The Realestate.com.kh Mobile App is available on the following app stores:Search 25,000 properties for sale and rent. Do it all for free with Cambodia’s best real estate app!Whether you’re looking for a property or selling one, or you‘re a property developer or an agent, you can use our industry-leading real estate platform easily and effectively on your mobile phone!Our mobile app was recently updated with 2 important features to make your property hunting/selling a lot easier!Direct Chat - this new feature lets users correspond directly with the agent or owner of your selected property and vice-versa - much like WeChat, Messenger or WhatsApp.Home Finder - property hunters can simply tell our mobile app what their requirements (property type, area, number of bedrooms, etc.) are and our app will notify agents who have properties matching their requirements - prompting them to message buyers directly.Here are the latest key features of the Realestate.com.kh Mobile App:For Property Buyers/Renters:The best property search engine in CambodiaLooking for a 2-bedroom apartment in the heart of Phnom Penh? Or do you prefer a simpler Khmer-style house? Our search engine lets you filter search results easily with prices, bedrooms, baths, area, and even completion dates for the latest developments!Chat directly with the agent or owner of the property you likeOur live-chat feature lets you correspond directly with the agent of your selected property. It works a lot like WeChat, Messenger or WhatsApp - simple and convenient!Talk to any agent with real-time translationWorried the agent might not speak your language? Our live-chat feature can translate your messages for you. Translations into Khmer, English, and Chinese are supported in our app; feel free to message the agent of whatever property you want!SMS, Email, or Call your agent in one-clickOur app features the complete contact details of the best agents working with us. So, if you really want that house, condo or plot of land, you can reach out to them in more ways than one!View nearby schools, hospitals, and mallsWe believe a property’s added value lies in its most accessible comforts! Our app can help you better decide which property to get by letting you see what schools, hospitals, restaurants, and malls are nearby!Bookmark your prospects with easeBuying/renting a property takes a lot of decision-making. That’s why our app lets you bookmark properties you like so you can review them whenever you please!Tell Agents and Property Sellers what you’re looking forOur Home Finder feature provides a smart way to let agents and property sellers what you’re looking for! You simply tell us your requirements (property type, area, number of bedrooms, etc.) via the Home Finder tool and our app instantly notifies agents and property developers, who can then quickly respond to your needs. No more long waits to find your new home!For Agents/Property Developers:Create your property listings for FREESell, rent, and manage your properties for free on our app. Tens of thousands of users access Realestate.com.kh every day. Maximize your reach by listing your property with us - absolutely free!Chat directly with buyers and clientsOur live-chat feature lets you correspond directly with prospective buyers. It works a lot like WeChat, Messenger or WhatsApp - simple and convenient to use so you can close that deal faster!Reach a larger audience with real-time translationOur live-chat includes a real-time translation feature, which translates any language into Chinese, English, or Khmer. No more language barriers. Now you can talk to any buyer, whatever language they speak!Never miss out on a saleThe Realestate.com.kh app instantly alerts you when you receive an inquiry or a chat request for any of your listings. It also alerts you of opportunities in real-time so you never miss out on a sale. Just make sure you’re logged in on the app and your notifications are on!Stay on top of the search resultsDon’t let potential buyers/clients miss out on your offerings. Through our app’s Refresh feature, you can get on top of the search results page, giving your listings maximum visibility!Beat the competition for the next big saleNo longer will you have to wait for buyers! The app notifies you whenever a buyer posts their requirements through the Home Finder feature. If the requirements match anything on your portfolio of properties, you can easily grab the opportunity. But you have to be quick, as only the first 3 agents to take the opportunity can contact the buyer!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 on both iOS and Android.Article by:

Buying off plan (pre-completion of the project) often scares new home buyers. It can be worrying to put your money into a home you can't yet see or touch. However, buying off plan can make dream homes of high quality a possibility, on a budget that wouldn't normally go so far on completed properties.With that in mind, here are some things to consider before making a decision to purchase any off-plan unit.What does it mean to "buy off a plan"?Buying off-plan means buying real estate at a point where all there is to see is a plot of land and a house plan. You sign a contract indicating a purchase price for the land, and a house to be built from a specific set of architectural plans, and generally pay instalments as the construction progresses. When the building is finished, the developer hands you the keys to your new home! The same applies for a condo, retail property or any other type of property yet to be completed. “New Development” is another term which is related to off-plan property, and it also applies to many Borey projects currently under construction.Why buy off the plan?Getting in at the planning stage of development gives buyers the chance to get the best offerings of plots of land, or the prime units in a building. Coming in at a later stage is guaranteed to limit the selection available to you. Buyers who know what they are looking for may actually prefer to invest at this stage.  Plus, buying off plans can allow for a higher level of customization, such as changing the floor plan, merging two adjoining condo units into one larger unit, and having more say in details such as the type of appliances and furnishings. More fussy buyers who desire to have a great deal of control over every detail are often most satisfied with a purchase made at this stage. It allows them to get exactly what they want from their property purchase.Off-plan buyers also may also receive discounts on the price, or see substantially more capital growth than buyers at a later stage. Investors and speculators find these two facts compelling, especially when they are combined. In Phnom Penh, buying during the pre-sale period can result in an appreciation of up to 30 per cent. This can be up to 6 times as much appreciation as the typical 5 to 10 per cent experienced when buying after construction has begun. Additionally, a buying-off plan allows the buyer to spread out payments for their property over a period of time.What does the process look like?The stage of development where buying off-plan deals is offered is called “pre-launch”. The developer is still in the process of confirming plans, obtaining permits, and performing an Environmental Impact Assessment. However, even at this early stage, the developer requires money in order to move the project forward. Because buying at this point involves a long wait for the property to be completed, and more risk than at a later stage, they typically offer incentives to early buyers. In addition to price breaks, the developer may offer guaranteed rental returns, financing options, opportunities to customize the early units, and other perks.Once the contract is signed, you must make a deposit. The amount of the deposit may be as much as 50 per cent of the agreed-upon price, however, it may also be a great deal less. In addition, there are some boreys that do not require any initial deposit at all. This demonstrates that the prices and processes will differ from one developer to another. From this point, there is a definite degree of flux, and plans may end up being changed, sometimes without the buyer's knowledge. Often payments will tie in with the construction progress, i.e. the percentage of payment due will align with the percentage of the project that is completed.Stay tuned for Why buy property off-plan in Cambodia? part 2 next week.Search properties for sale in Cambodia and current properties for rent in Cambodia!

