Featured Property Guides

Things to consider when buying in a Borey in Cambodia
May 15, 2017, 8:54 p.m.
Home & Living
Property Buyers & Sellers Advice
Cambodia’s rapidly growing property sector has opened up a new market for housing projects throughout the Kingdom. While condominiums continue to take the headlines in Cambodia’s construction news, little do outsiders know that Borey developments - gated communities featuring a range of popular residential housing - are beating condominiums in terms of popularity among Cambodia’s expanding middle-class.At the end of 2018, Knight Frank recorded a total of 46,197 units across 126 Borey developments. That number increased to 51,278 units across a total of 131 Boreys by the first half of 2019!The supply of landed property projects continues to grow in the first half of 2021 despite of the impacts of the global pandemic. 21 new projects were still launched in 9 districts in the capital which added l15,500 units to the future supply.This number is expected to grow in the coming years but you can get up-to-date Realestate.com.kh’s Real Estate Survey and Reports here.What is a Borey and what makes it so popular?A Borey development is a gated community featuring a range of housing types popular among Cambodians. It can feature single villas, twin villas, hybrid villas, linked houses, shophouses, and flat houses. These different housing types further offer a wide range of preferences in terms of floor area, number of rooms, and prices to accommodate the needs of individuals, families, and/or businesses.Since Boreys occupy a considerable amount of space, some areas of the development may be allocated for parks, children's’ playgrounds, markets, and retail stores. These gated communities also feature 24/7 security through private security personnel and infrastructure.Where to buy a Borey in Cambodia?According to the General Population Census 2019, over 2,200,000 Cambodians live in Phnom Penh. This makes Phnom Penh the most populated city in the Kingdom and it only follows that most of the Kingdom’s Borey developments are concentrated here.A high percentage of borey developments are located in the outlying districts of the capital city, because of two primary (and related) reasons.First, Phnom Penh’s almost-breakneck pace of development leaves little-to-no room for Boreys to be developed within the city center.Second, because of the speed of development, land prices close to the city center make it virtually impossible to make any Borey development appealing for a majority of Cambodians.Given the variety of Borey developments, we recommend buyers to check the latest Borey projects close to Phnom Penh.(Borey VIP in Dangkao commune, Dangkao district) (Borey Lorn City Lotussana in Chaom Chau commune, Por Sen Chey) (Borey Galaxy 11 in Spean Thma commune, Dangkao district)As the Borey market in Phnom Penh gets more competitive, developers have started looking elsewhere in the Kingdom for future projects.Siem Reap, the second most populated city in the country with over 1,000,000 residents (General Population Census 2019) has started seeing its own Borey launches in the last couple of years.Most Borey developments have reported strong off-plan sales figures, with some citing sold-out figures in their first and second phases. The interest shown by the local market suggests that the city’s market is open to new property developments despite the popularity of shophouses and traditional Khmer houses in Siem Reap.The Borey market in this culturally rich city is growing every year. We recommend interested buyers to check the latest Borey projects in Siem Reap and some of the featured boreys below:Bakong Village - Bakong, Prasat BakongVnom Empire - Ampil, Prasat BakongBorey Royal Angkor Village - Svay Leu, Svay LeuSihanoukville has seen rapid commercial and residential developments since 2015, mostly focused on mixed-use developments. Borey developers, however, have taken an interest in the city as the on-going development of a USD $2 billion expressway from Phnom Penh to Sihanoukville, and a USD $294 million road rehabilitation within the city, makes it a strong candidate for Cambodia’s next major urban centre.For property hunters looking for the comforts of the city while having easy access to Cambodia’s beaches, we recommend interested Borey buyers to check Borey VIP in Sihanoukville and all the latest borey developments in Sihanoukville.How are Borey properties priced?Borey properties vary greatly in terms of prices. This is mainly because of the aforementioned variety of properties offered within any given Borey development. For ballpark estimates, Knight Frank’s report cites that these could range from USD $750 to USD $1,700 per square metre in 2019.Then again, land prices in Cambodia are constantly on the rise so these prices are expected to further increase in the immediate (2-3 years) future.Factors that directly/indirectly affect Borey prices also vary. Here are some key considerations in Borey price assessment:How far away is the Borey community from the nearest commercial centre? (Shopping centres, theatres, banks, government institutions, airports, etc.)What are the included amenities in the Borey? (community park & events centre, children's playground, public swimming pool, etc.)Did the developer build the necessary residential infrastructure themselves? (electrical grids, water and sewage pipelines, access roads, etc.)Is the Borey overall an affordable/mid-tier/premium Borey?We suggest you consider these factors, in addition to your specific and personal needs, when buying a Borey, or any property, in the Kingdom of Cambodia.Find out more about property valuation fees in Cambodia.Tax law for Borey in CambodiaFor any property of any type with a freehold/hard title in Cambodia, whether you’re a local or a foreigner, there is a transfer tax that you have to pay whenever you purchase a property. The transfer tax is 4 per cent of the property’s value.An annual property tax is also levied on landed property exceeding 100,000,000 riels ($25,000) in value. This tax is collected annually at a rate of 0.1% of the property’s value. The tax is based on the value of lands, houses, buildings and other constructions built on the land by deducting 100,000,000 riels (USD$ 25,000) from the property in question.The (property) value of lands, houses, buildings and other constructions that are built on the land shall be determined based on the market price by the Property Evaluation Committee established by the Prakas of the Minister of Economy and Finance, according to the General Department of Taxation.Read more in our guide on property tax in Cambodia.Can foreigners own a Borey in Cambodia?Foreigners are prohibited to own landed property by the foreign ownership law in Cambodia that was promulgated on May 24, 2010. Since Boreys are considered landed property, this type of housing is essentially prohibited from being owned by a non-Cambodian citizen.A foreign national can either get married to a Cambodian and name it after their spouse, or gain Cambodian citizenship for themselves after satisfying state requisites.What type of ownership titles are available for a Borey in Cambodia?Cambodia uses three types of ownership titles. These are the soft title, hard title, and the LMAP title — the safest type of title. So, if you buy any Borey homes, it’s best to ask the project owner for LMAP title to be the most secure for your future immovable assets.What do you need to check when buying a Borey in Cambodia?The Cambodian government, through its respective agencies, has cracked down on erring developers who do not have the proper documentation for their projects. But it’s always good to exercise some due diligence on your part. That’s just being a smart consumer!Here are the 5 key legal documents you need to look for when checking a Borey’s legal adherence:Hard Title: You have to look at two classifications of hard titles when dealing with Boreys. The first is the hard title for the whole Borey development. This is called a master title - and will cover the entire piece of land on which the project sits. The second one should be hard titles that are subdivided for each residential unit included in the Borey. These are called individual titles.A legitimate Borey development should be able to produce both of these hard titles to potential buyers. If they can’t show this, don’t put any money down until they do.NOTE: It is also possible for developers to issue a Soft Title for their properties, but it would be in your best interest as a resident to get a Hard Title.Development Company Registration: Development companies will need to register themselves to gain approval from the necessary ministries to proceed with construction. However, construction is not always a sign that they’ve been approved. You can ask to see their company registration just to make sure both the project and the developers can proceed legally.Master Plan Approval: The Ministry of Land Management will need to approve the developer’s Master Plan first before the construction begins. A credible developer will be able to provide you with it or at least show you a copy.Construction