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Construction Resumes for Gold Tower 42
Construction Resumes for Gold Tower 42
June 7, 2022, 1:24 a.m.
Realestate News
Abandoned for two years, Gold Tower 42 yet again promised that construction would resume on the long dormant project. This time, however, construction will begin in February 2016 and will be completed by 2018. Similar claims were made earlier this year, when the company promised it would resume construction in March of 2015, with a completion date of 2018.According to the Ministry of Urban Planning and Construction, Choi Jong Hae, CEO and Chairman of Yonwoo Cambodia Co, Ltd, who owns Gold Tower 42, requested permission to continue construction by sending a letter. Lao Tip Seitha, Deputy Director General of the General Department of Construction at the Ministry of Land Management, Urban Planning and Construction, confirmed that the ministry had received the letter. Seng Bunna, CEO of Bunna Realty Group, said that if the project actually begins, yet again, it would be a good sign that the Koreans have faith in the Cambodian market. However, he said that he was unsure if the owner of the property was truly committed to the project. But, from a construction materials point of view, now would be the logical time to resume construction because the materials, primarily all imported, have declined in value alongside the drop in regional currencies as the US dollar has remained strong, he said. โ€œNow would be a good time to build, but to attempt to sell, now is not the time,โ€ he said, hinting at the lack of faith investors have in the project. Siv Meng, Phnom Penh Post, Post Property.
Sihanoukville Property Takes A Hit
Sihanoukville Property Takes A Hit
June 6, 2022, 5:05 p.m.
Realestate News
Sihanoukville property market has taken a blow since Chinese nationals living and working in the city upped and left following last monthโ€™s police arrest and extradition of 168 Chinese, local real estate agents say.On October 31, Cambodian immigration police working with Chinese Interpol agents raided a villa and a guesthouse in Sihanoukville, busting a ring that was using an internet-based telephone system to extort money from victims back in China. Many of those arrested in the Cambodian raids were working in casinos in Sihanoukville, an industry that has seen strident growth on the back of Chinese investment in the past year, but which will be challenged after hotel and casino owners told The Post last month they have suffered immense losses and risk bankruptcy. Check out Sihanoukville property for sale here.Bonna Realty Groupโ€™s valuation manager in Sihanoukville, Phourn Sophy, said the sudden departure of Chinese investors, workers and tourists who have left the coastal city en masse and put investments and staffing in disarray, has also seen such tenants renege on their rental agreements and contracts. โ€œSuddenly, the Chinese people just left, leaving Sihanoukville property developers worried,โ€ he said. Those that are still here have cut down on how many months deposit they are securing in case the situation intensifies, choosing to put down two monthsโ€™ rent in advance as opposed to six monthsโ€™ like before, said Sophy. The upheaval has also left developers and landlords, who were swept with excitement six months back when they saw Chinese demand for property increase, saddled with bank loans they will struggle to pay back, Sophy added. โ€œI donโ€™t think this situation is temporary. Those people who have gone wonโ€™t come back so yes itโ€™s a problem for the property business.โ€ Norn Thin, director of Sihanoukville Property, said he knows of one building with about 20 rooms that has closed since the arrests. Want to rent Sihanoukville property? โ€œChinese people tend to all stay in one big building all together with about 20 to 30 rooms,โ€ he said. Thin added that despite the trepidation in the market the rental prices for such large residential properties are still double what they were last year, while Sophy estimates such prices may have fallen by less than 5 per cent. George Styllis, Phnom Penh Post, Post Property.
Prince Central Plaza: Redefining Tonle Bassac
Prince Central Plaza: Redefining Tonle Bassac
June 7, 2022, 2:10 a.m.
