With Phnom Penh exhibiting signs of saturation in the high end real estate development market, developers and investors are looking south to Cambodia’s coastal city of Sihanoukville.Realestate.com.kh caught up with Ross Wheble, Country Manager for Knight Frank Cambodia, to get the lowdown on what factors are stimulating the current growth.How is the infrastructural development of Sihanoukville feeding into real estate and property development?One of the main drivers of real estate development and investment anywhere in the world is infrastructure. A few recent infrastructural developments are spurring investor confidence in Southern Cambodia.The Sihanoukville airport is set to become Cambodia’s largest airport, according to various sources. This means more and more regional airlines flying direct to Sihanoukville from international destinations. Grand Union Group, the developer of Dara Sakor at Koh Kong, has also recently received permission to build another airport. While this is not in Sihanoukville, it still represents another access point not far from the city. Until quite recently, airlines were reluctant to offer direct flights to Sihanoukville until a minimum number of hotel rooms were available. Meanwhile developers wouldn’t construct and hoteliers wouldn’t operate in Sihanoukville while the airlines weren't delivering passengers. This standoff has stalled hotel and airline investment in the last few years. Yet now, with the influx of new routes direct to Sihanoukville, luxury hotel brands are trickling in. For instance, Alila, co-founded by the former financial advisor of Aman Resorts, an upscale hospitality group operating in over 20 countries, will launch a 5 star luxury venue on an island off of Sihanoukville. Six Senses Krabey Island is also scheduled to premier in 2017, a large Thai operator of 5 star luxury hotel venues. This trend seems set to continue.Meanwhile, the Chinese-operated Sihanoukville Special Economic Zone (SSEZ), already the biggest SEZ in Cambodia, has announced its intentions to double its capacity and open 300 factories by 2020. New flights from mainland China to Sihanoukville have also been launched recently, specifically to service the SEZ. Continued expansions of the deep sea port are also reducing shipping costs for Sihanoukville based industrialists. Another SEZ in Sihanouk, Steung Hav SEZ, also has a license to build a second deep sea port in coming years.A new highway from Phnom Penh to Sihanoukville has also been slated, and is supposedly due for completion by a Chinese contractor by 2020. This not only aids travelers, but is a key improvement for manufacturing logistics between the factories of Phnom Penh and the Sihanoukville deep sea port.How does the Government’s Coastal Development Plan fit into this?Alongside this private investment, the Government is drafting a coastal development master plan, with certain elements now actively being enforced in regards to protection and maintenance of ecological assets such as beach fronts and mangroves. While these changes are hurting some businesses now, especially on Ochheuteal beach, in the longer term these measures seem to be on the right track to preserving the region's tourism assets. A coastal road connecting Sihanoukville to Kampot and Kep has also been announced.What major development projects are already underway?There have been a handful of major mixed use developments launched in Sihanoukville thus far, and seemingly this is the start of a Sihanoukville condo market set to continue. To name those that we are aware of: D’Seaview; Sunshine Bay; Blue Bay Condominium; Royal Bayview Condominium; The Scarlett (a time share condotel); and Blue Sky Tower.Meanwhile, since beginning of 2016, hundreds of millions of USD of investment has landed in the Sihanoukville, predominantly geared towards integrated resorts, casinos and the gaming market. In turn, a large number of gambling licenses have been granted. This thirst for casinos is being driven primarily by Chinese investment.Meanwhile, at Ream, a lesser known part of Sihanouk province, a huge economic land concession of around 3,300 hectares is being developed by the local owner in conjunction with foreign investors. So far around 15 agreements with investors for parcels of land have been signed, with the long term vision of building an integrated hospitalities zone, including golf courses, luxury hospitality, leisure, gaming and eco tourism ventures. A jetty/port that could support cruise ships has also been planned here, able to receive cruise ships from destinations such as China and Hong Kong.What does this new focus on Sihanouk Province say about the state of the Phnom Penh market?When looking at the overall number of condominiums compared to the size of the population, there is no oversupply. However, there is an oversupply in the high-end segment of the market and we are now seeing a shift towards the launch of more affordable condominium projects in Phnom Penh targeting the domestic market. Factoring in the buying power and preferences of the local market, the vast majority of rental demand for these high-end condominiums will be from the expatriate community residing in Cambodia; hence the likelihood of downward pressure on proposed rental returns once projects are completed over the coming years. Sihanoukville represents a different proposition, there are different fundamentals at play: tourism is strong pull for foreigners and locals, but simultaneously there is a strong economic focus in the city, with many international companies currently setting up here. This population of comparatively wealthy foreigners, in addition to a significant increase in tourist arrivals which is set to continue for the foreseeable future, suggests that there is an untapped rental market in Sihanoukville which has caught the attention of developers and investors alike.  Why not Siem Reap?In comparison to Siem Reap, Sihanoukville offers better long term potential. Yes, Siem Reap has tourism and will continue to - but Sihanoukville is simultaneously an economic hub which will underpin demand for residential accommodation over the long term as the population continues to grow. Furthermore, whilst Siem Reap attracts visitors due to the world heritage site of Angkor Wat, once international tourists have seen this wonder, they are unlikely to return. Coastal resort destinations, if developed well, encourage repeat visitation with tourists returning year after year. Another factor to keep in mind, although not economically viable at present, is the oil and gas reserves offshore in the region which will drive the long term growth of Sihanoukville once extraction begins.By James Whitehead, director of content @ Realestate.com.khThis story was a co-production of the Khmer Times & Realestate.com.kh "Property" Liftout. The section is available every Wednesday in the Khmer Times newspaper, with 10,000 copies distributed across Cambodia every day. Contact us today for advertising opportunities in the Khmer Times/Realestate.com.kh Property liftout. Check out the best Sihanoukville property listings on Realestate.com.kh

The housing market has risen sharply within these five years, with noticeable trends seen as an influx of new launches of condominium and cluster landed housing units that seems to flood the market at the moment.This offers even more options for prospective buyers to tour around looking for a new home that suits their style, preference and budget. In the marketplace, most still prefer landed properties; a few look onto high-rise condos; and many seek ones at which they could afford to pay with some short of finance scheme. Yet there remains a lot more to learn about the Phnom Penh Housing Market.Coming this December, VTrust Appraisal, a local firm specialized in property valuation, research and consultancy, is going to launch the first-ever and in-depth report on cluster landed housing market, unveiling every detailed statistics and indicator about the market, including current and historical supply, demand and sales performance, development and completion status, and all other crucial indicators stratified by home types and locations within the capital.To get insights into the launch of the report as well as some views on the housing market here in Phnom Penh, Realestate.com.kh sat down Mr. Hoem Seiha, director of research at VTrust Appraisal, to discuss the topic:ReakhNews: As we recall, VTrust Appraisal has just recently released a housing market report that covers the market views on cluster landed housing in Ruessei Kaev district, one of the 12 districts of the capital. For the whole market view here, could you tell us in brief how it is going now?Hoem Seiha: In general, the market trends still hold onto the positive line. However, 2016 sees a y-o-y drop in new launches of cluster landed housing supply if compared to 2015 - but still more than other years in the history. But the good news is that there will be a big increase in housing completion if compared to 2015. By 2017, many projects with a lot more units will be finished and ready for buyers to move in. However, the result of overall market slowdown has impeded the speed of constructions at some development projects, especially the smaller or nascent ones who tended to rely on presale budget to cover their construction spending.ReakhNews: You have mentioned that 2016 sees a small decrease in new launches and increase in completion, so could you give the figure and why it is so compared to other years?Hoem Seiha: We have collected all market data across the capital, but let us give an account of Ruessei Kaev district as an example. There, the figure of new sale launches of cluster landed housing supply was almost 2,500 units in 2015, but only 1,000 new units were launched during 2016. The supply has slowed because the new entries accumulated on the market inventory over these few years have outpaced the current demand. Therefore, most of developers have been busier selling off their existing inventory rather than challenging themselves by adding new units to the inventory. Nevertheless, in Ruessei Kaev district, about 2,800 of new units have been finished this year, and 3,300 others are slated to be completed by 2017. While this could be a small case, the scenario may apply across the capital. ReakhNews: You have mentioned that 2017 will see a lot of housing completion within the district, and this may apply across the market here in Phnom Penh. If so, how will be the take-up rate or the speed of people moving to live in the completed houses?Hoem Seiha: A lot of new families will move in for sure, but the relocation speed is not so fast here. Further, there are also a number of to-be completed housing units still listed on the market inventory. In Ruessei Kaev district, for example, some projects still have their partially-finished units listed on pre sale inventory, be it 17 percent in general.ReakhNews: Is there any possibility of pricing drop within the housing market here in Phnom Penh? Hoem Seiha: No sign yet. The general pricing may not increase because of slow market absorption and overwhelming supply, but the price will not drop at the moment through to 2017. However, if the slow market absorption rate still persists until 2018 given the current large volume of supply and rapid completion rate by 2017, some of weak developers who struggle to finish their units but underperform sales of their completed units will consider selling them off below the market prices to recover their spending.ReakhNews: It is so interesting to learn about this market view, and there seems a lot more to learn from your report on this subject. If I were someone who wishes to learn more in greater details about your cluster landed housing market report, where should I go?Hoem Seiha: As we mentioned earlier, we are going to launch our market report entitled “Housing Market and Outlook Report 2016 – Phnom Penh, or HMOR 2016-Phnom Penh” on 16 December at Raffles Hotel Le Royal from 8:30am onwards. The report will provide in-depth figures and statistics regarding cluster landed housing market here in Phnom Penh. Register for the conference now:Ms. Chhoeurn Sonita, General Manager, Entrepreneur Consulting,  Tel: (855)-12-90-63-40/ (855)-86-777-734/ (855)12642466 | email: entrepconsulting@gmail.com hsrealestateconference@gmail.com | Website: hmor-pp.weebly.com | office: #113 (Parkway Square), 2nd floor, Mao Tse Tung Blvd, Tuol Svay Prey 1, Phnom Penh, Kingdom of Cambodia