Vann Molyvann, considered the founder of the modern Khmer architecture, passed away on 28 September, 2017, at the age of 91, in his own home alongside Siem Reap river, in Siem Reap province.Molyvann was a very famous Khmer architectect from the 1950s until the 1970s whose work was considered at the forefront of the very unique style of architecture that emerged during this time. He completed nearly 100 projects both nationally and abroad including projects in Japan, France and many other key countries. The impact of his architecture is still felt around numerous corners of the Kingdom - with many still applauding his impact and contributions to what Cambodian architecture is today.Some of Molyvann’s most significant projects are; the Independence Monument, the National Olympic Stadium, Chroy Changva Bridge, the Royal University of Phnom Penh, the Chaktomuk Conference Hall, Preah Suramarit National Theater, and the State Palace in Chamkarmon – now the place of the Senate. All of these projects are now considered critical landmarks amongst Khmer locals and the many expats and which reside in Cambodia.Read more about Preserving Heritage in Times of DevelopmentThere are also several of his projects which are less known by the general public; such as the stupas within the Royal Palace, the Kantha Bopha Hospital, Sihanoukville Master Plan, the first Siem Reap airport and the pavilions and temples for the 2,500th anniversary of the Buddha. Although these projects are less known, they are still true to Molyvann’s truly unique style and standard of perfection he strived for in all of his projects.Mr Mollyvan had often talked about his projects with pride - even the ones that are not still in existence. He stated “I have built many architectural projects, - although not all are still in existence: The ones I love the most are the National Olympic Stadium and Preah Suramarit National Theater on Bassac in Phnom Penh. There are many other projects I was very fond of, but unfortunately some of them have been replaced​ by new buildings, or were destroyed.”His passing has become a shock for the Khmer people, for many are familiar and admire his  great architectural work. Architectural students have found this loss particularly challenging as they truly understand the level of skill and patience necessary to complete the projects that he did- all drawn by hand without the aid of modern technology.  Mr. Kea Sovanna, a Khmer, fourth year student in architecture, said, “I am so sad to hear the news of his passing [Vann Molyvann]. He did the best and most unforgettable architectural projects.” Mr Kea added that he will continue to integrate elements of Mollyvan’s work into his own style of architecture as he pursues his studies and his career in this field.  There are also a great deal of  people have been working on collecting all this work to show the next generation. Mr Srin Sokmean, the photo expert and owner of  “Amazing Cambodia”, is working on addressing the recurrent issue of demolition of old architecture in Cambodia. “It is a great pain to witness those architectural heritages disappear one by one. I always question myself why they are destroyed and not suitably renovated.” said Mr Sokmean.As a result of his passion in this area, he has produced a vintage photo collection book named “Cambodia: Half Century Then & Now” which aims to enable people to visualize the beauty of Cambodia in the past and how the current landscape has been modified. This publication heavily features Mollyvann’s work.To further the preservation of Molyvann’s work, Mrs Teav Bandol from Image Printing is planning to re-publish multiple books detailing Vann Molyvann’s works in order to ensure his contributions reach the next generation.Bandol mentioned that the publication of these books is not just for the purpose of preserving Van Molyvann’s buildings – but it’s also “a demonstration of intelligence, knowledge and innovation in the architecture industry - which is a good example for the new generation to follow.” He is hopeful that Cambodia will take the time to discover talents and develop the  resources to build another inspiring era of architectural masterminds and landmarks.So while Molyvann passes today, Cambodia will remember his legacy - and his work will be preserved in a new generation of architects and enthusiasts.Find out the best real estate news on Realestate.com.kh

True luxury, is it only just a dream? When an individual thinks about the idea of a lifestyle of luxury, their mind will often wander towards a modern home with state of the art facilities, a place where a family can feel relaxed and safe, and above all, having everything that you or your family could possibly need, at the easiest convenience. Sky Land Condos , the newest development by STAR5 Developers, has brought the notion of luxury to life, but with one added and critical difference; the developers truly appreciate how important a peaceful environment is, when looking for a home either to live in, or as a prospective investor.That is why, unlike many other condominium developments that are on the market, Sky Land Condos is based far enough out of the hustle and bustle of Phnom Penh, yet still in close enough proximity to have every necessity at residents disposal. Leading centers of academic excellence, globally reputable institutions, and prime entertainment zones are in reach- with the development based just 12km from the CBD of Phnom Penh. This is perfect for prospective families looking to settle for the long term. However, this does not even scratch the surface of the facilities that are on site. The development itself will have a personalized park, gym, shopping options, bar facilities as well as a major focus on the outdoors, so that residents can exercise and enjoy the fresh air on their own terms.With developments with this level of appeal, the main question comes down to price- which is something that Star Five Developers have taken into account, to make their peaceful version of luxury attainable for all. The developers are offering incredibly flexible payment options, with no interest for up to three years. Based on the prospective success of this development, they are offering a ‘super return’, which means for any investor, there is an expected return on investment of 35-50% growth after two years of completion.  You will have a selection of 224 studios, one & two bedroom condo’s spread out across eight floors. An unmissable opportunity.Feel free to come and see the friendly team at Star 5 Developers at the Real Estate Show 2 on October 6-7th to discuss your future home and learn about the show exclusive promotions the developer will be running through the day including up to 20% off the purchase price.In addition the developer is offering a Cambodia first! Anyone that buys and pay a 2 bedroom unit during the show will receive a studio condo at no extra cost! Which means you will receive 2 condos for the price of one.This is limited to two buyers only so get in fast!

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Property investment is not a feat to be taken lightly. With Phnom Penh booming with new developments, and new developers coming on the scene all the time, it can be difficult to know where to begin to look for the right investment opportunity. Especially one that is going to benefit you financially in the long term. This is why aligning yourself with a property developer you can trust is so important.When looking at who to trust in the property market, a good developer should have a track record of successful developments, a wealth of experience in the industry and real knowledge about the location, and (in all honesty)  that can be hard to find. However, nothing speaks louder than actions, which is what sets Creed Group from Japan apart from other developers.The groups’ first development in Cambodia; Bodaiju Residences on Russian Boulevard, has set a catalyst in the real estate market that others aspire to reach. The residences tick all the right boxes, from paramount location, fully furnished units, to its focus on investors receiving real returns and capital appreciation. Due to the success and continuing growth of Bodaiju Residences, Creed Group has used their wealth of experience to develop two more successful projects,most recently,the launch of its third project “ARATA Garden Residences”.Creed Grouphas combined the successful elements of Bodaiju Residences with a fresh vision which has resulted in establishing ARATA Garden Residences. With more than 500 units on phase 1adorned with all the facilities you could expect from a luxury development, this is an unmissable investment opportunity. It doesn’t stop here, however. Creed Group’s cooperation with another Japanese developer “Hoosiers Holdings” has brought on board the very best elements of Japanese design. The architecture is modern, yet there is a unique emphasis on the natural environment. Residents will experience the luxury of modern facilities, yet the tranquility of being surrounded by nature and greenery. Welcome to the ultimate place to unwind.Creed Group is excited to be a part of the Cambodia Real Estate Show 2 to answer any inquiry and start your dream investment journey.Considering buying property and want to join the show for free –sign up here.Forsponsorship or exhibitor opportunities at the Cambodia Real Estate Show, please contact:Khmer and Chinese: nin.kang@realestate.com.kh,   or call +855 93 552 305, +855 78 637 323English: tyler.stuart@realestate.com.kh, or call +855 12 599 669, +855 81 599 669