License: The construction company then goes through a thorough background check with the Ministry of Land Management. Boreys must have a single registered construction company building the units and infrastructure to ensure consistency and quality throughout the development. Once this has been cleared, the construction company is then given a license.Borey License: The Ministry of Economics and Finance releases the license for the Borey once everything is in order. This means that the developer has satisfied the requirements of the Government in terms of quality, design, sales plans, and documentation.Is buying Borey in Cambodia a good investment?Good investments are always based on a given market’s projected needs - and Cambodians are increasingly demanding more and better homes every year. Land prices for Borey developments have already seen a considerable increase in recent years.According to data from Knight Frank, the average launch price of Borey projects in 2018 amounted to USD$ 715 per square metre. This jumped to USD$ 940 per square metre in 2019. The high-end of Borey developments have seen the biggest jump with 2018 launch prices ranging around USD$ 1,200 to USD$ 1,350 per square metre - this increased to an average of USD$ 1,700 per square metre in 2019.The global pandemic caused some fluctuations in the prices from 2020-2021 according to CBRE Cambodia’s recent Market Overview report.Another factor to consider is that Boreys currently in the pipeline, and consequently, other future Boreys, will be built further away from the city centres (especially Phnom Penh).Considering this rapid outward expansion, established Boreys will definitely see a massive increase in value in the coming years.How do you pay for Borey in Cambodia?The adage “Cash is King” is prevalent in Cambodian transactions. Having your own money in cash gives you good leverage in getting a discount for property purchases in the Kingdom.But if your current situation calls for more immediate purchase, with not enough cash to purchase the whole property, instalment options are also available through bank loans and other licensed microfinance institutions.If you’re getting a home loan, you can get one from ABA Bank, Chip Mong Bank, Vattanac Bank, and many more. To get a bank loan, you need to have regular monthly income, collateral, the hard title of the property, and guarantees.There will also be a background check for the prequalification on a loan payment to the bank.Should you buy an off-plan Borey in Cambodia?Many project developments in Cambodia are sprouting up with a new sales strategy by selling off-plan units. Off-plan means the project owners are selling their projects before and during the start of the project’s construction.Buying a unit on an off-sale plan can be advantageous: You can get a good discount, you can choose your unit in the project before anyone else does, and even influence the design of your house.There is, however, the risk that the development might run into trouble in the future that may lead to the construction being stalled or even cancelled. To help you better sleep at night, we strongly recommend you follow our guide to checking the developer’s legal papers in the earlier part of this guide.Stay up for up-to-date news on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now!Article by:
Understanding property titles in Cambodia
February 24, 2020, 3:42 a.m.
Property Reviews
Property Buyers & Sellers Advice
(The Ministry of Land Management, Urban Planning and Construction / Phan Soumy)What is a property title?A title or ‘deed’ is an official document confirming who owns the property, its location, and what rights the property owner enjoys. It should be noted that a significant percentage of land in Cambodia is not registered with the National Land Office and has no official land title certificate to secure the land on behalf of the owner.During the civil war period between 1975 and 1979, all Cambodian land title records were destroyed. This made any definitive proof of property ownership impossible after the war. A land law was passed in 1992 to establish the groundwork for land ownership, but it wasn't until its 2001 revision that allowed private ownership of land in Cambodia. The 2001 Land Law allowed for the creation of a land registry system enabling the issuance of Cambodia land titles. To date, over two million Cambodian land titles have been issued to citizens.Property ownership can now be secured by one of three forms of Cambodia land title: Hard title, Soft title, and Private Ownership in Co-owned Buildings – also known as Strata Title. In addition, an LMAP title is also now available.One of the most frequently asked questions is "Can foreigners own land or landed property in Cambodia?" The quick answer is No. The Cambodian Constitution prohibits foreign nationals from owning land and landed properties in the country.There are, however, indirect mechanisms of "ownership" such as the Nominee structure and Land concessions for development. Visit our guide to Property Ownership Mechanisms for Foreigners in Cambodia for more information.Hard Title in CambodiaHard titles are the most secure proof of property ownership and are considered the best Cambodian land title.Hard titles are certification of ownership provided by the Cambodian Land Management and Planning office. Hard Titles also include detailed information recognised and certified at a national level by the Ministry of Land and the Cadastral Office. It should be noted that a transfer tax applies when hard title transactions occur.A quick summary of what is a Hard Title in Cambodia:The Hard title is the strongest form of property ownership in Cambodia.In the rare occurrence that a disputed land has both a Hard Title and a Soft Title, the owner of the Hard Title will win the dispute.A Hard title is a land ownership certificate provided by the Land Management and Planning office.Hard titles contain detailed information that has been duly recognised and certified at a national level with the Ministry of Land and the concerned cadastral office.A Transfer tax of 4% per cent will be paid based on the total property value upon the facilitation of the Hard Title transfer.The facilitation of a Hard Title transfer usually takes up to 12 weeks.Foreign nationals are constitutionally prohibited from obtaining Hard Titles. By extension, this prohibits foreign nationals from owning land and landed properties in Cambodia.Soft Title in CambodiaA Soft Title is the most commonly issued Cambodian land title. The Soft Title, however, is only recognised at the local government level. Soft titles are provided at the local Sangkat or district office and are not registered at a national level.The Sangkat (commune) or Phum (village) chief will issue a letter of possessory rights, which refers to the right of “possession” of property. A person is in “possession” of the property when she/he physically occupies the property but is not the owner of the land as recognised by the authority.Although not as secure as a Hard title, they are still considered evidence of possession. Historically, many land transactions have occurred as soft titles to avoid transfer taxes and fees. However, most new major developments are being transacted with hard titlesA quick summary of what is a Soft Title in Cambodia:A Soft Title is the most common form of ownership and the most commonly issued Cambodian land title as the transfer taxes and fees are cheaper than a Hard Title.It is estimated that 85% of Cambodian property owners only have Soft Titles to back up their property claims.It is a Cambodian land title that is recognised at the local government level (Sangkats & Khans).Soft Titles are provided by the local Sangkat or District office and are not registered at a national level - but are still considered a valid legal document of ownership. Soft Titles are relatively cheaper and quicker to acquire for Cambodians.Estimated to take anywhere between 10 to 12 working days to process.Foreign nationals are prohibited from owning a Soft Title. By extension, this prohibits foreign nationals from owning land and landed properties in CambodiaCambodian Strata TitlePrivate ownership in co-owned (strata) buildings is a recently introduced form of property title that also allows foreigners to legally own property in Cambodia.Co-owned buildings or Strata-titled buildings are defined as buildings in which several owners reside, consisting of some parts that are the exclusive ownership of each co-owner (private units), and some other parts that are common spaces for the common use of co-owners (common areas).A quick summary of what a Strata Title in Cambodia is:A Strata Title is a special title commonly used for condo unit purchases that is available to both Cambodian nationals and foreign nationals.There are other mechanisms not necessarily involving a Strata Title available for property ownership for Foreign nationals which you can see in our investment guide.Strata Titles can only be granted if the property in question satisfies these criteria: Only applicable to buildings constructed in 2010 and beyond.Foreigners can only own 70% of the total surface