Realestate News
Prince Central Plaza represents a new age of living for one of Cambodiaโ€™s most exciting and desirable districts: Tonle Bassac. โ€œLocal people are starting to have a concern about good location and land - demand for premium land is very high right now,โ€ says a spokesperson of Prince Central Plaza - and this is why Tonle Bassac was the obvious choice. Located on the exclusive Norodom Boulevard, the landmark development is just minutes to Independence Monument, Aeon Shopping Mall and various embassies. The building will have 37 floors in total, with the bottom three dedicated to the retail plaza and restaurants. Inspired by classical art deco lines and style, Prince Central Plaza will fast become an architectural icon of theย neighborhood.ย The unique design is the product of American DF International Building Design Co., Ltd., a company that has already completed around 300 engineering design projects, spanning more than 20 million square meters. The Mansion House โ€“ the premium residence within the Prince Central Plaza project โ€“ offers a range of 1 to 3 bedroom condominiums, studio and SOHO units, all beautifully furnished with elegance and class, stunning balcony views of the city skyline, and finished with the latest amenities for modern living. The units will all have services provide by the 24 hour concierge staff, including International platinum housekeeper services. The Interior design of all Prince Central Plaza units have been formulated with taste and art deco elegance, by Shenzhen Guangtian Design Group Co., Ltd., a listed Chinese company with a renown portfolio of real estate projects.ย Inquire today to visit the showroom! Landscape design is also a key element of Prince Central Plaza, with delicately crafted surrounds in both the communal and private gardens of the residential complex. These have been designed by TTR Design Co. Ltd., a company with a wealth of experience designing and implementing gardens for resorts, hotels and recreational facilities across China. The beautifully designed infinity pool gives residents a place to relax and unwind; an impressive, fully equipped gymnasium and a fitness room will help you and your family keep healthy; shopping at your doorstep is assured โ€“ with the plazaโ€™s malls; and an international standard business center will guarantee a convenient lifestyle for modern business people. The construction of Prince Central Plaza has already begun, under the management of China Construction Co., Ltd., Chinaโ€™s largest and most renowned real estate and construction enterprise. This will be another benchmark project for a company with many already in its portfolio. Prince Central Plaza is set to be completed by 2018.new Maintaining a 10% โ€“ 15% growth rate over 5 years, Prince Central Plaza promises a healthy return on your investment.ย And priced from just $55,000 per unit, the project is priced to sell โ€“ fast. Inquire today to visit the showroom!
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Knight Frank Approved for SECC Valuations
Knight Frank Approved for SECC Valuations
June 6, 2022, 5:06 p.m.
Realestate News
Knight Frank Becomes the Latest Real Estate Company to be Approved as a Panel Valuer for the Securities and Exchange Commission of Cambodia: As part of the listing process, a company is required to have its real estate assets valued to determine its Net Asset Value (NAV). Established in 1896 and opening their Cambodian office in 2008, Knight Frank, which is the worldโ€™s largest privately owned real estate consultancy, has become the latest real estate company to be approved as a panel valuer for the Securities and Exchange Commission of Cambodia. With over 440 offices in 58 countries, all valuations undertaken by Knight Frank are carried out by professionally qualified valuers, and all valuation reports comply with the highest of standards set out by the International Valuation Standards Council (IVSC), giving investors total confidence in the value of a companyโ€™s real estate assets. Check out Knight Frank's listings on Realestate.com.kh here. The recent announcement that Hong Kong-based developer, Eastland Development (HK) Ltd, has expressed interest in listing on Cambodiaโ€™s stock exchange follows a number of similar announcements by companies that are also looking to list on the exchange, including the Phnom Penh Special Economic Zone (PPSEZ), TY Fashion and Sihanoukville Autonomous Port. Check out Eastland's property for sale here. If the companies indicated above list on the Cambodia Securities Exchange (CSX) as intended, real estate companies will represent one half of the listed companies (based on number of companies and not market capitalisation) on the CSX. Although activity on the CSX was initially slow, with the Phnom Penh Water Supply Authority listing in 2012 and Taiwanese-owned Grand Twins International (Cambodia) Plc listing mid-2014, the recent activity indicates growing confidence in the Cambodian economy and finance industry as a whole, which is a positive sign for Cambodiaโ€™s real estate and construction industry. The announcement by Eastland Development (HK) Ltd signifies their commitment to Cambodia over the long term and also their confidence in the Cambodian real estate sector. Furthermore, it also enables investors who may not be able to afford to buy a property a chance to participate in the growing real estate sector by indirectly investing through the purchase of shares within real estate companies.
Eastland Development announces plans for IPO 2016
Eastland Development announces plans for IPO 2016
June 6, 2022, 5:04 p.m.
