A lot of activities have been brewing beneath the surface as the Asia Pacific region is being propelled into greater heights. But in the strings of this region’s interwoven fate, one small move can have serious implications for all. So, how exactly has the Asia-Pacific been keeping it together recently? And how does its present and projected condition affect the Kingdom of Cambodia? Knight Frank gives insight into that narrative through its recently released “Asia-Pacific Residential Review.” Cross-Border Investment Rising Cambodia Benefits   According to the report, Knight Frank states that close to a total of $2.1 trillion was invested in Asia-Pacific residential land sites over the past 10 years, where approximately 11% or $230 billion originated from cross-border deals. The report also indicates that this trend has not died down as the region entered into 2017. If anything, the recorded cross-border transactions were higher in 2017. The report states, “In Q1 2017, we continue to see more cross-border investment activities in Asia-Pacific – with close to US$10 billion representing 15.2% of the total sales volume. In addition, this is also the highest Q1 figure ever recorded since at least 2007.” Mainland China is Leading the Pack The report indicates that majority of the cross-border capital came from Hong Kong and Mainland China. However, it clarifies that “On the surface, Hong Kong alone is the front-runner with 74.5% of the market share but in fact the most acquisitive companies have roots in the mainland.” But Asia Pacific Head of Research for Knight Frank, Nicholas Holt warns that “driven by a need to diversify their portfolio many for the first time have been venturing into foreign markets after becoming a household name in homeland China. However, the recent capital controls imposed by the Chinese authority may impact such overseas development activities.”  Cambodia Benefits Because of the impact from the imposed capital controls, developers have been looking into investing in other countries. Holt states, “As many residential markets mature over time, the hunt for the next high-yielding property development opportunities may happen in selected developing countries such as Cambodia.” He adds, “Investors and developers will find these locations attractive given the consistently high economic growth, huge young population, rapid urbanisation rate combined with the rising need for different housing types.” The report further indicates that “Real estate developers from across Asia, particularly from China, Singapore, Taiwan and Korea have gone into Phnom Penh, seeking a share in one of the last frontier markets in Asia.” The report suggests that “legislation in 2010 that allowed foreigners to buy high-rise property paved the way for more inbound investments. The country’s economy has been growing around seven percent on average since 2010, attracting investors to buy up residential lands and units to tap on the growth opportunity in this fast-urbanizing nation.” With the help of professionals proactively trying to improve processes in various industries, Cambodia’s continuously growing market not only provides security for potential overseas and even local developers and investors. It also secures the country’s spot as one of the preferred markets in the Asia Pacific region. Read more report in our news section

A groundbreaking took place on Mong Rithy Street, Corner Road 1003 at Khan Sen Sok, surrounded by a group of workers and engineers, still actively working. This new construction site will soon be home to the first  wholesale supermarket in the country, known as Makro.According to Cambonomis, Makro supermarket will be built on an area of approximately 5 hectares with a height of 2 floors. It will be located in Sen Sok district, near Aeon Mall 2 (AEON), Japan supermarket.The upcoming supermarket is a joint venture between the company, LYP Group, which owns 30 percent., And CP Group owns 70 percent. This project will employ over 200 employees, working for the rising shopping mall.The local media have reported that yesterday's (29th of May) groundbreaking ceremony, the Mayor of Phnom Penh Mr Pa Socheatvong said "The establishment of supermarkets are within the government’s project. It's good to know when we have an upcoming wholesale supermarket so that the selling price of goods will not changing too fast, avoiding inflation"Makro is set to be the largest warehouse shop in the Kingdom which will bring Thai products to local consumers.In the past years Cambodia has seen many international projects of shopping centers coming into the market; and after the Japanese investments of AEON Mall and AEON Mall 2, it is now the turn of the Thai CP Group. Let’s wait and see who will step in next!Please find out development news in Cambodia on Realestate.com.kh

Areyksat, located in Kandal province east of Phnom Penh City and just a short ferry ride across the Chaktomuk River, is increasingly catching investors’ attention – with a number of residential, industrial and amenity projects now in the pipeline. This attention begun last year after Phnom Penh Governor Pa Socheatvong revealed upcoming infrastructure development projects connecting the area to the central city; namely, three bridges connecting Phnom Penh to Koh Dach, Svay Jrom and Areyksat. Although some are hesitant to invest in Areyksat pending the launch of these connectivity projects, many real estate experts and locals are keeping their eyes on the area thanks to the other notable developments already underway. Mr. In Sitha, CEO of the real estate website cambodia21.com, said: “Areyksat is recently seeing notable developments in terms of housing projects such as Borey Chaktomuk, the Evergreen project, Chaktomuk View, and several plot land projects. These developments contributed to a rise in land prices compared to the past three or four years.” SkyLand, a joint venture between Jet’s Group, a Cambodian company, and India-based STAR5 Development Pvt. Ltd., has also launched a $90 million affordable residential project in Vihear Sour commune. Ms. Chea Vita, assistant general manager of Sky Land, said: “The company occupies a total land area of 7,770 hectares divided into different development projects such as sky condominium project, sky villa project, and flat house project.” “The first 1,000 hectares is used for plot land and residential houses. While the first plot land project is already completed, next month the company plans to officially announce a flat house project,” she added.  Just 14 kilometers away from Phnom Penh, the Sky Land project is located in an industrial area where there are around 20 factories with nearly 40,000 workers. This offers significant appreciation potential for those buying in this area, according to Ms. Chea. Besides this, Ms. Chea revealed the company has reached agreements with other development companies to bring more amenities and services to the area; including a water park, solar power generation for the area, a fitness center and golf club, and the first floating market along the Mekong River in the area of Vihear Sour. Due to the various projects underway, Mr. In added Areyksat is an area of great future potential, especially for housing developments as it is located right next to the city, it offers many green areas, fresh air and a great river view. Sharing Mr. In’s view, Mr. Seng Sopheak, Chief Operating Officer at Cambodia Properties Limited (CPL), suggests Areyksat enjoys a “strategic location, just a stones away from the city. It will certainly attract a lot of interests from more developers in the near future.” In regard to land prices, Mr. Seng said: “Areyksat’s land prices can be divided into residential, riverbank, lowland (lake). Prices saw a high peak in 2014 and 2015, but currently they seem to have stabilized.” “For residential land in the Areyksat Commune along road 380, starting prices are between $400 and $500 per square meter; riverbank land starts from $150 to $250 and the lowland $30 to $50 per square meter -- with guarantee of legal ownership. It is also possible to find lower land at a lower price, but there’s no assurance that there’s no hidden conflict,” he added. “For the land located close to borey and condominium projects, prices can range from $80 to $150 per square meter. In this area, there are also some subdivisions of plot land projects, and prices can go from $100 to $150 per square meter,” according to Mr. Sopheak. Mr. Sopheak notes that infrastructure developments in Areyksat are vital to local people looking to move there. And while basic infrastructure such as water and electricity is coming quickly, connectivity to the city remains a major impediment for the time being. Nevertheless, for investors with time to spare before expecting a return on their investment, buying before roads and bridges are completed mean that land prices remain competitive. Mr. Moeun, a shop vendor in Areyksat village, welcomes the government’s infrastructure development plan in his area, saying: “I wish to see this area to have more roads and bridges across the river. When these infrastructures are developed, then I think companies and new development projects will also start to move in. And one more thing, having a bridge is good and convenient for villagers to travel to the city.” Despite being uncertain of the infrastructure development projects in his area, Mr. Hen Hoeun, a villager in Areyksat commune, said: “I want a housing development to launch in Areyskat commune, then I will buy one for my family; I want to live here, and not have to move to another area.” Check out property for rent or sale on Realestate.com.kh!