Famous for Angkor Wat temple, Siem Reap is becoming a popular real estate investment destination in Cambodia, largely thanks to its tourism attractiveness and lower land price compared to Phnom Penh. However, next year’s general election appears to be stagnating real estate transactions in the Siem Reap market, as it is an area of the Cambodia real estate market primarily dominated by foreign buyers and renters.Mr. Mario Tan, Sales and Marketing Director of Hunter Estate, said: “land prices in Siem Reap are still low compared to that of Phnom Penh. Land prices in Siem Reap are not rising at the moment - with an average between $350 and $400 per square meter. However, the most expensive land price in Siem Reap is near Old Market or Phsar Chas - with prices similar to Phnom Penh: ranging from $3,000 to $5,000 per square meter.” Now, you can invest in land for sale in Siem Reap.“Real estate transactions in the first half of 2017 were down 50 percent compared to the same period last year, due to political uncertainty and economic slowdown in Siem Reap and internationally. Land prices have stagnated in Siem Reap due to the slowdown of general real estate transactions in the province,” Mr. Mario suggests.Echoing Mr. Mario’s view, Mr. Sarath Sok, Managing Director of SiemReapLand house.com, said: “land prices in Siem Reap sees neither increase nor decline, probably due to uncertainty ahead of next year’s general election. Regarding the rental market, in particular apartments and condos, it is increasing significantly but the price declines because supply is more than demand at the moment. Rental prices have decreased from $400 to $300 per month in many cases, for example.”Meanwhile, Mr. Michael Kean, CEO of Solina Realty Consulting, said: “land prices in Siem Reap range from $110 per square meter in the outer areas around The Ring Road - to $700 per square meter closer to town. Land prices in the old market area are the most expensive, starting from up to around $3,000 per square meter.”For Mr. Kean, vacant land within the city and within 25 Kilometers of the city - in such areas as Banteay Srey, where tourists are still coming in droves - offer a particularly good opportunity for real estate investment in Siem Reap currently.For investors keen on real estate investment in Siem Reap, some business insiders suggested that Sala Kamraeuk is the developing but potential area at the moment with attractive, low land prices.Mr. Mario suggests that wise investors should not invest in expensive property in Siem Reap, because it is difficult to resell for good return. Sala Kamraeuk is the developing but potential area with suitable land prices - between 250$ and $300 per square meter near the highway. This area is peaceful with a good landscape, good roads and international school for foreigners, making it comfortable for residential living. ReTourism has been the major driver of real estate investment in Siem Reap. The number of tourist arrivals keep increasing each year, with the recent report by Angkor Enterprise showing a 13 percent rise in tourist arrivals in the first half of 2017 compared to the same period last year. Recently, the company that invest in Sang Ssa Island also plans investe in eco-tourism city in Siem Reap.Mr. Sarath added: “the most popular property for investment in Siem Reap is hotel sector. Investors, especially Chinese, prefer investments in hotels to serve the growing tourist arrivals each year. One hotel comprising 40 rooms can rent for up to $6,000 per month.”According to a recent hotel study by Bonna Realty Group, the number of hotel rooms in Siem Reap continue to rise in the first semester of 2017 compared to the same period last year.The study found that 3-star hotels in Siem Reap increased from 5,987 rooms from last June to 6,709 rooms as of June 2017. For hotels deemed to be 4-star, rooms in this category jumped from 8,132 rooms to 8,962 year-on-year. Meanwhile, 5-star hotels witnessed a decrease in room numbers, dipping from 6,699 last year to 6,131.It is expected that land price in Siem Reap will rise in value again after the general election - with more chinese investors injecting money to drive the whole real estate sector in Siem Reap.Mr. Mario is optimistic that general business, including the real estate sector, in Siem Reap will grow significantly after the national election.“We can see the example of last election; real estate transactions before the election declined but after the election the transaction rose again,”  states Mr. Mario.  “Our government has a good relationship with China and Chinese investors will inject more money to invest in real estate sector - not only in Siem Reap but also in Sihanoukville and Kampot.”Mr. Mario added that, “There will be two big shopping malls coming soon in Siem Reap. The shopping malls will attract tourists to spend more money in the province, contributing to boosting the local economy. A strong local economy will eventually be a good sign for the entire real estate sector in the province.”Search real estate for sale in siem Reap or real estate for rent in Siem Reap on Realestate.com.kh! or want to invest in houses​ sale  in Siem Reap now.

After establishing its impact last May as one of the biggest and most successful real estate shows the country has ever seen, the Cambodia Real Estate Show will once again set the stage for guests to learn about the market from renowned experts in the field.The show is projected to be bigger than the first one but will still serve as a means for the biggest developers to showcase their properties. One of these developers is the Prince Real Estate Group which will be exhibiting their Prince Modern Plaza Project.The Prince Modern Plaza is a mixed-use development that includes condominium units which range anywhere from 29 square meters to 64 square meters. These units are built with a modern design and efficient ventilation system. Each unit has also been designed to maximize natural lighting.The Prince Modern Plaza has also been designed with a panoramic view of Phnom Penh. It has good value, low-cost early payments, high profitability, and is suitable for even middle-income earners.The developers of The Prince Modern Plaza will be offering a special promo for buyers at the show! They're ready to give a 6% discount off of the unit price and refund your plane ticket if you purchase from them during the two-day event!So for those who are interested to take the special offer or if you just simply want to learn about the project, representatives from The Prince Modern Plaza development will be located at Booth 32, 33, and 35 at the Cambodia Real Estate Show 2 to answer any inquiries.The show will also come with access to several panel presentations and discussions in Khmer, Chinese, and English. Speakers and presenters will include local and international experts. They will be talking about currently relevant topics in the real estate market. These seminars are expected to help investors choose the right opportunities and know the practical considerations of real estate deals in the country.Considering buying property and want to join the show for free – sign up here.For sponsorship or exhibitor opportunities at the Cambodia Real Estate Show, please contact:Khmer and Chinese: nin.kang@realestate.com.kh,   or call +855 93 552 305, +855 78 637 323English: tyler.stuart@realestate.com.kh, or call +855 12 599 669, +855 81 599 669

Paradise; It’s something we all dream of…. The word carries with it a sense of luxury, a vision of natural beauty, and above all that warming feeling of peace. But when we think about our own version of paradise, the mind tends to wander to a place that is far away. Island holidays; long stretches of beach; blue water as far as the eye can see... What if experiencing all of this was possible, without planning an elaborate overseas holiday?This was a vision that developers Shu Jian Tian Yu Development Co,.Ltd had in mind when developing the Blue Bay Project: Sihanoukville’s own version of paradise. Don’t fall in the trap of thinking that Phnom Penh is the only city that is booming for developers and property investors - Sihanoukville has established itself as a prime hub for condo development, and nothing demonstrates that more than the Blue Bay project.From the very outset it is obvious that this development sets itself apart, as it is the only condo in Sihanoukville that is on the beach itself. All residents will get to experience 360 degree views and the highest quality facilities. The developers have taken no shortcuts here in trying to bring the feeling of a holiday to all potential residents; a sea facing pool, five star restaurant and a casino are right at your fingertips. Located five minutes from the city centre, Blue Bay is quite literally a holiday you don’t even need to travel for.Whether you are looking for a luxurious lifestyle for you and your family to live in, or an investment property for rental returns, Blue Bay has options available for all.And the best part? The developers want Blue Bay to be a real investment possibility for everybody, and have decided to come on board at The Cambodia Real Estate Show, with a special promotion. Come and see the friendly Blue Bay team on the day for an exclusive 7% discount off the purchase price when you make an upfront payment on a Blue Bay unit. This is a slice of paradise you really don’t want to miss out on.Blue Bay will be at booths 8 and 9 at the Cambodia Real Estate Show 2 to answer inquiries.Considering buying property and want to join the show for free – sign up here.For sponsorship or exhibitor opportunities at the Cambodia Real Estate Show, please contact:Khmer and Chinese: nin.kang@realestate.com.kh,   or call +855 93 552 305, +855 78 637 323English: tyler.stuart@realestate.com.kh, or call +855 12 599 669, +855 81 599 669

Following the roaring success of the first Cambodia Real Estate Show in May, the Kingdom is readily awaiting its’ return in October, with plans in the pipeline to make this show even bigger than the first.The event will include a vast range of top developers from the market, such as the renowned Xinghui Property Development (Cambodia) Co. Ltd who will be showcasing the much anticipated Star City development at the show.This 3.6 hectares, mixed-use development is located at the Russian Boulevard in Khan Sen Sok, a two Khan brothers in northern Phnom Penh – just minutes away from the Phnom Penh International Airport, among other commercial centres. It is also very close to the CBD. With a location in such a prime area  potential investors in the Star City development are offered the prospect of a very good return on their investment - especially for those that get in early.The Star City project, a new Phnom Penh landmark emerges, will have a total of seven buildings, each 12 storeys tall. The seven towers will comprise of residential units with full facilities and further include a variety of  restaurants, luxury offices, retail spaces and a hotel. Condo units within the development have a starting price of $93,000 USD. Buyers can choose to purchase a unit with cash or negotiate other payment methods with very favourable terms.Star City’s developers are offering a SHOW-ONLY DISCOUNT of up to 15% for buyers who commit to purchasing a unit during the Cambodia Real Estate Show in October. However, the excitement doesn’t end there, they are also planning to throw in a free iPhone 7 Plus Red or a motorbike. These lucky buyers will also have the chance to win a variety of electronic equipment for home-use.If you’re an overseas buyer flying in to see the show, and decide to purchase a unit , the developers will be offering a 9% discount, combined with 3 years of 6% GRR (Guarantee Rental Return) per annum. On top of this, the developers will reimburse you $400.00 to recognise the cost of your travel.  For those who are interested in taking advantage of this special offer, or who are curious to learn more about this exciting project, the representatives of the Star City development will be located at Booth 39 and Booth 50 at the Cambodia Real Estate Show to answer any questions you might have.The show will also have several panel discussions and presentations in Khmer, Chinese, and English, led by reputable international and local experts. These will give a comprehensive overview of the real estate market to fully inform investors about choosing the right investment and the practical considerations of real estate transactions.from a range of international and local experts regarding relevant topics in the real estate market today. These free seminars help investors to choose the right investment; and know the practical considerations of real estate transactions in Cambodia.Realestate.com.kh will bring a yealy real estate to Cambodia. Keep track the updated infomation of the comming Real Estate Show in 2018! Do you know over $20 million of property sold at the Cambodia Real Estate Show?   Want to invest in Real Estate  for rent in Phnom Penh with Realestate.com.kh.

