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78-Storey Commercial Building Construction will start early next year
78-Storey Commercial Building Construction will start early next year
June 6, 2022, 8:10 p.m.
Events & Announcements
Realestate News
Phnom Penh has undergone surprising changes in the last decade. Commercial buildings and skyscrapers have been and are being built, turning this once haunting ghost city to one of the newest civilized and modern cities in the world.But the changes arenโ€™t quite done yet. A 78-storey commercial building will rise from the ashes for the first time in Phnom Penh where construction will begin in early 2017. This will add to the estimated 600 existing tall buildings โ€“ living up to the Asian Development Bankโ€™s designation of Cambodia as "Asiaโ€™s New Tiger Economy.โ€A staff of the Yung Chung Company who does not wish to be named said that โ€œthe building design has been completed, and the construction is scheduled to begin in early 2017. The development will reach total completion by 2021, but its showroom will be launched in November this year.โ€ He added that โ€œthis building will be a mixed-use development and will include shopping malls, condominiums, hotels, as well as a swimming pool and a rotated restaurant on the 78th floor.โ€He continues, โ€œThe detailed plans of using this building was completed, but details are still confidential at the moment. This project has already been approved by the Ministry of Land Management, Urban Planning and Construction.โ€Seng Lot, the spokesman for the Ministry of Land Management, Urban Planning and Construction confirms, โ€œThe ministry has already agreed to provide a license for Yung Chung Real Estate to construct a building of 78 floors.โ€Ann Sothida, director of CBRE Cambodia, said that as far as sheโ€™s gathered, this mixed-use business center will be built in the future. But the market is not doing good, and that could cause a delay in the construction of the project. She added that with the companyโ€™s innovative approach of the building though, this project should not have any problems in the Cambodian market once it is completed. According to her, the project will be located behind โ€œThe Bridgeโ€ building, which is near Diamond Island (Koh Pich). However, she did not show the feature details of the plan.President of CVEA, Kim Heang, said that โ€œInvestors of the skyscraper project will be through a developer from China. The project will also ย occupy a total area of 4,500 square meters and will cost lower than $20 million.โ€ He adds that โ€œif the project owner has enough money to complete this huge building project, it will not be a problem for this market.โ€Once completed, it will become the 2nd tallest building in Phnom Penh, next to the 133 floor Thai Boon Roong twin trade center which is 500 meters high.Dr. Van Vat, Planning Specialist, explains that Cambodia already has a regulation to limit tall buildings. So, if our law enforcement is good, it will not only protect the heritage in the city, but it will maintain the beautiful sceneries and will minimize the environmental impact as well. He continues to say that normally the construction of ย such a high building requires the company to have studied all the technical standards, and the specialist from the ministry has to inspect and go over the construction standards to make sure that the companyโ€™s complying with the request or not.He adds that "Having these tall commercial buildings, it is a national pride because it is not only improving the economy, but it also provides employment and income for the people as well."Check out the hottest new development homes and offices!This story was featured in the September 2016 print edition of PROPERTY VIEW magazine, produced by the CVEA.Realestate.com.kh is very proud to support the CVEAโ€™s Property View publication.ย For more information about joining the Cambodian Valuers and Estate Agents Association (CVEA) please click here. And, if you are interested in advertising placement or advertorial in the next edition of Property View Magazine, please contact Mr. Virith via email: virith007@yahoo.com Or call:ย 078 959 567 ย orย 098 66 26 68
Stricter Law Enforcement: Developer Licensing Requirements
Stricter Law Enforcement: Developer Licensing Requirements
June 6, 2022, 5:06 p.m.
Events & Announcements
Realestate News
Property Buyers & Sellers Advice
Prakas No. 965 (MEF) on the Management of Residence Development Business was dated August 24, 2016 and aims to get developers to obtain a license from the Finance Ministry.The Director of the Finance Ministry, Mr. Noung Piseth, said that only around 167 housing developments, 104 gated communities, and 63 condominiums that are currently underway are actually authorized by the Finance Ministry. He estimates that around 10 to 20 percent of current developments have no licenses. And this is causing concern from buyers who have already purchased units from these developers.This prakas (law) affects real estate developments that either have more than 4 apartments, 3 villas, or 4 units. Developers who fit the criteria are considered to be a residence development business company and are now required to have a license through the Ministry of Economy and Finance, for several reasons.Why should developers obtain a license?Other than avoiding a fine for owners of unlicensed housing projects that can reach up to $25,000, getting a license actually has a well rounded advantage for everyone involved in a development. It benefits the customers, the developers, and the industry as a whole.The Head of the Office of Business Management Housing Development at the Department of Industry and Finance, Ms. Chan Socheata, said that โ€œgenerally, before the issuance of the license for any project development, the ministry evaluates through its checklist to find out whether the development has a clear and strong source of income, capital, collateral, land title, and other assets that support their project.โ€She continues, โ€œThe ministry will check whether itโ€™s a good business, and if it can be successful in the future or not. In some cases, thereโ€™s a need to research on the sales strategy of the project, because sometimes a projectโ€™s owner does not do an in-depth market analysis with the surrounding market. And another reason is to find whether this project causes a bubble market. So, if this case happens, the ministry can take measure immediately,โ€And since a residence development business company is also required to deposit 2 percent of their capital, there is an assurance for both the ministry and the customer that there is enough resource for the project to successfully move forward and reach completion. Additionally, once a company is licensed, the ministry can serve as a mediator of sorts for any disputes that may arise between the developer and its customer.What are the types of licenses?Besides the 2 percent secured deposit, there is still a separate fee for each type of license that must paid by the company.There are currently two types of licenses.The first license is for companies which has either loaned from financial institutions or have their own capital that they can use for the development and sale of the property once construction is over.The other license is for companies who have their own capital or loan from a number of financial institutions or capital that comes from installation payments by the buyer, where construction is still not over.What are the Developer licensing requirements?For the first type of license, the development company must already have finished construction with the cost already determined.While the second type of license calls for the same requirement, it also calls for the development company to open a trust account where they will be placing payments from the customer.Socheata also mentions that โ€œproject owners need to make a business plan to present to the ministryโ€ before they are issued a license. There are also requirements that should be submitted after the project is finished. This is called a reporting requirement where the Ministry of Economy and Finance needs to be updated after a month of the projectโ€™s completion regarding financial soundness and the project ending.With the release of this Prakas on developer licensing, we can expect to see positive changes in the aspects of construction and financing; and more transparency for end buyers - bringing much needed protections to the off-plan real estate market.Learn more about Investing in Cambodia, with your real estate information leader: Realestate. com.kh!
Eurocham Tax Forum 2016: A step towards the right direction
Eurocham Tax Forum 2016: A step towards the right direction
June 6, 2022, 5:06 p.m.