As the construction industry has risen to become the single most progressive engine of economic growth in the Kingdom, various sector stakeholders suggest there is an increasing need for added legal protections within the industry, overarching urban planning, along with more protections and long term policies to sustain investments in the sector.The Phnom Penh Master Plan 2035 seeks to dictate the urban planning for the expansion of the city and construct new infrastructure to accommodate the growing population. Until now, the city has had no zoning regulations of note nor clearly identifiable urban development planning.Slow implementation of master planning is raising concerns over traffic congestion, and general infrastructural capacity in the key districts seeing high number of condo development projects.Knight Frank’s Ross Wheble states that, “Cambodia’s real estate market is still at a nascent stage of development and teething problems along the way are to be expected. However, a key area of focus for any developing country should be infrastructure. This includes both hard (physical infrastructure; such as roads, railway networks, mass transportation systems, utilities) and soft infrastructure (the education system, healthcare system, financial system) - and it is well documented that infrastructure development is important not only for economic growth but also for poverty reduction which, in turn, increases demand for real estate over the long term.”He continues, “The Government has certainly been making progress in this regard, with numerous major infrastructure projects having completed, commenced construction or been announced during the past few years, but there needs to be an overarching infrastructure policy to set the proper framework.”“A key obstacle to overcome is the funding of such projects, which is particularly relevant in developing markets. One way to tackle this is through planning policy, which is another area that needs to be addressed to improve transparency in the market. In developed markets, it is not uncommon for developers to be required to make significant contributions to infrastructure improvements to ensure that the impact of high density development on the existing infrastructure network is mitigated. With the increasing number of development projects being announced in the Kingdom’s capital, this is certainly an area that needs to be reviewed,” concludes Wheble.Sunny Soo, of Keystone Property Consultants Co., Ltd., an international associate of Savills, adds, “the legal policies of a comprehensive town and country planning system has to be in place now and that it needs to improve continuously and simultaneously adjusting to a larger vision in the future, notwithstanding market transparency and good regulatory enforcement framework. There is no other way about it. Legal guidance and clearer future planning policies in line with good enforcement will be of utmost importance to serve and lead the market toward a healthier city development; whether the aim is to subside a strained city’s infrastructures or serving a role of directing sub-urbanization. But more importantly it also leads to better self-regulation in the future, and that’s when the level of assurance for a healthier real estate market can be elevated.Another real estate area in need of improving is the “soft infrastructure” - meaning those features of the country that make it suitable for living, such as educational institutions, medical care and retail options. While these things are improving, there is certainly some way to go before Cambodia represents a lifestyle on par with the countries from which investors are coming from.Marc Townsend, managing director of CBRE Vietnam and Cambodia says that Cambodia is an increasingly attractive area to settle down. This is because it has a lower cost of living than other popular areas for retirees.But he warns that Cambodia still has to work on medical, travel, and infrastructure concerns in order to attract more mature investors like Malaysia. He states, “We weren’t trying to prove anything here because we were just trying to see whether there was a market that was sustainable. Malaysia’s gone a long long way to trying to attract retirees with their silver-hair visa. And Cambodia is just starting. And it’s interesting where it possibly could go. As long as you get the right type of retirees.”He explains that cost of living is one of the main selling points for normal expats. But this isn’t always the case for all ages. He says that “a lot of it comes down to medical. And if you’re in good health, it’s not something that you worry about. But obviously, as you get older, the ability to have just a simple consultation, ten minutes with a private practitioner/general practitioner – in your own language – and knowing that the pharmaceuticals you’re buying over the counter are safe, again, these are issues that Cambodia has yet to overcome.”Learn more about recent Infrastructure upgrades in Cambodia!

Meet Property Market Experts from Local & Int'l Leading Firms, Gain First-Hand Insights Into Phnom Penh's Cluster Landed Housing Market in 2016 and Outlooks onto 2017, Network With Real Estate Minded Persons, and Enjoy Moments of Opportunities; Only at HMOR 2016 - Phnom Penh...Realestate.com.kh is proud to be a supporting partner of this housing market event; along with Entrepreneur Consulting, Century 21 Cambodia - & graciously hosted by V Trust Appraisal.The landed housing market represents a large part of Cambodia's current residential real estate boom. The market survey results being presented at this seminar will provide crucial information for real estate and construction professionals, the banking and home loan sector, developers, investors and policymakers.Contact Information:Ms. Chhoeurn Sonita, General Manager, Entrepreneur Consulting,  Tel: (855)-12-90-63-40/ (855)-86-777-734/ (855)12642466 | email: entrepconsulting@gmail.com hsrealestateconference@gmail.com | Website: hmor-pp.weebly.com | office: #113 (Parkway Square), 2nd floor, Mao Tse Tung Blvd, Tuol Svay Prey 1, Phnom Penh, Kingdom of Cambodia

As the Cambodian architecture industry becomes more competitive, a new generation of graduates are pushing their way into the industry with the help of relevant tertiary education, creativity and innovation. However, within this demographic, women are also proving to be a key human resource of the industry. Realestate.com.kh caught up with a few women currently active in the Cambodia architecture industry Ms. So Sopha, an ex-student of Royal University of Fine Arts and currently architect at the Archetype Group; Mrs. Tep Sothy, a fifth year student of Architecture and Urban Planning at the Royal University of Fine Arts; and Ms. Tri Lida, 2D architect in technical team at  Re-Edge Architecture & Design weigh in on what it’s like to work in the field.What’s your background and why did you decided to enter the architectural industry?  Sopha: When I was in school, I spent a significant amount of time finishing projects from all my classes. Sometimes even a whole night. To be an architect means to sacrifice a lot of your spare time. I didn’t  hesitate to push myself in this career though because I love being creative and innovative. Sothy: In 2012, I just got a bachelor’s degree. Most of my friends chose university subjects like accounting, finance and banking, pharmacy. I eventually decided to study architecture, a subject which everyone thought had no job market and is only for men. But it’s a job of innovation I like. So, it’s really best-suited for me.Lida: I chose this major because I like painting a picture and applying my imagination. I like working as an artistic designer doing creative work. It’s possible to say that I want my dreams to come to life. I’m fond of creating new things.    Which architect and what type of architecture do you like?Sopha: I like Zaha Hadid. She’s an international and renowned architect. She did the Galaxy Soho, Beijing (2012) and Sleuk Rith Institute, Cambodia. And if we’re talking about architectural work, I mostly like natural and green architecture because it’s eco-friendly and looks fresh.Sothy: Mr. Tadao Ando is a Japanese architect whose work is reflective of sunshine that is believed to be connected to a lovely mindset. Some of his achievements are The Church of the Light in Ibaraki and The Pulitzer Foundation for the Arts. Moreover, there are other architectural works in Cambodia such as the Ta Prohm temple, some French colonial construction, National Olympic Stadium, and some bamboo houses in Takhmao which was built in 2015.Lida: The architect I like are Vann Molyvann — the father of Cambodian architecture and the founder of the New Khmer Architecture — and Jean Nouvel, a French architect. I like the Olympic Stadium. And every achievement of Molyvann that’s well-designed and good-looking. He incorporates the Khmer style by converting nature into sustainable buildings where the air and sunshine go from the inside out. We feel better and comfortable about this.What are the challenges and benefits of working in the Cambodia Architecture Sector? Sopha: This kind of work is really hard and requires a lot of time to complete. But I’m excited when I’m able to innovate, especially when customers are satisfied with my work. This is proof that I was able to present a high standard of living context.Being an architect is mostly considered to be a man’s job and very few women in the past have worked in the sector. But today, it’s common for women to step into an architectural career. For instance, I am working as an architect and I experience no occupational discrimination. Sothy: When I was still on my first year, I thought this major was related to everyday living. But this major requires long years of keeping busy with school projects and coming up with new creative ideas. We also need to spend a lot of time in construction sites. So, this is why people say architecture is a man’s job. I’m happy with my class and with my works as an architect. It really provided me more creative ideas. On the other hand, this kind of job is a collective of art design, taste of life, modern techniques, and especially the combination of mixed-culture. I’m now at my fifth year. I have studied a lot about urban planning, and I think I understood more about it. Lida: When we say “architecture industry”, the initial thought for me is it’s really difficult. But on behalf of women studying in the sector, I can say both challenge and pleasure work together. Time is valuable for this job. I don’t have enough time with my family and even to sleep. A professional and skillful architect needs to be highly responsible and committed, as well as self confident on what they are doing. Actually, if we have no love and commitment with the job, I believe that we can’t do it well. In terms of what makes me happy, I get the chance to express my ideas as to what kind of buildings I like to design. And those may also become my achievements, especially if my clients are happy. This job makes me smile, whenever I look back and recall memories. I also learned to value friendship and communication with many different people in society. Have you ever experienced employment discrimination in the Cambodia Architecture Sector? If that happens, what is the solution? Sopha: I’ve never had experience with employment discrimination as an architect, even in the workplace.Sothy: While there is gender discrimination in this industry, most of them are on the outside. They’re not in the aspect of this job environment. There’s still a notion that this is still a man’s job. But inside the job environment, there are very few people who think that it’s impossible for women to do this work even if they are required to work on site day and night. However, this job requires using the heart. You have to be thoughtful and creative. So, there’s no reason to think that it’s impossible for a woman to do it. Lida: For instance, nowadays, I work in Re-Edge Architecture & Design. There are both men and women working there. They don’t discriminate. We, as women, are not  discriminated against by men. Instead, we have even been offered more opportunities to express ideas to make the design better. And we are free to share good experiences with each other. I like it. However, in case of discrimination from a coworker at the workplace, it seems to me that the best solution is to first show our abilities. Let them see that what a man can do, a woman can do better.  If you were married and you’re an architect, what are the challenges as a couple? What are the suitable solutions? Sopha: I already know this job demands a lot of time. So, you get to spend less time with the family. I just need to lead a happy life and find a good time to spend with my family. I can’t deny that this is really hard to manage.Sothy: Although I have yet to marry, as far as I’m concerned, it would be trying to understand each other. It needs time and preparation between your job and the family. We need to spend time for family and ourselves as well.Lida: For now, I am single. But I believe problems will happen. The most important thing is time and preparation.Find the best real estate news on Realestate.com.kh

