The current real estate market is experiencing significant growth — particularly in major business district centers in the city. There’s also a growing interest for land and residential markets in suburbs. Among this growth, Chroy Changvar new development along National Road No. 6A is increasing as 2017 dawns.Chroy Changvar is climbing the market land price index as a result of the rapid development growth in the area. Prices for land in this area are rising faster than most areas of the city, as developers seek tracts of land here for large scale projects. This has attracted millions in investment from high-scale development companies for residential projects on hundreds of hectares of land in the area.Upcoming Chroy Changvar New Development Projects Along National Road No.6A:Chroy Changva is now a hotspot for high quality developments like the High Land Development Project that comes with a land area of 120 hectares; The Flora Development Project with 150 hectares; the LYP Development Project with 100 hectares; the Mekong Royal Development Project with 13 hectares; the Borey Peng Houth Development Project and the Chroy Changvar City Development Project that totals to 307.3 hectares, a satellite city project by OCIC.And recently, Orkide Villa inaugurated its third project at the Chroy Changvar area, along the national highway No. 6A. The Botanic City project has a land size of 140 hectares and is 7 kilometers away from Chroy Changvars bridge connecting the area to central Phnom Penh.The municipal has also just revealed a plan to build a new bridge across the Tonle Sap river – connecting the West Tonle Sap Riverbank and Kilometer No.6 to the East Riverbank, linked directly to the OCIC Chroy Changvar City Development Project area.All these projects will serve both local and international residents with mixed-use developments like commercial areas, businesses, offices, serviced apartments, condos, gated borey communities,  restaurants, sports areas, modern and eco-friendly industrial parks, shopping centers, markets, etc.Ms. Chev Sokhun, marketing manager of The Mekong Royal, said that “seeing as Phnom Penh has expanded, residential needs is also growing day by day. Therefore, we decided to start a project in this area.”She continues to say that they chose this area because there are rivers surrounding it, with fresh air and more space for residents. Chroy Changvar offers The Mekong Royal a chance to build a uniquely green focused development. It’s proximity to the National Highway also allows connections to other provinces easily.Mr. Cheng Mony – a customer who bought a hybrid villa at The Flora project in Chroy Changvar –  said, "I want to live in this area because it has a big road, no traffic jams - which is different from the central city. And I’m also interested in new developments here. I see several large projects that have started in this area. I think the future will be very attractive and we can expect good growth here for both lifestyle and return on my investment."What are the successful Chroy Changvar New Development projects  so far?These Chroy Changvar New Development projects have been completed totally, and have been well sold and occupied. Successful projects are ones that have been considered to have a good design, marketing strategy, sales, quality, and turnover -- making them good investments as well in terms of investment return for developers and a good quality of life for residents. Advisor of VTrust Appraisal, Mr. In Sitha, said there were successful investment projects in the area before. Those include the Borey Sopheak Mongkol, Borey Chinatown, Borey New World, Mekong View Condo,  the Mekong Garden Condo, and many more. Those projects was already sold and now being living by residents.What is the potential in this area in the future?Mr. In Sitha, said that Chroy Changva is like a peninsular. It is geographically good for living in because it’s lined up alongside rivers, a smog-free place and and an eco-friendly natural environment.  He adds that infrastructural and transit systems have improved which makes it more convenient to commute for residents. Price of land in this area is still steep but offers more possibilities for developers to invest. Land prices are pretty high on the main road area. The current land prices also increased by half compared to 2 or 3 years ago. Sitha also said that “because of a potentially big investment to transform the area into a major commercial hub, there are also more projects diverting their direction there.” For now, no matter how small or how large the projects are, they can find success because there are customers at all levels. Local customers will gain satisfaction from a local lifestyle by choosing a flat or borey. And the high-end customers or foreigners can choose a modern lifestyle by living in a condo.Mr. Chrek Soknim, CEO of Century 21 Mekong, said Prek Leap, Chroy Changva is a good place for residential development. He adds that there are currently more people moving into the area and that housing developments in the area are very successful.All Property for Rent in Chroy ChangvaBuy Property in Chroy Changva