Realestate News
On September 21st of 2016, a first-of-its-kind forum at the Intercontinental Hotel in Phnom Penh which will deal with the recent changes in the taxation system.Eurocham Cambodia โ€“ who has been helping the business community since 2011 โ€“ will hold their inaugural tax forum, that aims to align businesses with current taxation policies.In a recent interview with Realestate.com.kh, Blaise Kilian and Anthony Galliano โ€“ advocacy manager and Chairman of Eurochamโ€™s Tax Committee, respectively โ€“ discussed the benefits of attending this Eurocham tax event.Whatโ€™s the inspiration to have an event like this?When asked about what prompted the inaugural tax forum, Mr. Kilian mentioned that since the government is now more assertive on tax reform, the system is becoming even broader. He said that attending the event is an opportunity to improve oneโ€™s understanding of recent changes and the event will be informative and educational on existing tax law, encouraging compliance.According to him, โ€œWe also understand that it is not always easy to be compliant because you need to understand the system, you need to be able to understand and implement correctly the new regulations that are being adopted. Therefore, we thought it would be very important and useful to organize a tax forum for the business community to provide the opportunity to present, explain, and discuss recent regulations so that entrepreneurs, corporations, and businessmen can find answers to their questions on how to be more compliant.โ€Who is the Eurocham tax forum most suited for?Kilian continues by explaining that while it is an event on taxation, it is targeted towards the whole business community that comprises entrepreneurs, CFOs, accountants, auditors, and tax preparers. Whether big or small, he says it is open for anyone in the business community who wishes to โ€œunderstand the tax system and be compliant.โ€What is this yearโ€™s agenda?When asked about what sorts of things will be discussed in the forum, Galliano responds by saying, โ€œSince it was our first tax forum, we wanted to make sure weโ€™ve put a very comprehensive agenda together, one that covers the issues that are really pertinent today and issues that taxpayers may be struggling with given their degree of complexity.โ€These issues include recent tax changes and complications with current taxation law. The forum will also cover topics such as changes in tax regime, patent tax, tax registration, key tax issues for SMEs, common VAT issues, withholding tax, tax audits and disputes,and the double tax agreement with Singapore.Eurocham will also discuss their White Paper, specifically on tax related issues, an effort generated by their Tax Committee which is representative of tax issues from their membership and discussed directly with the GDT. CamEd will also be speaking to attendees about certain taxation qualifications.There are a lot of topics that will be covered in this forum. As Mr.Galliano puts it, it is โ€œvery comprehensive, very much to the issues of today that taxpayers are facing. And we couldnโ€™t have put a more fabulous agenda to address the occurring issues in the market.โ€And who are some of the Sponsors and Speakers for this yearโ€™s event?Attracting a great deal of interest, Eurocham has managed to get sponsorships from big entities like the Cambodia Bureau Credit,CamEd Business School, BRED Bank, Infinity Insurance, R&T Sok & Heng, DFDL, AGS Four Winds, Deloitte. Its media sponsors are the Khmer Times and Realestate.com.kh. Presentations will be made by the industries top professionals and tax experts which include His Excellency Kong Vibol, the Director General of the Department of Taxation, Eurochamโ€™s Chairman Arnaud Darc, Ambassador of the EU Delegation, Mr. George Edgar, Anthony Galliano, CEO of Cambodian Investment Management and Chairman of the Eurocham Tax Committee, Ms. Kimsroy Chhiv, Director of Tax at Deloitte and Vice Chairwoman of the Tax Committee, Mr. Sean Wong, CFO of Cambodia Airports, Mr. Thibaud Sournia, Managing Director of Europe Continents, Clint Oโ€™Connell, Director, Head of Cambodia Tax Practice of DFDL, Mr. Vann Sinat, Tax Advisor of ย Bun & Associates, Brendan Lalor, Director of Tax & Advisory Services for Ernst & Young, and Ronald Almera, CEO & Partner of Grant Thornton.Why should I join?As the interview came to an end, Galliano encouraged people from the business sector to participate in the said event. He said, โ€œYou should come to this event because weโ€™re seeing a tremendous and dynamic change in tax regulation, weโ€™re seeing a much more sophisticated and educated tax department who is certainly enforcing more assertively with stronger oversight. With regulations changing, itโ€™s important to keep up to date. Youโ€™re hearing about changes in tax regulations and how to properly comply with existing ones directly from industry professionals. ย It is also a great opportunity to hear from the General Department Taxation,represented by ย H.E. Kong Vibol who will deliver the opening speech. There will be some insightful presentations on whatโ€™s coming up. Itโ€™s a full day of amazing coverage of topics that are so relevant and pertinent today that itโ€™s a great opportunity to take advantage of what is going to be the tax forum of the year.โ€Kilian adds, โ€œIf you want to be compliant. If you have a hard time understanding all the regulations including the existing one and newer ones, if you want to have the opportunity to engage directly with the best tax specialists in the country, and if you want to meet a larger network in the wider business community in Cambodia, well, then you have of the good reasons to attend this forum.โ€So, if you want to improve your knowledge and understanding on taxation in Cambodia, joining this event is a must. Tickets for the forum for Eurocham members go only for $50, and non-members can register and participate for only $60. FIND OUT MORE!Eurocham is still has sponsorship opportunities available for the event. Interested parties can call their executive team or talk directly to Blaise Kilian by emailing at ย b.kilian@eurocham-cambodia.org
Imperial Crown Condominium: Live the Royal Life
Imperial Crown Condominium: Live the Royal Life
June 6, 2022, 5:05 p.m.
Realestate News
Imperial Crown is strategically located in the most-desired residential location available in Phnom Penh, namely street 360, BKK 1, Khan Chamkarmon.Since as early as the 1980s, NGOs, diplomats and expats have viewed BKK1 as the safest and most valuable residential area in Cambodia. Today this label remains; BKK is home to the majority of embassies, expatriate residents, upmarket and international style restaurants, cafes and nightlife. The elite of Phnom Penh is and will continue to center itself around this prestigious district; and current land prices as high as $6000-$8000 per square meter are a testament to this demand.see the full listing for Imperial Crown condominium and find out more!Imperial Crown has by far the highest standard of interior decoration out of any project currently underway in Phnom Penh. 15th-16th century Baroque interior design has been maintained throughout Imperial Crown condo units with impeccable attention to detail and high quality materials, finishes and fixtures. Every unitโ€™s entrance door is imported and handmade in Italy and Taiwan from carbon fiber steel, and it is totally thief, fire and sound proof, available in a series of unique, artistic designs. Each unit includes classic Baroque style furniture handmade from 50 year old mahogany, all of which is hand painted with real silver.Swiss and German ceramics and faucets are standard throughout: Kitchenware is imported from Germany with the brand of Bauformat; and full oven, dishwasher, induction heating cooker, and high quality cabinetry is standard throughout. Sanitary equipment is imported from Switzerland with the brand of Teka, Laufen and Steinberg. Each house unit comes with Rinnai water heater, and air conditionings.And absolutely all furnishings are included in the completed units, as shown in the BKK1 showroom and Sales and Purchase Agreement.In other projects in prime districts such as BKK, developers are generally sacrificing parking space in order to maximise profits on residential units. However, given the current shortage of parking facilities in this area, the Imperial Crown developer has ensured their residents will have ample car parking space. A total of six floors of car parking is reserved for residents, with a total of 144 parking spaces. Meanwhile, Imperial Crown residents will not need to wait on elevators; the project will include four high speed elevators, each able to travel at three meters per second.While some developers in Phnom Penh are retaining rights of ownership over the common areas of the finished condominium, Imperial Crown unit owners will automatically own a share of the common area when they receive their strata titles, totalling 25.8% of the total property - and the developer retains no ownership of this area to ensure that no conflict of interest arises. Once the project is complete and occupied, the management and maintenance fees for the common areas will be paid directly to a third party. Once the third party property management company receives this money, it will be kept in a cash pool to maintain or repair the common areas when need be.The development is now underway with the guidance of renowned construction company, RockStone from Taiwan, along with Beijing Urban Construction - renowned for famous projects such as the Beijing National Stadium โ€œBirdโ€™s Nestโ€. This is their first project of many in Phnom Penh, all of which will soon become landmarks of the city.The Imperial Crown project will include the highest grade of structural engineering elements, including 53 counts of all casing concrete pile drilled straight into the bedrock, with the use of reinforced concrete for the basic building structure. The outside wall, from the ground floor to the fourth floor, will be constructed from marble; and from the fifth floor upwards, colored sand stone coating will be used. This stone coating is waterproof and blocks incoming heat from the sun. Painting on the exterior wall will generally deteriorate in around three years, while sandstone used in Imperial Crown lasts more than 20 years without maintenance.Available units at Imperial Crown include two bedroom condos with one smaller office room integrated into the design. However, on the buyer's request, these units can be modified into three bedrooms. There is a total of of just 161 units, with 6 units on each floor.ย  Prices range from $500K to $700K, and uniquely this net price includes all the interior electronics, fixtures and furnishings. Loan financing is available for buyers and the project has already sold around 55% of units. Guaranteed Rental Returns are guaranteed at 6% per year, for the 3 years, totalling 18% yields. see the full listing for Imperial Crown condominium and find out more!
CamKo City is now Heart of North-Phnom Penh
CamKo City is now Heart of North-Phnom Penh
June 7, 2022, 4:51 a.m.