Cambodia has been at the forefront of growth in the past years. And it comes as no surprise that many are turning their heads towards the country for investment opportunities. But is Cambodia ripe enough for these investments? Here’s what you need to know about three of the major factors for investment – GDP, Taxation, and Population.Why invest in Cambodia?GDPThe World Bank has ranked Cambodia 109th out of 228 countries in its latest update of its World Development Indicators Database – still behind other Asian countries like China, Japan, Korea, Indonesia, Thailand, Hong Kong, Malaysia, Singapore, Philippines, Sri Lanka, and Myanmar.But unlike most of these countries (Japan, Korea, Indonesia, Thailand, and Malaysia) which have graphic data that best described as broken lines, Cambodia is represented by a much smoother curve that’s continuously moving up. From $6.293 billion in 2005, the country’s GDP rose to a staggering $18.05 billion in 2015. That’s a 286.35% increase in a span of 10 years.This is confirmed by the Asian Development Bank that said “Cambodia, which was once a country synonymous with conflict and poverty, now has one of the fastest growing economies in Asia. The country’s gross domestic product has grown by 7 percent or more each year since 2011 and is expected to keep up that pace through 2017.” In addition, it was also projected that there will be a slight 0.1% increase in GDP for Cambodia in 2017.TaxationIn an article released by the Khmer Times late last year, they refer to another ADB report that compared 21 Asian and Pacific economies. The reported data, in contrast with the GDP growth, was underwhelming – putting Cambodia in the third to the last spot for tax-to-GDP ratio. The report shows that less than 14% of Cambodia’s GDP comes from tax collection.It is important, however, to note that even if this was a recently released report, the data was still based on the fiscal year 2013. Since then, several taxation advancements have been made to the country’s system. This includes the Law on Financial Management 2016 which was the major reason for abolishing the Estimated Regime of Taxation and a restructure of the Self-Assessed Regime.According to the Phnom Penh Post, “Not only did this change in law consolidate the taxpaying community into one jurisdiction, it also increased the tax collected from small taxpayers as those formally in the ETR paid considerably less tax than those in the Real Regime.”In the same article, Anthony Galliano – Chairman of the Cambodian Investment Management Insurance Agent firm – also said that “in the same spirit as the Amnesty program, the Royal Government issued Sub-Decree No. 17 to encourage, if not to entice, unregistered SMEs to voluntarily transform into compliant taxpayers, and as a result, be rewarded with exemptions.”So, since fiscal year 2013, there has definitely been an initiative to widen the net for taxpayers and to profit economically from it at the same time.Population and Target MarketAs of March, Worldometers puts the population of Cambodia at roughly 16.01 million people. And while that’s far from the almost 1.4 billion people from china or the 7 million people in Laos PDR, the advantage of Cambodia’s population doesn’t lie in its totality. The benefit of this is that more than 70% of the population are under the age of 34. Asia Times says of this, “This means that Cambodia, unlike most Western or developed countries, has a large supply of young talent and labor available to work and innovate, helping the country develop.”And with ADB declaring Cambodia a low-middle income country, the economy is slowly gaining traction and the population’s mindset is shifting in terms of spending, this includes purchasing of properties.If anything, the investment climate in Cambodia is more than well. There are lots of possibilities because of its continuous growth. It is important, however, to note that it is still a developing country. And combined with these potentials are coupled risks. So, a careful study of what type of investment you wish to enter into the kingdom will save you a couple of headaches.For up to date news and information, visit our news section at Realestate.com.kh now!

Elections in Cambodia are drawing near - and if some investors are waiting to see how the situation will affect the country, others seemingly aren’t hesitant to invest. A possible investment opportunity will be the Kowloon Bay Twin Towers; a 59 Story, two tower development project to be located along Sothearos Boulevard in front of condominium buildings. The project is a joint venture between Star City Cambodia and WorldBridge Land. It will be built on a total area of 1.50 hectares. It was recently confirmed that it will be a mixed-use development project, comprising condos and shopping centers. However, since the development is still in the research and development phase, there is a chance of a variety of other property types being added into the plan. Although the project has not yet been officially confirmed, the developer remains optimistic regarding its approval for construction. According to thePost Khmer, Worldbridge Group chairman Sear Rithy said, "I still see that the project as well as the demand are positive." He added that "It doesn’t matter what other projects are currently present in the market. My only focus is the location." WorldBridge Land has already built several major development projects in the country such as The Bridge Project in the center of Phnom Penh, a high-potential area in front of the Australian Embassy in Tonle Bassac. This mixed-development consist of offices, a shopping mall, and residences. The developers are also working on their second project: The Peak. It is a diverse hotel development project located about 100 meters from The Bridge. The Peak will be completed in 2020 and will offer a taste of modern living and working in the city. Find out aboutupcoming developments on Realestate.com.kh

Following Prime Minister Hun Sen’s official visit to the Belt and Road (B&R) Forum for International Cooperation in Beijing last week, good news for Cambodia’s growth as part of a regional economic supply chain has echoed across local and international media.As reported by GlobalTimes.cn, Kao Kim Hourn, Minister Delegate Attached to the Prime Minister Hun Sen, "The Prime Minister's visit has greatly contributed to strengthening and expanding the diplomatic relations between the two countries." And as a result, according to Kao, both countries had reached a series of agreements that “underlined that the Belt and Road Initiative is a long-term strategy that enhances infrastructure, trade, finance and people-to-people connectivity." Mr. Kao also confirmed an MOU between China and Cambodia to revive the nation’s rail transit system. While more-immediate effects of the B&R initiative relate to logistics network development and increased capital and labour flows, experts involved in the Cambodia real estate sector suggest the policy will indirectly boost confidence in the Cambodia real estate market - for both local and international speculators and investors.H.E. Dr. Sok Siphana, lawyer and long-time Advisor to the Government, says that the policy, “directly accounts for the massive influx of Chinese investment in Cambodia. This includes major infrastructural projects such as energy infrastructure.” While on first glance this investment may not seem relevant to real estate investment, Dr. Sok notes that investors view a nation’s longer term growth prospects holistically; hence, “without achieving development in energy efficiencies, international business flows into Cambodia will remain limited.”Sam Yang, CEO of Eastland Development, suggests that the integration policy will increase demand for properties in general and ease worries of a bubble in the property market. Mr. Yang explains, “the Chinese plan to have a regional railway completed, effectively linking the Asian markets directly. Although supply is increasing quickly in the Cambodian property market, we should also see relative demand chasing as the region develops faster than ever.”Jasper Shin, a Taiwanese real estate agent and advisor based in Phnom Penh, shares the same sentiment. Mr. Shin says that, “Within this policy, when Chinese people come to Cambodia, the money also comes. And they invest their money into real estate. So, this is really good for the Cambodian property market. And in the next five to 10 years, Phnom Penh and Sihanoukville will develop faster because of this.”Some also suggest that the policy may have positive effects on the potential for sustainable rental returns in the condo investment market, as a relatively affluent Chinese managerial class enters the Phnom Penh rental market. Victor Chao, Project Manager at New Consolidated Max World (Cambodia) Co., Ltd, adds that, “there are already many Chinese companies in Cambodia now, and those who are in middle management can already afford to rent a condo unit, apartment, or a serviced apartment. If this trend continues and occupancy rates can rise across the apartment and condo market, investors can be more confident regarding the returns on their property investments now.” The property market of Sihanoukville may also see an increase in its number of investments. As a result of discussions regarding the Belt and Road project, a 190km expressway was confirmed last week linking Sihanoukville to Phnom Penh - due to start construction by the end of the year. The expressway will be developed by China Communications Construction Company in a contract worth nearly $2 billion. Infrastructural developments such as this will likely pave the way for faster investment growth on the coast.Find the best real estate news on Realestate.com.kh