During the term of a lease, both the landlord and tenant have a right to request for the court to review the rental amount if one of them considers that the circumstances have changed justifying an increase or decrease in the amount. We will see (i) that giving this power to the court may constitute a risk for the parties and (ii) that other options can be put in place for reviewing the rent in order to take into account market changes and inflationary risk.ING SophealeakCharles AMARPartnerManager          ON THE AUTHORSING Sophealeak and Charles AMAR, lawyers at Bun & Associates, advise domestic and foreign clients seeking expert advice and innovative solutions in dealing with significant and complex transactions involving both raw and developed properties.  Their work includes advising on all issues relating to real estate investment, project development, construction and asset management. Our real estate team has also hands-on expertise and experience in advising clients on matters related to economic land concessions, special economic zones, agriculture, the environment and mining. Pursuant to Articles 248 and 610 of the Civil Code, a tenant has an obligation to pay the rent to the landlord at the agreed time. In this respect, the parties are free to agree on the amount of rent to be paid and to choose the most appropriate form of rent between a fixed rent, a progressive rent or a variable rent (rent based on turnover)[1].However, one of the main concerns of landlords and tenants is how to review the rent during the term of the lease, especially when it is a long-term lease, in order to take into account market changes and inflationary risk.In this respect, both landlords and tenants benefit from a specific right to request for the court to set an appropriate amount for the rent if one of them considers that the estate prices, including rental amounts.However, Article 249 does not specify the conditions of this rent review and in particular when a party can request it.Article 249 also does not provide with a method of calculation to be used by the court to set the appropriate amount of rent. Consequently, there is a significant risk for the parties as the court has discretionary power to make these determinations while not having expertise in the real estate market, including real estate valuation.Generally, the parties do not take into consideration this risk when they are signing a lease and when they are preparing their business plan. Therefore, the provision of Article 249 may constitute a big risk as it can impact significantly such business plan if the rent increase or decrease.This rent review by the court may also constitute a risk for the bank which grants financing to the tenant (e.g. in order to finance the fitting-out works) or to the landlord (e.g. in order to finance the acquisition of the real estate property to be rented to the tenant).To the best of our knowledge, there has not been any court decision made on the basis of Article 249.However, it is recommended to expressly waive this right in the lease in order to avoid such a risk as the provisions of Article 249 are not mandatory.Furthermore, if the parties still want to be able to review the amount of the rent in order to take into account market changes and inflationary risk, they should include in their lease an indexation clause or a rent review clause.These types of clauses have been developed through practice and are now very popular in lease agreements all over the world.Indeed, some owners may be reluctant to grant a long-term lease to tenants if the rent cannot be reviewed. This is especially the case in Cambodia where the value of properties and the price of rent is changing very quickly and where landlords and tenants want to be sure that the rents amount is fair to them.circumstances have changed compared to those that existed at the time the lease was executed[1].Indeed, Article 249 of the Civil Code provides that “if the rent is no longer appropriate on account of change in circumstances, either party may request the Court to increase or decrease the rent to an appropriate amount”.The drafting of Article 249 is very broad and gives discretionary power to the court to decide (i) if the circumstances have changed and (ii) an appropriate amount of rent to be paid by the tenant.Therefore, the party which requests a rent review by the court will have to prove that the circumstances have changed from those existing when the lease was executed. It may not be difficult for a party to prove a change in circumstances when considering the fast growth in the real estate sector and the number of new development projects throughout the country which will impact real Therefore, the role of an indexation clause or a rent review clause may be very important.The purpose of an indexation clause is to take into account inflationary risk in a long-term contract. An indexation clause allows for variation of the rent automatically at specific periods and is based on a specific nominated price index to determine the amount.In Cambodia, there is no specific provision in the Civil Code which governs the indexation clause in the lease. Therefore, the terms and conditions of the indexation will depend on the drafting of the indexation clause and the parties are free to determine such conditions in the lease.However, there is no official publication at this stage in Cambodia of any index by the National Institute of Statistics relating to real estate, such as a construction cost index, a commercial rent index or a residential rent index. The parties can only refer (i) to the Consumer Price Index (which is not really adapted to the real estate market) or (ii) to a contractual index.Therefore, it is not recommended to include an indexation clause until such time as an index relating to construction costs or rental prices has been published by the National Institute of Statistics.As a consequence, the solution which is currently recommended in Cambodia is to include in the lease a rent review clause which will specify the conditions of the rent review and, in particular, the method of calculation of any adjustment to the rental amount.We have seen many landlords in Cambodia requesting the application of a rent review clause in a lease agreement, especially in leases for office premises.The role of a lawyer or a legal adviser will be very helpful to assist the parties in drafting the appropriate rent review clause.In conclusion, it is recommended (i) to expressly waive in the lease agreement the provisions of Article 249 of the Civil Code and (ii) to include a rent review clause if the parties want to review the rent during the term of the lease. This will allow the parties to take into account the market changes during the term of the lease by reviewing the rental amount.For further information, please contact us at:Bun & Associates#29, Street 294, Phnom Penh, Cambodia, P.O. Box 2326T: +855 23 999 567 | F: +855 23 999 566 E: ing@bun-associates.com / amar@bun-associates.comwww.bun-associates.comThis publication is for your information only. It is not intended to be comprehensive and it does not constitute and must be not relied on as legal advice. You must seek specific advice tailored to your circumstances.Any use of the information contained in this article or the receipt of this article is not intended to create nor does it create a solicitor-client relationship between you and Bun & Associates. Unless otherwise indicated, Bun & Associates owns the copyright of this article. If you seek to reproduce or otherwise use this article or any part of it in any way, it is your responsibility to obtain approval for such use where necessary.Realestate.com.kh, Cambodia’s home of real estate, has the most up to date information for buyers, sellers and property enthusiasts! Sign up for our newsletter today and stay up to date with the latest info...