Realestate News
Hong Kong-based developer Eastland Development (HK) Ltd has announced plans to listย on Cambodiaโ€™s stock exchange within a year.Sam Yang, the companyโ€™s CEO, said during a recent company promotional event that Eastland is working with a local underwriter to prepare to float shares on the Cambodian Stock Exchange (CSX). โ€œThe application will be ready early next year and the company will have an initial public offering in September next year,โ€ he said, adding that Eastland intends to be the first foreign-registered company to list on the CSX. Yang said that the purpose of listing was not just about raising funds for its projects, but also to raise the confidence of its investors and allow them to be part of a high-standard property firm. Read a related article: Knight Frank authorized to conduct IPO valuations.ย  Eastland Development (HK) Ltd is a branch of Chinaโ€™s Guangzhou Yuetai Group, a real estate developer with over $1.2 billion in assets. Eastland is focused on real estate development in Cambodia, and claims to have invested $60 million in three projects here: East One Apartments, East View Residence and East Commercial Center (ECC). Phnom Penh Securities, the underwriter for the IPO according to Yang, could not be reached for comment yesterday. Sou Socheat, director-general of the Securities and Exchange Commission of Cambodia (SECC), said he had not received any letter or official documents from the Eastland yet, though he welcomed its intention to join the stock market in Cambodia. He said some foreign-registered companies have submitted letters of interest to list on the CSX, though nothing is official yet. In addition, the SECC is also reviewing the applications of three local companies that intend to list within the next year, namely Phnom Penh Special Economic Zone (PPSEZ), TY Fashion and Sihanoukville Autonomous Port. Sor Chandara, Phnom Penh Post Want to invest with Eastland? Check out their properties for sale on Realestate.com.kh:ย East One Apartments, East View Residence and East Commercial Center (ECC).
New Market Dawns as Oknha Tastes Go Oligarch
New Market Dawns as Oknha Tastes Go Oligarch
June 6, 2022, 5:06 p.m.
Realestate News
After defining high-end taste in Russia, China and Thailand, an Italian luxury home-dรฉcor company aims to conquer the villas market of Cambodiaโ€™s rich.Greeted by gold-gilded tables, intricately carved gold-leaf headboards, and polished tiles of marble and ceramics, one would feel as though they had just stepped into a magical place reminiscent of the Winter Palace in St. Petersburg or an oligarchโ€™s lavish home. In actual fact, this place strikes much closer to home. With its palatial and baroque items on display at the launch of their showroom on November 22, Azza Dรฉcor is the first of its kind in Phnom Penh; a luxury home-dรฉcor company specializing in Italian interior design, mainly in the market for furniture and lighting, tiles and bathroom furnishing and kitchen fittings. Every distinctive product has a โ€œMade in Italyโ€ tag, while its exclusive brands boast of names like Versace (Ceramics), Valentino, Bastianelli Home, and Socci, amongst many others. Marco Cipriani, area manager for CIAC Group which supplies furniture to Azza Dรฉcor, explained that, โ€œour first market all over the world [for this style of furniture] is the Russian market, as the Russian people love to buy these types of gold leaf furniture.โ€ However, at $165 per pop for one Versace Ceramic tile-piece or $10,000 for a Versace sink, the question is whether such ornate and lush furniture is prohibitive here in Phnom Penh. โ€œSince our expansion in other Asian countries like China and Thailand, we feel it is time that this kind of furniture comes into the interior market in Cambodia,โ€ Cipriani said. Minea Prach, Azza Dรฉcorโ€™s sales and marketing manager, explained that the Phnom Penh launch was due to the exponential growth in the construction sector and an increasing appetite for luxury goods among a few. โ€œOur main target audience is the high-end niche market of those who own private residences or villas,โ€ Prach said. The influx of foreigners and foreign businesses in Phnom Penh does seem to complement the opening of such a company. Azza Dรฉcor seemingly fits in with the high-end residences, exclusive condominiums and villas that have been springing up over the past few years. Lorenzo Martini, founder of architecture and interior design company Lorenzo Martini Design Studio, offered his insight on the home dรฉcor style that appeals most to Cambodians, as well as how luxury interior dรฉcor companies will fare in the Cambodian market. In reference to what style of interior design piques the localsโ€™ interest, โ€œCambodians with a budget manage to implement what I would say a Neo-Baroque, or Transitional Classic [style],โ€ Martini said. โ€œPeople would call it โ€˜classicalโ€™, but is a classical style with exaggerated curves, patterns and textures, heavy to the sight, which draws on baroque but while sharing its power, it doesnโ€™t share its elegance. Itโ€™s a style that is popular in most developing countries,โ€ he continued. On how high the demand for such a niche market is here, Martini said that it is tempting to affirm a high demand given the number of showrooms showcasing luxury furnishing in Phnom Penh. However, this pertains only to a pocket of very wealthy people who may not have an idea of what defines a real luxury product. Therefore, many end up purchasing overpriced products without much discernment. โ€œIโ€™m happy to see [Azza Dรฉcor] stepping up the game, and will give a run for their money to many other shops currently selling average products at high prices under the pretense it is luxury,โ€ Martini said. There is no such pretense at Azza Dรฉcor, with each product guaranteeing its authenticity of quality and branding. Partly echoing Prachโ€™s words, Martini said, โ€œI donโ€™t see the market as being ready for luxury commercial projects just yet, I think luxury products are almost exclusively employed in high-end private residences.โ€ Azza Dรฉcor currently works closely with luxury housing developer The Bay, managed by the TEHO Group, in supplying materials to them. Having sold a considerable number of products before and during the launch to owners of private villa residences in BKK 1, Borey Orkide, and Borey New World, Azza Dรฉcor looks set to make waves in this small, but powerful, pocket of Phnom Penhโ€™s elite. Hanamariya Halim, Phnom Penh Post, Post Property
Make your Home Quieter
Make your Home Quieter
June 6, 2022, 5:06 p.m.