Cambodia has been causing excitement in the international scene for becoming an international investment hub. And it seems to only get better. According to the Asian Development Outlook 2017 by the Asian Development Bank, strong growth is expected for the Cambodian economy in the next two years. And one of the sectors garnering great interest is the tech startup scene.In fact, just recently, various companies born from Silicon Valley -- the world’s technological cradle -- have taken interest in the expanding market and placed investments in local startups like Khmerload.But what does this interest in technology mean for the country’s real estate market? Realestate.com.kh gives you a brief analysis.How will technology change the short to mid-term outlook for Cambodian real estate?Seeing that the market is picking up, Cambodia’s technologies at the moment cannot be considered innovative as much as they are just similar to international business models. But this isn’t necessarily a bad thing because it provides most of the same benefits the technology did in other countries.Take Exnet Taxi Cambodia for example, a solution created to improve the process of sourcing vehicles -- a service that’s very similar to international services like Uber and Grab. Similarly, 360-degree tours and virtual walkthroughs have also entered the real estate market of the country, but not before it has already made waves in the global mainstage.For the short to mid-term perspective, this may be a prominent trend -- locals try to replicate international solutions and services while learning how to develop their own. This is because generally, introducing proven solutions on an otherwise untested market is easier than creating one from scratch since it takes less resources by eliminating the need for more extensive research. But as more trainings are provided and as the quality of the curriculum for education on the matter changes, more innovative products are bound to spring up from within the Kingdom. A blogger in the tech scene, Tharum Bun said in a recent interview that “It’s hard to get good education in tech and digital in Cambodia.” Bun recalls, “I have a friend who graduated here, and continued to get a Masters in Japan. When she returned, she started teaching at a university here. She told me that the kind of curriculum currenlty being thaught, is ten years old. New things need to be introduced, to keep up.” But why is there a lack of innovation in Cambodia at the moment?Ki Chong Tran, the founder of 3d printing company ARC Hub PNH, sheds light into the situation and says, “You need someone who can think outside the box. And it’s not just about the technical skills, it’s about the attitude. We kind of had to do our own training program. In the Cambodian educational system it’s just a lot of memorization and doing what you’re told, and not really thinking independently.”He adds, “Culturally I think there’s something there too about doing what you’re told. But we’re looking for leaders, people who are able to say, ‘Hey, I don’t think that’s right.’ And that’s very hard to find here.” However, he qualifies, “everything is lacking here. But you can use that to your advantage.” How will technology change the long-term outlook for Cambodian real estate then?Even though there are a lot of things lacking in Cambodia’s technological education system, the sector is nothing new to the country. But what is worth considering is that the demographics are slowly starting to change. The millenial generation is starting to populate the different markets at a rapid pace. In a recent article created around the topic, The Phnom Penh Post explains that “the choices of millennials have implications for the housing market,“ basing it on CBRE’s “Asia Pacific Millenials: Shaping the Future of Real Estate” report which likened the youth of the Asia Pacific to each other.The article explains that “while for many, the ultimate goal is home-ownership, spending and saving patterns dictate that most will live with their parents for longer than previous generations, and evidence suggests that 62 percent of APAC millennials not living with parents rent their home.”So, this comes as a challenge and opportunity for developers and investors to either create more innovative homes or re-evaluate their rental strategies. This can mainly come down to the issue of convenience and affordability, with millenials always seeking new experiences and opportunities they cannot find in their backyard.This will eventually drive newer innovations to address these types of issues, including solutions similar to the usage of Blockchain technology to democratize property ownership and to make real estate investing less expensive and more accessible to the youth. Blockchain technology also digitalizes real estate ownership. This may soon change the way ownership works for everyone in the country too. This may also lead to the improvement of already existing  technologies like virtual reality eventually moving into the realms of augmented reality and holograms. But what about the homes themselves? These new innovations will also mean improved development standards in the future, combining traditional elements into more modern packages and modern advertising platforms -- thereby providing an authentic and convenient experience for these future home buyers and renters. Take the developer Borey Peng Huoth, for example. The Southeast Asia Globe mentions describes them this way, “Earning gongs for Best Housing Development (Phnom Penh) and Best Landscape Architectural Design, the developer was hailed for its use of technology and placing a premium on its relationship with consumers by ‘being the Kingdom’s first developer that has created a dedicated mobile application for its client roster.”So, competition will be forced to step up. And when that happens, it will be an interesting sight to see.But the greatest thing about the future is that you can gather data from the past and present to effectively foresee an outcome that is most probable. And if that’s the case, Cambodia may have an interesting future in its hands. Find the best real estate news on Realestate.com.kh

What is a Pre-Selling Property?  A pre-selling property is a property released for sale in the market at any stage before the development is completed. This is otherwise known as an off-plan property. Pre-selling properties exist for a few reasons. Developers offer it to finance the construction of the project, while others for an assurance that all units are sold before construction is completed. Some developers do it for both reasons too. But buying pre-selling properties has its fair share of advantages and risks. Advantages of Buying Pre-Selling It’s more affordable – off-plan properties are mostly, if not always, cheaper than buying units that are ready for occupancy (RFO). This is because you won’t be able to use the home just yet! As a reward for trusting the developer, buyers are given extra privileges in the form of a low-cost purchase amount and more flexible payment terms. So, you can pay for the property in instalments as well with little to no interest. Other developers also do special discounts for early buyers, making the property all the more attractive.Great investments – Pre-selling properties mostly increase in value as it is near completion. This can be used to the buyer’s advantage. For example, if you buy a property now in its pre-selling stage and its selling price is $120,000, in about two to three years, once it’s completed, the value can go up to around $150,000. That’s a $30,000 profit for doing nothing except waiting for the development to be completed. But of course, you have to do your study on the property first.More options – Since the property is in its pre-selling stage, not many have inspected the property and bought it. So, as a buyer of off-plan properties, you have more freedom in choosing your unit type, where it’s facing, what floor, and other similar factors. With RFO units, this is hardly the case. You’re stuck with manageable units, at best. Cons of Buying Pre-SellingChanging Terms - Pre-sale contracts can be ambiguous and vague sometimes. It can be subject to further changes, either legally or through a technicality or loopholes. The risk is that you might actually get a unit that’s very different from what you were promised. This includes changes in material, location, layout, size, and finishing. Time Management – A delay in completion and turnover is another risk an investor must look into. Sometimes, pre-sale contracts contain delay clauses that free the developer from responsibility for turning it up on time.  That’s why it’s important to always check the contract.Financial loss – If a developer goes bankrupt or the project doesn’t push through, you’re usually left with nothing. Sure, you can sue them, but that will take quite some time and funding.  Bonus Tips* Even with these apparent risks, the good can definitely outweigh the bad if you are well-advised of the developer and their past projects. So, here are a few things to keep in mind when scouting for properties and you just happen to run across a pre-selling one. Look for developers with a good reputation. Look for reputable agents Get a good lawyer to run through the contract with you to check for any inconsistencies or unfair clauses.Hire the services of licensed brokers to assist you with the process.Verify the legitimacy of the developer with related government agencies and ministries such as the Ministry of Land Management Urban Planning and Construction. Pre-selling properties are great ways to get the most out of your money. With proper precautions and a bit of research combined with these tips, you can make that money grow even further until the next property comes along.  To find more reliable off-plan propertiesClick Here

When it comes to inspections for a new rental property, the bulk of your search and consideration usually revolves around technical aspects of the new home, such as proximity to your office or your kid’s school, your budget, the number of bedrooms and the like – it is easy to overlook some of the smaller but equally important details during the heat of the viewing. What property should you rent in Cambodia? Here’s a checklist, thanks to Realestate.com.kh, to ensure you’re not forgetting anything!Safety First:Regardless of what your agent tells you, be personally responsible for you and your family’s safety when considering any new rental property. Walk around the neighborhood of any property you are considering renting, speak with neighbors (and other tenants if it is a shared building) and come back to the area at nighttime and make sure no hidden threats appear when the sun goes down. Also, always consider the potential for flooding. A 24 hour review is necessary to note any noise hazards too – there may be construction in the afternoon that you never noticed at the morning viewing, or a night club could open at night next door. For a little extra attention before agreeing to the rental contract, you can truly understand the pros and cons of the property.Little Things:Check faucets, door hinges, locks, door knobs, power points, appliances, water heaters and gas cookers before agreeing to rent. Most of the time these things look perfect until further investigation – but if you catch minor problems now, you can ask the landlord to fix them before the agreement is settled.  Photo Evidence:Before agreeing to the bond payment, take photos of every room in the house while it is empty. In these pictures, make sure you evidence any preexisting damage to the property. This way, when your contract eventually ends, the landlord has no grounds to deduct wear and tear damages from your deposit that in fact you weren’t responsible for.Missed Part 1? Find it on Realestate.com.kh! Interested in renting? Check out these properties now!