area of the building or property.Strata Titles cannot be issued for properties on the ground floor and/or underground.Strata Titles cannot be issued for any property within 30km of the nearest land border.Private Ownership in co-owned buildings (also known as Strata Title) is the most recent form of ownership and allows foreigners to legally own property in Cambodia.Strata Title is a less common Cambodia land title, but the numbers issued are growing fast.Most new condo development projects offer this type of title to accommodate foreign demand to own property in Cambodia.The Law on Foreign Ownership’ was promulgated on 24 May 2010. This law limits foreign ownership to co-owned buildings. Foreigners still cannot own land, as it is unconstitutional.Strata Titles are issued by the Ministry of Land Management, Urban Planning, and Construction. This means Strata Titles are recognized on a national level.A Transfer tax of 4% percent will be paid based on the total property value upon the facilitation of the Strata Title transfer.LMAP Title in CambodiaTo improve land tenure security, a titling system called LMAP (Land Management and Administration Project) has been introduced in Cambodia.Based on official GPS coordinates, land plots are being registered throughout the country. Should an LMAP title exist for your property already, the borders have been agreed upon between neighbouring parties and are less prone to dispute.A quick summary of what is an LMAP Title in Cambodia:The LMAP Title is another property ownership title issued and recognised on a national level by the Ministry of Land Management, Urban Planning and Construction (MLMUPC) - along with the relevant cadastral offices.The main difference between the LMAP Title from a Hard Title is its inclusion of the exact GPS coordinates that determine the boundaries of the property in question.LMAP Titles can only be obtained on land that has been indexed on a cadastral map. So, if a plot of land has not yet been indexed, the LMAP Title cannot be issued for that property.If the MLMUPC is presently undergoing the necessary LMAP titling process in your village or area where you live, this means you only need to follow what your local authority informs you to do once the project is completed. It is their obligation to communicate with you.It is possible to own a Hard Title without an LMAP Title due to the above-mentioned limitation.A Transfer tax of 4% per cent will be paid based on the total property value upon the facilitation of the LMAP Title transfer.Foreign nationals are not permitted to own an LMAP title. By extension, this prohibits foreign nationals from owning land and landed properties in Cambodia.How to Transfer A Property Title in CambodiaWhen you purchase property or land in Cambodia, it is critical to obtain outright ownership in order to feel secure about your new asset. To complete the process for transferring land titles of ownership, there are particular steps that need to be followed, documents that need to be obtained, as well as the necessary consultations with relevant agencies.Step 1: Verify the title certificate with the relevant Land OfficeThe buyer will first need to verify the land title certificate with the Land Office at the Ministry of Land Management, Urban Planning and Construction (MLMUPC), to check for any debts or other claims to the property.This process requires:The buyer must obtain the original title certificate from the seller to verify their genuine ownership.The buyer will then verify the title certificate with the Land Office at the MLMUPC.The Land Office will inform the buyer if there are any liens (debts), mortgages, or other claims registered to that property.Relevant Government Agency: Land Office at MLMUPCEstimated time to completion: This takes approximately 10 days (should occur simultaneously to steps 2 and 3)Step 2: Obtain information on the propertyThe buyer must then obtain information on the property from the relevant Commune Council Official. This involves the buyer contacting the village chief or the Commune Council Official in which the property is located to obtain information about the land/property. In addition to this, an official search of the title should take place at the Khan/District Land Office.Relevant Government Agency: Commune Council (Relevant District/Khan office in your property’s area)Estimated time to completion: This should take approximately 10 days (we advise that this be done in parallel to Steps 1 and 3)Step 3: Obtain the certificate of incorporation and official documents from the sellerIf the landowner is a legal entity, the buyer must obtain;A copy of the ID of the shareholder, or person acting on behalf of the company.A certified/notarised copy of the Certificate of Incorporation of the seller’s company as issued by the Ministry of Commerce.Any other official documents from the seller relating to the company and the transaction.All of these documents are needed to verify the accuracy and identity of the company name appearing on the title certificate. Further documents needed to verify the seller’s authorisation to transfer the property to the buyer are;A special power of attorney.A Resolution signed by the Board of Directors from that company authorising the named individual (seller) to represent the company at the Land Office (MLMUPC).A power of attorney specifically stating that the seller can bring into effect that Resolution to transfer land titles of ownership to the buyer.Relevant Government Agency: Ministry of CommerceEstimated time to completion: This process should take around 10 days (should occur simultaneously with steps 1 and 2)Step 4: Apply for registration at the District Land Office (MLMUPC)When the buyer and seller, whether they are as an individual or a company wish to complete the property transaction, they must go together to the District Land Office at the MLMUPC to arrange, prepare, and sign the relevant documents.The documentation needed for this step is:The Company’s statute.The Company’s Certificate of Incorporation (obtained in Step 3).Both of the Power of Attorney documents (obtained in Step 3).The original Title Certificate held by the seller must be presented to the District Land Office at the time of signing the deed, in order to have the name of the new owner officially inserted on the document.Relevant Government Agency: District Land Office, MLMUPC (District Land Office of the Ministry of Land Management, Urban Planning & Construction)Estimated time to complete the step: This step takes between 20 and 30 days.Step 5: Pay transfer taxA transfer tax of approximately 4 per cent of the total value of the property is paid to the Ministry of Economy and Finance at the General Department of Taxation, in the district that the transferred property resides. A tax receipt is then issued to prove that the property transfer tax has been paid.In Phnom Penh, however, this tax is not assessed based on the true transacted value of the property; but, rather, based on a schedule of the price of property determined by the Phnom Penh Municipality. The assessed valuation by the Phnom Penh Municipality is based upon factors such as; the total number of square meters, the land’s location, use, potential use, and other variables.To put this quite simply the transfer tax is not based on the actual price of the land which is sold, which is usually the case, rather it is based on the assessed value made by the Phnom Penh Municipal office, which may be higher than the tax rates in other provinces.If the land is more than 1200 sqm, the surplus of the land will also be subject to “unused land tax.” For land less than 1200 sqm, the unused land tax is not applicable. The time for the General Department of Taxation to complete the calculation of transfer tax will depend on the location of the land and its size.Relevant Government Agency: General Department of TaxationEstimated time to complete the step: This process should take around 1 dayStep 6: Return to the cadastral office to complete the registration processAfter all relevant taxes are paid, the parties may return to the cadastral office at the District Land Office of the Ministry of Land Management, Urban Planning & Construction (MLMUPC) and sign/thumbprint an MLMUPC form for buying/selling real property, as filled in by MLMUPC official.The signing/thumbprinting must be witnessed by a local authority such as the commune chief, who will also give their thumbprint. These procedures are based on Land Law Articles; 65, 244 and 245. Land Law Article 69 bars the transfer of property unless all necessary taxes are paid. The documentation provided should include payment receipts of the transfer tax (obtained in Step 5).Step 7: Obtain the certificate of title from the Municipal Land OfficeObtain the certificate of title from the Municipal Land Office: The Khan/District land office forwards all the “transfer documents” to the Municipal Land Office where it issues the final Certificate of Title in the new owner’s name. It is now registered.Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now!Article by:
Things to consider when buying in a Borey in Cambodia
May 15, 2017, 8:54 p.m.