When you sell or rent your home through an agent, you definitely need to pay a commission fee for the agent's services. The related Ministry has taken direct measures to ensure that real estate operations run smoothly in the market and benefit both parties - agents and property owners. This has meant that these fees have now been regulated in Cambodia to exact figures. So if you are a property buyer or a seller, this information relates directly to you!Below is the necessary information you must know when buying, selling or renting a property through an agent in Cambodia:Prakas No. 761: PurposeOn 7 September 2017, the Ministry of Economy and Finance issued a new Prakas on “service and commission fees for valuation and real estate services”. The new Prakas is to educate real estate agents and sellers in Cambodia to:Ensure the efficiency of management and check of charging commission fees and professional commission fees for offering valuation and real estate services.Ensure the equity and balance of interest between real estate firms and customers using valuation services.Maintain order in the real estate market by promoting competition with equality, transparency and fairness in the real estate market.Set the basic fee of charging commission fees and professional commission fees for valuation and real estate services.Valuation Fees Expectations:When you sell your property and need a valuation firm to define your property’s value, these are the charges you should expect from your licensed Valuer:For a property that is valued below $100,000, you need to pay a valuation fee of 0.17% or a minimum of $170;Property valued between $100,001 and $1,000,000 will be charged to you at 0.10% or a minimum of $900;Property with a value between $1,000,001 and $5,000,000 will be charged to you at 0.050% or a minimum of $2,000 for the valuation report;Property with a value between $5,000,001 and $10,000,000 will be charged to you at 0.030% or a minimum of $1,500;And if the property has a value above $10,000,000, you will be charged 0.025% of the property’s value.However, some special properties such as factories and business properties have no set valuation fee. Instead, it depends on each case and the calculation formula with the pre-agreement between you and the valuation firm.Commission Fee for Property Sale and Rentals:Agents will act for you on behalf of the sale of your property. In this situation, they will charge you the commission fee at a minimum of 3% of the total property’s value after the deal is completed. However, in some special cases, you can negotiate for a lower commission fee, according to the Prakas.   Renting your property through agents, you also need to pay a commission fee which depends on the leasing term. If the duration of rent is less than one year, the commission fee is negotiable and is defined by an agreement between you and your agent. There is no fixed commission fee in this scenario. But if they rent for one year, you need to pay one month’s rental amount as the commission fee.And if they rent longer than one year, you need to pay one month's commission fee plus 25% of the monthly rental fee multiple by the rental term.For example:Leasing DurationMonthly Rental FeeCommission CalculationCommission Fee4 years $500$500 + ($500 x 25/100) x 4$1,000 The one thousand dollars is the fee you need to pay to your agent for finding you a renter. Real Estate Agent Valuation versus Bank Valuation:Real estate agents are independent entities that can offer an objective valuation of your home because they only work for the commission fee - and have no particular loyalty to the seller outside of that.Recently, a few banks have also established internal valuation teams to evaluate the client’s property if required. This might be a concern for sellers, as there is a danger that the bank might evaluate the client’s property below the market price - as it is concurrently being used as collateral for a loan. This represents a conflict of interest in some cases.  However, this depends on you - the property owner - whether you prefer to seek an independent and professional valuation service - or agree to get a valuation service from the bank for your property.  In the meantime, if you need professional valuation services to evaluate your home’s value, you also need to pay an additional fee for this service - See Realestate.com.kh's How to calculate valuation fees in Cambodia for more information. Read more articles about Finding Expat Rental in Phnom Penh on Realestate.com.khClick here for current real estate for sale in Phnom Penh and current real estate for rent in Phnom Penh

Q: How is the “One Belt, One Road” policy of China likely to affect the Cambodia real estate market prospects now and into the future, in your opinion?Vathana Heng - CEO, Century 21 Golden Realty“The Chinese initiative, “the One Belt, One Road” policy, is a great step forward in regards to economic integration and new trade arrangements across the Asian region. This initiative, coupled with the existing good relationships with other Asian countries, will surely result in remarkable growth in respect to Cambodian infrastructure and the real estate sector. The country will become more attractive for both local and international investors, triggering significant local development within a span of a few years.”David Marshall - Partner, Mekong Strategic Partners (MSP)“If funds are directed at infrastructural developments in Cambodia, particularly roads, ports and rail, it could make Cambodia a more competitive destination for manufacturing, and accelerate industrial development. This type of development would have clear economic benefits to the  country, which would flow into the real estate market - particularly in areas where the infrastructure developments will take place. As an example, one can look at the recent upgrading of National Road 6, and the outward trajectory of  development along that road: the housing and land prices of that area are now increasing at a very fast pace.”Ken Xi - Director, Union Development Group“The Belt and Road” policy is short for the “Silk Road Economic Belt” or the “21st Century Silk Road” initiative from China. Not only it will promote adherence to peaceful cooperation, openness, tolerance, mutual learning and interactive development, it will also focus on economic development, expanding employment, eradicating poverty, improving people’s livelihood and protecting the environment. Considering the above, Cambodia’s real estate market is likely to be at a high starting point within the development and construction sectors, gaining more global attention.”Nguon Chhayleang - CEO, Ratanaka Realty“China’s “One Belt, One Road” policy, also known as “China’s massive project,” is the strategy of the Chinese government to strengthen its economic powerhouse in Asia and all over the world. In this sense, China goes into Cambodia and ASEAN countries through government funding with the provision of funds to the government to build infrastructure. The impact of China’s One Belt, One Road policy on Cambodia’s real estate market therefore is likely to be positive. More Chinese investors will invest in the real estate and construction market.”Lately, numerous construction companies from China have come to the Kingdom, some of which are state-owned. Considering that developers will not have to pay downpayments to construction companies, this will leave them with more cash flow and encourage further investments in Cambodia. Lastly, the policy will further connect China and ASEAN countries giving a huge boost to the flow of goods.”Q: How will recent regulation changes restricting Chinese outward capital for international property transactions influence Chinese buyer flows into the Cambodia real estate market, in your opinion?Ken Xi - Director, Union Development Group“China recently introduced a foreign exchange regulatory policy with the main purpose of restricting speculative foreign investments - but the “The Belt and Road” construction project investment is not likely to be limited by this. During “The Belt and Road” Summit Forum on 14th -15th of May in Beijing, the Chinese Government established that it will create major foreign initiatives within  the areas of: infrastructure, trade and investment, financial support, cultural exchanges and others.I personally think that due to these initiatives, the future of Cambodian real estate is not only residential; but will also involve the tourism, industrial and logistic sectors. I also believe that the completion of Dara Sakor tourism and port city will attract a significant number of tourists from many countries - as well as investors, residents and workers.”Nguon Chhayleang - CEO, Ratanaka Realty“Based on my research, there have been over 1 trillion dollars of Chinese outbound investments. That capital flew out of China not just to Cambodia or ASEAN countries, but all over the world - and most of this capital landed in the real estate sector. Yet, China’s new regulations restricting outward capital for international property transactions are likely to have a negative but small impact on Cambodia’s real estate market.The Government’s restriction, as far as I know, still has loopholes - meaning that despite the restrictions, people can find a way to get the money out of the country legally. As an example, investors can open bank accounts in Hong Kong and then perform a money exchange from Chinese RMB to US or Hong Kong dollars. It is through Hong Kong bank accounts that Chinese investors can send money to invest in the real estate sector all over the world. Considering this scenario, I think that the Cambodia real estate sector will not be affected severely.”David Marshall - Partner, Mekong Strategic Partners (MSP)“Although China has introduced capital outflow restrictions for property, investments in Cambodian real estate, particularly those in retail and condominiums, would certainly not be affected. This is due the fact that many of the building projects may be under the restricted amount line (small size investment projects) and could also be funded by local banks. Some of the larger scale projects may be affected, but surely not the smaller scale ones.”Vathana Heng - CEO, Century 21Golden Realty“Personally, I believe that the new restrictions are not likely to have a negative influence on Cambodia’s real estate market. In the nature of an investor, especially Chinese investors, they will always find ways to circulate their capital overseas, and Cambodia is currently a popular investment location choice. The restriction is only with the purpose to organize the outflow funds, but opportunity gaps will always be available for the investors.”Read the latest and greatest real estate news on realestate.com.kh today!Click here for current real estate for sale in Cambodia and current real estate for sale in Cambodia