Ancient times have seen the rise and fall of numerous Kingdoms. And Cambodia has stood through all of these times. This feat has been immortalized through the establishment of the Royal Palace in the 1860s, which remains as the residence of Cambodia’s royalty.   But another royal residence is now within reach of the people of​​​ Cambodia. Yet, unlike the Royal Palace, the Imperial Crown Condominium will feature decadent Baroque architecture and furnishings to make your home feel like your own Kingdom.... The History of Baroque Architecture and Design:Baroque was a loosely used term in the late 16th century to describe an artistic style which focused on the finer details of an art piece. This was eventually translated into the realm of architecture to reflect religious victories and power in Italy. It evolved into secular expression in the middle of the 17th century as it spread throughout France and Europe. This style of architecture was commonly used when constructing grand palaces across Europe and eventually into flowed into the design of opulent chateaus across France.Baroque architecture in modern times refers to design that encapsulates the elegance and detailed architecture of Europe collectively. It can be easily identified with its usage of richly sculpted surfaces to create three-dimensional features, and a tapestry of textures and variation - down to the smallest details.   Baroque architecture can be classified into four periods. Early Baroque refers to the years 1600 to 1625. High Baroque refers to the years 1625 to 1675. Late Baroque refers to the years 1675 to 1725. Finally, Rococo refers to the Baroque architecture from 1725 to 1800.The Imperial Crown Condominium will feature a modern take on the early Baroque period style of design.The Crowning Glory of Phnom Penh:The Imperial Crown Condominium will do more than just decorate the cityscape of Phnom Penh with its elegant and artistic architecture. It will also accentuate and complement the surrounding establishments. Strategically located at Street 360 of BKK1, Imperial Crown is situated in the most valuable residential area of the country.  The charm of Imperial Crown is not all external though. The 161-unit development also features opulent Baroque styled interiors, incorporating the highest grade materials and brands such as Bauformat, Teka, Rinnai, Laufen and Steinberg. It will also utilize handmade carbon fiber doors that have been imported from Taiwan and Italy. Genuine silver painted 50-year-old Mahogany furniture will also be a staple in each of the units. This attention to detail within Imperial Crown falls perfectly in line with the grand Baroque tradition.Want to Live the Royal Life?Imperial Crown Condominium boasts high quality construction and timeless aesthetics designed to be passed on from one generation to the next. Visit the showroom in BKK1 today to experience a new standard of living in Cambodia.Find out more about Imperial Crown Condominium!

Cambodia as an emerging market has placed great importance into building quality infrastructure. This is evidence by the many existing friendship bridges and road projects that are currently underway.This is a key consideration for investors, according to Marc Townsend – Managing Director of CBRE Cambodia and Vietnam – as stated in his recent presentation on the topic “Is Cambodia’s Residential Market a Target For Investment?”Shifting from Agriculture:Slowly but surely Cambodia has dug a little deeper into infrastructural improvements in recent years, compared to a policy that primarily focused on agricultural development in the past.Around 67 percent of the $4.6 billion investments in 2015 came from the infrastructure sector. According to Townsend, infrastructure goes beyond what we normally think about infrastructure. He says, “It’s not just being able to get from A to B quicker, being able to move around faster, get goods and services quicker, logistics quicker. But it’s also the trickle down effect of those salaries that are being paid – not particularly big salaries being paid to construction workers but also to the entrepreneurs and the contractors and the subcontractors and all the people that are buying the cement and other products that go into the infrastructure.”He explains that even with the great success of past infrastructure projects, “Cambodia needs probably ten years of infrastructure being the most important sector.” He adds, “Obviously, the road from here to Kep doesn’t get any safer, doesn’t get any wider, doesn’t get any better lit.”Foreign Direct Investment:Townsend mentions that “it’s important to see where we’ve come from, where the FDI numbers have come from, and where they’re going to.” Cambodia’s FDI comes from countries like