Realestate News
Just a decade ago, the Camko City was merely a lake area of Phnom Penh, Boeng Pong Peay. At that time, it was considered as the Northern end of Toul Kork, which has been traditionally a wealthy residential area. However, so far, the scene has dramatically changed, transforming into Northern center of the capital.Since the first satellite city planning was approved by the government in 2005, World City Co., Ltd., the developer of CamKo City introduced a global standard of residential, commercial, and business complex for the first time in the property market. The development has been slowed down due to external turmoil such as global economic recession, financial crunch and partnersโ€™ financial difficulties. However, we now witness that the area has strongly settled down as one of sought-after places.Some of the luxury villas in R2 Secret Garden project are being completed one by one, and ready for move-in.These finest properties will add more value to the existing residential area.Furthermore, commercial activities are becoming livelier. The shops along the Angkor Boulevard, a 30-meter wide road at the center of CamKo City, are recently occupied by more business owners, and they seem to enjoy prosperity with the increased number of residents and visitors.World City Co., Ltd. has resumed suspended condominium projects, and now is rigorously preparing to launch new upcoming projects.Regarding to the new projects, Mr. LEE SeungHyung, Senior Vice President of CamKo City mentioned, โ€œNow, our follow-up projects are under careful planning and preparation. The market, in particular investment sentiment and demand trend, has changed. Our next projects will be responsive to this diversified demand.โ€โ€œAs population continues to increase in this region, there is a strong need for large scaled commercial, business facilities and amenities. Accordingly, an attractive commercial complex and high-street area is under planning for the C10 plot between R1 condominium and R2 Secret Garden villas. Also, in the M6 plot just north of R1 condominium, a mixed development of medical center, office spaces, serviced residence and retail is already planned. These new projects will begin one by one in an appropriate manner,โ€ added by Mr. LEE.Lastly, the contribution to National Housing Policy is one of the biggest interest of the developer as well. Increase in housing demand and lack of affordable housing supply are raising significant social concerns. It is said that, reflecting the demand, a mid-ranged residential complex is already prepared in CamKo City and waiting for the launch.Also in the surrounding area of CamKo City, within Sen Sok and Russey Keo, noticeable developments have got into full swing. To the West of CamKo City, the second AEON Mall recently commenced the construction with the completion expected in 2018. At the North end of CamKo City, a renowned Australian International School Phnom Penh (AISPP) is about to complete the construction. In addition, large number of various high-profile residential projects are already completed and on process nearby.With all these developments both within CamKo City and the surrounding area, and along with Phnom Penhโ€™s expansion,we expect to witness and enjoy the areaโ€™s further transformation into the global-standard satellite city, as initially sculpted by CamKo City.View the latestย new developmentsย on Realestate.com.kh!This story was featured in the September 2016 print edition of PROPERTY VIEW magazine, produced by the CVEA. Realestate.com.kh is very proud to support the CVEAโ€™s Property View publication.ย For more information about joining the Cambodian Valuers and Estate Agents Association (CVEA) please click here. And, if you are interested in advertising placement or advertorial in the next edition of Property View Magazine, please contact Mr. Virith via email: virith007@yahoo.com Or call:ย 078 959 567 ย orย 098 66 26 68
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Living in Condos When Land Prices High
Living in Condos When Land Prices High
June 6, 2022, 5:05 p.m.
Realestate News
Experts and developers in the field still maintain a confident position that there will be continuous growth in Cambodian real estate, most especially for the condo market.This is because there is a growing interest in this type of property as a result of continuous increase in land prices.Kheang Puthy, director of Slek Rith Realty, says that sooner or later the occupancy rate of Cambodians living in condo will increase. Where currently, those who purchase units are people who used to live or study abroad, Puthy believes that more and more professionals will be buying or renting out units in the near future. This is from the fact that there is a growing population of middle- to high- income Cambodian Citizens who are affected by the worsening of traffic conditions.He encourages people to support and be optimistic about the progress of the condos sector. Puthy adds that negativity will only undermine the process of development and may cause the country to fall behind in comparison to neighboring countries that are also rapidly growing in terms of condominium developments. But he warns of a possibility of surplus. If there is an excessive supply, then the government will eventually have to tackle this issue and look for ways to regulate it.Anthony Ong, CEO of Spring CJW Development, said that "Cambodian citizens remain as a pillar for strong economic growth and real estate in the country." He added, "We do have confidence and want people to have good living standards." Spring CJW Development is also an investor in the Axis Residences condominium project which has 566 units located near the Phnom Penh International Airport.He says they really want to help improve the lives of citizens through offering a good place to live in which is comparable to Singapore. He added that the purpose of their investments in the condos project, Axis Residences, is not just to create a home, but to create a desirable housing project with all the necessary amenities.Meanwhile, Cheng Kheng, tycoon and CEO of CPL Cambodia Plc, said that living in condos is a more civilized and modern way of living because condos can have everything people will need such as parking spaces, shopping malls, gyms, saunas, swimming pools and gardens. Kheng adds that Cambodians feel a difference between landed properties and condominium units where they can live harmoniously in a modern setup.According to a research report from a Cambodian real estate agent, land in commercial zones in the city varies by location. In Norodom Boulevard, land can cost between $3,500 and $6,000 per square meter. While in Monivong Boulevard, land prices range from $3,000 to $5,500. In Russian Boulevard land can cost anywhere from $1,500 to $3,000 dollars. Itโ€™s relatively lower in Mao Tse Tung Boulevard where youโ€™ll only need to spend between $3,000 and $5,000 per square meter. However, in the top 4 residential districts such as ChamkarMon, Daun Penh, 7 Makara and Toul Kork, it will only set you back around $1,500 and $ 4,000 per square meter in investment cost.Mr. Sarun Rithea, spokesman of the Ministry of Land Management, Urban Planning and Construction, recognizes this difficulty to buy land and build houses, especially in prime areas such as Boeung Keng Kang, Daun Penh and Toul Kork.The increase of land price is due to the land at Delta City becoming a land where investors build high-rise buildings, commercial buildings and condominiums. He said that according to the Municipality of Phnom Penh, land located 20 square kilometers around the city center is also becoming more expensive, but the increase isnโ€™t as drastic as the capital city itself.He said that, "In Phnom Penh, a number of those who have from 1 to 10 homes are only 10 percent. Those who have a home for themselves are about 20 percent, and a number of those who do not have homes, fixed salary and middle-income (citizens) or above is about 70 percent.โ€ Most of these people without homes have houses with their family and can be redeemed with the bank.The report of the Ministry of Finance showed that the growth of condos in Cambodia in 2015 reached 15,000 units and this number will continue to rise to 45,000 units in 2018.While in Phnom Penh, the number of new condos has increased, most customers who bought a unit are foreigners, including nationals from China, Taiwan, Malaysia, Singapore, Japan and France. Statistics showed that there are 20 percent of Cambodians who are condominium owners, while another 80 percent are foreigners.ย Find ย more real estate news on Realestate.com.kh!This story was featured in the September 2016 print edition of PROPERTY VIEW magazine, produced by the CVEA.Realestate.com.kh is very proud to support the CVEAโ€™s Property View publication.ย For more information about joining the Cambodian Valuers and Estate Agents Association (CVEA) pleaseย click here. And, if you are interested in advertising placement or advertorial in the next edition of Property View Magazine, please contact Mr. Virith via email:ย virith007@yahoo.comย Or call:ย 078 959 567ย ย orย 098 66 26 68
Condo Market Getting Stuck?
Condo Market Getting Stuck?
June 6, 2022, 5:05 p.m.
Realestate News
With new developments established by foreign investors who find the Cambodian condo market attractive, information and education regarding the condominium market has steadily grown throughout the years. But generally speaking, different experts have different outlooks and opinions regarding investing in this market.Chrek Soknim, CEO of Century 21 Mekong, says that if youโ€™re considering investing in the condo market long-term, then you wonโ€™t be encountering any serious challenges any time soon because the trends remain to be stable and projections are optimistic due to the fact that there are still lots of condominium units in supply.But Soknim warns that with the growing number of foreign investors coming into play, sales may regress or slow down a bit due to stiff competition. So, they would have to consider adequate and efficient financing for their projects.Soknim states that "when there is intense competition, it requires investors to have a precise capital. Otherwise, their projects might face a stalemate in middle plan if investors expect to get funding from buyers to develop the construction project."Hoping for a great outcome, he says "even if the sales are slower than before,โ€ he does not see any difficulties that may result to the condominium market getting stuck.Find out real estate news on Realestate.com.kh! This is also what the director of TOWN CITY Real Estate, Vann Chanthorn, thinks. He explains that there are many projects that are still selling well, especially projects that focus on middle-class customers. He reaffirms that overall, there is no urgent problem and that the condominium market remains strong. This is confirmed by a recent survey done by CBRE Cambodia conservative estimates show that the condo market in the country will increase by 794 percent from now until 2018 and that the supply will increase to a total of 21,414 units. Kim Heang, president of the Cambodian Valuers and Estate Agents Association, said that the number of condominiums that have been built for the current domestic market left a surplus. He said that if investors are thinking about the ASEAN market, there is still much that remains to be seen and that what is important now is to get more ASEAN investors into the sector. If the sector remains stagnant, may not always be the developerโ€™s fault because the government should be doing whatever it takes to attract investors. He continues to say that if water, electricity, and transport costs remain high, then no one might invest. But Heang clarifies this by saying "the laws is already existing, but it is important to all people to respect the law. Demonstrations, demonstrations without rules, so let's address this issue altogether." It is a collaborative effort. Kim Heang adds that the biggest pitfall more than 50 percent of condo developers are finding at the moment is that borrowing money to assist in funding construction presents more of an issue than a solution. He says that some of the developers are now facing deadlock. But there seems to be no problem right now for those who have obtained land and a precise investment capital. He explains, "It does not matter in this industry, but it will have trouble for individuals who borrow money or take money from customers to build." Taking a more positive approach to the surplus issue, Kuy Vat โ€“ chairman of VTRUST GROUP which bought the Master Franchise Century21 to Cambodia โ€“ said that when the condo market reaches surplus it can be used as an opportunity for investors and clients. They can buy a condo while the values are still low. Customers will find this beneficial because they are presented with more options to invest. Henry Wu, CEO of MATSU Property which is based in Taiwan, remains to be optimistic and believes that there are great opportunities in the Cambodia Condo Market. He said that Phnom Penh is small but being the capital, it is the heart of the country and has a total area of about 20 square kilometers. This means that construction of high-rise condos that have pristine accommodation, comfortable service, and amenities like swimming pools, security, shopping malls and management will be strong contenders in the near future and will be a factor in the continuous increase. Wu continues to say that Cambodia is a country which has flexible control over currency and has more freedom among countries in the region. Cambodia also does not collect tax on profits in the sector, and investors can go in and out freely, especially now that the property cost in Phnom Penh is relatively low compared to cities of the of other countries in this area. He added that "people in the city are about 2 million and condo costs at a very low price compared with other countries in the region that all these factors have attracted great interest from foreign investors for real estate here." Wu also establishes that foreigners have known markets in Bangkok, Kuala Lumpur, and Hong Kong, but were not familiar with Phnom Penh. But he expects this notion to change by 2023, when Cambodia hosts the Asian. He predicts that Phnom Penh will flourish during this time. He concludes by saying that "if you invest in condominiums, for people with middle-income, there are no signs of anything alarming, but I worry about the condo kind of luxury, which are expensive." While experts may disagree on certain aspects of the condo market, it is important to note that there are similarities in their individual analysis. These may provide better insight for those who are wishing to invest in Cambodia within the next few years. This story was featured in the September 2016 print edition of PROPERTY VIEW magazine, produced by the CVEA.Realestate.com.kh is very proud to support the CVEAโ€™s Property View publication.ย For more information about joining the Cambodian Valuers and Estate Agents Association (CVEA) please click here. And, if you are interested in advertising placement or advertorial in the next edition of Property View Magazine, please contact Mr. Virith via email: virith007@yahoo.com Or call:ย 078 959 567 ย orย 098 66 26 68
Aim for the Sky with The Skyline: A Bespoke Development
Aim for the Sky with The Skyline: A Bespoke Development
June 6, 2022, 5:04 p.m.