Home & Living
Property Buyers & Sellers Advice
Cambodia’s rapidly growing property sector has opened up a new market for housing projects throughout the Kingdom. While condominiums continue to take the headlines in Cambodia’s construction news, little do outsiders know that Borey developments - gated communities featuring a range of popular residential housing - are beating condominiums in terms of popularity among Cambodia’s expanding middle-class.At the end of 2018, Knight Frank recorded a total of 46,197 units across 126 Borey developments. That number increased to 51,278 units across a total of 131 Boreys by the first half of 2019!The supply of landed property projects continues to grow in the first half of 2021 despite of the impacts of the global pandemic. 21 new projects were still launched in 9 districts in the capital which added l15,500 units to the future supply.This number is expected to grow in the coming years but you can get up-to-date Realestate.com.kh’s Real Estate Survey and Reports here.What is a Borey and what makes it so popular?A Borey development is a gated community featuring a range of housing types popular among Cambodians. It can feature single villas, twin villas, hybrid villas, linked houses, shophouses, and flat houses. These different housing types further offer a wide range of preferences in terms of floor area, number of rooms, and prices to accommodate the needs of individuals, families, and/or businesses.Since Boreys occupy a considerable amount of space, some areas of the development may be allocated for parks, children's’ playgrounds, markets, and retail stores. These gated communities also feature 24/7 security through private security personnel and infrastructure.Where to buy a Borey in Cambodia?According to the General Population Census 2019, over 2,200,000 Cambodians live in Phnom Penh. This makes Phnom Penh the most populated city in the Kingdom and it only follows that most of the Kingdom’s Borey developments are concentrated here.A high percentage of borey developments are located in the outlying districts of the capital city, because of two primary (and related) reasons.First, Phnom Penh’s almost-breakneck pace of development leaves little-to-no room for Boreys to be developed within the city center.Second, because of the speed of development, land prices close to the city center make it virtually impossible to make any Borey development appealing for a majority of Cambodians.Given the variety of Borey developments, we recommend buyers to check the latest Borey projects close to Phnom Penh.(Borey VIP in Dangkao commune, Dangkao district) (Borey Lorn City Lotussana in Chaom Chau commune, Por Sen Chey) (Borey Galaxy 11 in Spean Thma commune, Dangkao district)As the Borey market in Phnom Penh gets more competitive, developers have started looking elsewhere in the Kingdom for future projects.Siem Reap, the second most populated city in the country with over 1,000,000 residents (General Population Census 2019) has started seeing its own Borey launches in the last couple of years.Most Borey developments have reported strong off-plan sales figures, with some citing sold-out figures in their first and second phases. The interest shown by the local market suggests that the city’s market is open to new property developments despite the popularity of shophouses and traditional Khmer houses in Siem Reap.The Borey market in this culturally rich city is growing every year. We recommend interested buyers to check the latest Borey projects in Siem Reap and some of the featured boreys below:Bakong Village - Bakong, Prasat BakongVnom Empire - Ampil, Prasat BakongBorey Royal Angkor Village - Svay Leu, Svay LeuSihanoukville has seen rapid commercial and residential developments since 2015, mostly focused on mixed-use developments. Borey developers, however, have taken an interest in the city as the on-going development of a USD $2 billion expressway from Phnom Penh to Sihanoukville, and a USD $294 million road rehabilitation within the city, makes it a strong candidate for Cambodia’s next major urban centre.For property hunters looking for the comforts of the city while having easy access to Cambodia’s beaches, we recommend interested Borey buyers to check Borey VIP in Sihanoukville and all the latest borey developments in Sihanoukville.How are Borey properties priced?Borey properties vary greatly in terms of prices. This is mainly because of the aforementioned variety of properties offered within any given Borey development. For ballpark estimates, Knight Frank’s report cites that these could range from USD $750 to USD $1,700 per square metre in 2019.Then again, land prices in Cambodia are constantly on the rise so these prices are expected to further increase in the immediate (2-3 years) future.Factors that directly/indirectly affect Borey prices also vary. Here are some key considerations in Borey price assessment:How far away is the Borey community from the nearest commercial centre? (Shopping centres, theatres, banks, government institutions, airports, etc.)What are the included amenities in the Borey? (community park & events centre, children's playground, public swimming pool, etc.)Did the developer build the necessary residential infrastructure themselves? (electrical grids, water and sewage pipelines, access roads, etc.)Is the Borey overall an affordable/mid-tier/premium Borey?We suggest you consider these factors, in addition to your specific and personal needs, when buying a Borey, or any property, in the Kingdom of Cambodia.Find out more about property valuation fees in Cambodia.Tax law for Borey in CambodiaFor any property of any type with a freehold/hard title in Cambodia, whether you’re a local or a foreigner, there is a transfer tax that you have to pay whenever you purchase a property. The transfer tax is 4 per cent of the property’s value.An annual property tax is also levied on landed property exceeding 100,000,000 riels ($25,000) in value. This tax is collected annually at a rate of 0.1% of the property’s value. The tax is based on the value of lands, houses, buildings and other constructions built on the land by deducting 100,000,000 riels (USD$ 25,000) from the property in question.The (property) value of