In last week’s edition we considered some real estate negotiation tips to help you think more laterally in your real estate negotiations and achieve better outcomes. Missed the first tips? Find them online at realestate.com.kh/newsUnfortunately positional bargaining in real estate transactions (that is, focusing solely on a price battle) generally results in poor outcomes for both parties - because everyone gives up the same amount and, therefore, neither party gets what they really want.Thankfully there are other ways to negotiate! Here are some more simple real estate negotiation tips and watch your odds change:3. Trust your judgment and make genuine offers:There is a saying in real estate that ‘time kills deals’ and in a fast paced property market such as Phnom Penh, Siem Reap and Sihanoukville this is definitely the case. As such, we suggest researching the real estate market thoroughly and making an offer that is at, or very close to, your maximum.  By making an offer for what you know the property is worth, you have a strong chance of buying the home, land or commercial property, before other buyers swoop in and offer more. Remember this negotiation tip and don’t get caught out offering less than you know the property is worth - if this occurs you are likely to miss out as more aggressive buyers pay more and close the deal.4. Loose lips sink ships:Never let the other party know how much you have available to spend or what is motivating you to buy during any real estate negotiation; this risks the seller using these great negotiating tactics on you! This is a key negotiation tip in any situation, not just real estate.Similarly, given so many properties in Cambodia are marketed as “Price On Application”, it is very important to always make the seller name a price first before beginning any real estate negotiation. With that information you are well placed to make a counter-offer in proper context of the seller’s price. If a buyer makes the first offer, they are in danger of over-pricing the property from the start and that can only ever result in a bad deal.5. Cash is king:Sellers hate any uncertainty in a deal and offers made ‘subject to finance’ can be a deal breaker when a competing offer is for cash – even if the offer is for less. This is why it’s critical to have your finance arranged and be ready to settle on a deal very quickly once the price is agreed. See the bank BEFORE you see the seller! Cash is always king in real estate negotiations, in any country, but especially in Cambodia. Being able to offer cash gives the seller absolute confidence in your offer and this is often worth more to a seller than a higher offer that may never settle.Keep these real estate negotiation tips up your sleeve, and you will secure you dream property in no time; on YOUR terms, not the sellers!Want to learn more about how you can make money by investing in real estate wisely? Get on Realestate.com.kh today, the best source of information for property buyers & Sellers in Cambodia.

Sihanoukville has been the center of many discussions lately because of the various infrastructure upgrades and modern developments popping up.Some of these projects are D’Seaview condo, a new highway from Phnom Penh to Sihanoukville, the Sihanoukville Special Economic Zone, and the Sihanoukville Airport expansion project. And it is these same developments that are paving the way for new investment opportunities to flow into the area – particularly as “Cambodia’s next real estate boom town.”Adding to its potential as an investment hub is the government’s coastal development master plan which aims to protect and maintain the ecological assets of the area, further promoting tourism. There’s also the 3,300 hectare-land-concession project at Ream which will see the rise of a hospitality zone for tourists and even locals. But the topic of investments can be tricky at times, especially for a market that’s just beginning to rapidly expand. That’s why Camhomes put together an event that aims to shed light into the current situation of Sihanoukville and how investors can take advantage of it.The event will be held on the 10th of March, 2017 at D22 – Tama Hotel Phnom Penh Tower. It will start at 6pm and will be graced by esteemed speakers, Mr. Tom O’ Sullivan – Director of Realestate.com.kh -- and Mr. Kuoch Lengkheang, PR & Marketing Strategy manager of Camhomes.Find the latest real estate news now on Realestate.com.kh

(A sample of Cambodian property ownership title)Cambodian land title classifications can be rather confusing to a new property buyer. That’s why we’ve come up with a simple guide to the 4 different property titles you need to know. Before we get started, we have to note a fundamental rule when it comes to talking about land property/ownership in Cambodia: According to Cambodia’s constitution, only Cambodian nationals can own land and landed property within the Kingdom.Now that’s out of the way, let’s explore the main ways property ownership can be secured in Cambodia.Property ownership can be secured by one of the 4 main forms of Cambodian property titles, namely: Hard Title, Soft Title, LMAP Title, and the Strata Title. We’ll give you a quick rundown of the important points to remember below.Types of Cambodian Property Titles:Hard TitleHard title is the strongest form of property ownership in CambodiaIn the rare occurrence that a disputed land has both a Hard Title and a Soft Title, the owner of the Hard Title will win the dispute. Hard title is a land ownership certificate provided by the Land Management and Planning office.Hard titles contain detailed information that has been duly recognised and certified at a national level with the Ministry of Land and the concerned cadastral office.A Transfer tax of 4% percent will be paid based on the total property value upon the facilitation of the Hard Title transfer.The facilitation of a Hard Title transfer usually takes up to 12 weeksForeign nationals are constitutionally prohibited from obtaining Hard Titles.Soft TitleSoft title is the most common form of ownership and the most commonly issued Cambodian land title as the transfer taxes and fees are cheaper than a Hard Title.It is estimated that 85% of Cambodian property owners only have Soft Titles to back up their property claims.It is a Cambodian land title that is recognised at the local government level (Sangkats & Khans)Soft titles are provided by the local Sangkat or District office and are not registered at a national level - but are still considered a valid legal document of ownership. Soft Titles are relatively cheaper and quicker to acquire for CambodiansEstimated to take anywhere between 10 to 12 working daysForeign nationals are prohibited from owning a Soft TitleLand Management and Administration Project (LMAP) TitleThe LMAP Title is another property ownership title issued and recognised on a national level by the Ministry of Land Management, Urban Planning and Construction (MLMUPC) - along with the relevant cadastral offices.The main difference of the LMAP Title from a Hard Title is its inclusion of the exact GPS coordinates that determine the boundaries of the property in question.LMAP Titles can only be obtained on land that has been indexed on a cadastral map. So, if a plot of land has not yet been indexed, an LMAP Title cannot be issued for that property.If the MLMUPC is presently undergoing the necessary LMAP titling process in your village or area where you live, this means you only need to follow what your local authority informs you to do once the project is completed. It is their obligation to communicate with you.It is possible to own a Hard Title without an LMAP Title due to the above-mentioned limitationA Transfer tax of 4% percent will be paid based on the total property value upon the facilitation of the LMAP Title transfer.Foreign nationals are not permitted to own an LMAP title.Strata TitleStrata Title is a special title commonly used for condo unit purchases which is available to both Cambodian nationals and Foreign nationals.There are other mechanisms not necessarily involving a Strata Title available for property ownership for Foreign nationals which you can see in our investment guide.Strata Titles can only be granted if the property in question satisfies these criteria: Only applicable to buildings constructed in 2010 and beyondForeigners can only own 70% of the total surface area of the building or propertyStrata Titles cannot be issued for properties on the ground floor and/or undergroundStrata Titles cannot be issued for any property within 30km of the nearest land borderPrivate Ownership in co-owned buildings (also known as Strata Title) is the most recent form of ownership and allows foreigners to legally own property in Cambodia.Strata Title is a less common Cambodia land title, but the numbers are growing fast.Most new condo development projects offer this type of title to accommodate foreign demand to own property in Cambodia.The Law on Foreign Ownership’ was promulgated on 24 May 2010. This law limits foreign ownership to co-owned buildings. Foreigners still cannot own land, as it is unconstitutional.Co-owned buildings are defined as a building or construction in which several owners reside (eg. a condo complex or office tower), consisting of some parts that are the exclusive ownership of each co-owner (private units) and some other parts that are common spaces for the common use of co-owners (common areas).Strata Titles are issued by the Ministry of Land Management, Urban Planning and Construction. Which means Strata Titles are recognized on a national level.A Transfer tax of 4% percent will be paid based on the total property value upon the facilitation of the Strata Title transfer.How to Transfer A Property Title in CambodiaWhen you purchase property or land, it is critical to obtain outright ownership in order to feel secure about your new asset. To complete the process for transferring land titles of ownership, there are particular steps that need to be followed, documents that need to be obtained, as well as the necessary consultations with relevant agencies.Step 1: Verify the title certificate with the relevant Land OfficeThe buyer will first need to verify the land title certificate with the Land Office at the Ministry of Land Management, Urban Planning and Construction (MLMUPC), to check for any debts or other claims to the property. This process requires:The buyer must obtain the original title certificate from the seller to verify their genuine ownership.The buyer will then verify the title certificate with the Land Office at the MLMUPCThe Land Office will inform the buyer if there are any liens (debts), mortgages or other claims registered to that property.Relevant Government Agency: Land Office at MLMUPCEstimated time to completion: This takes approximately 10 days (should occur simultaneously to steps 2 and 3)Step 2: Obtain information on the propertyThe buyer must then obtain information on the property from the relevant Commune Council Official. This involves the buyer contacting the village chief or the Commune Council Official in which the property is located to obtain information about the land/property. In addition to this, an official search of the title should take place at the Khan/District Land Office.Relevant Government Agency: Commune Council (Relevant District/Khan office in your property’s area)Estimated time to completion: This should take approximately 10 days (we advise that this be done in parallel to Steps 1 and 3)Step 3: Obtain the certificate of incorporation and official documents from the sellerIf the landowner is a legal entity, the buyer must obtain;A copy of the ID of the shareholder, or person acting on behalf of the company,A certified/notarised copy of the Certificate of Incorporation of the seller’s company as issued by the Ministry of Commerce.Any other official documents from the seller relating to the company and the transaction.All of these documents are needed to verify the accuracy and identity of the company name appearing on the title certificate. Further documents needed to verify the seller’s authorisation to transfer the property to the buyer are;A special power of attorneyA Resolution signed by the Board of Directors from that company authorising the named individual (seller) to represent the company at the Land Office (MLMUPC)A power of attorney specifically stating that the seller can bring into effect that Resolution to transfer land titles of ownership to the buyer.Relevant Government Agency: Ministry of CommerceEstimated time to completion: This process should take around 10 days (should occur simultaneously to steps 1 and 2)Step 4: Apply for registration at the District Land Office (MLMUPC)When the buyer and seller, whether they are as an individual or a company wish to complete the property transaction, they must go together to the District Land Office at the MLMUPC to arrange, to prepare and sign the relevant documents.The documentation needed for this step isThe Company’s statuteThe Company’s Certificate of Incorporation (obtained in Step 3)Both of the Power of Attorney documents (obtained in Step 3)The original Title Certificate held by the seller must be presented to the District Land Office at the time of signing the deed, in order to have the name of the new owner officially inserted on the document.Relevant Government Agency: District Land Office, MLMUPC (District Land Office of the Ministry of Land Management, Urban Planning & Construction)Estimated time to complete the step: This step takes between 20 and 30 days.Step 5: Pay transfer taxA transfer tax of approximately 4 percent of the total value of the property is paid to the Ministry of Economy and Finance at the General Department of Taxation, in the district that the transferred property resides. A tax receipt is then issued to prove that the property transfer tax has been paid.In Phnom Penh, however, this tax is not assessed based on the true transacted value of the property; but, rather, based on a schedule of the price of property determined by the Phnom Penh Municipality. The assessed valuation by the Phnom Penh Municipality is based upon factors such as; the total number of square meters, the land’s location, use, potential use, and other variables.To put this quite simply the transfer tax is not based on the actual price of the land which is sold, which is usually the case, rather it is based on the assessed value made by the Phnom Penh Municipal office, which may be higher than tax rates in other provinces.If the land is more than 1200 sqm, the surplus of the land will also be subject to “unused land tax.” For land less than 1200 sqm, the unused land tax is not applicable. The time for the General Department of Taxation to complete the calculation of transfer tax will depend on the location of the land and its size.Relevant Government Agency: General Department of TaxationEstimated time to complete the step: This process should take around 1 dayStep 6: Return to the cadastral office to complete the registration processAfter all relevant taxes are paid, the parties may return to the cadastral office at the District Land Office of the Ministry of Land Management, Urban Planning & Construction (MLMUPC) and sign/thumbprint an MLMUPC form for buying/selling real property, as filled in by MLMUPC official.The signing/thumbprinting must be witnessed by a local authority such as commune chief, who will also give their thumbprint. These procedures are based on Land Law Articles; 65, 244 and 245. Land Law Article 69 bars transfer of property unless all necessary taxes are paid. The documentation provided should include payment receipts of the transfer tax. (obtained in Step 5).Step 7: Obtain the certificate of title from the Municipal Land OfficeObtain the certificate of title from the Municipal Land Office: The Khan/District land office forwards all the “transfer documents” to the Municipal Land Office where it issues the final Certificate of Title in the new owner’s name. It is now registered.Relevant Government Agency: Municipal Land OfficeEstimated time to complete the step: 1 to 2 weeks. The last procedural step in practice can take several weeks, depending on the diligence of the land officials and interested parties.Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now!Article by:

Siem Reap is a prime tourist destination in Cambodia and serves as a doorway to the historical site of Angkor. Each year, visitors from all over the world travel there to explore Angkor which magnificently reflects the 12th century civilization and is listed as a World Heritage site of UNESCO.Aside from being a top tourist destination, it is also becoming an increasingly important spot for real estate investments. The city is now filled with luxurious hotels, beautiful colonial buildings, impressive handmade crafts, nightlife, and much more.An increasing number of people are considering purchasing land in this province. What is there to know about this area and why is becoming so attractive?Location:The city is located around 314 kilometers northwest of Phnom Penh, and is well connected by the National Road 6, which will take you to the city in less than 6 hours. It has a total area of 10,299 square meters and the province has 11 districts, 1 town, 13 Sangkat, 87 communes, and 921 villages. Siem Reap is a true natural beauty: is settled in southern Tonle Sap -- the largest lake in Southeast Asia. The lake serves as a shelter to hundreds of bird and fish species and without any surprise, the lake was recognized as the first Biodiversity Conservation area by UNESCO back in 1997.The area is also home to the Cham and Vietnamese communities living in floating villages around the lake.The fascinating Siem Reap city center that includes many luxury hotels, beautiful colonial buildings, a buzzing Pub Street and nightlife, markets, crafts and much more...The potential of this area is significant with strong growth potential in the tourism and service sectors as well as craft production, fisheries and of course real estate.Growth of business in Siem Reap:Pub Street is probably the most famous street of Siem Reap: it has the highest concentration of bars, pubs, karaoke places and restaurants. As a result of a combination of tourism growth, progress, and F&B businesses, pub street and the road nearby, are in high demand for their retail spaces.Although the real estate sales in the area aren’t that many, the leasing of activities has increased and became one of the major sources of profit for the area.Real Estate in Siem Reap:In 2015,  the price of Land in Siem Reap increased by 5% to 10% and growth in the ring road area up to 15%. So far, the city center has been the main target for real estate investments; This includes four major Sangkats: Slorkram, Svay Dangkum, Salakamreuk, and Korchak.Tourism, hotel, entertainment, retail and service sectors have had a positive effect on the area’s economy. Although rental has grown rapidly in the four sangkats in the last 10 years, the real estate market of Siem Reap is said to be developing in a healthy way.Land prices in Siem Reap:Year after year Siem Reap is still one of the most attractive destinations for both local and international tourists.According to Mr. Po Eavkong, General Manager of Asia Real Estate Co., Ltd "Land prices will increase by an average of only 5 to 10 per cent this year, the same percentage points as in 2015.”Eavkong also explains that because of this “landed property could fetch between $300,000 to $400,000, or equal to $4,000 to $5,000 per square metre. Meanwhile, along Sivutha Boulevard prices could range from around $2,000 to $2,500 per square metre, with land further afield along National Road 6 falling anywhere from $300 to $150 per square metre.”Sok Sarath, a local estate agent, also believes that Land in Siem Reap is a good investment. He stated that businesses are growing rapidly, the​ province displays many vacant land and residential project developments along the ring road cities are raising.Is it good to invest in land?Kim Heang, president of CVEA said "Investing in Land in Siem Reap, it's suitable for those who have financial means and do not require a loan". He continued, "But if you invest land by borrowing from banks, it might not be the best option if you are looking for quick returns. Although interest rates are only 8 percent a year, it will take approximately 2 to 3 years before you will be able to sell the land and make a profit."What area in Siem Reap is good for investment?Areas with potential for quick profits include development projects alongside the ring road. Businesses along that road are also expanding: hotels, restaurants, private clinics, schools, factories and other institutions. Slorkram, Svay Dangkum, Salakamreuk, and Korchak have also showcased the most dramatic growth in recent years.Why invest in Siem Reap instead of Sihanoukville and Phnom Penh?As mentioned, Siem Reap has seen an increase in business and tourism. Investments in real estate development can already be noticed, and had influence on the city’s growth figures. The land prices here are still lower compared to the ones in Phnom Penh and  Sihanouk Ville. The population is also lower, resulting in a stress free environment with very limited traffic and pollution. Siem Reap is particularly suitable for those looking for tranquility and privacy.Find more investment guide in Cambodia on Realestate.com.kh now!Take 2 minutes to complete our survey and win and IPhone 8!