Realestate News
Phnom Penh has just gained another prime freehold mixed use development property - except this one presents a truly holistic investment opportunity for new homeowners and investors.ย The project is named The Skyline ย Cambodia and was proudly launched in April of 2015.ย Find out more about the Skyline today!Reaching New Heights:Located at the very heart of the central business district of Phnom Penh, in 7 Makara District, the Skyline is expected to reach completion by December of 2018 and will stand with a total of 39 floors.The first 3 floors will be solely dedicated to retail and mall space, followed by 6 full-floor parking levels - significantly more than most parking spaces offered by other developments in the area. The 9th level is where the communal facilities and pool deck will be located, while the 38th floor will serve as the sky deck featuring a breathtaking view of the whole city.The Skyline will stand amidst numerous landmarks of Phnom Penh urban life, such as the Peace Palace, Olympic Stadium, Canadia Tower, Vattanac Tower, and alongside the Central Market. It is also strategically located near embassies and schools like the German Embassy, Norton University, Tuol Kork Primary School, and the Phnom Penh International University.7 Makara district, in which the Skyline is located, is seeing significant land prices rises over the last year and a half, as developers begin to shy away from districts such as BKK and Tonle Bassac, with fears of an oversupply of units in these areas, and growing concerns about traffic congestion and infrastructural limitations.Soaring with a World-class Partnership:The Skyline is the product of a joint venture by international developers SGDP Development of Singapore and China-based Hong Lien, with a strategic partnership with local company Land & Houses (Cambodia) Investment Co, Ltd. (LHC) as their preferredย sales agent.LHC was founded by a young entrepreneur Madame Se Lily who has also managed sales and development for several projects already, such as the Borey Varina, Chroy Chongva Residence, and Royal Bayview. Learn more about Land and Houses Cambodia now!Staying on Cloud 9:The Skyline development has a host of amenities and facilities within the property.Other than the sky pool deck, 3 floor retail shopping mall, and 6 floors exclusively reserved for car parking space, residents will also be able to enjoy eating at the outdoor dining area, cooking at the BBQ pit, working out at the outdoor fitness area, holding events in the various function rooms, relaxing on the landscape deck, or just catching up on their literature at the reading room.The Skyline will have two 29-storey blocks of residential units that come in either one bedroom, two bedrooms, three bedroom penthouses, or four bedroom penthouses. These units are fitted with built-in wardrobes in every bedroom, built-in kitchen cabinets, air-conditioners, heaters, and a whole lot more, all inclusive in the asking price.High time for Flexible Financial Terms:Buyers will be able to benefit from the developers 6% leaseback options, providing rental revenue of 6% for at least three years after the projectโ€™s completion. But there are also other options for buyers who want to continue this scheme after three years. This offer marks the developerโ€™s strong confidence in the rental yield strength of 7 Makara.The developers, SGDP Development and Hong Lien, are also offering lower cash outlays at only $2,000 deposit. Property taxes are also straightforward and all inclusive in maintenance rates, with a stamp duty of 4 percent, 0.1 percent per annum property tax, a rental tax of 14 percent per annum, and a VAT of 10 percent.If you are looking to invest in a piece of high-end real estate that offers an international standard lifestyle with a development team you can trust, then find out more about the Skyline today!
Asiaโ€™s New Tiger Economy? Marc Townsend speaks to the CBRE Cambodia Marketview Report Q2 2016
Asiaโ€™s New Tiger Economy? Marc Townsend speaks to the CBRE Cambodia Marketview Report Q2 2016
June 6, 2022, 5:05 p.m.
Special Reports
Realestate News
Though the road was long and winding, Cambodia has reached new heights in the past decade across many industries - none less, the real estate sector. And along with continuing success, there is also a need to understand how the market is developing in comparison to the region. By studying Cambodia alongside an understanding of similar markets nearby we can better predict the future of the real estate sector, and handle potential problems before they occur.This is according to CBRE Vietnam and CBRE Cambodia managing director, Marc Townsend, who spoke in depth regarding the latest CBRE Cambodia's Marketview Q2 2016 report last week in Phnom Penh.The resounding remark from Townsend was that, โ€œAll of us who have been involved in the real estate industry for sometime understand that any market is cyclical. What is happening in Cambodia currently has happened in neighboring markets.โ€With this sentiment in mind, we can better understand current market conditions in Cambodia - and concepts such as the potential oversupply in the condo market, speculative price growth in Phnom Penh land, and issues regarding credit issues around lending for property - in a context of curb and flow.A downside for the market now offers opportunities down the line as it naturally adjusts itself - and ultimately, a maturing of the real estate market as a whole.CBRE Cambodiaโ€™s Marketview for Q2 2016 Recap:The World Bank officially elevated Cambodia to the status of a โ€˜lower-middle incomeโ€™ economy at the close of Q2.Hongkong Landโ€™s mixed-use development, Exchange Square, held its topping-out ceremony over Q2, with overall completion set for Q4 2016. Prime sales and rental prices broadly appreciated over Q2, with the exception of serviced apartment rents, which remained stagnant over the quarter. Average quoting rents across Grade B buildings grew by 4.5% q-o-q, while average quoting rents across Grade C stock decreased by 3.9% q-o-q. 2,796 condominium units, across 8 projects, launched over Q2, with Russey Keo district welcoming its first off-plan sales launch.ย Land & Investment in Cambodia Q2 2016:While foreign buyers are focused on the hottest areas on the market where land prices have reached all time highs, namely central Phnom Penh districts such as BKK and Tonle Bassac, Townsend explains that โ€œthe local Cambodian land bankers and landowners are obviously moving in a different trajectory. Theyโ€™re thinking four to six years ahead.โ€ This is also due to many local buyers being priced out of the downtown market.These local land buyers understand that infrastructure such as bridges, roads and sewage is, and will continue to, drastically affect pricing of land on the outskirts of the city. This has been highly apparent in Chroy Changvar, where land price is rising significantly year on year, at a much faster rate than land in the CBD.Investors targeting the lesser known districts of Phnom Penh that are able to predict these improvements in infrastructure will make large returns in the not so distant future. Given the need for local connections and understanding however, this opportunity remains in the realm of local buyers and agents for the time being.Phnom Penh Residential Market Q2 2016:Although the number of foreign developments are continually growing and expected to contribute to a supply of condominiums of around 25,000 units by 2018, Townsend states that โ€œthe local developers are the main players. It may not be that way every quarter. But obviously, the strength and depth of Cambodian developers are growing.โ€These local developers have a better understanding of the means of the local market buyers, and this is creating more affordable options in the market. These developers often look outside the most expensive corridors of Phnom Penh where, once again, a lesser degree of infrastructure plays a big role in allowing developers to acquire affordable land and ultimately create a more affordable end condo-product. If they are lucky, the infrastructure will come as their project nears completion.Townsend then describes that as the market matures a variety of other property types have been popping up in the Phnom Penh new developments market, such as hybrids, SoHo and smaller units.Mixed-use developments have also made their way to Phnom Penh, a way of developers offsetting their risk in a unit-heavy condo market by combine a mix of retail, residential and commercial options for buyers within a single development.Despite growing competition though, condominium prices have still seen small but steady growth from 2015, up until the second quarter of 2016. It is with this slow growth that Townsend says that, โ€œtrajectories have changed from being favorable to the developer to favorable to the buyer.