May of this year was when the first Cambodia Real Estate Show marked a milestone in the country’s real estate market. Not wanting to lose momentum, the show is set to make a comeback on the 6th and 7th of October 2017. It will be held at the NagaWorld Hotel in Phnom Penh and will provide a platform for local and foreign property investors to check out the offerings currently available in the Cambodian real estate market.  The last show attracted over 3,000 guests from all over the region, with over $3 Million worth of sales accumulated. These figures have created high demand for the second show from a number of agencies and developers in the market.“We were very satisfied to be a part of the inaugural Realestate.com.kh Cambodia Real Estate show at NagaWorld. The event enabled our team to generate a significant number of direct sales and many good quality leads for prospective buyers. We are looking forward to the next event organized by the Realestate.com.kh team,” said Mr. Laurence Hamilton, Vice President of NC Max World Real Estate Development.With this heightened interest in the second show, both returning and new Borey developers have already signed up and will be given the chance to experience even greater success at the October show!The Creed Group will once again be one of this show’s exhibitors after hitting it big in the first show, gathering over 21 unit bookings and reservations for their various projects. They will once again be presenting and promoting the Bodaiju Residences, Borey Maha SenSok, and the Arata Garden Residences.Star 5 Developer Pvt Ltd and the Boao Hongkai Group will be joining The Creed Group in order to exhibit their high-quality projects. Both developers have had various international experiences in countries like Vietnam, Thailand, Malaysia, Vietnam, Myanmar, Bangladesh, and Laos. These range anywhere from residential, commercial, to mixed-use developments. Some of the projects in Cambodia under Star 5 Developer Pvt Ltd include the Skyland Condominium, Skyland Villas, and Starland. Meanwhile, the Chinese developer Boao Hongkai Group is set to turn over the Borey Bo Ao units by the end of 2017. 50% of all the residential units have already been sold and are ready for occupancy.Renowned local development firm Orkide Villa will also be at October’s show, exhibiting Orkide The Condo amoung it various other borey projects in Cambodia. Other than the influx of interest from Borey developers to showcase their projects at the show, there will also be other activities such as extended seminars for property buyers, sellers and investors in English, Khmer and Chinese, and panel discussions on topics relevant to the market in 2017. CEO for Realestate.com.kh, Thomas O’Sullivan explains that, “during the show, attendees will also be able to watch various educational seminars which will assist property buyers and investors understanding the market, the legal obligations of property ownership, and to help them to make educated decisions when purchasing real estate in Cambodia. Education of the market and protecting our customers’ long term interests is always a prime concern.”Realestate.com.kh will bring a yealy real estate to Cambodia. Keep track the updated infomation of the comming Real Estate Show in 2018! Do you know over $20 million of property sold at the Cambodia Real Estate Show?   Want to invest in Real Estate  for rent in Phnom Penh with Realestate.com.kh.

Located in southern Cambodia, Kampot has been attracting investors’ attention in recent times owing to the latest mega development project announced for the province.The first large-scale international project slated for the region is called the French Riviera Marina; a project valued at $23.2 billion to be constructed along the coastal area of Kampot and Kep - see Realestate.com.kh's Kampot and Kep sees 23.2 billion dollars invested for more information.According to the developer, the Pallas Group, the French Riviera in Kampot will offer a secure oceanside parkland community - consisting of hotels, villas, apartments, a water park, private and artificial beaches, a golf course, a marina, an amusement park and a shopping center, among other facilities. It will also play host to schools and a health center, and its parts will be interlinked by canals and cable cars.The Pallas Group aims to make the southern province of Kampot into a world-class tourist destination. According to the company's website, the site will occupy 6,056 hectares of land alongside the gulf of Thailand, while company documents seen by Kyodo News also showed a planned smaller development in neighboring Kep Province will cover 144 hectares.The company's Vice President Siriluck Choochart said: "the French Riviera Marina and Kep Marina projects will become world-class destinations for living, business, tourism and film production. Pallas will create thousands of jobs during the construction with more than 50,000 direct and thousands more indirect employment opportunities servicing the developments."Ms. Choochart added: "each of our projects has been designed to be in complete harmony with the environment utilizing advanced construction methods and the highest grade materials. They will be the last word in exclusivity and luxury."Commenting on this project, Mr. Sok Ken, founder of Kampot Property, said: “Kampot will soon become one of the most attractive tourist destinations in Cambodia, welcoming a lot of local and international tourists every year”.“The latest mega project French Riviera Marina represents a big boost to the province’s real estate transactions; with prices of land climbing noticeably month on month. The project will turn the province into an attractive and modern city, brimming with residential, commercial and tourism-focused projects which play a vital role in bringing other development to the province.”“Other development projects such as borey, resort, hotel and entertainment will further push real estate growth in Kampot. There are many development projects underway in Kampot with major investors coming from Europe and China. In addition to European and Chinese investors, there are also many local Cambodians interested in buying land in the province,” according to Mr. Sok.Regarding land type and price in the province, Mr Sok said there are three types of land: coastal land, river land, and foothill land. The river land type is seeing remarkable price increases - with prices ranging from $60 to $250 per square meter depending on its proximity to Kampot city. The first tourism seaport in the province due to start in September will also contribute to a rise in land prices compared to three years ago.In 2016 Kampot province welcomed about 900,000 foreign tourists and the proposed tourism seaport project will likely attract more foreign tourists into the province. The $18-million tourism seaport due to come into service by 2019 is expected, by a recent ADB report, to service 360,000 international and domestic tourists yearly when it opens, and 442,900 by 2020.Mr. Mam Sereypanha, Chairman & CEO of Easy Realty Property Investment, said: “real estate in Kampot is seeing rapid growth because recently more and more local and international buyers flock to buy land and property in the province with suitable prices. Most Khmer buyers prefer to buy the land and house along the riverbank thanks to a good atmosphere there.”Kampot is especially attractive for investors now as land prices in nearby beach-city Sihanoukville are skyrocketing, buoyed by an inflow of Chinese investors who are pushing prices higher than local and non-Chinese investors are willing to pay.Mr. Brad King, of KohrongProperty.com, says that speculation from investors, in particular the Chinese, “is pushing Sihanoukville land prices higher than similar plots of land along Thailand and the Philippine Coastline.This is stunting ongoing investment on the mainland, and price speculation is becoming ridiculous. Average land prices are over $1,000 along the Sihanoukville coastline.”Mr. Mam added: “currently real estate transactions in Kampot have increased remarkably compared to the previous year with selling and buying prices rising above the rental market. There is notable investment moving in thanks to some major projects such as sea port development. In order to attract more investors into the area, we need to establish more factories and expand more tourism areas to attract more people to work and visit the province.”Read more article about How to invest in Land in Cambodia for foreignersCheck out property for sale  in Kampot and property for rent in Kampot on Realestate.com.kh