Citizens and investors of the country will soon be able to work, play, and live in The Gateway Cambodia – a prime new development property that’s set to change the urban landscape of Phnom Penh city.The Gateway will be a freehold mixed use development that will include residential, retail, and office options for local and international investors.The development will see the rise of an ample 7-storey car park and 2-storey retail podium, a 39-storey residential tower, and a 36-storey office tower. It will also feature a sky terrace and a basement car park on its residential tower. There will be a total of 299 office units and 572 residential units in the project.The residential units will range from one to three bedrooms and will have luxurious fittings and private balconies to match. These units will offer a guaranteed 6 percent return per annum for two years. For buyers who commit soon, there’s an ongoing “Star Buy Promotion” for a limited number of residential units; One bedroom units start around $130,000 range; two bedroom units start around $200,000 range; and the three bedroom units start around $250,000 range.The office tower will have a helipad, a double-glazing glass for heat reduction, 8 elevators, and a separate fire elevator for safety. Uniquely, The Gateway offers the only Grade A offices for sale in the Phnom Penh Central Business District area. These units will offer a guaranteed 8 percent return per annum for two years. There’s also sound potential for capital return due to the high demand in the Phnom Penh office market segment currently - as the city transforms into an epicenter for inter-Asean manufacturing and trade.The Gateway Cambodia will be carefully crafted using quality construction materials by a competent set of local and international industry experts. The developer, TACC (C.R.) Ltd., have utilized the services of 2nd Edition Pte Ltd for the interior design, award-winning Mr. Lim Koon Park of Park + Associates Pte Ltd for the architectural design, KCL Consultants Pte Ltd as the structural engineers, and United Project Consultants Pte Ltd as their M&E engineer.The developer has around 40 years of construction experience and 15 years of real estate experience in Singapore, and is currently listed on the Singapore Stock Exchange.The Gateway Cambodia is set to reach completion by December of 2019. It will be strategically located along Russian Boulevard. It is one of the only major roads in the country from the airport to the city centre that has no flooding potential. This transit route is also undergoing significant development to maintain its usability moving forward into the next decade of Cambodia’s growth.Located just 15-minutes drive from Phnom Penh International Airport, The Gateway will be the tallest building from the airport to the office of the Prime Minister. It’s also near important establishments and amenities such as the Ministry of National Defence, the Thai-managed Royal Phnom Penh Hospital and a host of world-class International Schools and respected Universities. Parkson Mall is also underway along the same boulevard, and is set to become Cambodia premier retail mall complex.It’s also close to the Phnom Penh City Center development site, a huge tract of land under development on the former Boeung Kak Lake, which is the only area in the country with a full master plan. According to the developer’s source, a future MRT station will also be built near The Gateway project.The developer’s research shows high potential for return and a doubling of capital appreciation every 5 years due to high foreign direct investment from countries like Japan, Korea, Europe, and China. There will also be a guaranteed 6 percent to 8 percent yields per annum.Take a look at the development if you want to find a space that promises convenience, comfort, and luxury in a city that is rising dynamically in the ranks of Asean. You don’t have to settle for anything other than The Gateway.Find out more about this great project from The Gateway’s professional sales team today!

Home and business security is important for all property owners in Cambodia. Crime prevention requires attention from the right providers in order to ensure that your property is secured. However, it is also important to look after yourself.Ms. Sim Kalyan, general manager of Global Security Solutions (GSS), recently talked to Realestate.com.kh about how to stay safe when living in Cambodia. What qualifications should security companies have?Kalyan said that the history of the security company's management should be reviewed, especially the Managing Director’s. Check for experience and if they have a clear policy for the staff, such as if their salaries regularly paid or if the security guard’s salary is good enough. This is crucial because you must have a guard that is loyal to their company above all else. Try to also look for information on whether the services are good enough from past customer.Also check whether the security company’s registered and licensed in the ministry. There are more than 200 security companies in the country and some of them don’t have licenses.What safety precautions should we take in Cambodia?There’s always a risk of pickpockets or thieves. Kalyan advised not wear a lot of jewelry when going outside, using a small bag and putting it inside shirts in order to avoid pickpockets.In terms of robbery protection, bodyguards can be an option for those who can afford them. Alternatively, walking with two or more people lowers the risk of robbery. But we should also be careful in crowded places. There can be a possible kidnapping because of neglect. Knowing where to sit or where to look around also helps.In case thieves are following you, it’s recommend not to go home. It’s better to go to crowded areas or places like hospitals or police stations. The daily commute should include scouting areas in case of emergency.Kalyan also mentioned that it’s better not to go home when you’re out past midnight night. If you really need to go home, inform your family. Do not set up a password on your phone so that if you are in an accident, the first on scene can still contact your close friends or family.  Should I use insurance even when I already have security systems?A security company will guarantee limited payment in case something happens. Choosing insurance is a good safety net for any damages that could occur.Kalyan said that those who have plenty of high-valued objects should use insurance services. Also, doing a consultation with an expert insurance firm or consultant is advisable before you decide to purchase a home or business. When using insurance, You only need to pay a fixed monthly amount  to get compensation for what has been lost. Insurance service is the best choice for property owners who want to eliminate risks on their property asset.Other factors to consider:Kalyan added that if you know you’re being watched all time, you shouldn’t leave the workplace with a consistent schedule. Leave early sometimes and sometimes late. We should not drive only one route. By doing this, the thief will not know exactly what time you leave and which  route you take.In addition, there are three strategies: run, fight, and hide. These three strategies can enable us to escape from danger. But we also have to be responsible to know when to use each method.Learn more about home security in Cambodia!