Canada, Korea, Thailand, Vietnam, Japan, Malaysia, Singapore, and the UK. But probably the biggest FDI contributions trace back to China. Their investments in 2015 totaled 60.6 percent out of the $1.4 billion that were placed in the country.Townsend mentions that China’s contributions had been so great that “it’s almost impossible to find an article that talks about Cambodia without at least three paragraphs on China.”Around $2 billion worth of infrastructure was also funded through China’s concessional loans. This includes the Four-Lane Express Way between Phnom Penh and Sihanoukville, the National Highway 11 which connects Preyveng to Kampong Cham, a bridge crossing the Mekong River from Steung Trang to Kruoch Chmar in Kampong Cham.Other upcoming infrastructure projects will include the Sak Sampov Bridge, National Road 21a, National Road 58, Koh Thom Bridge, National Road 55, and the Chrey Thom Bridge. These projects are due to be completed anywhere between the next three years.Smooth Landing:Townsend also explains that more infrastructure means that “it will open up more land. You have had, in the last three to five years, a huge run up in land prices both in the CBD and around the CBD. But obviously, as ring road structures and bridges go in around the city, additional land becomes available. And hopefully, there’s an ability for price per square meter to stay stable for longer.”The role of infrastructure is taking its root in the Cambodian market. Townsend says that it has both its good and its bad effects. Cambodia has the ability to prosper if it takes the right strategy in utilizing these investments and infrastructures to its advantage.Find out more about development news in Cambodia on Realestate.com.kh!

The past two decades alone have seen monumental changes in the different aspects of Cambodian economy and society. One of the sectors that have benefited from all these changes is the real estate market. CBRE Cambodia states that “the global value of commercial real estate investment transactions stayed above $200 billion in Q3 2016, suggesting that the market has stabilized after a drop in transactions at the start of the year.”Marc Townsend –Managing Director of CBRE Cambodia and Vietnam – discusses some of the factors affecting the market’s growth in his presentation on “Is Cambodia’s Residential Market a Target for Investment?”Demographics:Demographics say a lot about any potential behavior changes in the Real Estate market. Townsend says that Cambodia does not have a greying population too. He explains that “as a residential developer, this is an eye-watering opportunity.” He adds, “Cambodia is the least urban population. That is going to change. And obviously, once people have graduated from the universities in Phnom Penh, they’re not going to go back to planting rice in the fields. There are 53 universities in Hanoi, I think there are 65 in Ho Chi Minh. And I’m sure the kids that come from the Delta will never go back to the Delta. And again, this will happen here. And obviously, for those of you who are residential developers, that is your target market at the appropriate price, at the appropriate location in the years to come.” He also says that higher expenditure growth is a good omen for developers.Foreign Developers and Investments:Townsend talked about an upcoming investment surge as well. He jokes, “I choked over my bacon this morning when I read these numbers and I’m assuming that they’re well researched.” He explains that there’s an estimated “7.6 billion dollars coming into real estate in Q3. That is a huge number.” He also said that local developers were initially at the forefront of the real estate sector. This has changed significantly throughout the years. He said that “the market has always been dominated by Cambodian developers. But then as it gets bigger, and wider, and deeper, and includes other cities and other types of property, Taiwanese, South Korean, Malaysian, Singaporean, and now, obviously, Chinese developers get involved as well.”Infrastructure and Environment:Townsend explains that traffic is a big problem in Cambodia and it can take its hold on the market. He said that “it’s all very well for land to be acquired and projects to be built. It’s really depending on the infrastructure.” He recalls having to travel around an hour from a nearby area to the airport.  He says that “the reality is that is what’s going to be your life for the next five to ten years before they start to really join up the underpasses and the overpasses. An underpass or overpass takes, what, a year and a half to build. It screws the traffic up for a while. And that’s life in the city that’s growing with a population that will probably double in the next five years.”He adds that Cambodia is fortunate to only be dealing with traffic and not pollution too. He warns 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.”Learn more about the Cambodia investment climate in our in depth guides!

