arrives at a loan amount that they consider a healthy risk. If all things go to plan, this loan amount will match (or potentially exceed) what you need to satisfy your down payment and the final price of the house you want to purchase.Read part 2 of Realestate.com.kh’s “mortgage matters” series. And when you are ready to consider a loan more seriously, get in touch with Cambodia’s leading lenders.