The name Donald Trump brings controversy wherever it goes. It doesn’t matter if it’s in a reality show or if it’s in politics. Prime Minister Hun Sen even noted that he preferred Trump to win because it would ease tensions between Russia and improve global cooperation. And the prime minister did get his wish. Donald Trump has been named President of one of the most powerful countries in the world.But what does this mean for countries in Southeast Asia?Marc Townsend – the Managing Director of CBRE Cambodia and Vietnam – discussed the implications during his presentation “Is Cambodia’s Residential Market a Target For Investment?”An Interesting Change:Townsend mentions that Cambodia may not be directly affected by Trump’s victory. But he warns that Cambodia may not remain completely unfazed by it either. A trans-pacific partnership has been in the works during the Obama administration to enhance trade among 12 countries by means of free trade zones. But this may have hit a dead zone as Trump has expressed opposition towards this specific trade agreement. No decision has been made about the issue yet.Townsend explains “it will be interesting to see whether that happens. Obviously, Cambodia’s not so much involved in that. But the ripple effect will be interesting. Obviously, with Mr. Trump’s election future trade agreements become increasingly distant.”The Ripple Effect:The hostile treatment of the United States government under the Trump administration will focus on an “Americans First” master plan. This means providing more jobs to Americans by removing most outsourcing industries. Trump might impose higher tariffs on import as well.Fortune mentions that “any such moves could also hurt Asian exporters who ship components there for assembly and export to the United States, at a time when global trade is already weakening.” It is important to note that most of the countries that will be affected by this change are major investors of Cambodia. A weakening of their trade policies with the United States of America may spell trouble for the country given its reliance on industrial based exports. The Dashboard from CBRE Cambodia:Townsend said “We put this dashboard together every month. And you can see here, particularly, it’s important to see where we’ve come from, where the FDI numbers have come from, where they’re going to.” His presentation showed no future FDI estimates from CBRE as a result of the uncertainty that the Trump administration may bring. They do expect stable GDP growth though.It is difficult to see how Trump’s going to play the presidency out until he reaches his first 100 days. But many are still hopeful that his making America great again will include better foreign trade agreements with nations such as Cambodia.Find more Investor Guides in Cambodia on Realestate.com.kh

Cambodia real estate speculators recall the market of 2008–10 in which Phnom Penh property prices fell around 40% across the board, not fully recovering until as late as 2014. Domestic confidence in the market plummeted during this period, and this dropoff in demand was significantly accentuated by a global economic crash. The period saw large declines in FDI flows into the nation and its property market. Warning signs are appearing in the current condo market of Phnom Penh that show some similarities to this last property market crash. The current state of the market is suggesting that condo Investors now need to consider longer term investment if they want high returns - as opposed to cashing in quick for short term gains.In 2016 we can see a new developments market (particularly condo) predominantly targeting the foreign investment market, with prices so high as to block all but a small fraction of local buyers entry into the market. The predicted supply increases seem likely to outstrip the markets current ability to absorb, meaning proposed rental yields are unlikely after the bulk of new units come online between 2018-2020. Investment returns on resale are also in question alongside new supply rates, and plateauing land prices in central Phnom Penh where the majority of condos are being built.A condo oversupply red flag for investors exists when unit sales prices are growing faster than the money flows and returns on investment that underpin those units’ values. This uncertainty around secondary markets for the large new supply of condos set for release is worrying some investors.Many condo developments are offering a guaranteed rental return for a period of time. The lower end of these returns represents 6-7% per year, and some are as high as 20%. These returns are generally guaranteed for 3 years by the developer - meaning, regardless of whether or not the property is rented, the developer is obliged to pay the returns to the buyer.When the guaranteed rental yields for the incoming glut of condos expire, owners might decide to sell, having found that tenants are in-fact unavailable given the huge supply at the time available in the market. This lack of rental income could lead to buyers forfeiting mortgage repayments with no option but to sell the units. The concern is that if too many of these guaranteed rental periods expire in the same period of time, as they appear they will given that the majority of units will be released into the market between 2018-2020, this could result in a fall in condo prices as the market is flooded with resales.  Given that foreigners make up the vast majority of high end rental yields, the dramatic increase in condo supply over the next 2-4 years is supported by an underlying belief that a secondary market will continue to grow to supplement demand. The belief is that more foreigners with means to rent or buy prime condo properties will move to the capital city to live and work.Yet, population statistics do not appear to be supporting this prediction. While the number of expats currently in Cambodia is widely quotes at a total of 80,000, the Ministry of Labour recorded that only 35,000 applied for work permits in 2015, and just 25,000 of these permits were granted.  The other way that the resales and rentals market could increase is through domestic means for condo investment increasing, however, this too appears to be limited. Domestic demand is also a key element of a successful condominium project for any developer in Cambodia, due to foreign ownership of an individual building (strata law) being restricted by law to 70%. This means 30% must be sold to local Cambodians. Despite significant population growth, the World Bank citing 4% year on year in Cambodia, local buyers still lack the means to buy into the condo market for the largest part. Most local buyers are struggling to satisfy deposit and payment requirements for mid to high end condo units, which represents that largest portion of incoming supply. In 2014, a Park Café consumer survey among Phnom Penh’s active professional population showed that only 1% of this class earned between $2,001 to $5,000 per month; and just 6% between $1,001 to $2,000 per month. To compliment this statistic, VTrust’s housing market survey in 2015 stated that 54% of the respondents wished to buy homes at net prices between $30,000 to $70,000 per unit. In comparison, V Trust noted that 40% of current condo market unit supply are priced less than $70,000 per unit. Furthermore, consumer tastes appear to remain firmly focussed on the landed properties market. The VTrust survey found that just 9% of these buyers would choose to buy condos - the traditional preference for landed properties remained dominant in the survey.This situation of an oversupply compared to domestic demand has been accentuated by the recent economic slowdown in China and other Asian countries, further slowing demand for Cambodian investment properties from key investor markets across Asia. In regards to the condo market for international investors, Marc Townsend, Country Manager for CBRE Vietnam and Cambodia, notes in a recent presentation that, “It’s a limited market at the moment. And obviously, at some point, it will come on the radar screen of a wider group of people”. Once Cambodia enters the consciousness of investors around the world, the market has the potential to change dramatically. Yet apparently, as of 2016, this consciousness is relatively small.Townsend adds the need for a diversified investor pool to negate risk across the market, a point that is well demonstrated by the recent slowdown of the Chinese market: “We need investors from all over the region. Not just from one place. You need to have a balance.” Otherwise, when one set of investors for some reason boycott the market or lose their influence in the country, the market can still be sustained by the overall investor pool.The Taiwanese, for instance, represent one of the largest investment property buyer groups in Cambodia currently. If the Taiwanese market shies away from Cambodia due to a lack of confidence in the secondary market or growing political tensions as the 2018 elections loom, the entire market could take a dive. “Education of investors is the most crucially needed factor to maintain a healthy market in the long-term,” suggests Sam Yang, ceo of Eastland Development HK Co. Ltd, an active developer with three large scale projects underway in Phnom Penh. Yang continues, “This is because so many non-Cambodians do not have a clear understanding about this country or even Phnom Penh. As for locals, they don’t yet appreciate fully the benefits of living in a condo. I suggest that there is a strong need to increase this country’s exposure to the rest of the world via advertising abroad, introducing the beauty of this country. And that’s something that the government can lead on and coordinate with the private sector in order to achieve success.”Given Cambodia’s overall dependency on the garment and footwear industries currently, if market conditions for manufacturing these products change to a point where major stakeholders decide to move their operations away from Cambodia to more competitive markets, this could also alienate a large sector of the international property investment pool.Yes - despite these risks - in the long run, the condominium market should correct itself by reaching the equilibrium where condo prices and quality will be geared to genuinely suit buyers demand, affordability and preferences, both domestic and international, and the prices will adjust to reflect the real potentials for rental yields upon completion. Marc Townsend of CBRE in a recent presentation says this is the mark of a maturing market whereby, “trajectories have changed from being favorable to the developer to favorable to the buyer.”Yin Leangkong – editor in chief of the magazine Property View, and presenter and editor of real estate and economics at BTV - notes in a recent interview that we will not see a crash like in 2008 caused by a condo oversupply, however: “It’s impossible! Actually, the real estate crisis in 2008 did not start out from Cambodia. It was a global crisis that started from the United States. And although the real estate market slowed down, intelligent and experienced investors in real estate have already taken precautionary measures. Moreover, government already issued regulations to prevent a crisis in this sector as well.”Matthew Rendall of ZICO law notes in a recent interview with Realestate.com.kh that, “what is crucial is the need for developers to organize a working exit strategy.  I.e. The long term management of the apartments blocks once the development is finished and completely sold. There needs to be a development of the owner-run body corporate culture (where owners come together as the management body and control the sinking fund etc).  Failing this, the developers either have to manage the apartments blocks in perpetuity or risk the development falling into disrepair. Buyers will start to look at developer's previous developments and judge them by how well they are managed (when deciding whether to buy into a developer's subsequent development).”Ross Wheble, country manager for Knight Frank concluded in a recent interview the Phnom Penh Post, that many property developers are only just beginning to understand the dramatic changes that the condo market has witnessed over the last few years. Wheble predicts, “There will certainly be a period of consolidation, particularly when you compare rental prices across the different sectors here in Phnom Penh with major cities such as Kuala Lumpur and Bangkok….We advise any investor that they need to take a long-term view as opposed to short-term speculation.”“Demand from foreign investors has been declining during the past six months and developers need to be more innovative in terms of the products they are offering, with the market now more price sensitive,” continues Wheble.Sunny Soo of Keystone Property Consultants Co., Ltd., an international associate of Savills, notes that, “it is normal to have winners and losers in a competitive market where development is in-itself a higher risk business. If any developer’s pre-development preparation is not market-driven but rather fueled by optimism alone, this is the price of ego the market has to pay.”One final point is that developers are now looking to new products in new markets, outside of Phnom Penh. Fears of oversupply in Phnom Penh are naturally pushing developers to look to new markets, the frontrunners currently being Sihanoukville, Siem Reap, Battambang and Poipet. Check out the condo market opportunities now!