Realestate News
There are lots of easy things you can change in order toย make your home quieter,ย and fetch a higher market price.ย Here's why a quiet home is worth more $!ย  Sam, a local Phnom Penh real estate agent recounts:ย โ€œI recently checked out a villaย home for saleย along the main road out of Phnom Penh, Road number 4. The main road there is very loud and dusty - as you may know. But, asย soon as I walked in the large gate of this 4 bedroom villa for sale,ย I found that the owners had created a peacefulย garden sanctuary behind the thick and tall street fence. Inside this secret garden wasn't loud or dusty - and it was hard to tell the main road was not far away. This owner had very-cleverly created aย quiet home setting able toย offset the propertyโ€™s location shortcomings.โ€ The trick is to stopย street and/or neighborhood noise from entering the house. You can do this by adding:ย Botanical gardensWindow glazingWall insulationBlindsTall secure fences:ย a good landscape designer willย use walls, fencing, plants, hedges and other noise cancelling techniques to bring down the noise levels of your home.Generally - using noise-reducing materials when building or renovating is the best wayย to start when trying to cut your home noise down.In the design stage consider havingย bedrooms and living areas away from the noisiest parts of the building.Here's why a quiet home is worth more $!
Hong Kong Hottest Market, says CBRE
Hong Kong Hottest Market, says CBRE
June 6, 2022, 5:05 p.m.
Realestate News
CBRE Residential Global Living Report, released this year by CBRE International, has seen two east Asian real estate markets ranking in the top 5 highest value residential property markets worldwide, as decided by average property prices. The rational given for this Asian boom appears promising for the Cambodian residential property market, given hints to parallel trends occurring on a smaller scale in the Kingdomโ€™s residential real estate market currently. The CBRE Global Living Report examines the residential property markets of 31 affluent cities around the world, including hubs such as Shanghai, Paris, New York, Tokyo, London and Madrid. Hong Kong ranked number one in the CBRE Global Living Report this year, having the highest average price per square foot in the world. Singapore has the highest property price by capital value in the world, according to the report, however, when viewed on a per square foot basis it came fifth, internationally. In Hong Kong, property prices leaped by 13.5 percent last year alone, meaning the market saw 20 percent average annual price growth, ranking as the second fastest residential growth market worldwide, according to the CBRE Report. Interestingly, the CBRE report cites increased Chinese investment as a key stimulant behind this boom: โ€œAs Hong Kong attracts a substantial amount of Chinese (as well as other international buyers), the market is likely to be buoyed by the recent Chinese stock market crash, which may lead to investors finding alternative homes, such as property, for their capital.โ€ Not surprisingly, therefore, in Hong Kong only 65 percent of all residential properties are owned by owner-occupiers. Cambodia, with the unique invitation of an investment in USD, could also be benefiting from this type of investor. Anthony Galliano, Group CEO, Cambodian Investment Management, believes that, โ€œCambodia โ€˜s real estate market had been historically ignored as the country wasnโ€™t viewed as a โ€œquality of lifeโ€ or โ€œproperty investmentโ€ destination by foreign investors.