โ€Townsend explains that if there are no secondary sales from the primary residential market, then itโ€™s a sign that the marketโ€™s only going to get worse. Cambodia developers must heed this advice with care.Yet, Townsend notes that it is with this change in trajectory that the serviced apartments market is suddenly playing a much bigger role.As Townsend puts it, โ€œWhen the residential market dries up or begins to change the trajectory of sales per month or per quarter,โ€ developers begin to look to see if theyโ€™re able to convert some of the units to serviced apartment units to cut cost, and assure returns. Townsend notes that the serviced apartment market in Cambodia seems to still be going strong.In regards to the condo market for international investors, Townsend also notes that, โ€œItโ€™s a limitedย market at the moment. And obviously, at some point, it will come on the radar screen of a wider group of peopleโ€. Once Cambodia enters the consciousness of investors around the world, the market has the potential to change dramatically.It seems that so far we have only seen the tip of this icebergโ€ฆHe emphasizes that itโ€™s important to be out there and getting your story across, and marketing internationally - not just individual developers and agents, but the national as a whole.He adds the need for a diversified investor pool to negate risk across the market: โ€œWe need investors from all over the region. Not just from one place. You need to have a balance.โ€ 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.Given Cambodiaโ€™s current reliance on condo investors from Taiwan, China and Korea in particular, this word of warning seems highly valid.Phnom Penh Office Market Q2 2016:Townsend mentions that big businesses arenโ€™t as enthusiastic to go to Cambodia for expansion as other markets.He says, โ€œUnfortunately, weโ€™re at that stage where most of the people that are going to be here expanding and upgrading are here already.โ€ So, he doesnโ€™t predict a whole lot of new activities happening in this market.He adds, โ€œThe reality is not a lot of those Fortune 500 companies will be coming here. But the ones that are here want to be here.โ€He also addresses the audience of developers saying, โ€œsome of you will be thinking that you can fill your building in a year โ€“ not retail, but an office building. When things tighten up and everybody gets the same idea to have coffee at the same time, or go to the lift at the same time, or when the pilot puts the lights on in the airplane to go the bathroom at the same time, the same thing happens in office markets. So, sometimes, some of you may have mistimed it. And instead of taking one year to fill, your building may take three years to fill. This is the reality of real estate and commercial office space in a developing market.โ€The data gathered by CBRE shows that while supply in the office market has risen drastically โ€“ most especially with Grade A office units โ€“ occupancy has lowered from 2008. It also shows that the biggest business type occupying these office spaces are the banking & finance and logistics industries, which comes in at 22% and 14%, respectively.Townsend also explains that more and more strata titled office space isย appearing in the Cambodian market, and that itโ€™s not necessarily a bad thing - but it is a sort of inflection point because itโ€™s more difficult to handle a strata title building from the developer's perspective.Phnom Penh Retail Market Q2 2016:The retail market is also seeing an increase in supply, mainly with shopping malls, community malls, and retail podiums, where CBRE expects it to only go up even more in the next two years.Their data also shows prime shopping malls, prime retail podiums, prime high street, and prime retail arcade at an average rental rate per square meter of $31.44, $48.3, $30, $52.5, respectively. These developments include the Exchange Square, AEON Mall, and the Naga Citywalk.Townsend says that the marketโ€™s maturing, as evidenced by new products like row houses and shop houses. He also says that there is high demand right now for long-term leases that usually comes hand in hand with quality investment opportunities for incoming investors.He says that the Cambodian retail market is slowly gaining traction as well, with the coming of different international brands like Leviโ€™s, Starbucks, Hugo Boss, Long Champ, Salvatore Ferragamo, and Lโ€™Occitane.CBREโ€™s researched data for Q2 2016 shows that these have contributed to the high occupancy rate for the retail segment, where the majority of those who are occupying the space do so for financial & professional prime retail use. It also shows that โ€œ26 percent of retailers surveyed identified SEA countries as target markets for 2016.โ€As a result of this, CBRE is expecting even more construction and expansion for the retail industry.Siem Reap and Sihanoukville Q2 2016:According to Townsend, there are a lot of things happening in Siem Reap and Sihanoukville, in particular, a lot of activities in retail and hospitality. Infrastructure upgrades are also helping shape the two provinces. Just recently, the Royal Railway has restored its services to transport passengers from Phnom Penh to Sihanoukville, for example.He adds, a rising level of infrastructure will, โ€œObviously drive retail and condo sales, and second home sales.โ€Some of the properties available here are located in different islands such as Dara Sakor, Song Saa, Koh Rong and Koh Chanloh. But Townsend explains that the current difficulty here is getting people to actually go to these provinces, because there is actually more work that needs to be done in terms of basic infrastructure. But he balances this out and says that prices here are very attractive: Luxury resort villas range in the $2,000 to $3,000 per square meter range, for example.Talking about the competitive pricing in these provinces, Townsend adds, โ€œwhen developers start to move their total focus away from the primary residential market in the main cities and concentrate on the coast, then obviously where theyโ€™re looking for new markets and looking for new product, again you can see this reflected here with that sort of pricing.โ€Outlook Overall Q2 2016:Townsend also talked about finding new markets that may already be in existence but have just not been captured yet, such as the opportunity to seize the growing interest for retirees.In a report by International Living, Cambodia ranked 21 as one of the best places to retire in the world. Townsend adds, โ€œWeโ€™ve got to keep finding new markets, new things, and put some analysis behind it.โ€One of the sectors that are also being extensively marketed is the industrial sector; where industrial parks and Special Economic Zones are starting to slowly pick up as there is a growing need for increased fit-for-purpose space for factories, according to Townsend.He also mentions that tourism is one of the primary driving forces in Cambodiaโ€™s economy, โ€œbut youโ€™ve got to get out and market it. You canโ€™t rely on one group. Youโ€™ve got to rely on a wider source. And so much of it comes down to that airport. So much of it comes down to infrastructure.โ€ Townsend says that as these things continue to come up across Cambodia, tourism will surely grow.In conclusion, Townsend says that โ€œif you havenโ€™t already started building a retail center, youโ€™re too late. If youโ€™re building Grade A, finish it quickly. If youโ€™re building or thinking about building Grade B and C, just make sure you put enough lifts in, and enough car parks, and enough motorbike spots, because if you havenโ€™t, thereโ€™s already enough in the pipeline. If youโ€™re going to build something in the industrial park, youโ€™re probably going to need to heavily spend more money on marketing and be prepared to invest in factory space on behalf of the tenants that hopefully, you can attract either from Europe or North Asia, or indeed, out of China. And if youโ€™re doing a big residential project and itโ€™s got six phases, then look at the resale market.โ€Be an investor with valuable foresight, stay tuned to Realestate.com.kh news!
Complete and Concrete: Choose the Land and Houses (Cambodia) (LHC) Group for your next real estate venture!
Complete and Concrete: Choose the Land and Houses (Cambodia) (LHC) Group for your next real estate venture!
June 6, 2022, 5:04 p.m.