lands, houses, buildings and other constructions that are built on the land shall be determined based on the market price by the Property Evaluation Committee established by the Prakas of the Minister of Economy and Finance, according to the General Department of Taxation.Read more in our guide on property tax in Cambodia.Can foreigners own a Borey in Cambodia?Foreigners are prohibited to own landed property by the foreign ownership law in Cambodia that was promulgated on May 24, 2010. Since Boreys are considered landed property, this type of housing is essentially prohibited from being owned by a non-Cambodian citizen.A foreign national can either get married to a Cambodian and name it after their spouse, or gain Cambodian citizenship for themselves after satisfying state requisites.What type of ownership titles are available for a Borey in Cambodia?Cambodia uses three types of ownership titles. These are the soft title, hard title, and the LMAP title — the safest type of title. So, if you buy any Borey homes, it’s best to ask the project owner for LMAP title to be the most secure for your future immovable assets.What do you need to check when buying a Borey in Cambodia?The Cambodian government, through its respective agencies, has cracked down on erring developers who do not have the proper documentation for their projects. But it’s always good to exercise some due diligence on your part. That’s just being a smart consumer!Here are the 5 key legal documents you need to look for when checking a Borey’s legal adherence:Hard Title: You have to look at two classifications of hard titles when dealing with Boreys. The first is the hard title for the whole Borey development. This is called a master title - and will cover the entire piece of land on which the project sits. The second one should be hard titles that are subdivided for each residential unit included in the Borey. These are called individual titles.A legitimate Borey development should be able to produce both of these hard titles to potential buyers. If they can’t show this, don’t put any money down until they do.NOTE: It is also possible for developers to issue a Soft Title for their properties, but it would be in your best interest as a resident to get a Hard Title.Development Company Registration: Development companies will need to register themselves to gain approval from the necessary ministries to proceed with construction. However, construction is not always a sign that they’ve been approved. You can ask to see their company registration just to make sure both the project and the developers can proceed legally.Master Plan Approval: The Ministry of Land Management will need to approve the developer’s Master Plan first before the construction begins. A credible developer will be able to provide you with it or at least show you a copy.Construction License: The construction company then goes through a thorough background check with the Ministry of Land Management. Boreys must have a single registered construction company building the units and infrastructure to ensure consistency and quality throughout the development. Once this has been cleared, the construction company is then given a license.Borey License: The Ministry of Economics and Finance releases the license for the Borey once everything is in order. This means that the developer has satisfied the requirements of the Government in terms of quality, design, sales plans, and documentation.Is buying Borey in Cambodia a good investment?Good investments are always based on a given market’s projected needs - and Cambodians are increasingly demanding more and better homes every year. Land prices for Borey developments have already seen a considerable increase in recent years.According to data from Knight Frank, the average launch price of Borey projects in 2018 amounted to USD$ 715 per square metre. This jumped to USD$ 940 per square metre in 2019. The high-end of Borey developments have seen the biggest jump with 2018 launch prices ranging around USD$ 1,200 to USD$ 1,350 per square metre - this increased to an average of USD$ 1,700 per square metre in 2019.The global pandemic caused some fluctuations in the prices from 2020-2021 according to CBRE Cambodia’s recent Market Overview report.Another factor to consider is that Boreys currently in the pipeline, and consequently, other future Boreys, will be built further away from the city centres (especially Phnom Penh).Considering this rapid outward expansion, established Boreys will definitely see a massive increase in value in the coming years.How do you pay for Borey in Cambodia?The adage “Cash is King” is prevalent in Cambodian transactions. Having your own money in cash gives you good leverage in getting a discount for property purchases in the Kingdom.But if your current situation calls for more immediate purchase, with not enough cash to purchase the whole property, instalment options are also available through bank loans and other licensed microfinance institutions.If you’re getting a home loan, you can get one from ABA Bank, Chip Mong Bank, Vattanac Bank, and many more. To get a bank loan, you need to have regular monthly income, collateral, the hard title of the property, and guarantees.There will also be a background check for the prequalification on a loan payment to the bank.Should you buy an off-plan Borey in Cambodia?Many project developments in Cambodia are sprouting up with a new sales strategy by selling off-plan units. Off-plan means the project owners are selling their projects before and during the start of the project’s construction.Buying a unit on an off-sale plan can be advantageous: You can get a good discount, you can choose your unit in the project before anyone else does, and even influence the design of your house.There is, however, the risk that the development might run into trouble in the future that may lead to the construction being stalled or even cancelled. To help you better sleep at night, we strongly recommend you follow our guide to checking the developer’s legal papers in the earlier part of this guide.Stay up for up-to-date news on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now!Article by:
Understanding property titles in Cambodia
February 24, 2020, 3:42 a.m.