ย  With Hong Kong and Singapore being Asiaโ€™s 2 most expensive markets and also in the worldโ€™s priciest markets, developers are seeking alternative Asian geographies that are more economically viable.โ€ Knight Frankโ€™s Cambodian country manager Ross Wheble explained to the Post, in regards to similar indicators in Knight Frankโ€™s latest Asia Development Index, that the regional cooling โ€œhas benefited [Cambodia with] an influx of both foreign developers and investors seeking to take advantage of the comparatively low property prices and the relative ease at which foreign buyers can acquire freehold property (above ground floor level).โ€ Galliano suggests that the surge in investment in Cambodiaโ€™s property market has been driven by economic fundamentals, namely, โ€œ a more positive image of the country from frontier to developing market, and to an extent, herd instinct.โ€ Galliano continues that โ€œWhile property prices currently remain attractive, and the country, more specially Phnom Penh, has welcomed developers with open arms, inevitably once you do the math it is blatantly obviously there will be oversupply given the expected developments coming online in the next 2 years.ย  Therefore while it is all rosy today, I expect turbulence in property prices in the medium-term.โ€ The Knight Frank report also added that growth in Cambodia has decelerated in the second quarter of 2015, suggesting prices may have reached their peak and will likely level off leading up to the AEC. As to why prices are appearing to peak, Wheble explained the sales rates of newly launched condominium projects in Cambodia for the first half of 2015 compared to 2014 โ€œhave eased.โ€
East Commercial Center (ECC) Sales Launch!
East Commercial Center (ECC) Sales Launch!
June 6, 2022, 5:06 p.m.
Realestate News
After the success of the โ€œEast One International Apartmentsโ€ project โ€“ a condo development which is already 70% sold and now under construction in Duan Penh, Eastland Development Co. Ltd. have announcedย the launch of sales forย โ€œEast Commercial Center (ECC)โ€ along Norodom Boulevard, near the Malaysian Embassy. The number one real estate need within Phnom Penh moving into the future is a lack of affordable, sole-purposed office space, believes CEO of Eastland, Mr Sam Yang. "There are a growing number of talented local entrepreneurs and small business owners who need a place for their businesses to take flight, without driving them bankrupt." The East Commercial Center (ECC) will be completed in late 2017 and provide the market with 38 floors of pure office space, divided into small and affordable units, with low management fees, and common areas with all necessary business amenities. Inquire about the East Commercial Center (ECC) on realestate.com.kh todayThe ECC project will include a total of 680 car parks, over 6 floors. And in fact, the following stage of this development will be the East View Residence project, which will include four 38-floor high residential buildings. The second Cambodian condominium project for Eastland Development. The current office space market in Phnom Penh is unsuited to the growing demand, believes Mr Yang. "These types of start-up businesses are not interested in A-grade office space, as rental rates are too high, and instead now find themselves adapting villas or flat houses into office space. Meanwhile, International companies are increasingly interested in moving an office to Cambodia at low risk because investment incentives are some of the best in the region."Inquire about the East Commercial Center (ECC) on realestate.com.kh today
FDI Encouraged by Foreign Property Ownership Allowances
FDI Encouraged by Foreign Property Ownership Allowances
June 6, 2022, 5:05 p.m.