Realestate News
Although relatively new to the market, the Phnom Penh-based Land and Houses (Cambodia)(LHC) Group has already established themselves as a standout player in the the Cambodian real estate sector.LHC asserts its presence through five individual companies, each carrying a distinct expertise under their individual brands - yet overseen by the overall group director. The mother company is Land and Houses (Cambodia) Investment Co. Ltd., first established and officially registered with the Ministry of Commerce by Madame Se Lily, an experienced Phnom Penh real estate entrepreneur, in August of 2015. This company specialises in property investment broadly. The other four companies are the Land and Houses (Cambodia) Construction Co., Ltd., Golden Han Fei, Phnom Penh Land Development, and the LHC Architecture.Uniquely, through this network of companies, LHC is able to offer comprehensive services to clients without needing to outsource outside the group.Diversification; the Key to LHCโ€™s Market Offering:With the list of different entities under the LHC umbrella collaborating and consulting with each other, the LHC group is able to offer a range of specialty services that can ensure the group can take property investors, developers and real estate sellers from the start to the finish of their projects, whatever those projects may be.These services include local and international property investment, property development, property consultation and feasibility studies, property and asset appraisals, property management, construction and architectural design. These services are readily available for international, local, and corporate clients. Contact LHC today and find out more!Quality and Excellence; LHCโ€™s merger of International Talent with Local Understanding:Land and Houses (Cambodia) Group also maintains standards of trust and reliability through the use of high-grade materials, high-caliber manpower, and a culture of transparency. This has been achieved by forging joint venture partnerships with vendors from around the region, creating new companies that can draw from international experience, coupled with a firm experience in the local Cambodian market.Managing Director of the Group, Tyler Stuart, is a UK-born real estate and marketing professional with years of experience in the international & local market. Tyler Stuart has a clear focus for the direction of the Groupโ€™s companies as a whole, and maintains all staff are aptly specialised, and are driven to reach their personal and company goals.Armed with locally and internationally trained skilled professionals, LHC has already worked on several projects. Their group of researchers, advisers, marketers, analysts, consultants, property agents, and surveyors have collectively used their abilities and knowledge to market, sell and consult developments such as the Borey Varina, Chroy Chongva Residence, Borey Mohasensok, and their most high-profile mixed-development project yet, The Skyline, a 39-storey, 3 tower mixed-use development in central Phnom Penh, covering a total land area of 4,836 square meters. The Skyline boasts a 6-storey car park, and a 3 storey commercial shopping plaza on the ground floors. The project reaches completion in December 2018. LHC is exclusive sales vendor and manager of the Skyline project.Commitment to Follow-through:What sets Land and Houses (Cambodia) Investment further apart from other real estate firms and groups in Cambodia is their unique ability to provide a start-to-finish service, allowing clients to relax and know their property assets are secure.Six reasons why LHCโ€™s service offerings are a cut above the rest include a solid marketing philosophy, a sellable website presentation, a positive and enthusiastic team, immediate buyer leads management, negotiation expertise, and administrative support.They are with you from the start, from purchasing the property and producing feasibility plans, right through to the property management, maintenance and leasing, committed to a long-term partnership with its clients.So, if youโ€™re looking for a one-stop service provider for your real estate needs, whether you are a private seller, current property owner and operator, or a developer looking to launch a Cambodian based project, consider the Land & Houses (Cambodia) Group to assist you through each step of the process.Contact LHC today and find out more!
Apartment Market To Face a Strong Competitor
Apartment Market To Face a Strong Competitor
June 6, 2022, 5:05 p.m.
Realestate News
When it comes to apartment supply, thorough research is needed before investing in properties. You would have to consider the needs and essentials before placing your money into the market, especially with factors like the supply in comparison with the demand. Currently, the increase in supply may mean a significant amount of competition for those seeking to invest in the country. But this might actually be a good thing for buyers at the expense of the developers and investors who have ongoing projects.General Director of real estate company KFA, Nuon Rithy, said that apartment prices dropped between 10 and 20 percent compared to last year due to the influx of supply of apartments entering into the market. This forced some investors to install equipment with low quality, enabling them to lower rent prices. This is especially true for owners of apartments who have not updated their properties in a while. Rithy said, "The market currently is competitive in price, service and quality.โ€ So, investors who do not think about their projected profit will have problems in the future. ย He continues to say that โ€œapartments that have not installed swimming pool on the top, no parking and gym are really faced with problems intensified in finding tenants."The General Manager of the company Asia Real Estate, Po Eavkong, backs this up and explains that the apartment market is also competing with the condominium market which has grown rapidly as well. This is because both condominiums and apartments can be used for the same style of living. This is one of the reasons why the margin for the apartment market remains narrow. He added that the rental cost โ€“ depending on region and condition โ€“ dropped to around 5 to 10 percent.Eavkong warns, "occupancy rate of apartments might have a slight growth this year, but the apartment supply has increased more and more compared to the real demand." He continues, "It's time the apartment and condominium sectors compete from this year, but in terms of the number of apartments currently available, itโ€™s not yet too high."According to the study conducted by Bonna Realty Group last year, the number of apartments in 2015 that were supplied in the market saw an increase of up to about 35 percent compared to 2014, where the number of apartments rose to an estimated 6,000 units.Kim Heang, the president of Cambodian Valuers and Estate Agents Association concurs with the data, and gives further clarity by qualifying that the apartment market has reached the stage of "big fish eat small". This means that old apartments that are 5 to 7 floors in height in BKK1 have to be update their services or risk being demolished to make way for high-rise buildings that will have style design, interior design, equipping services, and material facilities to attract customers. He continues to say, "The current market reached a round that a strong one in this market takes a stance, and the weak will die."However, the consultant chairman of Daily Realty Group Khom Monyroth is not sold on the said idea. He said, "I observed that the occupancy rate of apartments have not changed, especially luxurious apartments in Boeung Keng Kang 1 still have consumers between 90 and 95 percent." He further states that the rental apartment price do not decline in these apartments which are designed with modernity in mind. But he still recognizes that competition in the sector has increased and remains to be a threat.He said that the number of people renting apartments have increased due to investors from Singapore and Japan entering Cambodia this year and because Cambodia has had a more stable start in the ASEAN Economic Community. It is with this that the Cambodian apartment market remains hopeful for its future.Please check out more full condos listings on Realestate.com.kh!This story was featured in the September 2016 print edition of PROPERTY VIEW magazine, produced by the CVEA.Realestate.com.kh is very proud to support the CVEAโ€™s Property View publication.ย For more information about joining the Cambodian Valuers and Estate Agents Association (CVEA) please click here. And, if you are interested in advertising placement or advertorial in the next edition of Property View Magazine, please contact Mr. Virith via email: virith007@yahoo.com Or call:ย 078 959 567 ย orย 098 66 26 68
Asia Property Awards & Property Reportโ€™s Parent Company Announces Leadership Transition
Asia Property Awards & Property Reportโ€™s Parent Company Announces Leadership Transition
June 6, 2022, 5:06 p.m.
Events & Announcements
Realestate News
THAILAND, 6 September 2016 โ€“ Asia Property Awards and Property Report, part of PropertyGuru Group (โ€œPropertyGuruโ€, โ€œGroupโ€ or the โ€œCompanyโ€), Asia's leading online property group, today announced a leadership change involving Steve Melhuish, Co-founder and Chief Executive Officer (โ€œCEOโ€) and Hari V. Krishnan, President and Chief Business Officer (โ€œCBOโ€). After nine years as CEO of PropertyGuru Group, Steve has decided to hand over the day-to-day operations to focus on the Companyโ€™s longer-term strategy, business growth, and key client relationships. Effective immediately, Steve becomes Vice Chairman of PropertyGuru and continues to support PropertyGuru full time. Hari is promoted to become CEO of the Company and joins the two co-founders โ€“ Steve Melhuish and Jani Rautiainen โ€“ on the Board of Directors (or the โ€œBoardโ€). This transition is part of a process initiated two years ago by the co-founders, Steve and Jani, to develop a world-class leadership team and succession plan. They identified Hari as a potential CEO successor in 2015, with the latter bringing to the table over 15 years of leadership experience in the Technology industry in the US and Asia. At that point, Hari was the Vice President for Asia Pacific & Japan at LinkedIn, having joined them as their first employee in the region. Hari joined PropertyGuru as President and CBO in January 2016. His appointment was followed by a few other key leadership hires, completing the executive leadership team in June 2016. Steve said, โ€œPropertyGuru is in a very strong position today, with our brands holding the number 1 position in all our core markets. Revenue and traffic continue to grow rapidly, and weโ€™re on track to return to profitability next year โ€“ after five years of aggressive investment in regional expansion, product innovation, marketing, and developing a world-class leadership team. As such, Jani and I felt that now was the right time to pass the baton.โ€ Steve continued, โ€œHariโ€™s done a stellar job as our CBO these past eight months. His exceptional leadership and people development skills, and vast experience in managing large teams across a complex set of markets and businesses make him the ideal candidate to continue the PropertyGuru success journey.โ€ Steve co-founded PropertyGuru due to his personal frustrations at trying to find a new home in 2006. Over the last nine years, Steve and Jani have helped to grow the company into Southeast Asiaโ€™s leading online property platform, used by over 16 million property seekers every month to find their dream home. Today, the platform generates over S$15 billion worth of transactions per annum for its 35,000 real estate developer and agent clients. Starting out as a two-man team, PropertyGuru now has over 420 staff, and its solutions extend beyond online property search to cover real estate events, awards, print publications and sales collaboration tools in nine Asian countries. โ€œJani and I remain very much part of PropertyGuru. We continue to be 100% committed to supporting the Companyโ€™s mission of helping property seekers across Asia make confident property decisions. Leading this Organisation has been an incredible experience โ€“ immensely gratifying and humbling! The success of PropertyGuru has far exceeded our expectations. Itโ€™s been a huge team effort and weโ€™re thankful for the amazing support over the last nine years from our Gurus, consumers, customers, partners, media and investors. Weโ€™ve built an awesome team and culture at the Company, and weโ€™re both excited about being a part of more accomplishments in the future,โ€ he added. Incoming CEO Hari V. Krishnan, said, โ€œPropertyGuru has been built by a wonderful team of entrepreneurs focusing on real consumer needs in our markets. I am excited to lead the Companyโ€™s next phase of growth, working with our talented team to bring more exciting innovations to property seekers and to deliver more value to our customers.โ€ He added, โ€œI am honoured to succeed Steve as the next CEO of the Company and look forward to continuing my partnership with him, which I have truly enjoyed these past eight months. As a result of our continuous consumer-focussed innovations and the biggest investment in research and development in our sector, the PropertyGuru family of brands are stronger than ever. I look forward to working closely with our seasoned leadership team, the Board of Directors, and most of all our talented employees, to serve all of our constituents โ€“ consumers, customers, partners and investors.โ€ Concurrent with these appointments, Jani Rautiainen, Co-Founder, Managing Director and Board Member of PropertyGuru Group, will transition into a new Executive Director role. He will be supporting the Groupโ€™s longer-term business development, continuing to help shape the Company and product strategy, and remains an active Board member. Lewis Ng, currently Managing Director for the Groupโ€™s Singapore operations, will be promoted to become Chief Business Officer, effective immediately. In addition to overseeing Singapore, Lewis will now focus on driving revenue growth across all markets. Steve said, โ€œJani and I are pleased with Hari and Lewisโ€™ new appointments. We believe the PropertyGuru leadership team is the strongest in the industry and has the depth of experience and expertise to scale and further accelerate the companyโ€™s growth over the coming years.