As the national elections approach in mid 2018, the real estate industry expects a significant slowdown will soon begin.However, the brunt of this downturn appears likely to fall on the foreign investment market - most specifically the high-end condo market.Bretton Sciaroni, Senior Partner at Sciaroni & Associates recalls “the 2008 election as the most noteworthy.”“By the time the election was over and a new government formed, the international financial crisis had reached Cambodia and the real estate and construction sector essentially crashed, and in my opinion took years to recover,” says Sciaroni.“Gold Tower 42 remains as a reminder of this period, and what happens when over-leveraged foreign investors meet periods of turbulence in Cambodia,” concludes Sciaroni. "However," adds Sciaroni, "the recent boom in property development projects indicates a robust recovery is underway."Seemingly, the market has not suffered as drastically as in 2008 in elections since.“In 2013, property sales stalled for a three month period preceding the election and picked up within just a couple of months of the CPP forming government,” recounts David Murphy, Managing Director at Independent Property Services (IPS) Cambodia.“The political climate creates more uncertainty in the market which reduces investor confidence during that time. We saw this being reflected by lower sale numbers during the previous election campaign,” says Desmond Yap, General Manager of Yong Yap Properties.But, adds Yap, “those who understand the market well, still can capitalize on the situation.”Saraboth Lee, Managing Director at Maxem Property, suggests that “property buyers and sellers generally take stock of their financial situation about 6 months before the start of elections and pause their transactions until they feel a sense of stability again.”  2018, however, presents a “perfect storm” of types in the condo market, as a significant oversupply of units are scheduled to come online in line with the election period.“What’s different from the last election cycle in 2013 is that the local market supply of condos will reach unseen levels in the next few years,” says Lee.Murphy agrees and believes, “prices across the condo market will drop.”“This is because it is predominantly foreign developers funding the condo projects and foreigners buying the end product. Investors will take a wait and see approach,” notes Joe Phelan, Head of Personal Financial Services at Hong Leong Bank.But inner city renters look set to benefit. “Six months prior to the 2013 election - while sales inquires nearly dried up completely -  the rental market remained buoyant throughout,” says Bobby Peoples, Country Manager at Home Connect (Cambodia) Ltd.The combination of an oversupply of condos, in combination with the 2018 election transaction slowdown, will feed into a price drop in the prime rentals market, says Lee.In agreeance, Murphy notes that “the rental market broadly will remain strong as clients hold off on their purchasing decision until the election result is known.”The domestic market, focussed on land and landed properties, however, is likely to show a lesser downturn. “I don’t see there being too many issues with landed properties in Cambodia,” says Joe Phelan, Head of Personal Financial Services at Hong Leong Bank.“Although there was a slowdown in landed property transactions for a few months prior and post election in 2013, property prices still managed to stay relatively stable,” says Phelan.“Cambodians going about small to medium property purchases will likely continue throughout the election period,” continues Phelan.Sciaroni believes that “over the years, as Cambodians have gained greater confidence in the electoral process, the influence of the election period on domestic property transactions has been shorter and shorter.”Home lending, an industry predominantly focussed on the Khmer market, will weaken somewhat. “As real estate activity decreases the home loan market by definition will contract for the short term,” predicts Peoples.   Yet, Phelan notes this slowdown in lending was primarily in relation to the high end property market “for about 3 months before the 2013 election and about another 2 months after.”“In relation to standard properties inside Boreys and more affordable property purchases generally, however,” continues Phelan, “I didn’t see too much of a slowdown at all - with these type of home loan applications continuing to flow as normal.”“Overall, in terms of volume of loans, there was only about a 30% slowdown during this 5 month period, mainly because people were just waiting to see if anything major was going to happen - which it didn’t,” says Phelan.“To maintain international investor confidence through election periods, the government can offset some of the anxiety in the market by improving infrastructure and easing some of the strains of rapid growth, things like reducing traffic gridlock and providing a more stable energy supply,” recommends Lee.By James Whitehead, director of content @ Realestate.com.kh This 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. Find latest real estate news on Realestate.com.kh