Enchan Sreyleak, Sales Consultant of Yong Yap Property, talks to Realestate.com.khTV about where to go shopping in Phnom Penh and details what are the most Popular Shopping Markets in Phnom Penh.What are the most popular shopping markets in Phnom Penh?There are two popular markets in the city of Phnom Penh. These are the Russian Market (Phsar Toul Tum Poung) and the Central Market (Phsar Thmey). These are where both foreigners and local usually like to go shopping.Why are these markets so popular?They’re both popular because they have local Khmer products like handicraft, silk, handmade jewelry, and other types of souvenirs. Foreigners like to stop by and shop for souvenirs there before going back home to their country. But these markets are also popular with expats and locals - because besides souvenirs, you can find almost anything if you search around in these traditional markets.How about the food quality?Well, the food in both markets are really good and popular too.  In terms of pricing, it is as good as the taste. People can easily find various local food here such as fresh fruit shakes, grilled fish, grilled pork, Khmer noodle soup, fried noodles, fried rice, and porridge.Are there pubs, bars, restaurants, and shops around the Russian Market?Yes. Because there are a lot of expats living in the Toul Tum Poung Market (Russian Market) area. And tourist also roam around the area to enjoy both Khmer and Western food. There are also international restaurants where you have options for entertainment or beer. All these things make the Toul Tum Poung Market even more popular.Learn more about life in Toul Tum Poung!

Enchan Sreyleak, the Sales Consultant of Yong Yap Property, talked to Realestate.com.kh about how to open a bank account in Cambodia, on Realestate.com.khTV.What are the requirements to open a bank account in Cambodia? Cambodian citizens are required to present an ID card or a passport to the bank. Initial deposits vary between different banks. Some require an initial deposit of $100 to $500. Some banks require an initial deposit of $10 to $500. It’s a bit different for foreigners. Foreigners are required to present a passport, a visa that’s still valid for six months, or a job contract. These requirements also vary between banks. Initial deposit that are required by banks can range anywhere from $10 to $500.How about an ATM card?It’s good to use an ATM card, but you will be charged a monthly fee. You are also supposed to actively use your ATM card. If  you don’t use it within a given time period, you will be charged an extra fee if you want to use it again. Find out more about Banks in Cambodia on Realestate.com.kh

Enchan Sreyleak, Sales Consultant of Yong Yap Property, talked to Realestate.com.kh about how to set up an internet connection in Cambodia, on Realestate.com.khTV.How to set up an Internet Connection in Cambodia: What are requirements to set up your internet?There are many options and many internet service providers in Cambodia. Most of these companies have the same requirements for foreigners or Khmer nationals. To set up your internet, you’re required to present an ID card or a passport with visa.How to set up an Internet Connection in Cambodia: What’s the process of setting up an an internet connection in Cambodia?Once you know which company you want to avail the services from, you can give them a call. You then need to go to the company and fill up a document. But it’s also possible to call them to go to your home as well to fill up the form if you’re unable to go there directly.How to set up an Internet Connection in Cambodia: What about the payment responsibilities?You’re required to make a deposit. Some companies will charge $35 up to $150. It takes around three days to a week in order to complete the process of setting up. Fees start with a minimum of $12 and a maximum of $150 a month. The faster the speed, the higher you need to spend.Check out Yong Yap Properties listings and services on Realestate.com.kh

Condominium is a non-legal term. It describes a kind of ownership of certain types of private properties (known as ‘co-owned buildings’) where there’s a distinct and separate ownership between individual units and common area co-ownership.A strata title refers to the certificate of ownership for such an individual unit in a co-owned building. There are also a number of laws, policies, and amendments made in Cambodia to safeguard the condominium and strata titling mechanism.Some of these points regarding Strata Titles in Cambodia were discussed during a recent breakfast briefing conducted by VDB Loi in association with PYT & Associates, IPS Real Estate and Yong Yap Properties. The speakers included senior associate and real estate specialist, Mr. Lucas Vosch, VDB Loi Taxation Director, Mr. Robert Porter, IPS Real Estate Country Manager & Condominium expert, Mr. Grant Fitzgerald, and Yong Yap Properties General Manager, Mr. Desmond Yap.Land Law of 2001: The Land Law of 2001 came as a revision for the original 1989 Land Law of Cambodia. The 2001 revision created a provision for the private ownership of land. This also became the starting point for the creation of the land registry system that issues Cambodia land titles that remains in place today.Article 1 of the Land Law states that it “has the objective to determine the regime of ownership for immovable properties in the Kingdom of Cambodia for the purpose of guaranteeing the rights of ownership and other rights related to immovable property, according to the provisions of the 1993 Constitution of the Kingdom of Cambodia.”The law includes the provisions on public and private property, principles of ownership, collective ownership, acquisition of ownership, land concessions, rights and obligations of owners, limited proprietary rights, undivided ownership, co-ownership, joint ownership, immovable property, mortgage, Cadastral administration, and penalty provisions.Law NS/RKM/0510/006:This law generally “provides foreigners with ownership rights over private parts and rights to use and enjoy over the common parts of co-owned buildings.” This law limits foreign ownership to above the ground floor and to a percentage of the building to be determined separately by sub-decree (refer to Sub-decree no. 82 below).  This law contains topics on general provisions, general principles, Acquisition of special co-ownership, rights and obligations of the special co-owners, procedure for registration and issuance of certificate, penalties, and transitional provisions.Sub-decree No. 82:According to official documents, “This sub-decree is to determine the proportion and calculation of percentage of private units that can be owned by foreigners in a co-owned building in the Kingdom of Cambodia.The sub-decree states that “Legally qualified foreigners can have ownership rights in private units of a co-owned building not exceeding 70 (seventy) percent of the total surface-size of all private units of the co-owned building.” It also states that in “issuing a certificate of ownership of a private unit of co-owned building to foreign owner, the Cadastral Authority shall write down on the certificate about the proportion of the surface-size of each private unit comparing to the total surface-size of all private units in co-owned building.”Sub-decree No. 126:The goal of Sub-decree No. 126 is to “determine management and use of co-owned buildings as well as mechanisms and procedures for registering ‘private units’ of co-owned Buildings.”According to the documentation of the same law, “The scope of this sub decree covers all categories of co-owned buildings that were legally constructed in the Kingdom of Cambodia. Only legal or individual persons of Khmer nationality can own private units of a co-owned building unless there are specific provisions stipulating the contrary [refer to laws and sub-decree noted above].”Sub-decree No. 114:This Sub-decree determines the procedures and rules for the application and regulation of Value Added Tax in reference to the supply of services or goods in Cambodia. This law also covers the requirements for registration, registration of investment enterprises, cancellation of registration, credit for input tax, tax invoices, non-taxable supplies for diplomatic missions and international organizations, adjustment of tax amount, supply of goods or services for consumers, supply by an agent, collection of VAT at importation, zero-rating of the export of goods and services, and transfer of a business.Learn more about Strata Titles in Cambodia and the process of getting one!

Marc Townsend – Managing Director of CBRE Cambodia & Vietnam – recently tackled the question, “Is Cambodia’s Residential Market a Target for Investment?”His presentation included updates on the status of the condominium market in Cambodia. He talked about the upcoming supply and the various sources of activities in the market. He also compared the residential market of Cambodia with its neighboring countries. Townsend’s discussion focused mainly on Phnom Penh. He also touched a bit on the retirement sector.Condominium Activity in Cambodia’s Residential Market:Townsend mentions that there will be around 7.6 billion dollars coming into real estate in Q3 of 2016. And some of these investments are to develop different condominium projects. He explains that most of these investments are coming in from countries like Taiwan, South Korea, Malaysia, and Singapore.China remains to be one of the biggest investors in the country. Townsend says that most of the projects are “mainly mixed-use with some component of commercial property.” He states that there is a dramatic increase in the sizes of these projects and their speed of delivery.Townsend continues to say that “particularly, as the infrastructure improves, the ability to sell these units, off the plan – because it’s all off the plan – is obviously very important.” But he clarifies that this is not the first cycle for Cambodia. He recalls, “The first cycle was when CBRE opened its office about 8 years ago, we had the first movers which were mainly South Korean developers doing high-riseprojects. So, this is the second time around. The first market blew out relatively quickly after 2008. Again, a mixture of oversupply and just a little bit of resistance about moving it from townhouses, row houses, villas into high-rise and mid-rise properties.”He says that demographics have changed. The population is getting younger and that resistance is slowly disappearing. He also says that the secondary market is also softening.Residential Market Projects:Townsend says that land prices in Cambodia are relatively lower than in Vietnam. He explains that it may be due to Cambodia having fewer projects and a more availability of land, or because Cambodia has higher margins.But he also states that “for the moment though, you’ve just got traffic to cope with and not pollution. It will come as your industries start to change.”He also notes the changing number of residential units and explains that “if you divide the size of the project by the number of project, you can see it.” He adds that “five years ago, a big project was two or 300 units. Now you can see projects here of up to a thousand units at a time.”Retirement Market in Cambodia’s Residential Market:Townsend says that Cambodia is an attractive area to settle down. This is because it has a lower cost of living than other popular areas for retirees. But he warns that Cambodia still has to work on medical, travel, and infrastructure concerns in order to attract more mature investors like Malaysia. He states, “We weren’t trying to prove anything here because we were just trying to see whether there was a market that was sustainable. Malaysia’s gone a long long way to trying to attract retirees with their silver-hair visa. And Cambodia is just starting. And it’s interesting where it possibly could go. As long as you get the right type of retirees.”He explains that cost of living is one of the main selling points for normal expats. But this isn’t always the case for all ages. He says that “a lot of it comes down to medical. And if you’re in good health, it’s not something that you worry about. But obviously, as you get older, the ability to have just a simple consultation, ten minutes with a private practitioner/general practitioner – in your own language – and knowing that the pharmaceuticals you’re buying over the counter are safe, again, these are issues that Cambodia has yet to overcome.”Townsend closed his presentation by saying that “as long as the organization is happening, as long as the infrastructure’s still going in, we’re confident about the mid to long-term future of the Cambodian market.”Do you want to know more about the Cambodian real estate market? Stay tuned for daily updates on our news section!