Realestate News
Foreign direct investment (FDI) is luring a new breed of foreigners to Cambodia, and the region more generally. With foreigners comes an increase in demand for property, and different types of property - and a series of new allowances in national property laws to accommodate this demand.Foreign investors come to the South East Asia region for the low labour costs, connectivity between the neighbouring economies, and the huge supply of land, resources and business opportunities. And as local markets grow, FDI will naturally follow as international companies are spurred by the chance of jumping on the wagon of a fast moving economy. Foreign capital presents a huge engine of growth in South East Asian countries such as Cambodia, Vietnam, Myanmar and Laos - which cumulatively saw an average annual rise in FDI of 9.2 percent in the years 2010 to 2013. In this FDI growth, Myanmar was the leader of the pack with a 35.8 percent increase over the three year period. Cambodia followed with 22.3 percent; Laos came third at 15.2 percent; and finally, Vietnam, fell behind with just 2.6 percent growth over the three year survey. Yet, amid the Cambodia, Laos, Myanmar and Vietnam bloc, foreigners are subject to a variety of ownership limits. The foremost of these is being barred from owning land on a freehold basis, otherwise termed as outright ownership in perpetuity. This is a rule which is largely steadfast throughout the four nationsโ€™ borders. This may not be surprising, however, as freehold possession of land is likewise unavailable to citizens of Laos, Myanmar and Vietnam, where government policy holds the state as the principal owner of all land. Long-term leasehold is, therefore, the accepted form of land ownership for foreigners based in these nations. Lease terms are flexible for most purposes, whether it be for a new business property or a residential address, and allow room for ownership limits to potentially ease in the years to come as governments in the region increase efforts to attract quality FDI. Given the relative political stability in the region, investors are generally happy to accept these long term leases. Cambodia, unlike its three neighboring counterparts, has a freehold land ownership system for its citizens. Foreigners based in Cambodia are also allowed rights of ownership over certain properties, subject to 2010 Law on the Provision of Ownership Rights. These rights, however, are restricted to buildings that have obtained a "strata title", which is available only to newly completed apartment buildings. According to the strata title regulation, foreigners cannot acquire a ground-floor unit legally, and any foreign ownership allocation is limited to a maximum of 70 percent of the units in any one co-owned building. Nevertheless, a foreigner lease term over landed properties can still be up to a 50 year maximum, with a 50 year renewal option included. In Laos, land is owned by the "national community", meaning no individual or business entity, foreign or local, can truly own land. Land-use rights are only granted to individuals or organizations by the state, and these rights are able to be transferred or inherited. 50 year leases are commonly granted to foreign individuals or companies. Myanmar's constitution similarly establishes the state as the ultimate owner of all land. Yet, under the new Myanmar Foreign Investment Law, an investor may lease land for up to 50 years, with two 10 year extensions. Structures affixed to land are the property of the foreign owner, but these rights revert to the lessor or the state with no prescribed compensation when the lease comes to an end. A Condominium Law, likely inspired by the Cambodian example, that is currently in development in Myanmar but not yet in force, would allow a foreigner to purchase a condominium on the sixth floor or above of a co-owned building, up to a quota of 40 percent foreign ownership of the total units in the property. In Vietnam, freehold ownership by foreigners over land is prohibited by the constitution. Yet state authorized leases between 50 and 70 years are widely available, especially for development projects, and renewable at the discretion of officials. Further, pursuant to the Vietnamese Law of Housing 2014, a foreigner may now own a unit in an apartment or condominium building - if it is a no-more-than 30 percent foreign owned building. The influx of FDI and the relaxations upon ownership laws is pushing local real estate developers to create and sell more residential space suitable for the needs of this new investor class. The massive boom in construction in all of these countries, Cambodiaโ€™s condo explosion being a prime example, reflects this drive to meet a new FDI based market. As rules are eased, companies such as property developers, banks and providers of property-related services, like maintenance, insurance and security, soon flow into the economy and boost it from within. In evidence of this, the GDPsโ€™ of Cambodia and Myanmar each grew 9.7 percent last year; Vietnam's shot up by 8.8 percent; and Laos experienced 5.2 percent GDP growth.
Mortgage Matters Part 2: What's in a Home Loan
Mortgage Matters Part 2: What's in a Home Loan
June 6, 2022, 5:06 p.m.
Realestate News
There are three basic components to anyย mortgage. You must understand these clearly before you start the home loan application process.ย If you missed Mortgage Matters Part 1, read it here!In short, these are the homeย loan amount, interest rate, and loan term:Mortgage Component #1 - The Loan Amount: The loan amount is the principal amount that you want to borrow. Banks in Cambodiaย generally give a loan of up to 70% of the property value. Mortgage Component #2 - The Interest Rate: The interest rate is very important to understand! It is the percentage of annual interest that you have to pay on the total loan amount. It can be a fixed rate, a flexible rate, or a combination of both. Mortgage Component #3 - The Loan Term: The loan term is the duration/length of time that you take to completely repay the loan. Loan generally range from 15 to 30 years in Cambodia. If you combine the principal loan amount and the interest amount,ย you will then knowย the overall loan amount. Mostย home loans are usually repaid via monthly installments.The repayment comprises two parts or portions. One partย is for the repayment of the principal amount. The other partย is for the repayment of the interest.This information should help you calculate your monthly mortgage payment... These home loan calculators should help too!ย Ready to get a Mortgage??ย Inquire for a home loan here.
Politics and Frontier Property Markets
Politics and Frontier Property Markets
June 6, 2022, 5:05 p.m.