Property Reviews
Property Buyers & Sellers Advice
(The Ministry of Land Management, Urban Planning and Construction / Phan Soumy)What is a property title?A title or ‘deed’ is an official document confirming who owns the property, its location, and what rights the property owner enjoys. It should be noted that a significant percentage of land in Cambodia is not registered with the National Land Office and has no official land title certificate to secure the land on behalf of the owner.During the civil war period between 1975 and 1979, all Cambodian land title records were destroyed. This made any definitive proof of property ownership impossible after the war. A land law was passed in 1992 to establish the groundwork for land ownership, but it wasn't until its 2001 revision that allowed private ownership of land in Cambodia. The 2001 Land Law allowed for the creation of a land registry system enabling the issuance of Cambodia land titles. To date, over two million Cambodian land titles have been issued to citizens.Property ownership can now be secured by one of three forms of Cambodia land title: Hard title, Soft title, and Private Ownership in Co-owned Buildings – also known as Strata Title. In addition, an LMAP title is also now available.One of the most frequently asked questions is "Can foreigners own land or landed property in Cambodia?" The quick answer is No. The Cambodian Constitution prohibits foreign nationals from owning land and landed properties in the country.There are, however, indirect mechanisms of "ownership" such as the Nominee structure and Land concessions for development. Visit our guide to Property Ownership Mechanisms for Foreigners in Cambodia for more information.Hard Title in CambodiaHard titles are the most secure proof of property ownership and are considered the best Cambodian land title.Hard titles are certification of ownership provided by the Cambodian Land Management and Planning office. Hard Titles also include detailed information recognised and certified at a national level by the Ministry of Land and the Cadastral Office. It should be noted that a transfer tax applies when hard title transactions occur.A quick summary of what is a Hard Title in Cambodia:The Hard title is the strongest form of property ownership in Cambodia.In the rare occurrence that a disputed land has both a Hard Title and a Soft Title, the owner of the Hard Title will win the dispute.A Hard title is a land ownership certificate provided by the Land Management and Planning office.Hard titles contain detailed information that has been duly recognised and certified at a national level with the Ministry of Land and the concerned cadastral office.A Transfer tax of 4% per cent will be paid based on the total property value upon the facilitation of the Hard Title transfer.The facilitation of a Hard Title transfer usually takes up to 12 weeks.Foreign nationals are constitutionally prohibited from obtaining Hard Titles. By extension, this prohibits foreign nationals from owning land and landed properties in Cambodia.Soft Title in CambodiaA Soft Title is the most commonly issued Cambodian land title. The Soft Title, however, is only recognised at the local government level. Soft titles are provided at the local Sangkat or district office and are not registered at a national level.The Sangkat (commune) or Phum (village) chief will issue a letter of possessory rights, which refers to the right of “possession” of property. A person is in “possession” of the property when she/he physically occupies the property but is not the owner of the land as recognised by the authority.Although not as secure as a Hard title, they are still considered evidence of possession. Historically, many land transactions have occurred as soft titles to avoid transfer taxes and fees. However, most new major developments are being transacted with hard titlesA quick summary of what is a Soft Title in Cambodia:A Soft Title is the most common form of ownership and the most commonly issued Cambodian land title as the transfer taxes and fees are cheaper than a Hard Title.It is estimated that 85% of Cambodian property owners only have Soft Titles to back up their property claims.It is a Cambodian land title that is recognised at the local government level (Sangkats & Khans).Soft Titles are provided by the local Sangkat or District office and are not registered at a national level - but are still considered a valid legal document of ownership. Soft Titles are relatively cheaper and quicker to acquire for Cambodians.Estimated to take anywhere between 10 to 12 working days to process.Foreign nationals are prohibited from owning a Soft Title. By extension, this prohibits foreign nationals from owning land and landed properties in CambodiaCambodian Strata TitlePrivate ownership in co-owned (strata) buildings is a recently introduced form of property title that also allows foreigners to legally own property in Cambodia.Co-owned buildings or Strata-titled buildings are defined as buildings in which several owners reside, consisting of some parts that are the exclusive ownership of each co-owner (private units), and some other parts that are common spaces for the common use of co-owners (common areas).A quick summary of what a Strata Title in Cambodia is:A Strata Title is a special title commonly used for condo unit purchases that is available to both Cambodian nationals and foreign nationals.There are other mechanisms not necessarily involving a Strata Title available for property ownership for Foreign nationals which you can see in our investment guide.Strata Titles can only be granted if the property in question satisfies these criteria: Only applicable to buildings constructed in 2010 and beyond.Foreigners can only own 70% of the total surface area of the building or property.Strata Titles cannot be issued for properties on the ground floor and/or underground.Strata Titles cannot be issued for any property within 30km of the nearest land border.Private Ownership in co-owned buildings (also known as Strata Title) is the most recent form of ownership and allows foreigners to legally own property in Cambodia.Strata Title is a less common Cambodia land title, but the numbers issued are growing fast.Most new condo development projects offer this type of title to accommodate foreign demand to own property in Cambodia.The Law on Foreign Ownership’ was promulgated on 24 May 2010. This law limits foreign ownership to co-owned buildings. Foreigners still cannot own land, as it is unconstitutional.Strata Titles are issued by the Ministry of Land Management, Urban Planning, and Construction. This means Strata Titles are recognized on a national level.A Transfer tax of 4% percent will be paid based on the total property value upon the facilitation of the Strata Title transfer.LMAP Title in CambodiaTo improve land tenure security, a titling system called LMAP (Land Management and Administration Project) has been introduced in Cambodia.Based on official GPS coordinates, land plots are being registered throughout the country. Should an LMAP title exist for your property already, the borders have been agreed upon between neighbouring parties and are less prone to dispute.A quick summary of what is an LMAP Title in Cambodia:The LMAP Title is another property ownership title issued and recognised on a national level by the Ministry of Land Management, Urban Planning and Construction (MLMUPC) - along with the relevant cadastral offices.The main difference between the LMAP Title from a Hard Title is its inclusion of the exact GPS coordinates that determine the boundaries of the property in question.LMAP Titles can only be obtained on land that has been indexed on a cadastral map. So, if a plot of land has not yet been indexed, the LMAP Title cannot be issued for that property.If the MLMUPC is presently undergoing the necessary LMAP titling process in your village or area where you live, this means you only need to follow what your local authority informs you to do once the project is completed. It is their obligation to communicate with you.It is possible to own a Hard Title without an LMAP Title due to the above-mentioned limitation.A Transfer tax of 4% per cent will be paid based on the total property value upon the facilitation of the LMAP Title transfer.Foreign nationals are not permitted to own an LMAP title. By extension, this prohibits foreign nationals from owning land and landed properties in Cambodia.How to Transfer A Property Title in CambodiaWhen you purchase property or land in Cambodia, it is critical to obtain outright ownership in order to feel secure about your new asset. To complete the process for transferring land titles of ownership, there are particular steps that need to be followed, documents that need to be obtained, as well as the necessary consultations with relevant agencies.Step 1: Verify the title certificate with the relevant Land OfficeThe buyer will first need to verify the land title certificate with the Land Office at the Ministry of Land Management, Urban Planning and Construction (MLMUPC), to check for any debts or other claims to the property.This process requires:The buyer must obtain the original title certificate from the seller to verify their genuine ownership.The buyer will then verify the title certificate with the Land Office at the MLMUPC.The Land Office will inform the buyer if there are any liens (debts), mortgages, or other claims registered