(Check out our update on real estate scams in Cambodia in 2019)Despite the huge growth in the Cambodia real estate industry, there are still many operators that are conducting real estate scams and misinformation for a quick profit. Here is a list of the most common scams in the market, thanks to Realestate.com.kh. If you ever think you might be getting scammed, seek professional legal advice!The Double Title Scam:Properties in Cambodia come with soft titles and hard titles. Sometimes a property may have both. This scam involves an owner selling the house to two buyers. One buyer gets the soft title and the other gets the hard title. The person with the soft title loses the house because soft titles are only recognized in the local government, while a hard title is recognized at a national level. There have also been cases of multiple titles being issues, or forged – and sellers selling the same property to multiple people. There is a possibility that the buyer with the hard title is involved in the scam, but that is not always the case.You can avoid this scenario by making an inquiry with the Ministry of Land Management, Urban Planning and Construction and the local government office managing property registration. Get a copy of the title from the seller and check it against official records.Another safety precaution is to check whether the neighbors have hard titles. If they do, this means that the government has already titled the area. Buying a soft title in a place where most neighbors have hard titles is not advisable.Hidden Land Disputes:Having a soft or hard title in this scam is hardly relevant. This scam involves the property standing on a land with an ongoing dispute. Usually, talking to neighbors reveal this issue. But you should also conduct a title search through a commune council official or the Ministry of Land just to be on the safe side. A professional real estate agent will do this on your behalf, or a lawyer with experience in property transactions.Deposit Disappearance Act:This scam is done by a fake owner. A buyer is asked to pay a deposit to secure the property. The seller then disappears after receiving the deposit. You may opt to pass the deposit through a reliable third party or an intermediary escrow bank account until everything is settled to protect yourself from this.Want to learn more about how you can make money by investing in Property in Cambodia? Get on Realestate.com.kh today, the best source of information for property buyers & Sellers in Cambodia.Work with the best and safest agents: find them here!

Realestate.com.kh is pleased to release the results of the 2016 Realestate.com.kh Consumer Sentiment Survey. The survey reveals key information for investors, developers, retailers, financial institutions, insurers and personal home buyers and sellers.The intention and scope of the December 2016 survey was to dig deeper into the hearts and minds of Cambodia-focused real estate consumers in regards to their perceptions of the market and their current spending and borrowing habits. By doing so, the survey allows us to predict future buying and selling trends in the market.The responses revealed a generally positive attitude towards the real estate market of the Kingdom, which is currently perceived as growing, improving and, more importantly, a target for investment. As a matter of fact, almost 80% of those surveyed believe that purchasing a property in Cambodia represents a good investment.However, the survey has also produced data that suggests many consumers perceive a series of weaknesses in the market - namely in regards to the current affordability of property (especially for local buyers), the need for financing for property purchases, and gaps in the market regarding professionalism and transparency in the real estate sales and valuation professions.Download the Full ReportMethodologyThe survey was distributed over email to the Realestate.com.kh database of both local and international subscribers. It was also featured on the Realestate.com.kh website for a two week period, and shared on the Realestate.com.kh facebook and Linkedin. We also had guests to the Realestate.com.kh display booth at the Cambodia Construction and Property Expo at Koh Pich Exhibition Center in December 2016 complete the survey.In total, 5000 respondents completed the survey in the space of just two weeks of December 2016.The survey was available for respondents in two languages, English and Khmer, depending on the user’s preference. The results of the English and Khmer surveys have been tallied separately for one data set, and together for an aggregated data set.To date, this is the most comprehensive real estate consumer sentiment survey ever conducted in Cambodia.The following are the key results of the survey:AffordabilityUnderstanding the financial capabilities of the potential buyers is crucial in order for property developers and agents to shape their property product correctly for their target markets, and predict future needs and trends of that market. It is also valuable information for finance providers attempting to understand the needs and means of the home lending market in Cambodia.When asked “How affordable is housing in Cambodia?” respondentsreferred to local property as “moderately unaffordable” (34%), “affordable” (28%) and just 16% stated that is “moderately affordable”.However, it is important to note that the survey was distributed in English and Khmer. Upon analysis of the non aggregated data set, we can see that the price perception of the real estate market greatly differs among nationalities. The majority of those who have filled the survey in English (37% in total) have described the market as “affordable;” whereas more than half of the Khmer respondents stated that the market is “moderately unaffordable”.Price Increases in the MarketThe investments of property developers have been highly visible around the capital of Phnom Penh in the past year, greatly increasing the local supply. Other urban centers such as Siem Reap and Sihanoukville have also seen increased investment in the residential sphere, albeit incomparable to Phnom Penh.Yet prices for end buyers do not appear to be dropping across the market despite this new supply.More than half of those who took part in the survey suggested that they have seen a general increase in property prices over the past 12 months (58.6%). Furthermore, 54.6% off all respondents expect property prices to continue to rise in the coming 12 months.What is interesting to notice is that although the imminent price rise perception, regardless of this, almost 80% of the participants believe that now is a good time to purchase a property in the Kingdom.Almost half of the respondents (45.4%) stated that they fully own the properties they reside in. Meanwhile, 30% of all respondents are currently renting and are considering purchasing a property soon. In fact, an impressive 70% of all respondents surveyed showed great confidence in the local property market by declaring that they are considering purchasing a property in the coming 12 months.This divergence in the perception of affordability of property is likely to depend on the difference in household incomes between Cambodian Nationals and non-nationals. When analysing the customer's profile results, almost half of the Khmer respondents’ income fell into the less than $500 per month category (42%), and 30% of all Khmer families fell into the $500-1000 monthly household income bracket.In comparison, only 15% of non-Nationals stated to earn less than $500 per month, 30% earn between $500 and $2000 per month, and 15% stated to earn over $10,000 per month in total household income.In conclusion, property in Cambodia is generally affordable for international residents and investors; whereas it is still moderately unaffordable for Khmer nationals.Buying PowerIn terms of buying power, more than half of the respondents (67%) have less than $70,000 to spend on a property; 13% of respondents have a budget ranging between $75-$100,000; and another 13% can afford a property between $100-$200,000.  Lastly, a lucky 3% can afford properties between $200-$300,000, and 3% are able to invest over $300,000.According to the results, 35% of respondents have enough liquidity for a downpayment of 10% for any property purchase, but almost 30% of the potential buyer pool do not expect any down payments whatsoever; 17% can afford a 20% deposit and just 12% can put down 30% for the deposit.Yet, naturally, these figures differed in regards to English respondents versus those completing the survey in Khmer. Of the Khmer respondents, 36% expect no down payment; 36% expect only 10% down; 14.4% expect 20% down only; and just 9.5% can afford to put down 30% on signing.In comparison, of the English language respondents (which naturally includes non-Nationals and investors), 28% are able to put down a 30%+ deposit.These statistics would suggest many of the new development products on the market needing initial deposits of over 20% of the total unit price, especially in the prime condo market, are largely out of reach of the local market’s buying power - with or without financing.Home Loan Needs and MeansA positive result has been shown for banks in Cambodia, with 69% of those surveyed saying they will require a mortgage in order to purchase a property.When asked which banks they are likely to approach for a mortgage, the result showed a wide spread: Acleda ranked first with 22%, followed by ABA with 18%, ANZ 15%, Canadia 13%, Maybank 11.5%, CIMB 11.2%, and lastly Hong Leong with 9%.The wide spread of results regarding consumer bank preferences is likely to be explained by the dominant factor for those shopping for a home loan being the interests rates offered by that bank. After this, home loan consumers noted that “industry market knowledge,” “response time” and lastly “bank fees” may influence their decision on which lender will be preferred.These results suggest that home loan demand is expected to increase and that there is still room for improvement for the banks in terms of interest rates and customer support. Further, those projects supported with sound financing terms, either internally or through an external bank partner, will naturally have an advantage in the market.Are Cambodian Properties Insured?Only 26.6% of home owners currently have house insurance. Regardless of a very low rate of insurance penetration, 59.5% of those surveyed still think that this is a good time to purchase major household items, giving insurance companies market opportunities in the year ahead.Investment PreferencesWhen asked about the purpose of purchasing a property in Cambodia, the respondents opinion almost fell in the middle: 53.3% wish to purchase a property to live in, while 46.7% is buying as an investment.Land is the preferred type of property to invest in, as selected by 24% of the respondents, 23% of respondents are aiming to acquire a condominium unit, followed by 22% aiming for a shophouse and 18% for a villa.When asked whether they would rather buy an independent house, a home in a borey development, a condo in a new development or land in a plot land project, respondents favored and independent house (35%), borey (26%), condo (22%) and finally plot land (16%).Without any surprise, Phnom Penh (65%) came as a first choice for those interested in purchasing a property, followed by the fast developing Sihanoukville (15%) and world famous tourist city of Siem Reap (10%).Investigating further within the preferred areas of Phnom Penh city: Toul Kork, Chamkarmon and Chroy Changvar were the most popular locations to buy in; and Russey Keo and Prek Pnov coming in last as the less desirable.The dominant factor that influences the property of choice is location (50%). This is followed by the return on investment (20%), price (16%) and surrounding infrastructure (10%).How do Consumers Find Property in Cambodia?The vast majority of the respondents (71%) start their property search online. This does not come as a surprise, as according to wearesocial.com, internet penetration continues to rise in Cambodia and is now used by a third of the population - and increased by 32% since March 2015. Hence, the internet is rapidly being embraced by real estate agents/developers, and end buyers and renters.However, there remains a mix between online and offline searching for property in Cambodia - with 17% of the respondents preferring to visit real estate agents directly and 12% relying on advertisements in newspapers and magazines.Real Estate Agents play an Important roleAccording to the results, real estate agents still play a significant role in the house hunting process. However, respondents showed some clear concerns.Although commission scheme plays a big part in choosing an agent, honesty and professionalism are the key characteristics that customers are looking for when selecting their property sales representative.Further, consumers generally seem to be particularly concerned in regards to the unregulated nature of the Cambodia real estate market: 45% of all respondents wish to see a standardized valuation pricing, 38% a compulsory real estate agent license, and 18% wish to see regulated commission schemes for the agents.ConclusionFor all those that took the time to complete the 2016 Realestate.com.kh Consumer Sentiment Survey we offer our most gracious thanks. The insights that your 5 minutes of time have offered the market are extremely valuable; and creates data with the potential to improve the real estate industry across Cambodia - and Realestate.com.kh’s service as the leading online source of real estate in the Kingdom.With information on what is driving consumer decisions - agents, developers, banks and insurers are better able to provide products that the market will value. And likewise we are able to tailor our website services to better serve your needs. Download the Full ReportStay tuned to Realestate.com.kh for more market-leading research and data over the course of 2017.