Realestate News
Myanmar's election held on November 8, deemed as the countryโ€™s first free election in 25 years, caught the attention of people around the world as Aung San Suu Kyiโ€™s National League for Democracy won by a landslide. Considering the date from the Directorate of Investment and Company Administration (DICA) indicating the rise in the real estate market in Myanmar from $440 million in 2012 to 2014, to $780.7 million this year, Post Propertyโ€™s Catherine Harry met up with Kevin Goos, CEO of Century 21 Cambodia, to talk about how the changes in the political scene will impact the local and regional property markets. How does the Cambodian property market fare compared to the region? Cambodia has the most attractive market for real estate development in Asia right now. Following closely are Japan and Myanmar. Most real estate markets such as Singapore, Hong Kong, and Taiwan have seen a decrease in transaction by as much as 30 per cent; hence, the surge in foreign buyers over the last 24 months who are purchasing condos in Cambodia. Phnom Penh is seen as relatively affordable when compared to other cities in Southeast Asia and Cambodia has a strong economic growth track record with strong GDP growth since 2001. Comparative real estate markets such as Singapore, Taipei, and Hong Kong were booming in the 1980โ€™s and 1990โ€™s. What we are seeing in Phnom Penh is a city that is โ€œcatching upโ€ and we can directly see the success of new developments, most notably North Park Condominium which sold 40 per cent of phase 1 on launch day. What advantages does Cambodia have in terms of laws, regulations and the ability for foreign ownership? Cambodia is good for business. The governmentโ€™s stance on foreign direct investment (FDI) is very attractive when compared to surrounding countries. The drafting of the new development and construction law will create a clear pipeline for big developers to enter the market and the creation of the strata title and condo law in 2009, allowed for a transparent and practically applied way for foreigners to buy condos in Cambodia. Recently, Vietnam has brought in new laws for foreign ownership. While it appears to have had mixed results thus far, could this have an impact on property development in Cambodia? Yes. The new Vietnam laws on foreign ownership are a move in the right direction and I am sure when these laws are practically applied to the local market, more investors will continue to bring new real estate developments into Vietnam. Traditionally, if both Vietnam and Thailand are doing well in real estate, Cambodia also grows. In this case Phnom Penh is very far ahead of Ho Chi Minh City for condo development, housing development, and commercial development. The main positive effect of a prosperous real estate development market in Vietnam, that benefits Cambodia, is the decreased cost in construction materials for new developments in Cambodia. With Myanmarโ€™s recent election, and the hope of a proposed condominium law, how could this change the focus of investors looking at frontier economies? How do you see the election results affecting the real estate market there? Myanmar is an attractive country for both retail and institutional investors, largely due to the growing populations, geographic location, and the positive results of last elections. However, for brands entering the real estate market, like Century 21, we are still very far from considering Myanmar as US sanctions are still in effect and pertain primarily to property. The condo law has been in the works for roughly 24 months and would have a great effect on real estate developments in the country. Once Myanmar finalises the condo law and allows foreigners to own condominiums outright, we will see a huge surge in world class developments begin to emerge in the country, bringing some of the best developers and large amounts of FDI. How important is political stability when it comes to investorsโ€™ decisions? Both retail and institutional investors are smart and base their decision around elections in frontier markets. However, Cambodia has been very consistent in economic growth and political stability for the last 15 years. We are seeing investor confidence at a very high level in Cambodia. After the recent political events in Cambodia, do you think it will have a lasting effect on the real estate market? The real estate market here has not been affected by any recent political events. The only political events that affect real estate transactions in Cambodia over the last 15 years are elections and they are minimal. Usually transactions begin to slow down about six months prior to elections and pick back up again about six months after the election outcome. This has been the recent trend and we expect to see this trend continue. However, as Cambodia enters into the ASEAN community, we expect to see a strong real estate sector in Cambodia well into the 2020โ€™s. Itโ€™s believed that foreign investment in retail in Myanmar is limited because of its regulations that require foreign-brand entries to team up with local partners. Do you see similar problems happening in Cambodia? Foreign brands can enter the Myanmar market as a franchisor without a local partner but are required to have less than 40 per cent control over franchisee operations. American brands are still very hesitant due to the current sanctions that pertain primarily to specially designated individuals (SDIโ€™s) who are considered to be involved in human rights violations. Currently, there are about 85 SDIโ€™s that are restricted from doing business with American brands or American nationals should they involve in more than 50 per cent of the current investment, especially in property. Catherine Harry, Phnom Penh Post, Post Property.