Guidelines for Licensing a Development Project in Cambodia, for Developers
Guidelines for Licensing a Development Project in Cambodia, for Developers
June 6, 2022, 5:06 p.m.
Realestate News
On the 20th of August 2016, the Cambodian Valuers and Estate Agents Association (CVEA) conducted a public forum regarding "Todayโ€™s Real ย Estate Industry in Cambodia" at the Sofitel Hotel in Phnom Penh. The discussion-based event was joined by an eclectic group of stakeholders โ€“ including property developers, media organizations, real estate agencies, banks, and the general public.In a panel discussion about the โ€œOpportunities and Challenges of Housing development,โ€ Ms. Chan Socheata, the Head of the Office of Business Management Housing Development at the Department of Industry and Finance, said that โ€œeveryone needs to posses their own house. So, why do they need to have a legal license? How is it significant or important for the buyer?โ€What does a developer need to do while Licensing a development project in Cambodia?She mentioned that โ€œgenerally, before the issuance of the license for any project development, the ministry evaluates through its checklist to find out whether the development has a clear and strong source of income, capital, collateral, land title, and other assets that support their project, especially because project owners need to make a business plan to present to the ministry.โ€โ€œThe ministry will check whether itโ€™s a good business, and if it can be successful in the future or not. In some cases, thereโ€™s a need to research on the sales strategy of the project, because sometimes a projectโ€™s owner does not do an in-depth market analysis with the surrounding market. And another reason is to find whether this project causes a bubble market. So, if this case happens, the ministry can take measure immediately,โ€ says Socheata.Socheata also mentions, โ€œIf we find that the sale price of this project is under the market price, we can allow managers to reconsider again about the selling price โ€“ comparing start cost and other conditions โ€“ in order for them to sell at a good rate.โ€How much upfront capital is required for a developerย licensing a development project in Cambodia?โ€œThe project development needs to have at least 2% of the total capital deposited in the bank of Cambodia or any commercial bank in Cambodia. Even though this deposit money is a small amount, it shows that the development has its capital. And it also causes the customer to trust the project too,โ€ she added. ย Socheata concludes by saying that โ€œall project developers have to get a license from the Ministry of Economy and Finance. And this is something that any buyer should seriously consider before buying residential properties off plan, whether condo or borey. Keep in mind to ask whether that project has got a license in order to protect your own benefit and not waste money with unnecessary trouble.โ€Check out the latest Boreys and New Developments on Realestate.com.kh today!
Condo and Borey Buyers Beware: Buy from a Development project with the License, Learn how!
Condo and Borey Buyers Beware: Buy from a Development project with the License, Learn how!
June 6, 2022, 5:06 p.m.
Realestate News
On the 20th of August 2016, the Cambodian Valuers and Estate Agents Association (CVEA) conducted a public forum regarding "Todayโ€™s Real ย Estate Industry in Cambodia" at the Sofitel Hotel in Phnom Penh. The discussion-based event was joined by an eclectic group of stakeholders โ€“ including property developers, media organizations, real estate agencies, banks, and the general public.In a panel discussion about the โ€œOpportunities and Challenges of Housing development,โ€ Ms. Chan Socheata, the Head of the Office of Business Management Housing Development at the Department of Industry and Finance, said that โ€œeveryone needs to posses their own house. So, why do they need to have a legal license? How is it significant or important for the buyer?โ€What does a condo or borey buyer or investor need to consider regarding the Licensing a development project in Cambodia?Ms. Socheata said that โ€œbuyers should ask for more information before deciding to buy a condo and seriously consider whether this project has gotten a legal license from the ministry.โ€She added that โ€œif the condo and borey project is licensed, it is a really good condition for buyers because licensed projects are guaranteed to be safe for buyers. And if there is conflict, the ministry is also easy to reach for a suitable solution for both parties.โ€For instance, Socheata notes, there are some buyers who donโ€™t want to pay money to the Borey 999. ย Even if this is the issue of the individual, it will affect this licensed project as a whole. So, the committee of the ministry is allowed to help by going to the root cause of the problem and negotiate with the company to get the project owner negotiating with the buyer.Condo and Borey Buyers need to be aware that buying from a licensed project guarantees that:The Ministry has checked whether the condo or borey development has a clear and strong source of income, capital, collateral, land title, and other assets that support their project, especially because project owners need to make a business plan to present to the ministry.ย The ministry will check whether itโ€™s a good business, and if it can be successful in the future or not.The ministry also often researches the sales strategy of the project, because sometimes a projectโ€™s owner does not do an in-depth market analysis with the surrounding market.To obtain the license, the project development company must to have 2% of the total capital deposited in the bank of Cambodia or any commercial bank in Cambodia. Even though this deposit money is a small amount, it shows that the development has its capital. โ€œAnd it also causes the customer to trust the project too,โ€ Socheata added. ย ย Socheata concludes by saying that โ€œall project developers have to get a license from the Ministry of Economy and Finance. And this is something that any buyer should seriously consider before buying residential properties off plan, whether condo or borey. Keep in mind to ask whether that project has got a license in order to protect your own benefit and not waste money with unnecessary trouble.โ€Check out the latest Boreys and New Developments on Realestate.com.kh today!
Kingsland Global celebrates pre-completion sale of Oknha Peich Boutique Hotel
Kingsland Global celebrates pre-completion sale of Oknha Peich Boutique Hotel
June 6, 2022, 5:05 p.m.
Property Reviews
Realestate News
The successful sale of the Oknha Peich Boutique Hotel on 18 February 2016 - prior to construction completion - serves as a celebratory and momentous milestone for Kingsland Global, and the company's Cambodian arm. Slated to be completed in the 2nd quarter of 2017, the hotel was sold to Vivaz Holdings Pte Ltd at US$13.4 million.This early sale is not only an exciting but significant achievement for Kingsland Global, which signifies the companyโ€™s firm belief in producing quality projects and moving further into frontier markets.Managing Director Mr. Jeremiah Lee said, "As we align our future plans to fit into Cambodia's changing landscape, we look forward to realizing this exciting opportunity to deliver our standards of excellence and quality to Phnom Penhโ€™s community and the citizens of Cambodia. We look forward to making larger steps with our partners and associates, making Kingsland a leading developer in Cambodia over the ensuing years.โ€The project is currently in its fitting out phase as it works towards the completion of the 13-storey, 88-room luxurious boutique hotel that the Oknha Peich Boutique Hotel sets out to be. As the project gradually nears its completion date, Kingsland Global is looking forward to every subsequent success and future opportunity that will sharpen and refine its repertoire with the undertaking of every project. Another upcoming iconic development, One18 Residences, is a luxurious 24-storey apartment providing quality living and hotel-like amenities right in the heart of Phnom Penh city. Look forward to a first-class residential experience like none other when the project is completed.For more info on Kingsland in Cambodia, please get in touch with Kingsland (KH); (Address) No. 34 Street 200, Boeung Riang, Duan Penh, Phnom Penh, Cambodia (Tel) +855 77 3399 20, (Fax)+855 23 2217 07/08 or Kingsland Global Headquarters (Singapore); (Tel) +65 6362 8998, (Fax)+65 6363 7031; or email info@kingslandglobal.sg
Condominium for Modern People: Are Cambodian living tastes changing?
Condominium for Modern People: Are Cambodian living tastes changing?
June 6, 2022, 5:05 p.m.