The General Department of Taxation issued Instruction 18410 which clarified withholding tax obligations for real state entities who sub-lease properties. The new instruction essentially refines the law to remove a double tax obligation.   In the past, the real estate entity would normally withhold 10% of the rent from its Lessor; and in a sub-lease situation, the tenant of the real estate entity would withhold 10% of the rent on the sub-lease to the real estate company.  Instruction  18410 now provides for an exemption on the withholding tax on the sublease, if both the lessor and lessee are registered tax payers.  “Instruction 18410 is another example of the GDT responding positively to the market, which identified this as a duplicate tax for real estate entities, a withholding tax obligation in this case on both the Lessee and Sub-lessee on the same exact space” commented Anthony Galliano, CEO of Cambodian Investment Management.  “Under this Instruction, the real estate company is still required to withhold the 10% tax on the rental payment to their Lessor.  However, when the registered real estate company subleases to another registered taxpayer, the sub-lessee will no longer be required to withhold 10% tax on the sublease with the real estate company, provided a VAT Invoice is issued,” continues Galliano.“As the market demand for property management companies is growing, and given the supply of offices coming to market, this clarification is supportive of the industry as it simplifies the tax situation between two registered taxpayers in a subleases to just VAT”, he further added.  The new instruction has apparently been met with confusion in the industry thus far.Kim Heang, president of the Cambodian Valuers and Estate Agents Association, urged the the General Department of Taxation to create a forum and invite real estate agency owners to clarify and explain what this new directive entails and what it can do for the sector.He explains, “We don’t have any objection to the directive as the government wants to improve tax collection.” He continues, “In my view, the general department of taxation should hold a public forum and invite all real estate agents so they know their tax obligation. I think it’s the best way as many don’t know much.”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. Find latest real estate news on Realestate.com.kh

It’s no secret that foreigners can own high rise properties via strata title in Cambodia. But what is not widely known is that foreigners have additional options to legally own land in the Kingdom.If you're interested in other topics related to investment in Cambodia be sure to click over to our Investment Guide 2019.Here is a guide from Realestate.com.kh to show you the different options regarding how to invest in Land in Cambodia, for foreign investors:How to invest Land in Cambodia by Forming a company with a Cambodian CitizenWhat do you need to set up an Limited Liability Company?How to Invest in Land in Cambodia through a Long-term leaseWhat are the advantages and disadvantages of a long term lease for a foreigner in Cambodia?How to Invest in Land in Cambodia by Registering Real Property With a Cambodian Citizen - a.k.a Buying via a NomineeWhat are these documents for in the nominee structure?How to Invest in Land through Concessions in CambodiaHow do I apply for an Economic Land Concession in Cambodia?How to Invest in Land in Cambodia by Cambodian MarriageWhat happens when you get a divorce?What are the requirements to get married in Cambodia?How to Invest in Land in Cambodia by Cambodian CitizenshipLet's get started...How to invest Land in Cambodia by Forming a company with a Cambodian Citizen:Foreigners can set up various businesses in Cambodia. This is easily done.But they would have to form a limited liability company or a private limited company with a Cambodian citizen/s first if they want to own land in the country under that company. This is because foreigners aren’t allowed to buy land directly, as according to the Cambodian constitution.However, when a Cambodian citizen owns 51 percent of the company, that company is then entitled to purchase land under its name and can do anything with that land within the legal bounds of the law in Cambodia.  Chapter VI, Article 16 of the Law on the Investment of the Kingdom of Cambodia states that “ownership of land for the purpose of carrying on promoted investment activities shall be vested only in natural persons holding Cambodian citizenship or in legal entities in which more than 51% of the equity capital are directly owned by natural persons or legal entities holding Cambodian citizenship.”But this can be a cause for concern for investors as a minority stake in the company appears to remove the controls from the foreign shareholders over those business assets.However, a careful allocation of the shares and an appropriate draft of the rights that are attached to the share certificates can guarantee full control for the foreigner involved. A foreigner can also opt for an additional mortgage, security, and Power of Attorney documents in order to ensure its full control over the land or other real estate vested in the company.What do you need to set up an Limited Liability