Cambodia has been at the forefront of growth in the past years. And it comes as no surprise that many are turning their heads towards the country for investment opportunities. But is Cambodia ripe enough for these investments? Here’s what you need to know about three of the major factors for investment – GDP, Taxation, and Population.Why invest in Cambodia?GDPThe World Bank has ranked Cambodia 109th out of 228 countries in its latest update of its World Development Indicators Database – still behind other Asian countries like China, Japan, Korea, Indonesia, Thailand, Hong Kong, Malaysia, Singapore, Philippines, Sri Lanka, and Myanmar.But unlike most of these countries (Japan, Korea, Indonesia, Thailand, and Malaysia) which have graphic data that best described as broken lines, Cambodia is represented by a much smoother curve that’s continuously moving up. From $6.293 billion in 2005, the country’s GDP rose to a staggering $18.05 billion in 2015. That’s a 286.35% increase in a span of 10 years.This is confirmed by the Asian Development Bank that said “Cambodia, which was once a country synonymous with conflict and poverty, now has one of the fastest growing economies in Asia. The country’s gross domestic product has grown by 7 percent or more each year since 2011 and is expected to keep up that pace through 2017.” In addition, it was also projected that there will be a slight 0.1% increase in GDP for Cambodia in 2017.TaxationIn an article released by the Khmer Times late last year, they refer to another ADB report that compared 21 Asian and Pacific economies. The reported data, in contrast with the GDP growth, was underwhelming – putting Cambodia in the third to the last spot for tax-to-GDP ratio. The report shows that less than 14% of Cambodia’s GDP comes from tax collection.It is important, however, to note that even if this was a recently released report, the data was still based on the fiscal year 2013. Since then, several taxation advancements have been made to the country’s system. This includes the Law on Financial Management 2016 which was the major reason for abolishing the Estimated Regime of Taxation and a restructure of the Self-Assessed Regime.According to the Phnom Penh Post, “Not only did this change in law consolidate the taxpaying community into one jurisdiction, it also increased the tax collected from small taxpayers as those formally in the ETR paid considerably less tax than those in the Real Regime.”In the same article, Anthony Galliano – Chairman of the Cambodian Investment Management Insurance Agent firm – also said that “in the same spirit as the Amnesty program, the Royal Government issued Sub-Decree No. 17 to encourage, if not to entice, unregistered SMEs to voluntarily transform into compliant taxpayers, and as a result, be rewarded with exemptions.”So, since fiscal year 2013, there has definitely been an initiative to widen the net for taxpayers and to profit economically from it at the same time.Population and Target MarketAs of March, Worldometers puts the population of Cambodia at roughly 16.01 million people. And while that’s far from the almost 1.4 billion people from china or the 7 million people in Laos PDR, the advantage of Cambodia’s population doesn’t lie in its totality. The benefit of this is that more than 70% of the population are under the age of 34. Asia Times says of this,  “This means that Cambodia, unlike most Western or developed countries, has a large supply of young talent and labor available to work and innovate, helping the country develop.”And with ADB declaring Cambodia a low-middle income country, the economy is slowly gaining traction and the population’s mindset is shifting in terms of spending, this includes purchasing of properties.If anything, the investment climate in Cambodia is more than well. There are lots of possibilities because of its continuous growth. It is important, however, to note that it is still a developing country. And combined with these potentials are coupled risks. So, a careful study of what type of investment you wish to enter into the kingdom will save you a couple of headaches.For up to date news and information, visit our news section at Realestate.com.kh now!

Preah Sihanouk province or generally known as Sihanoukville, is located at the south-west corner of Cambodia. It is 230 km from the capital city of Phnom Penh. It covers a total of 2,536.68 square kilometers where two-third of the total area are hill and plateau.Now, Sihanoukville has become significant part of the country’s economic growth. With the stability of its economy, it is also attracting foreign investments into the province, which is also affecting the land market. For this reason, before buying land in Sihanoukville, it’s important to understand the local market to make sure you get your investment worth.How much is land in Sihanoukville selling for?According to Mr. Den Sakal, CEO of Universal Real Estate in Sihanoukville, land in Sihanoukville is divided into three major areas -- agricultural land, downtown land, and coastal land.Agricultural land refers to the area where residents are living and doing their farming. This type of land is located farther from the town and beach. The price of this type of land also remains lower compared to other two areas. Meanwhile, downtown land is crowded and is not far from the beach, and is generally good for businesses since this is where all the commercial activities happen. This allows the land price to go higher than in the agricultural area. However, buying land here is still lower than the coastal land area where the beach is the key factor for tourism, residence, hotels, restaurants, and other leisure activities.Sakal mentioned that in terms of land price, agricultural land starts at $5 and can go up to $25 per square meter. Downtown land has an average of $400 to $700 per square meter, whereas the coastal land where there is high potential, prices range from $700 to around $1,200 per square meter.What types of land titles are available for land in Sihanoukville?Sakal said that there are both hard titles and soft titles being used in the entire province. But soft titles do not hold the same security that hard titles do. Some areas have been issued hard titles by the land office. But some still don’t have hard titles. However, every land that carries a soft title can be also applied to get a hard title.Soft titles are still generally accepted without any problems. However, before buying any land asset, is better to ask for a hard title. If it does not exist, then check with other villagers in the area to make sure you are buying a secure land.Where should you buy land in Sihanoukville?Sakal says there are a total of 4 districts in the province. These are Sangkat 1,2,3 and 4. Sangkat 1 is far away from the other three. If you plan on investing in this sangkat, meaning that it might take longer to see the return on your investment, compared to the rest of Sangkats. The other 3 sangkats are quite  busy in terms of business, commercial activities, and tourism. It’s more convenient for both living and selling back in this area -- especially in Sangkat 4. It is the top area for tourism. It houses the Ochheuteal Beach, Otres Beach, Sokha Beach, and the upper market (Phsar Leur).Why should you buy land in Sihanoukville?The potential for investment in the area is huge, in terms of residential development, industry, business, and tourism. So, regardless of whether you buy properties here for living or for future resale, this area appears quite promising.Additionally, Sihanoukville is seeing the rise of many new housing developments such as D’seaview, Blue Bay Sunshine Bay, Royal Bayview and Blue Sky Tower. Other than the residential sector, there are also many already existing developments here such as ports, the Sihanoukville Special Economic Zone (SSEZ), the airport and tourism sites. And it is expected to welcome  even more new developments in the upcoming years.Moreover, today accessing Sihanoukville is much more convenient with options like using the National Road No. 4 and the railway which have direct access to Phnom Penh. All these factors provide constantly good opportunities for land investment in Sihanoukville.Can expats buy land in Sihanoukville?According to the land law of Cambodia, foreigners are not allowed to own land and landed property in the country except through a strata title. However, strata titles for residential units are only applied for co-owned buildings and foreigners can only own units above the ground floor.However, there are exceptions that foreigners can utilize to own land in the country such as marrying a Khmer, becoming a Khmer national, leasing long-term, using a nominee structure, forming a landholding company, or applying for a concession.What are the legal aspects I need to know before I buy land in Sihanoukville?No matter what methodology you use to find land Sihanoukville, just make sure you find land with no hidden conflicts, and no hidden leasing or buying. But it may be stressful to check these details if you are a newcomer to Cambodian real estate. As a recommendation, seek the assistance of local agents to help you find the perfect property. In term of the law, real estate agents are very knowledgeable about the area and can handle those things for you. Your stress will be relieved.Looking for land for sale in Cambodia? Find it on Realestate.com.kh