Realestate News
There are many modern residential homes inย Phnom Penhย city, whether they are villas, boreysย orย condominiums. But looking at the different types of properties, it is apparent developers are increasinglyย interested in building high-rise condominiums that are suitable with the local standards of living and are marketed at this group of buyers, particularly the young and modern Khmer families.Find out more about new developments on Realestate.com.khBut what do the local Cambodian buyers think about living in a Condominium? In terms of the standard of living in Cambodia, the concept of high-rise residential units has already become a trend. As Mr. Vorn Chan Thorn, CEO of Town City, puts it: "If we have sufficient financing and want to have a monthly income, we can buy a condominium in the city for leasing because it is convenient and brings in a fixed monthly income of about $ 1,500." Many people today are also changing the way they think about the standard of living, where comfort and privacy are held in high regard. These are things that those who buy a condominium need, according to businessman Pin Pisey. He says, "I bought a condo a year ago near Sansam Kosal Pagoda. I bought it with a bank loan, and I wasnโ€™t interested in buying it for resale. I like the atmosphere of living like this, it has security and privacy."Condominiums are also now adapting quickly with a more modern and younger generation. Mr. Ros Chesdathepadey says that heโ€™s lived in a condo and just bought a new unit atย D' Seaviewย at Sihanoukville. He adds, "Iโ€™ve lived in the Rose Condo approximately 2 years and livingย withย safety, good environment and in the center of town - it is private and there are various services together in condominiums, such as: shopping malls, gyms and swimming pools, all the service in condo very convenient"In contrast, Mr. Mao Sambathย said, โ€œI think that condominiums are very nice and offers a modern way of living. However, it is not fit for the Cambodian lifestyle yet. I will not buy a condominium because most of the developers are not trustworthy. Most of the time, they donโ€™t own the land and they use the customerโ€™s money to construct the building. What if the sales arenโ€™t as good as expected? The project would stay still. And who likes a 99-year plan? We need assets for the future generation. Who would not love living life in the heart of the city, above everyone? But condominiums arenโ€™t good investments yet for Cambodians. There are many lands and houses available. Iโ€™d rather buy a house and then decorate it nicely. I would not buy a condominium and then worry for the rest of my life about the future of the building, the quality of the building, and all the hidden costs for monthly services.โ€It seems like thereโ€™s a shift happening for the way of life of the locals, and foreigners who come to work or live in theย country."The number of housing purchases and loans for condos are more noticeable for both domestic and foreign guests. Locals think itโ€™ easier to live in these types of properties in particular because itโ€™s in or near the center of the city. Foreigners buy them for investment and for residential use", said Heng Sreyneang, the Housing Loan Officer at Canadia Bank.โ€œTheย Borey Villa Toul Sangke condoย projectโ€™s concept is focused on helping locals change their standard of living from traditional to a more modern one. It also aims to provide comfort. This residential property is exactly that. It brings a high standard of living.โ€ This is according to Mr. Andy Kong, the general manager of the Borey Villa Sangke company.As a newly-released Century 21 record says there is a total of 110 condo projects with 148 individual buildings, both finished and ongoing, or around 37,570 units slated through to 2020. Will the local market grab the chance to live in these new style of homes? Time will only tell.Find out more about new developments on Realestate.com.kh
Phnom Penh Development and Infrastructure Challenges, on Realestate.com.khTV
Phnom Penh Development and Infrastructure Challenges, on Realestate.com.khTV
June 6, 2022, 5:04 p.m.
Realestate News
Policies, construction, infrastructure, and population: These have all played an important role in the stages of growth in Phnom Penh. Having been resilient to extreme pressure in the past decade, the city has made for itself a society and an economy that is now conducive for progress.But of course, all success stories share a page in their book with struggles and difficulties. This is exactly what CEO of Cambodian Investment Management, Mr. Anthony Galliano, has pointed out in his interview with realestate.com.kh about how Cambodia has evolved and about what current issues it will have to address in order to move forward in the next few years.In an anecdotal account shared by Galliano, he shares that it was very different a few years back when he arrived in the country. He states that โ€œthere was no Canadia Tower, there was no Vattanac Towerโ€ and the country was largely only known to the outside world for the temples of Angkor Wat. But since then, Phnom Penh has sort of reinvented itself into a place that is extremely welcoming to foreigners, building upon the architectural and structural remains of its history. For example, currently 4,017 serviced apartment units make up the body of the capital city and this is continuing to grow. This is far from the less than one thousand units that were available back in 2009. And different types of developments have also been built during this period. Galliano says, โ€œFrom 2008 till now, itโ€™s just been incredible.โ€ But he also warns that this is also scary for several reasons.Population:While there has been a surge of construction projects for both commercial and residential spaces, Galliano states that the lack of sustainable growth in the Phnom Penh population might soon cause an imbalance in the market and cause an oversupply. It is also important to understand that unlike in Jakarta and Thailand where people flock towards the bigger cities for opportunities, Phnom Penh does not have that component. At least, not yet. Income Status:Even with the recent announcement of the World Bank that Cambodia is now a lower middle class income status economy, Galliano explains that it may still not be enough for these lower middle-class workers to afford the types of developments that have been and are currently being built in the city. He adds that an unabated expectation of these concepts make it even more dangerous for the city in the next couple of years after 2016.Credit:Since the city started growing, enforcement has been stricter, but a few things have also become laxer such as the availability of credit. But Galliano clarifies that the scale of credit growth is something that has already been recognized and being addressed by the National Bank of Cambodia. He says that though credit is freely available, it is still โ€œnot to the extent of other markets.โ€Addressing the Concern:In conclusion, Galliano states that effective urban planning and intentional targeting of issues such as traffic through the construction of infrastructures will greatly alleviate and offset these concerns. Should these hurdles be overcome by both the market and the government, then Phnom Penh will continue to reap the benefits in the future. If not, there may be troubled times for the economy ahead. Invest wisely, and know the Cambodian market inside-out with our in depth investor guides.
Take a Train between Phnom Penh and Sihanoukville, the Royal Railway is back!
Take a Train between Phnom Penh and Sihanoukville, the Royal Railway is back!
June 6, 2022, 5:06 p.m.
Realestate News
Fourteen years had passed since the Royal Railway in Cambodia ceased operations for passenger services between Phnom Penh and Sihanoukville due to deteriorating facilities and financial losses, only to resurface onto the radar once more when the company reopened in 2013 for freight services. The railway however has reentered the public consciousness again lately having announced earlier this year that they would be holding a grand reopening and resuming its passenger services between Phnom Penh and Sihanoukville during the Khmer New Year. Now, a few months has passed and reports regarding the new passenger services have been largely positive.Why Now?Though operations for this route only stated last April, the actual rehabilitation program has been underway for years now, with the ADB and the AusAID funding the restoration and the upgrades, the government of Cambodia having outsourced the operations of the railway back in 2009 for an exclusive concession that would last 30 years for Toll Royal Railway. The projectโ€™s estimated cost at that time, two years ago, reached up to $143 million. And while the south line from Phnom Penh to the beach town of Sihanoukville has already been completed, other projects under that funding such as the northern line connecting to Thailand at the Poipet border is also nearing completion. Here the tracks at Poipet are expected to connect the Kingdom of Cambodia to Thailand by rail by the end of 2017 - in order to improve both tourism and trade between the two countries, and raise Poipetโ€™s capabilities as a logistics and trade hub.An Inexpensive Alternative for Travellers and Commuters:More expensive than taking a regular bus at $4 and just a bit cheaper than an air-conditioned van at $12, an advantage of riding a train removes the element of traffic from the equation, slashing out an hour or two than it normally would to reach Takeo, Kampot, Kep, and Sihanoukville. It also costs less than a regular flight which can cost up to $140. Given the current traffic situation on the national roads 3 and 4 toward Sihanoukville, generally busy with trucks moving freight to and from the Sihanoukville port, the railway offers a comparatively safe alternative to road travel. According to an article released by The Guardian last June, a one-way ticket betweenย Phnom Penh andย Sihanoukville will only cost $7, while a $6 ticket will get you from the capital city to Kampot. These prices do not seem to have changed as of yet.Capacity:Five carriages have been restored and reupholstered to accommodate around 300 people. Two of these are air-conditioned carriages that can accommodate up to 170 people will run under the โ€œblue line;โ€ the other two carriages, which can accommodate 130 people, have fans built into them and will run under the โ€œyellow lineโ€. The last carriage is intended for travelers who may require a more privacy. The air-conditioned cars will travel towards Sihanoukville during odd days and return on even days, while the carriages fitted with fans will run on a schedule opposite to that.Running on a Schedule:According to the Royal Railway website, train operation runs every weekend, even on public holidays. They have also set up an office in Phnom Penh in the hopes of increasing sales for all destinations. Their office, Central Railway Station, Sangkat Sras Chork, Daun Penh, Phnom Penh, is open from 8:00am to 4:30pm on weekdays and 6:00am to 12:00 noon every weekend. For more information on train departure, arrival, pricing, and booking, you can contact Royal Railway at 078 888 582 or 078 888 583 or send them a message through their contact form.Learn more about transportation services in Cambodia in our in-depth location profiles!