Company?You need to make sure you meet the requirements first before you set up a limited liability company. This includes the need for two shareholders, a director, and a minimum capital of $1,000. The LLC will also need a corporate bank account, a real office space through a registered agent, and a local Khmer company name. These can usually be arranged with the legal assistance of independent lawyers. An LLC takes around 8 weeks to set up and a separate 4 weeks is needed to set up the bank account. The LLC will then need to file annual tax returns and register for VAT after incorporation.Foreigners are expected to pay 100 percent of real property purchase costs and construction costs. If a decision is made to sell the real property, 100 percent of what it was sold for goes to the foreigner. It is advised to detail this on the company and sales documentation.You have to check the uniqueness of your company’s name before setting it up. This will cost $10 through the Ministry of Commerce. You are then required to deposit $494 through an authorized bank under that name if it is unique. Do not lose your deposit slip. The second step requires you to get a company registration form for $5 to $15. This can be obtained through the Cambodian Investment Board. You then have to shell out another $15 to get an official company seal.The next thing you have to do is to create and publish a company abstract through a recognized newspaper. You also have to wait 30 days after your company’s established before enrolling it into the commercial register through the Ministry of Commerce. After setting up the company, you then need to get your documents stamped. This will set you back $26. You also need to fill out forms and documentations to get your official tax registration. That is the last step to get your company officially set up and recognized.There are additional documents you can obtain to ensure security of ownership over that company. A security document will set you back $1,000. The Power of Attorney document will cost around $500. Mortgage will be at around $1,000. A registered title deed is priced at $500. Company documents and license will cost a total of $1,200. You may need at least $5,000 for the total process.How to Invest in Land in Cambodia through a Long-term lease:Purchasing land isn’t exactly the same as leasing it. But it’s the next best thing. It’s easier and less expensive than setting up a company to buy land.This method technically allows foreigners to “purchase” real property. But foreigners would need to allow the registered title deed to remain under a Cambodian citizen’s name. Both parties formally enter a long-term rental agreement. Land is able to be leased to the foreign national for periods up to 50 years - however cases of 75 and 99 years are not unheard of.What are the advantages and disadvantages of a long term lease for a foreigner in Cambodia?The only downside to this method is that you still do not hold full ownership over the land - and this means that some uncertainty remains for the investor over the security of their asset. You will need to first get the thumbprint and signature of the Cambodian national before you can sell the property.But proper drafting of property holding and lease arrangements terms help make this a secure means of gaining control over real property. Foreigners can also hold on to the original copy of the title deed as an additional safety measure because the Cambodian national cannot sell the property without it.A long-term lease provides lessors the rights to develop the land they’re leasing. They will be able to obtain construction permission under their own names. This also entails that the foreigners involved will also be able to sell the property and keep all of the of the sales revenue. The attached financial obligations to this method for the foreigners will be for the legal assistance of a lawyer and any amount agreed upon for the price of the property and the lease agreement. These prices may vary.How to Invest in Land in Cambodia by Registering Real Property With a Cambodian Citizen - a.k.a Buying via a Nominee:This is otherwise known as a nominee structure. This structure lets foreign investors enter a trust agreement with the land holder. The land is put up for mortgage after that. It is then leased out to the foreign investor involved.  You need to secure 4 documents first. These are the mortgage agreement, the lease agreement, the loan agreement, and the security agreement.What are these documents for in the nominee structure?The mortgage agreement’s registered at the Sangkat. It transforms the buyer into a bank. This prevents further activity by the Cambodian national without the permission of the foreign national. Further activities would require approval from the foreign national.The loan agreement is a paper loan that’s made between the nominee and the foreign national. It accrues interest over time. The lease agreement gives the foreigner the right to legally reside in the property. The Security agreement lays out the necessary limitations and obligations of each party with regards to the property.Foreigners are allowed to own any type of property through this