to that property.Relevant Government Agency: Land Office at MLMUPCEstimated time to completion: This takes approximately 10 days (should occur simultaneously to steps 2 and 3)Step 2: Obtain information on the propertyThe buyer must then obtain information on the property from the relevant Commune Council Official. This involves the buyer contacting the village chief or the Commune Council Official in which the property is located to obtain information about the land/property. In addition to this, an official search of the title should take place at the Khan/District Land Office.Relevant Government Agency: Commune Council (Relevant District/Khan office in your property’s area)Estimated time to completion: This should take approximately 10 days (we advise that this be done in parallel to Steps 1 and 3)Step 3: Obtain the certificate of incorporation and official documents from the sellerIf the landowner is a legal entity, the buyer must obtain;A copy of the ID of the shareholder, or person acting on behalf of the company.A certified/notarised copy of the Certificate of Incorporation of the seller’s company as issued by the Ministry of Commerce.Any other official documents from the seller relating to the company and the transaction.All of these documents are needed to verify the accuracy and identity of the company name appearing on the title certificate. Further documents needed to verify the seller’s authorisation to transfer the property to the buyer are;A special power of attorney.A Resolution signed by the Board of Directors from that company authorising the named individual (seller) to represent the company at the Land Office (MLMUPC).A power of attorney specifically stating that the seller can bring into effect that Resolution to transfer land titles of ownership to the buyer.Relevant Government Agency: Ministry of CommerceEstimated time to completion: This process should take around 10 days (should occur simultaneously with steps 1 and 2)Step 4: Apply for registration at the District Land Office (MLMUPC)When the buyer and seller, whether they are as an individual or a company wish to complete the property transaction, they must go together to the District Land Office at the MLMUPC to arrange, prepare, and sign the relevant documents.The documentation needed for this step is:The Company’s statute.The Company’s Certificate of Incorporation (obtained in Step 3).Both of the Power of Attorney documents (obtained in Step 3).The original Title Certificate held by the seller must be presented to the District Land Office at the time of signing the deed, in order to have the name of the new owner officially inserted on the document.Relevant Government Agency: District Land Office, MLMUPC (District Land Office of the Ministry of Land Management, Urban Planning & Construction)Estimated time to complete the step: This step takes between 20 and 30 days.Step 5: Pay transfer taxA transfer tax of approximately 4 per cent of the total value of the property is paid to the Ministry of Economy and Finance at the General Department of Taxation, in the district that the transferred property resides. A tax receipt is then issued to prove that the property transfer tax has been paid.In Phnom Penh, however, this tax is not assessed based on the true transacted value of the property; but, rather, based on a schedule of the price of property determined by the Phnom Penh Municipality. The assessed valuation by the Phnom Penh Municipality is based upon factors such as; the total number of square meters, the land’s location, use, potential use, and other variables.To put this quite simply the transfer tax is not based on the actual price of the land which is sold, which is usually the case, rather it is based on the assessed value made by the Phnom Penh Municipal office, which may be higher than the tax rates in other provinces.If the land is more than 1200 sqm, the surplus of the land will also be subject to “unused land tax.” For land less than 1200 sqm, the unused land tax is not applicable. The time for the General Department of Taxation to complete the calculation of transfer tax will depend on the location of the land and its size.Relevant Government Agency: General Department of TaxationEstimated time to complete the step: This process should take around 1 dayStep 6: Return to the cadastral office to complete the registration processAfter all relevant taxes are paid, the parties may return to the cadastral office at the District Land Office of the Ministry of Land Management, Urban Planning & Construction (MLMUPC) and sign/thumbprint an MLMUPC form for buying/selling real property, as filled in by MLMUPC official.The signing/thumbprinting must be witnessed by a local authority such as the commune chief, who will also give their thumbprint. These procedures are based on Land Law Articles; 65, 244 and 245. Land Law Article 69 bars the transfer of property unless all necessary taxes are paid. The documentation provided should include payment receipts of the transfer tax (obtained in Step 5).Step 7: Obtain the certificate of title from the Municipal Land OfficeObtain the certificate of title from the Municipal Land Office: The Khan/District land office forwards all the “transfer documents” to the Municipal Land Office where it issues the final Certificate of Title in the new owner’s name. It is now registered.Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now!Article by:

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78-Storey Commercial Building Construction will start early next year

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Phnom Penh has undergone surprising changes in the last decade. Commercial buildings and skyscrapers have been and are being built, turning this once haunting ghost city to one of the newest civilized and modern cities in the world.But the changes aren’t quite done yet. A 78-storey commercial building will rise from the ashes for the first time in Phnom Penh where construction will begin in early 2017. This will add to the estimated 600 existing tall buildings – living up to the Asian Development Bank’s designation of Cambodia as "Asia’s New Tiger Economy.”A staff of the Yung Chung Company who does not wish to be named said that “the building design has been completed, and the construction is scheduled to begin in early 2017. The development will reach total completion by 2021, but its showroom will be launched in November this year.” He added that “this building will be a mixed-use development and will include shopping malls, condominiums, hotels, as well as a swimming pool and a rotated restaurant on the 78th floor.”He continues, “The detailed plans of using this building was completed, but details are still confidential at the moment. This project has already been approved by the Ministry of Land Management, Urban Planning and Construction.”Seng Lot, the spokesman for the Ministry of Land Management, Urban Planning and Construction confirms, “The ministry has already agreed to provide a license for Yung Chung Real Estate to construct a building of 78 floors.”Ann Sothida, director of CBRE Cambodia, said that as far as she’s gathered, this mixed-use business center will be built in the future. But the market is not doing good, and that could cause a delay in the construction of the project. She added that with the company’s innovative approach of the building though, this project should not have any problems in the Cambodian market once it is completed. According to her, the project will be located behind “The Bridge” building, which is near Diamond Island (Koh Pich). However, she did not show the feature details of the plan.President of CVEA, Kim Heang, said that “Investors of the skyscraper project will be through a developer from China. The project will also occupy a total area of 4,500 square meters and will cost lower than $20 million.” He adds that “if the project owner has enough money to complete this huge building project, it will not be a problem for this market.”Once completed, it will become the 2nd tallest building in Phnom Penh, next to the 133 floor Thai Boon Roong twin trade center which is 500 meters high.Dr. Van Vat, Planning Specialist, explains that Cambodia already has a regulation to limit tall buildings. So, if our law enforcement is good, it will not only protect the heritage in the city, but it will maintain the beautiful sceneries and will minimize the environmental impact as well. He continues to say that normally the construction of such a high building requires the company to have studied all the technical standards, and the specialist from the ministry has to inspect and go over the construction standards to make sure that the company’s complying with the request or not.He adds that "Having these tall commercial buildings, it is a national pride because it is not only improving the economy, but it also provides employment and income for the people as well."Check out the hottest new development homes and offices!This story was featured in the September 2016 print edition of PROPERTY VIEW magazine, produced by the CVEA.Realestate.com.kh is very proud to support the CVEA’s Property View publication. For more information about joining the Cambodian Valuers and Estate Agents Association (CVEA) please click here. And, if you are interested in advertising placement or advertorial in the next edition of Property View Magazine, please contact Mr. Virith via email: virith007@yahoo.com Or call: 078 959 567 or 098 66 26 68