Report SummaryRuessei Kaev’s landed housing market grew remarkably within the preceding five-year period from 2012 to 2016, with  an average of 1,600 new housing units launched into the market each year. Well over 2,800 units were completed in 2016, and it is projected that well over 3,000 additional units will be finished off and ready for prospective occupants by 2017.Fortunately, only 14 percent of the launched units are awaiting total completion recorded as of today, whereas 17 percent are still listed on the market inventory. In sum, albeit a slight market slowdown since the end of 2015, housing market stimuli initiated by developers has come to ignite the demand engine again, giving rise to a ‘slightly’ positive trend expected to continue over the course of 2017.Ruessei Kaev DistrictRuessei Kaev district (Khan Ruessei Kaev or Khmer: ខណ្ឌឬស្សីកែវ) is one of Phnom Penh’s 12 districts and administratively subdivided into 6 communes (Sangkat or សង្កាត់), namely Chrang Chamreh Ti Muoy, Chrang Chamreh Ti Pir, Kilomaetr Lekh Prammuoy, Ruessei Kaev, Svay Pak, and Tuol Sangkae. The district lies north and northeast of the prominent central business districts of Doun Penh and Tuol Kouk, having easy and quick access to the central city of Phnom Penh. As combined, Ruessei Kaev district is currently home to an estimated number of 180,000 residents.IntroductionThe rapid growth in population, increasing traffic pressure, and rising property prices in the inner city center have all  quickened the increasing rate of urban expansion to many different suburban parts of the capital, including many parts of Ruessei Kaev district. Thus, housing demand started to exist, especially in the suburbs, as a way to accommodate this rapid growing population.Landed housing market began in Phnom Penh since 2002, when a few of supplies were on the market and some of the housing construction work was started for a few hundred housing units in some parts of the capital. Afterwards, Ruessei Kaev, one of Phnom Penh’s 12 districts, saw a gradual increase in cluster landed housing market since 2003, when Borey Rith development was first launched in Tuol Sangkae commune (in Ruessei Kaev district), supplying a rough number of 700 linkhouse units.Housing Market ShareAs of today, Ruessei Kaev district is home to a cumulative supply of 12,200 landed housing units (with 86 percent complete, while some under construction), clustering in different communes of the district.Recorded as of 2016, Chrang Chamreh Ti Muoy shares 21 percent (about 2,544 units) of the total cumulative housing market supply; Chrang Chamreh Ti Pir, 4 percent (465 units); Kilomaetr Lekh Prammuoy, 25 percent (3,085 units); Ruessei Kaev commune, the largest market, up to 29 percent (3,574 units); Svay Pak, 5 percent (597 units); and Tuol Sangkae, 16 percent (2,004 units).   Market Share by Project Across Ruessei Kaev district, a number of cluster landed housing projects have been positioned to offer residential options for home buyers from different parts of the capital. The market share dominance as of 2016 was Borey Vimean Phnom Penh by Ly Hour Development Co., Ltd., sharing up to 16 percent (1,977 units, 90 percent of which were complete) of the total cumulative supply.Borey Peng Huoth, Borey New World, and Borey Rith shared the second largest market in the district, up to 9.1 percent, 8.9 percent, and 8.4 percent (1,120 units, 1,102 units, and 1,035 units, respectively). Nevertheless, there were also many other projects with fewer than 400 units, collectively sharing up to 39 percent (4,787 units, 84 of which were totally complete up to the date of reporting) of the total cumulative market supply.Housing Development, Completion, SalePerformance by CommuneAmong the six communes of Ruessei Kaev district, Chrang Chamreh Ti Muoy had 1,398 units completed, 247 units nearing completion, and 899 others still under construction. Overall, the commune achieved up to 94 percent of all units sold, outperforming the other communes within the district.Chrang Chamreh Ti Pir fetched a relatively small market share, having only 465 units in total supply, with 94 units totally complete, 148 units nearing completion and 223 others under construction. About 51 percent of the housing units there had been sold out.Kilomaetr Lekh Prammuoy held a relatively large market stake within the district, having a total supply of 3,085 units, with 1,375 units totally complete, 593 units nearing completion, and 1,072 others under construction. About 72 percent of the total housing supply there had been sold.Ruessei Kaev commune took the largest share within the district, having up to 3,574 units of the total supply, with 2,537 units totally complete, 291 units nearing completion, and 733 others under construction. About 80 percent of the total housing supply had been sold out. Svay Pak had a total of 597 units supplied, without yet any units complete by then, while 303 nearing completion, and 294 others under construction. About 78 percent of all the units there had been sold out. Last, Tuol Sangkae held a relatively large market stake, having a total market supply of 2,004 units, with 1,850 units totally complete, 28 units nearing completion, and 111 others still under construction. Above all, all of the units there had been sold at presale stage.Supply and Completion by YearCluster housing market has been around in Ruessei Kaev district since 2003, with first construction launch of about 739 units by Borey Rith in Tuol Sangkae, a commune immediately adjacent to Boeng Kak Ti Muoy of Tuol Kouk district to the southwest and Srah Chak of Doun Penh district to the south.Afterwards the construction work of cluster landed housing started gradually until 2007, when the supply jumped, bringing 1,275 of new off-plan units into the market. But global economic downturn slowed down the speed of housing demand, yet most of landed housing construction work was not delayed at the time. Until 2012, the economy started to show sign of recovery, and housing market supply across the capital started to pick up again, but this time it was stronger than it used to be during the preceding nine years.In 2012, site work began for the construction of 2,218 units, and in 2013 some additional construction work was launched, bringing 1,859 of new off-plan units into the market, with a few hundred housing units completed each year then.Despite the decline of new supply within the district, construction completion started to grow gradually; and 2016 was the most remarkable year, when 2,827 housing units of all types were totally completed. Further, by 2017, it is projected based on the data obtained from developers that an additional figure of 3,383 units will be finished and ready for buyers to move in.Nevertheless, market supply within the district has started to show sign of slowing down because 2016 and 2017 have seen no sign of new housing supply, even though it is too early to predict.Chrang Chamreh Ti MuoyChrang Chamreh Ti Muoy saw the first housing development project in 2012, when construction work started for 546 units of the first out of 5 phases of Borey Vimean Phnom Penh by Ly Hour Development Co., Ltd. In 2013, two other housing projects were launched construction work for 1,321 units, the majority of which were shared by Borey Peng Huoth (the Star Premier).The trend of the new supply slowed down following those preceding years, except for housing completion which started to jump high in 2015 (with 892 units totally complete),  and onto 2017 it is projected that a figure of 1,146 units will be finished that year.Kilomaetr Lekh Prammuoy Kilomaetr Lekh Prammuoy hosted up to 25 percent, or 3,085 of the total cumulative housing units supplied into the market, within Ruessei Kaev district.The market supply first started in 2006, with construction work begun for 189 units and finished in 2007. During the economic crisis, there was no further housing supply until 2012, when 1,207 units were added to the housing stock and construction work. Then the market went quiet for a few years until the new supply hit the market again in 2015. That year, construction work started for 1,317 units, offering new presale supply into the market. 2016 saw a small number of new entries to the construction work, yet the figure of housing project completion hopped on the horizon,  having totally finished off 1,465 units for buyers to move in.Ruessei Kaev (Commune)Ruessei Kaev commune fetched the largest housing market share of the district. The supply began to exist in 2005 from a small base. In 2007, a few projects with 504 units, including one in the area so-called Stad Chas (meaning Old Stadium), were added to the housing stock and launched for construction work. Despite in a small number, the supply went steadily almost every year since then, but the completion was remarkable in 2009 (647 units finished), 2014 (651 units finished), and 2016 (821 units finished). Further, based on the data obtained from the developers, 2017 is projected to see another completion of 654 units.Tuol SangkaeTuol Sangkae took a share of 16 percent of the cluster landed housing market in Ruessei Kaev district. The supply grew strongly but abruptly over the course of the last decade, though all construction projects there were able to be completed before and during the 2008-global economic downturn. And it seemed there was no major entry into the market since 2009 until 2015, when 139 units were launched and slated to be finished in 2016.Market Supply by Housing TypesCumulative Market SupplyAcross Ruessei Kaev district, the very small percentage of cluster landed housing supply was classified as the purpose-built ‘shophouses’, accounting for only 2.5 percent (290 units), as recorded cumulatively from 2003 to 2016. On the other hand, purpose-built residential link-houses took the largest market share, accounting for 84.8 percent (9,711 units) of the total market supply.Another housing type classified as ‘semi-detached houses’ held the market stake of 9.5 percent (1,083 units), while ‘single detached houses’ accounted for only 3.2 percent (369 units).Supply Launched in 2016New housing market supply launched in 2016 across Ruessei Kaev district was collectively 1,174 units, but the majority of them were link-houses, accounting for 96.7 percent (1,135 units).Shophouses accounted for 1.1 percent (13 units) of the new launches, while semi-detached houses accounted for 2.2 percent (26 units) the same year.Houses were listed on average at US$195,700 per units and averagely sold at US$178,800 per units, while single-detached houses were listed on average at US$643,000 and averagely sold at US$595,500 per units.Market Share by Price RangeCluster landed housing market in Ruessei Kaev district offered different sets of prices, depending on location, housing type, and the quality.Practically, there has not been housing supply with pricing about or less than US$25,000 per unit, but those with prices above and up to US$50,000 per unit shared 9.7 percent of the total current supply.Housing units with prices between more than US$50,000 to US$100,000 per unit accounted for 30.6 percent. And above all, it was up to 41.9 percent of the total housing market supply with pricing between more than US$100,000 to US$200,000 per unit.Housing units with prices between above US$200,000 to US$300,000 per unit accounted for 6.5 percent, and those with prices above US$300,000 to US$500,000 per units as combined accounted for 4.8 percent.However, there was still a market for housing units with prices of more than US$500,000 to US$1,800,000 per units, as combined accounting for 6.5 percent of the total market share.Housing SizeSizes of housing units vary across the district, depending on housing types and development schemes of the housing  projects.However, based on common market supply within the district of Ruessei Kaev, average size of land for shophouses was between 90 sq.m and 160 sqm, while cover-up area (built-up) of between 60 sqm and 110 sqm. The total building area (also GBA) could range from 160 sqm to 200 sqm.Linkhouses are usually designed for residential purposes, and thus the sizes are usually smaller than shophouses. In practice, average land size for linkhouses was between 80 sqm and 180 sqm, with average cover-up area ranging from 60 sqm to 80 sqm and average GBA of 100 sqm to 180 sqm.Semi-detached houses are designed with wider width but relative depth (or length) if compared to linkhouses. For average land size, semi-detached houses were usually spared with 160 sqm to 300 sqm, depending on sub-types and specific designs of the houses. Nevertheless, the built-up area was between 80 sqm and 150 sqm, while the total building area could range from 230 sqm to 300 sqm.Above all, single-detached houses are larger and more expensive than another other housing types in the market. Average land size reserved for a single detached house could range from 350 sqm to 780 sqm, while its over-up area could be between 160 sqm and 280 sqm. And GBA could range from 470 sqm to 600 sqm.Housing Market OutlookCluster landed housing market in Ruessei Kaev district grew strongly within the past-five-year period, with average launches of new 1,600 units into the market every year between 2012 and 2016, while about 2,800 and 3,380 units will be finished by 2016 and 2017, respectively.Both sales and construction work performed well recently, with current completion of 86 percent compared all units launched for construction so far. Achieved sales rate was up to 83 percent, meaning only 17 percent still on the market inventory. Despite a slight slowdown since late 2015, market absorption was relatively good within recent years, and this trend still continues to grow well in the next following year, given the overall favorable performance of cluster landed housing market within the district. The continued growth was thanks to housing market stimuli (such as minimal or zero down payment schemes and other very flexible installment options, to name a few) initiated by developers across the capital’s housing market in the midst of 2016 has also helped bolster the demand and keep the market growth from slowing down. Regarding take-up rate, the majority of the finished housing units are occupied, though relocation of residents to take up the finished housing projects may take some time, about 3 to 6 years on average. Still, speculative purchases of housing units in primary market will still continue to leave some of finished housing units empty due to slower secondary demand than the rate of housing completion, especially in 2016 and onto 2017.This research report was a production of  V Trust Appraisal.Find  property in Khan Ruessei Kaev on Realestate.com.kh!