structure. But this method is not advisable as it is in violation of the constitutional prohibition on the direct ownership of property by foreigners. It is a sort of loophole that the government is trying to regulate. Costs for the whole process also varies depending on the agreement of both parties involved and the agreement of the buyer and their lawyer.How to Invest in Land through Concessions in Cambodia:According to Article 48 of the Land Law, “A land concession is a legal right established by a legal document issued under the discretion of the competent authority, given to any natural person or legal entity or group of persons to occupy a land and to exercise thereon the rights set forth by this law.”There are three types of land concessions available in Cambodia. These are the Use, Development or Exploitation Concession, the Economic Concession, and the Social Concession.Social Concession allow beneficiaries to construct residential projects and cultivate State land. Economic Concession allow beneficiaries to clear land for purposes of industrial or agricultural exploitation.Use, Development or Exploitation Concession are not regulated under the 2001 Land Law – specifically, Article 49 and 50. But this type of concession includes port concessions, mining concessions, industrial development concessions, airport concessions, and fishing concessions.Article 52 and 53 further states that “A land concession may only create rights for the term fixed by the concession contract in accordance with the provisions of this law. A land concession cannot establish ownership rights on the land provided for concession except for concessions responding to social purposes.”It continues, “A land concession can never result from a de facto occupation of the land. The land concession must be based on a specific legal document, issued prior to the occupation of the land by the competent authority, such as the State or a public territorial collectives or a public institution that is the owner of the land on which the concession is being granted. The concession must be registered with the Ministry of Land Management, Urban Planning and Construction.Land concessions cannot have more than 10,000 hectares and is limited to 50 years but may be revoked by a government decision if there is a problem with compliance.The most common concession type foreigners go for is the Economic Land concession.How do I apply for an Economic Land Concession in Cambodia?An investor cannot apply for economic land concession from abroad. They are required to have a registered company in the country, a valid tax identification number, and an active local bank account. Once this is in place and a piece of land is located, the investors must apply through the Ministry of Agriculture. They will require documentations to prove financial qualification and additional documentation detailing information of the investor.The Ministry of Agriculture will then review the land details listed on their database. They will decide whether it can be made available for a concession based on the review. The official bureaucratic machinery will come into play if the land is available.Representatives from the Ministry of Agriculture, Ministry of Environment, the Council for Development of Cambodia, the provincial government, and the Ministry of Commerce will then form a commission to review the feasibility of the application. So, investors will also need to include a business plan and supporting documents during the application process.The Ministry of Environment is assigned to create an ‘Environmental Impact Assessment” which studies the different factors pertaining to the land. These include elevation, settlements, waterways, and soil. This process takes 3 months. The assessment will include the land designation, religious sites, community property, and settlements mapping. The local government is in charge of the socio-economic factors and effects.The Ministry of Agriculture then forwards the application to the Office of the Prime minister after the application is approved. The PM will then sign and authorize the Ministry of Agriculture to go into a concession deal with the investor. The investor is then tasked to create a master plan or a five-year business plan.The public land of state will then be transferred to a private land of state once the master plan is approved.The CDC will provide special tax status for the investor’s company such as exemptions and reductions. The company is then going to be noted in the investment register through the CDC.The approximate duration to complete the process will be 6 to 9 months.How to Invest in Land in Cambodia by Cambodian Marriage:Foreigners married to a Cambodian citizen are allowed to register real property using the name of their spouse on the title deed. In case a citizenship has been granted to the foreigner, the Cambodian Law states that the land can be registered under the names of both husband and wife. This follows that there should be a mutual agreement before the land is sold.What happens when you get a divorce?Should there some a time when a divorce or separation is needed, the land and property division is dependent upon the conditions