The coastal province of Kep in southern Cambodia is just 146 kilometers away from Phnom Penh. The province looks set to attract increased investment in the near future due to low land prices compared to its seaside neighbour Sihanoukville - and an undeniable potential for eco-tourism. Kep is only 125 Kilometers away from Sihanoukville and just 44 Kilometers away from Kampot, another province seeing increased interest from hospitality and tourism investors.The Provincial Governor of Kep, Mr. Ken Satha, mentioned to press that, “We are in the stage of working out a master plan project for our province’s development which will empasise eco-tourism. Although we haven’t yet got an official agreement from the Ministry of Land Management, Urban Planning and Construction, we are still progressing our master plan to develop more infrastructure. [in Kep] ”Sok Ken, the founder of Kampot Property, said: “Kep is one of the country’s attractive coastal tourist destinations, welcoming as many local and international tourists as its coastal peers. Even though there are now not many major projects underway in Kep, this attractive coastal province is likely to be the next real estate development target for foreign investors owing to its cheaper land price and tourism potential”.Mr. Sok added: “after Sihanoukville and Kampot see full development and land price reaches its peak, investors will look for similar potential investment opportunity and Kep is the most favourable place for investors’ next real estate development. At the moment, cheap land price in Kep is a very good opportunity for those investors looking for potential return investment”.“Land prices around the White Horse roundabout near the highway in Kep are currently priced between $35 and $40 per square meter; while land price around Kep market is between $90 and $150. Land prices around the coast are more than $200 per square meter,” notes Mr. Sok - Searching for land for sale in Kep is available now!Mr. Mam Sereypanha, the Chairman and CEO of Easy Realty Property Investment, said that, “at present, land prices around the coast are between $150 and $400; and other parts of the province are below $100. Buyers mostly purchase land for investment such as building hotels and resorts to accommodate tourists.”For Mr. Mam, foreigners tend to relocate from Siem Reap, Sihanoukville and Kampot to Kep province for more quiet life, buying cheaper land for residential purpose. Improving infrastructure such as road expansions around the province, together with big hotels and higher quality resorts, offer more incentives for these types of investors to move into Kep homes.  “In recent times real estate transactions in Kep have risen from 20 to 30 percent thanks to its future eco-tourism potential and the government’s willingness to develop more infrastructure in the province to attract more local and international tourists. Real estate prices in Kep might rise further, especially for those wanting to buy land for residential purpose,” according to Mr. Mam.Kep is especially attractive for investors now as land prices in nearby beach-city Sihanoukville are skyrocketing, buoyed by an inflow of Chinese investors who are pushing prices higher than local and non-Chinese investors are willing to pay.Currently, land price along the coast in Sihanoukville is much higher than that in Kep province, mainly due to the price speculation from deep-pocketed Chinese investors. This will push other investors to pull out of Sihanoukville and consider investing in similar potential coastal provinces such as Kep and Kampot with less competition and cheaper land prices - Searching for land for sale in Sihanoukville!According to Mr. Brad King of Koh Rong Property, speculation from investors, in particular the Chinese, “is pushing Sihanoukville land prices higher than similar plots of land along the Thai and the Philippine coastlines.”“This is stunting ongoing investment on the mainland and price speculation is becoming ridiculous. Average land prices are over $1,000 [per square metre] along the Sihanoukville coastline,” believes Mr. King.Real estate agents in Kep are optimistic that with the government’s plan to build more infrastructure in the province - such as road expansion, eco-tourism protections and seaport projects underway in neighbouring Kampot - there will be more tourists coming into the two provinces very soon, for instance ADB injects 1M into Eco-Tourism.More tourists in Kep will drive more residential development projects in the province such as hotels, resorts and guest houses, eventually pushing general real estate prices higher, according to the local real estate agents.Want to learn more? Check out other great resources on Realestate.com.kh now! Go to our Location Profiles and Investor Guides pages for more information!Search our current property for sale in Kep or property for rent in Kep on  Realestate.com.kh!

Knight Frank, the independent global property consultancy, has recently released a new report on the Asia-Pacific Prime Office Rental Index for Q2 2017. According to the report, the index increased 1.2% quarter-on-quarter and 0.6% year-on-year as at the end of the second quarter of 2017. There are office spaces available in Phnom Penh, you may want to know how to choose the best working space!The increase in the index was the result of rising rents in 15 out of the 20 markets tracked over the quarter. Phnom Penh topped the chart this quarter at 4.2% increase quarter-on-quarter, compared to a flat performance in the last quarter, says Knight Frank report.The completion of Exchange Square not only set a new benchmark standard for Grade-A office, but its strong pre-commitment level also boosted prime rental levels in the Cambodian capital.In the first half of 2017, the regional economies of China, ASEAN-5 and Japan performed considerably better than expected, as the IMF revised its growth projections upwards for emerging and developing Asia.Nicholas Holt, Head of Research for Asia-Pacific, says, “The pickup in global trade and domestic demand has negated geo-political risks to a certain extent, thereby providing a strong foundation for the Asia-Pacific prime office markets.” Over the next 12 months, Mr. Holt expects rents in 15 cities out of the 20 tracked to either remain steady or increase, which is the same as his previous forecast.Meanwhile, the latest report by Knight Frank Cambodia shows that as at H1 2017 the Phnom Penh office stock was recorded at more than 330, 000 sqm of net lettable area (NLA) showing a 21% increase in office supply when compared with over 271, 000 sqm of NLA recorded at H1 2016.During H1 2017, more than 48, 000 sqm of office was delivered across 8 projects with Exchange Square being the only Grade A building adding approximately 18, 000 sqm to the prime office supply. The new supply included City Tower Asia, Bred Bank building, Sokea International,  Aston Tower, Time Tower, Lone Building and 79 Office Tower.However, according to Knight Frank Cambodia report, the majority of the existing office supply remains Grade B and C buildings while Grade A office represents only 16% of the total supply. This share is expected to rise significantly as 72% of the incoming supply is Grade A space as developers shift focus from residential development to commercial development in view of current supply and demand dynamics.Overall office occupancy showed an increase of 2.5 percentage points QoQ from 82.7% in Q1 2017 to 85.2% in Q2 2017. Grade A office occupancy has reached 59.8% due to the successful pre-leasing of Exchange Square and the leasing of space within Vattanac Capital.Asking rents for prime office space as at H1 2017 ranged from US$19 to US$38 per sqm per month. The completion of Exchange Square during the second quarter of 2017 has resulted in a stabilisation of rental prices for Grade A offices leaving potential tenants in a stronger negotiating position.Ross Wheble, Country Director of Knight Frank Cambodia, expects demand for office space in Cambodia to increase over the medium term as the kingdom continues to attract foreign investment. However, the significant Grade A incoming office supply will require suitable pricing in order to attract tenants.Looking for office for rent in Cambodia? Or looking for real estate for rent in Phnom Penh? Find it on Realestate.com.kh!

In order to get the best insight into the future of the Cambodian market, one needs to examine its complexities by looking at past trials and victories, current events, and the outside factors that contribute to its growth. This is exactly what Dr. Sok Siphana, founder and managing partner ofSok Siphana & Associates, said during his presentation at the Cambodia Real Estate Show in May this year.Where does Cambodia stand?Siphana explains that Cambodia has progressed significantly in the last two decades, backing up his claim with data gathered by ASEAN and the AmCham of Singapore. It is thanks to Cambodia’s economic progress that not only has the country been listed as one of the “Olympians of Growth,” joining the ranks of China, Laos, India, and Vietnam - but also listed by the Asian Development Bank (ADB) as one of the new “Tiger Economies In Asia,” and declared a lower-middle income economy by the International Monetary Fund (IMF).  Siphana confirms that trade, which is growing in leaps and bounds, is one of the key drivers of the country’s economy. In fact, Cambodia is an active trading partner of ASEAN as well as of other major markets like the EU and the US – focusing on exporting finished goods directly to the market and importing raw materials for the industrial sector. In 2015, the export volume worldwide amounted to $8.5 billion and the import volume a whopping $10.6 billion. He explains that the increasing trade volume was due to growth in agriculture, manufacturing, and the construction boom that Cambodia has been experiencing.“For 20-something years we have managed to come from a war-torn country - with nothing - to being an Olympian of Growth. So, we must say that we are doing very well,” Siphana confirms.He also attributes the growth to the accession of Cambodia to the WTO; explaining that in 2004, Cambodia joined the WTO and that is when the country opened up the whole economy, and the effect of this economic liberalization begun to take place. And that explains why Cambodia is now doing so well. But the question remains. With everything happening now, will Cambodia remain a growing economy?How are world events going to affect the Cambodian economy?Siphana paints a backdrop using world events to portray changes that may occur in Cambodia in the near future.He explains that Donald Trump’s victory will cause divisions - as a result of his “Make America Great Again” movement; and that America’s gain may be at the detriment of others. The relationship between the US and North Korea is also worrying. A threat of nuclear war has the world unsettled.A glimmer of hope, however, lies in increased Chinese investments – especially with the Belt and Road Initiative well underway. Siphana assures that while Cambodia is not exactly in tranquil waters, because of some regional issues, this isn’t enough to cause an egress in the economy. Nonetheless, he explains that on the issues of the South China Sea, the willingness of President Duterte to open a dialogue with China has resulted in less tension at the ASEAN summit, showing the possibility of more stable waters to sail in future.Interest in ASEAN remains high with some people still wanting to invest in this potential association. In this context, Siphana praises Cambodia’s economic performance and potential, saying: “for Cambodia we’re not doing so bad. There’s still some serious investors very keen to invest in the country. We still have a very strong attraction in terms of people who come to invest in ASEAN. And people in ASEAN invest in Cambodia.” Still, some of Cambodia’s biggest investors so far come from China, Japan, Thailand, Korea, and the U.S.What policies are being developed to strengthen Cambodia’s economy?The vision of the Royal Government of Cambodia is to create a modernized industrial make-up for the country - a make-up that focuses on being a skills driven industry rather than a labor intensive one. With this aim, Cambodia needs to strengthen its linkages with the regional and global value chainsand deepen its integration into regional production networks by developing clusters of interconnected manufacturing production. Furthermore, Cambodia needs to strengthen the competitiveness and productivity of its domestic industries by moving toward modernizing technology and knowledge based industries.Trade, one of the biggest industries in the country, has thus far shifted from focusing on wood products and textile towards industry and technology, paving the way to a steady progression toward diversification, according to Siphana.He concludes by saying that there is a tendency to look at Cambodia as just a small market - but clarifies that owing to Cambodia’s openness to international investment, “even though we are a small market, we are nonetheless now a gateway to ASEAN - which is a huge market.”Find out why regional investors and developers opt for Cambodia! Or looking for the property for rent in Cambodia?