Given that many local population’s lack the initial capital to invest in new homes, albeit condo, borey or other, home loans are underpinning the market currently.The IMF have stated recently that buyers across the Cambodian market are taking on more and more credit to buy property, and this is increasing year on year. In fact, the IMF state that loan-to-value ratios have risen to 70-80% in 2016.Owners that have leveraged finance in order to buy properties are generally the first sellers after the market has reached its peak, accentuating risks of a “bubble” bursting in the market.This situation can be amplified when interest rates on those mortgages rise, and rental yields for the completed property drop below prior expectations. Mortgagees reselling their condo units can then add the oversupply, creating a dangerous snowball effect for the market. As debt levels continue to rise, the risks of an eventual credit crash are becoming more of a concern in Cambodia.When credit loans increase, the credit in the market increases, then there’s a cash flow for the citizens and the economy. It is good for citizens when they place this cash into targeted businesses by creating a business with a clear plan. It’s also useful for business expansion, etc. These activities create more jobs for people.Yet there are downsides…Hoem Seiha, of VTrust noted that another credit risk is growing in the 2016 market as developers take financing into their own hands in efforts to stimulate sales growth in the lower end of the market, and particularly the domestic market: “For the recent market stimulus, developers have now offered another very flexible option for home and plot land buyers by applying a zero down payment scheme to drive their sales, and, in the short run, the practice looks good and helpful for the overall market. Yet, while banks are very careful when releasing mortgage loans to buyers, most developers have not conducted enough due diligence on their clients before releasing installment contracts, to avoid future defaults. If not well managed, this could, in the medium-to-long term, create over-indebtedness among unqualified buyers and therefore potentially lead to a mortgage crash. Regulators should study this seriously.”Another potential risk for the Cambodia finance market is the 2018 general election.During election periods in Cambodia there have been a tradition of “capital flight,” whereby multinational companies, dual citizens and affluent locals remove their capital from Cambodian banks, and instead store their wealth offshore. This is seen as a safeguard during times of political uncertainty. Given the correlation between the upcoming election, and the completion and release of a larger proportion of the incoming condo supply, these two factors may amplify the effects of each.Mey Kalyan, senior advisor to the Supreme National Economic Council, noted that general credit across the Kingdom has increased around 30%. The Supreme National Economic Council are aware of the risks this raises, especially in the real estate market. As according to a recent report from the Phnom Penh Post, Mey Kaylan says that, “credit is like fat in our body. We need the fat to function, but we also don’t need too much of it.”In light of these concerns, the IMF have stressed the need for Cambodia lenders to place higher capital requirements on any real estate financing, weigh risks for banks in regards to real estate lending, and ensure that property developers are “under strict regulatory and supervisory control”.Yin Leangkong – editor in chief of the magazine Property View, and presenter and editor of real estate and economics at BTV - notes in a recent interview that, “loan providing institutions should keep lending to people, but there should be a limitation and conditional loans must be specific and clear. When providing loan to people, you have to make sure it will contribute to help for a better standard of living for the customers. For a home loan, it may be suitable with the middle-class bracket. A term loan will provide both affordable standard of living to people. It also profits banks or microfinance institutions.”These recommendations appear to be having an influence in the market as we enter the second half of 2016. Regulatory control of developers has seen a rise in recent months, as policy makers continue to clarify and develop licensing procedures from new development projects. Meanwhile, private lending institutions appear to be tightening lending on real estate, especially off-plan properties.Check out what 5 industry experts have to say about the state of the Cambodia real estate market!