of any court ruling that refers to the divorce. Interracial marriages require the participation of the embassy of the foreigner’s home country and different local government agencies such as the Legal and Consular Department of the Ministry of Foreign Affairs and International Cooperation, Ministry of Interior, province officials.What are the requirements to get married in Cambodia?For the wedding itself, you would need several documents such as a certified birth certificate copy, a valid passports and its photocopy, a visa and its photocopy, an affidavit of single status, an affidavit of marriage, criminal records, certificate of profession, divorce or death certificates in case of a previous divorce or death of a previous spouse, a medical certificate from Calmette Hospital that’s located in Phnom Penh, and a marriage application form.Other legal requirements for marriages include a civil or religious ceremony, the woman is considered to be at least 18 years old and a man at least 20. There should be two witnesses for the wedding. A wedding must be registered at the Civil Registry Office in order to be recognized.How to Invest in Land in Cambodia by Cambodian Citizenship:One way for well-off individuals to buy land is by getting an honorary Cambodian citizenship. This can be obtained in two ways. Either by donating at least $312,500 for the Cambodian people through the Cambodian Government or by making a significant impact to the country.Being granted an honorary citizenship allows foreigners to purchase obtain 100 percent of the rights to real properties. But it is important to note that the foreigner’s original nationality is not affected in any way.Individuals may also gain residential status in the country by living here for 7 years.Cambodia is breeding grounds for successful developments where land is a main proponent. As more people gain interest in the country’s real estate climate, it is entirely possible to see a number of foreigners included in the same crowd of people who make a profit from land that they own.Learn more about investing in Cambodia, with Realestate.com.kh’s in-depth investor guides!

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

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!

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

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!

The Ascott Limited has recently made waves again in the hospitality and real estate market with the introduction of its up and coming developments across different countries in Asia such as in Vietnam, Thailand, and the Philippines. It will also include the new Somerset Meridian Square Phnom Penh development in Cambodia.About the Owner-Operator:The Ascott Limited is considered to be one of the biggest international owner-operator of serviced residences worldwide. It is a subsidiary of CapitaLand which is a huge name in the international real estate market. The The Ascott Limited recently broke records as it hits its highest number of units.Lee Chee Koon – their chief executive officer – explains, “With these latest additions, Ascott has as at today over 52,000 units in our portfolio. We secured a record over 10,000 units in 2016, making this Ascott's highest increase in inventory count in a single year. Of these new units, 90 percent are located in gateway cities across the Asia Pacific and the Middle East.” Koon continues, “This year, Ascott has also opened 20 properties with more than 3,700 units, our fastest pace ever. As more of the newly signed properties come into operation, we can expect a further boost to our management fee income.”About The Project Somerset Meridian Square Phnom Penh:Somerset Meridian Square Phnom Penh will be the second project in Cambodia by The Ascott Limited after its Somerset Norodom Phnom Penh project.Somerset Meridian Square Phnom Penh is a prime residence serviced apartment. It will rise as part of an integrated retail and condominium development. It will be situated at the Central Business District’s first planned city project – the Phnom Penh City Center.It will be located near a Special Economic Zone where international corporations such as Toyota, Yamaha, and Coca-Cola hold their international manufacturing bases. An upcoming mall and the Cambodia Railway station will also be located minutes away from the project.Somerset Meridian Square Phnom Penh will have around 266 apartment units. These will range anywhere from studio to three-bedroom units. It will also have amenities like a swimming pool, a gym, a playroom for kids, residents' lounge, and a few meeting rooms.Ascott has already invested a lot into the capital city of Phnom Penh with the Somerset Norodom and Somerset Meridian Square Phnom Penh. Will we see another development from the company in Phnom Penh or will Ascott change the game by placing their developments in provinces that are becoming increasingly popular such as Sihanoukville and Siem Reap? That might not be a far off idea if the country sees continuous economic growth across all major cities.Read more of the the latest real estate news

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

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!