As foreign direct investment in the country grows stronger each year through various industries, the real estate sector is now also becoming an attractive market for foreigners. But unlike other countries, ownership in the Kingdom is bound by numerous laws.Realestate.com.kh caught up with Matthew Rendall – Senior Partner at SokSiphana&Associates and a member of Zicolaw – to get a clear picture. History of Cambodian Law:Much like the country itself, Cambodian law has evolved through time. Rendall explained that “Cambodia used to be a French protectorate way back when it was a civil law country and it has come back to that over the years. Cambodia “retained the civil law even after independence”.From 1975 to 1989 ownership in Cambodia was not allowed at all. However, it was reintroduced in 1989 but only for residential properties; it was not possible to own land in Cambodia legally until 2001.Essential Laws on Foreign Ownership:Rendall suggests that foreign investors look at Cambodia’s important foreign ownership laws before coming to invest in the Kingdom. Those laws include the 2001 Land Law, the 2007 Law on Commercial Enterprises, the 2010 Law on providing foreigners with ownership right in private units of co-owned buildings, and Sub-decree 82 on proportion and calculation of percentage of private units that can be owned by foreigners in a Co-owned Building. The introduction of these laws allows foreigners to acquire interests in properties using various methods.Strata Titles:Strata titles allow foreign ownership of up to 70% of the co-owned buildings, provided that foreigners do not own any real property on the ground floor. However, Rendall stresses that strata titles are not applicable for all buildings. Older buildings before this law was enacted would have to reapply as a co-owned buildings in order to legally issue strata titles. Yet reapplying will present a dilemma due to the land matter. He explains, “The reason was that the person on the ground floor, as far as they and the law was concerned, owns the land. So, if that building falls down, the only person with anything is the ground floor apartment owner because they own the land. The people above merely own the airspace. So, there was value in having the ground floor apartment because their name was on the only real title, the ground floor. The rest are simply recognized as possessors at the municipality of their apartments above it.”He continues, “So, if I wanted now to own the apartment legally, I would have to convince all those apartment owners to hand in their title deeds; we’ll go down to the Ministry of Land and re-register this entire block as co-owned; we’ll issue title deeds. However, we now all have exactly equal value because under the new system, nobody owns the land. The land is owned by everybody.”The problem here is that the ground floor apartment owner may not be too keen on losing 90% of the land ownership.Company Structure: Is establishing Establishing a Landholding Company: The Best Mechanism for Acquiring Foreign Ownership of Property?According to the 2007 Law on Commercial Enterprises, a foreign entity may take an ownership interest in land through the formation of a company, provided that 51% of the ownership is by a Cambodian citizen.Foreigners may opt to set contracts and documentation in place such as a powers of attorney, proxies, and shareholder agreements to safeguard their investment and to obtain control over the company, says Rendall. However, foreigners can also further protect their investment by forming two companies.He explains it’s much safer and efficient to acquire property with a Cambodian Citizen through the company structure, gain control over the company legally through proper documentation, and then lease the property to a second company that you’ve created and what is 100% owned by the company. By doing so, the business aspect is separated from the land aspect of your investment.Cambodian Citizenship:Another way to own land in Cambodia is through citizenship. With this, Rendall explains that is common in many countries, foreigners can apply for citizenship through investment; a minimum investment of $250,000 will entitle a person to apply to become a Cambodian citizen, thereby liftingany restriction the foreigner may have had in terms of owning land. A lot of companies send delegates or representatives, invest the amount required, and then have that representative apply for citizenship in order to acquire the land directly.He adds $250,000 might not seem a lot of money, but during the time the law was created, this was a different value (than it is today).Although complicated at the first glance, the Cambodian legal system offers many ways for foreigners to legally own property. However, in order to avoid any unpleasant situations, we strongly recommend to seek the help of a professional and reputable law firm before committing to any investment.Find out about foreign ownersip in Cambodia on Realestate.com.kh! Or looking for land for sale in Phnom Penh? Check out with Realestate.com.kh now!

On the 20th of August, 2017, Creed Group will officially open the “ARATA Garden Residences” (ARATA). Creed Group is a Japanese real estate firm with more than 20 years of experience in the real estate market of Japan, and has been investing in the growing real estate markets of Malaysia, Vietnam, Myanmar, Bangladesh, Laos and Cambodia since 2012. ARATA is Creed’s third project in Cambodia -- made possible with the help of local investor “Triple Gem Assets Co., Ltd.”Creed Group's first project is the condominium “Bodaiju Residences”, located just opposite of the Phnom Penh International Airport. The second project is “Boray Maha Sensok”, which will be completed at the end of 2017.Creed and Triple Gem have started cooperating with another Japanese developer “Hoosiers Holdings” for ARATA. Hoosiers has developed 261 projects and 20,000 units since its establishment in 1994. It is listed in the First Section of the TSE (Tokyo Stock Exchange). Creed and Hoosiers will be bringing the “Japanese way” of managing, construction quality, and landscape design into Cambodia.ARATA is composed of more than 500 units for phase 1. It provides various selections of house types such as Shop Houses (A&B), Luxury Link Villas (A&B), Twin Villas, Jack Villas, Queen Villas, and King Villas.It also offers a variety of facilities such as a swimming pool, a kiddie pool, a playground, a coffee shop, a mini mart, gym, a badminton court, and a regular shuttle bus to the 2nd AEON Mall. The projects focuses on being a modern and fresh living environment. It's a large-scale landscaped development that can sustain the thick and abundant greenery for a very long time. This results in creating a more pleasant environment for the entire district over the years. ARATA means “New” in Japanese and "Thmey" in Khmer, inspired by “Phnom Penh Thmey”.One of the advantages of ARATA is its remarkable location. It is located at Banla Saet Village, Sangkat Khmounh, Khan Sen Sok, Phnom Penh, which is one of the fastest growing areas in terms of land price and population, and on the 40-meter wide road according to Phnom Penh’s master plan. Moreover, it is only about 800 metres away from Hanoi Boulevard and has easy access to the 2nd AEON Mall, Makro wholesale, and other business establishments.Besides its location advantages, the iconic architecture is designed by Japanese Architect Hisaya Sugiyama, principal at Quincy Studio Inc. One of his outstanding concepts is the park along the 40-metre-wide road. The 1 hectare of the park is uniquely landscaped, running vertically from east to west. And the ground is purposely uneven to create the walking trails and the shades. It is designed for the residents and the neighbours to gather and create a community space where they can walk, sit on the bench and chat, relax, dance, or play sports on the grass.Get more information about ARATA Garden Residences and learn more about Cambodia’s newest developments by visiting Realestate.com.kh!