Home and business security is highly important for residential and business owners in Cambodia. Ms. Sim Kaliyan, the general manager of Global Security Solutions (GSS), recently joined Realestate.com.kh to talk about professional home and business security. There are 2 types of solutions that deal with predictable risks and security precautions in Cambodia, according to her. One is suited to a smaller budget - the other is more comprehensive, but also more expensive.1.  Cheaper Home Security Solution for those on a Tight Budget:Ms. Kaliyan cited that normal middle class families or small businesses can choose this solution. She mentioned some major points to check out:Door, Fence, Key and Window:You must check whether the door of the house and other entry points are secure or not. There should at least be a fence to keep the inside of the property safe. You can use long broken bottles placed on the fence to strengthen it. And it's best to use double steel bars if you have a bit more money and want a better defense. This action will also prevent the fence from being stolen.Steel Bars:You also need to thoroughly inspect all aspects of the outer doors, the lock quality, and the bars of the windows and doors to ensure your home’s safety. Kalyan warns about a possible fire though. It is important to enforce the windows, but it is also important to ensure that you have a backup exit point to yourself in case a fire breaks out. You want to keep people out of your house - but you don’t want to trap you and your family inside in the case of an emergency.Use Motion Sensor Lights:You can also use motion sensor lights that activate when they detect movement outside of the house. You can place these at the entrance, the exits, and on the fence.Other Affordable Home Security Solutions:Kaliyan explains that there are other options to secure your house such as building secret passages. She also introduced ideas like placing a cardboard image of a person close to the windows, leaving your lights on while you’re not home, using a pillow to give the illusion of people sleeping, placing objects that will sound when drawers or desks are being moved, asking for the assistance of neighbors, and not letting people know when you bring home a valuable or expensive product.2. More-Expensive Home Security solutions:Kaliyan said that whatever solution is chosen, what matters most are the “external monitoring and internal monitoring”. But there are more convenient solutions for those with more resources.  These home security solutions include:Electronic Entrance and Fence:You can install electrical wires on your fence in addition to steel bars so that anyone who attempts to touch it will get shocked.Use Light Motion Sensor:You can use “light motion sensors” to protect your home round the clock. However, you need to do a perimeter check to find potential areas where burglars can pass through such as trees.Hiring Home Security Guards and  Installing a Security Camera:You can hire security guards from an agency for your home and build a central monitoring station in the compound. They can keep watch of the camera feed and inspect the house. In case someone jumped your fence and tried to enter, they can take action immediately.Intrusion alarm:Intrusion alarms are also called sirens. In case someone climbs or jumps your fence, the device will ring and alert people nearby.Magnetic Door Contact or Magnetic Door Break:You can install a “magnetic door contact” or “magnetic door break” on both doors and windows of your house. When someone attempts to break in using the door or window, it will signal your smartphone. Other similar alarms include motion sensors and photo beam protectors.Safe Control:For those who have a lot of money, it’s not necessary to use locks. Using “Safe Control” may be the best option because it requires you to either use a card or fingerprint to open.Beware of Dogs:Whether you choose the cheaper option or the more expensive one, you can always hang a sign that says “beware of dogs”. This will give you good results.Learn more about Home Security Solutions on Realestate.com.kh

You have our deepest gratitude for supporting the launch party of the second edition of the Cambodia Real Estate Magazine on the 22nd of October at EPIC club of Phnom Penh!The Event & Magazine by the Numbers:The Cambodia Real Estate magazine party was a roaring success which was experienced by over 650 guests from over 274 leading local and international companies. Including 51 real estate agencies, 37 property developers, 21 banks and finance companies, 16 news and media platforms, 60 architect, construction and related businesses, 7 law firms, and 14 chambers, embassy and ministry related bodies! Making up the huge crowd were 112 General and Senior Managers, 30 CEO’s, 33 Directors, 126 real estate agents, 23 founders, 345 general employees, and 2 excellencies - including our esteemed Guest of Honour: H.E. Mr. Mey Vann, Director General of Financial Industry at the Ministry of Economy and Finance. The party was made possible by 8 very supportive sponsors: Imperial Crown, Ford, The Piano Shop, Cellcard, Kilat Events, E-Design Photography, Image Printing and, our lucky draw sponsor, BOSE. We are extremely proud to have increased our print run for the October edition of the magazine to over 15,000 copies, which are available FOR FREE at over 800 highly targeted and relevant pick up points countrywide. Pickup points include leading developer showrooms, real estate agencies, business lounges, business centers, chambers of commerce, embassies, cafes, restaurants and more! Online distribution of the magazine - through our website, email database and social media platforms - reaches over 100,000+ local and international readers.The Event in pictures:Check out the full photo album for the event. Please like and share!Cambodia Real Estate Volume III – Secure your spot before it’s too late!We are excited to announce that the third edition of The Cambodia Real Estate Magazine is due for release in January 2017. The content for the next magazine is already progressing rapidly and our existing advertising partners are continuing their support for Issue 3.If you would like to advertise in Issue 3 we strongly recommend booking your spot now as we already have limited availability for ad and advertorial space. Please call or email Jonathan Baxter at jonathan.baxter@realestate.com.kh or on +855 (0) 10 561 502Once again, thank you everyone for the support! And we look forward to hosting you all at the next Realestate.com.kh party in January 2017 - sure to be another event not to be missed...Event sponsorship opportunities for the next party in January 2017 are also available - but likewise filling up fast. If you are interested to sponsor our next event and promote your brand in front of the elite of the Cambodian real estate industry please call or email Jonathan Baxter at jonathan.baxter@realestate.com.kh or on +855 (0) 10 561 502Click here to download your free copy!

Selling your home takes a bit of thought process and energy sometimes. And one of the questions that frequently pops up is whether or not you should stick with one real estate agent - or list your property through multiple agents. This is especially true when you’re looking to sell your property fast for whatever reason.Both have clear advantages and disadvantages that sellers may want to consider first before deciding.Listing with Multiple Agents:If you want to make a quick sale, listing your property with multiple agents would seem like a logical choice. There’s a good reason for that. You get more exposure. These professionals can utilize different avenues such as the newspapers, real estate publications, and the internet to spread awareness for your property. More exposure means a gathered interest from a larger audience.This option also means more information about the property is released. Buyers can get to know your property better. Agents today are now also utilizing modern tools and techniques to target potential buyers better.The downside to using multiple agents though is that you’re working with a range of people and various sales strategies that are often times totally different from each other. This also entails that there are different degrees of understanding as to what type of buyers are qualified for the sale. There are self-professed private agents out there who will do anything to close a deal.Hiring multiple agents also means that negotiations will be done in isolation. The ones competing won’t be the buyers but the actual agents. This hurts your cause because you might find out too late that someone else may have made a higher offer.Listing with an Exclusive Agent:The thing about listing with an exclusive real estate agent is that their sales strategy – if it’s the right strategy – can save you a whole lot of time and effort. It focuses in on making sure that you get a good deal without demanding too much. This also offers the agent more flexibility to adjust their strategy based on your needs and on buyer feedback.You can hire a professional that specializes in your kind of property too. It is important to note that one effective person can outdo a hundred ineffective ones. Make sure you choose your agent wisely.Having an exclusive real estate agent also makes it easier for the buyer. Buyers would rather think about their personal needs more than they think about which agent they should contact. Keeping everything singular eliminates any possibility of confusion and makes it more convenient for buyers to make an offer.Exclusive agents also sometimes package property management services into the mix as a form of incentive. This is something you won’t get from multiple agents.The downside to this is that information about your property is limited to the stream of influence your agent has. Your reach is much more contained. There is also the risk of running into “commission cowboys”. These are self-professed private agents who will do anything to make a sale. This doesn’t always get you the best buyers.Remember that you will also play a big role in the process no matter what option you choose. What system you think will work best for you and how much effort you’re willing to put into the process is entirely up to you.  Choose wisely.Find Cambodia’s best real estate agents on Realestate.com.kh!

Home and business security is of high importance for residential or business owners in Cambodia. Taking precaution for protection and crime prevention requires attention from the right providers in order to ensure that every property of yours is confidently secured.Ms. Sim Kalyan, the general manager of Global Security Solutions (GSS), joined Realestate.com.kh to talk about professtional home and business security. There are generally a few guidelines that deal with predictable risks and precautions for home security in Cambodia.What are the risks concerning home security in Cambodia, and business security?Kalyan says that most of the problems that home and business owners experience are theft, burglary, armed robbery, kidnapping, and fires. She explains that the armed robbers focus on the entrance of the house or areas near the house, while kidnapping could happen at home or elsewhere in order to get a ransom. These can cause injures or can even be deadly.How do you protect your home or business?Kalyan cited that the best solution for these risks is to find a professional private security company to help monitor the residential and business areas. These companies will then provide methods to protect your property. Another solution is to contact the police because they are trained specifically in the field of security and protection.Kalyan also provided two main key points which you can personally check:External Monitoring:Kalyan explained that external monitoring refers to the external aspects of housing such as location – whether it’s an unsafe area, there are reports of robberies, or there are pickpocket boys around. We can also inspect whether or not there are lights on the road. Another factor to check is whether or not the fence is strong enough or high enough.In terms of the home itself, she said that we must inspect the strength of the doors and windows on all levels. She also cautions to be careful with the veranda area.Internal Monitoring:Kalyan said internal monitoring means paying attention to people in the home such as helpers and drivers. This means a clear and thorough review of their backgrounds. We need to be clear who they are or what they are about before allowing them to live in the house. You should even be aware of people like postmen or cable fixers.Another thing Kalyan mentioned is that you need to have is a list of emergency contact numbers. It should be posted on the wall or somewhere where it’s convenient to find.Read more about home security in Cambodia tips on Realestate.com.kh!Click here to download your free copy!