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Stricter Law Enforcement: Developer Licensing Requirements

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Prakas No. 965 (MEF) on the Management of Residence Development Business was dated August 24, 2016 and aims to get developers to obtain a license from the Finance Ministry.The Director of the Finance Ministry, Mr. Noung Piseth, said that only around 167 housing developments, 104 gated communities, and 63 condominiums that are currently underway are actually authorized by the Finance Ministry. He estimates that around 10 to 20 percent of current developments have no licenses. And this is causing concern from buyers who have already purchased units from these developers.This prakas (law) affects real estate developments that either have more than 4 apartments, 3 villas, or 4 units. Developers who fit the criteria are considered to be a residence development business company and are now required to have a license through the Ministry of Economy and Finance, for several reasons.Why should developers obtain a license?Other than avoiding a fine for owners of unlicensed housing projects that can reach up to $25,000, getting a license actually has a well rounded advantage for everyone involved in a development. It benefits the customers, the developers, and the industry as a whole.The Head of the Office of Business Management Housing Development at the Department of Industry and Finance, Ms. Chan Socheata, said that “generally, before the issuance of the license for any project development, the ministry evaluates through its checklist to find out whether the development has a clear and strong source of income, capital, collateral, land title, and other assets that support their project.”She continues, “The ministry will check whether it’s a good business, and if it can be successful in the future or not. In some cases, there’s a need to research on the sales strategy of the project, because sometimes a project’s owner does not do an in-depth market analysis with the surrounding market. And another reason is to find whether this project causes a bubble market. So, if this case happens, the ministry can take measure immediately,”And since a residence development business company is also required to deposit 2 percent of their capital, there is an assurance for both the ministry and the customer that there is enough resource for the project to successfully move forward and reach completion. Additionally, once a company is licensed, the ministry can serve as a mediator of sorts for any disputes that may arise between the developer and its customer.What are the types of licenses?Besides the 2 percent secured deposit, there is still a separate fee for each type of license that must paid by the company.There are currently two types of licenses.The first license is for companies which has either loaned from financial institutions or have their own capital that they can use for the development and sale of the property once construction is over.The other license is for companies who have their own capital or loan from a number of financial institutions or capital that comes from installation payments by the buyer, where construction is still not over.What are the Developer licensing requirements?For the first type of license, the development company must already have finished construction with the cost already determined.While the second type of license calls for the same requirement, it also calls for the development company to open a trust account where they will be placing payments from the customer.Socheata also mentions that “project owners need to make a business plan to present to the ministry” before they are issued a license. There are also requirements that should be submitted after the project is finished. This is called a reporting requirement where the Ministry of Economy and Finance needs to be updated after a month of the project’s completion regarding financial soundness and the project ending.With the release of this Prakas on developer licensing, we can expect to see positive changes in the aspects of construction and financing; and more transparency for end buyers - bringing much needed protections to the off-plan real estate market.Learn more about Investing in Cambodia, with your real estate information leader: Realestate. com.kh!

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Urgent plot land law reforms called for by CVEA

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According to Phat Sok, Head of the Land Department from Ministry of Land Management, Urban Planning and Construction, and Ms. Chan Socheata, Head of the Office of Business Management of Housing Development at the Department of Industry and Finance, “Cambodia currently does not have law or regulation in the management of plot land, however the government with relevant ministries are currently working on the drafting a law on “Business Management of Real Estate Development.” ARE YOU LOOKING TO BUY PLOT LAND? Read our ultimate guide to buying land in a plot land development now! Regarding the draft of this new law, Oknha Cheng Kheng, ceo of Huttons CPL said that, “making a law to have legal control over the company selling subdivided plot land is highly significant and timely.” He explained, “we have to think about the positive impact and negative side with the long term health of the market in mind. If this law is applied, it will be able to defend any conflict which is arising after the purchasing of that land. For instance, in the past there have been some companies that have promised to build the road and sewage system for customers within the plot land development, but ultimately they are not keeping their promise. If we have this law, we can make sure that they are legally obliged to fulfill their promises to the buyer." Oknha Kheng also directly questioned the government’s criticism of plot land developers given the current void of legislation. Oknha Kheng notes that “having been a service provider of plot land, I have observed notable progress in the sector. But I have also seen a lack of involvement from the authorities in regards to people’s education surrounding construction quality - some of which directly affects the municipal infrastructure, and the issues this causes when residential properties are under construction. At this early point of the construction progress there are no outright bans or instructions from the authorities guiding the developer. Then, suddenly after the construction is complete it is announced by the authority that the building is illegal. This state of affairs should also be taken into account by the relevant ministry.” Lina Thav, Executive Chairman of POD development in the project of Surin Phom Green Community, said that he supported a law governing the plot land subdivision companies: “Obviously our company wishes to fulfill its legal obligations and all safeguards required by law - such as responding to requests to display the master plan of the project to the government and customers, and the infrastructure plans to the Ministry of Land.” Suy Kokthean, Executive Director of the Vision to Social Advancement Organization, said that “since we do not have legal control over the plot land subdivision currently occurring, this creates problems for customers trying to purchase plot land now and in the future.” Suy notes that “plot land subdivisions have the potential to become areas of anarchy, where people build homes in any way they see fit. This will mean messy and poor-quality construction, building with no respect to borders easements. Furthermore, who will control zoning? What is stopping people from building factories and renting to workers, in the same area other buyers wanted to build a home?” He added “ This is an unpleasant thought for those who will buy plot land thinking it a good place to build a family home in the future.” He finally said, “if plot land management law is applied well, we could avoid these type of issues.” This discussion was held at the recent Cambodian Valuers and Estate Agents Association (CVEA) public forum entitled "Today’s Real Estate Industry in Cambodia" at the Sofitel Hotel, Phnom Penh. This public forum event was designed to benefit key stakeholders in the Cambodian real estate sector such as developers, construction companies, real estate sellers and buyers, financial institutions and estate agents. Kim Heang, the president of the CVEA, also mentioned about the need for legal control over property sales and urged the government to establish the law relating to the subdivision plot land management law as soon as possible in order to facilitate the industry and to protect the interest of customers wishing to purchase plot land. Heang said that now is the ideal time to define what are the current issues in the real estate sector and find appropriate solutions to fix these problems. If these changes are not made quickly, the consumers will suffer in the longer-term. In particular, regulation is needed regarding plot land subdivision guidelines, condominium sales and development, boreys and correct licensing procedures for the Ministry of Economy and Finance and the Ministry of Land Management, Urban Planning and Construction. BE A SMART PLOT LAND INVESTOR: Read our ultimate guide to buying land in a plot land development now!

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