Kicking off the 1st quarter of the year, the 2017 Real Estate & Construction Forum gathered property experts and enthusiasts from all over Cambodia and the world to achieve a common purpose. To advance in their knowledge of the industry. As such, speakers like Tom O’Sullivan – CEO of Realestate.com.kh – came out to talk about matters of grave importance. And one of those is the rapid growth and potential of Sihanoukville.Sihanoukville Investment prospects appear to be growing steadily in 2017. But what is so special about Sihanoukville and why should people start taking it seriously? Realestate.com.kh gives you the lowdown from Tom O’Sullivan himself.Why is everybody suddenly moving to Sihanoukville and considering Sihanoukville Investment?For one, O’Sullivan said that initial steps of the proposed master plan are already being completed. He mentioned that there’s actually a plan to conserve Sihanoukville’s natural resources and although this is giving difficulties for some businesses, ultimately it will benefit Sihanoukville. New developments and international names already include D’Seaview, Blue Bay, Royal Bayview, Sunshine Bay, Novotel, Marriott, Grand Mercure, Alila, and the Six Senses.Casinos are also making their way to Sihanoukville, granting multiple licenses to build and operate in this area. O’Sullivan mentioned that these developments build the confidence of investors and developers.He also added that infrastructures such as highways, roads, and port expansions are driving additional interest for other businesses because they not only aid travelers but connect other areas to Sihanoukville to either access its beaches or the SSEZ which employ thousands upon thousands of employees.Find out more about Sihanoukville Investment in our comprehensive location profile!Have these changes been visible to the consumers?In an attempt to look at the situation from another angle, O’Sullivan explains that Realestate.com.kh also conducted its own research to get a better understanding of the perceptions of the consumers.Around 5,000 people took part in the survey, which O’Sullivan says is a testament to the continued interest in properties in the country. The survey also showed that around 73% of the survey respondents are interested in buying in the next six months, and the majority estimates a budget of $50,000.With over a million people surfing the Realestate.com.kh site yearly, analytics have revealed that while Phnom Penh remains the most popular area for property seekers; However, taking 2nd place for the most searched area is Sihanoukville province.This is substantiated by inquiries from their customer base which O’Sullivan says grew to 25% in 2017, from 10% last year. He stated that most of those inquiries are from customers wishing to buy in Sihanoukville, especially for land. Most of these are Chinese investors. O’Sullivan quoted Juwai.com, a famous Chinese property portal, which suggests that 57% of Chinese consumers actually plan to purchase properties in countries in which they’re traveling to.So, will Sihanoukville overtake Phnom Penh?To realize the magnitude of the market slowly shifting towards the Sihanouk province, O’Sullivan first explains that the Phnom Penh market still enjoys a great property climate. In fact, the consumer sentiment survey shows that Phnom Penh is still the "first choice for those interested in purchasing a property" – leading at 65%, whereas Sihanoukville is at 2nd place with 15%.All in all, Sihanoukville has an attractive property market not because it’s safer for investment than in Phnom Penh. It is an attractive market because it is continuously building itself with its own character, with both a tourism and industrial focus, setting it apart from both Phnom Penh and Siem Reap. Thinking of investing in Sihanoukville? Look at the latest developments in Cambodia's premier resort town now!

The property market is currently booming and trending upwards, based on the estimates of Simon Griffiths, Managing Director of The Mall Company Cambodia. He added, “With greater competition, developers shall increasingly offer better-guaranteed yields and deals to foreign and local buyers.”The Kingdom of Cambodia, for the past half-decade, has seen a consistent 7% GDP growth. In 2019, the country also saw its inward FDI flow increase to $3.7 billion, an increase of 12% compared to 2018.But data and figures can only go as far if you’re not familiar with the real estate sales and purchase processes of Cambodia. This is exactly why Sereyrath Kiri, an Associate at Sciaroni & Associates, tackled this topic during a recent breakfast meeting with real estate professionals -- to promote knowledge in regards to the appropriate way of buying and selling properties in Cambodia.What are the Types of Property Tenure and Ownership?Kiri mentions that there are various ownership and tenure in Cambodia. These include:Freehold ownership: In freehold ownership, the owner is free to use the property as he wishes, as long as it follows provisions stated in Cambodian law.Leasehold: You can branch this out into two subcategories: short and long-term lease. Long-term leases typically last for 50 years or more and are registered with the land department.Concession: A concession is a conditional lease that’s granted by the government over state private land. According to Kiri, this was stopped by the government a few years ago.What are the different types of property titles in Cambodia?Soft and hard titles are the basic forms of land titles, but there are plenty of subcategories that people are not generally aware of. These titles include soft, hard, and strata titles. Kiri explained the differences between each title and gave a brief background on each of their subcategories.A Hard Title is the most secured is issued and recognized by the Ministry of Land Management, Urban Planning and, Construction at a national level. This makes it the strongest form of property ownership.Kiri adds that a hard title actually refers to three types of property title certificates:Certificate of Land Use and Occupation Rights: This is also referred to as a “chicken feather title” because the document has an illustration of the latter. This also refers to any title that was issued to the owner before the land law was enacted.Certificate of Immovable Property Possession: This certificate is given if the land registration was initiated by the individual owner in the area that the systematic land registration had not been conducted by the government yet. This process is otherwise known as a “sporadic land registration”.This certificate does not include a map of the property.Certificate of Immovable Property Ownership: This is a certificate given after a systematic land registration initiated by the government on a specific area. This can be distinguished from the sporadic land registrations documentation because it has a map to show the location of the land.UPDATE: LMAP titles have also become more prolific in recent years. LMAP titles are issued by the Ministry of Land Management, Urban Planning, and Construction. These titles are equal in nature to Hard Titles as they are recognized nationwide, considered secure, and contain in them the specific GPS coordinations of land boundaries - making dispute resolutions a lot less frequent and quicker to settle.A Soft Title is only issued by the local commune or the district office. Therefore it is not registered at the national level, making it less secure than a hard title. Kiri also mentions other risks owners with soft titles may encounter such as competition to claim the title since ownership is not confirmed at a national level of the registry. Overlapping boundaries and duplicate soft titles issued to different applicants may also cause conflicts and issues in the future.Kiri says that a soft title may also refer to various forms of property title other than the hard title. These includes:Application for land occupation - This is the request the possessor of land submits to the local authorities.• Letter of transfer acknowledged by local authorities - This is a document of transfer that the Chief has acknowledged and signed.• Simple and private sale-purchase agreement - This document is an agreement that’s made just between buyer and seller.Another type of title is a strata title, which is a type of hard title that refers to co-ownership rights for buildings. The title itself has a floor plan and a building name. It will also contain a history of transfer at the back. You can perform a title search in the district to prove its authenticity. The strata title is a product of the condominium law.Are you interested in learning more about property titles? You can check our guide to property titles in Cambodia.Interested in purchasing land? Take a look at what is available!Can you Convert Soft Titles in the Province to a Hard Title?Kiri says that all soft titles can be converted into hard titles through sporadic land registration. When asked how much it would cost to do so, Kiri says that the price will depend on the size and location of the property itself.What is the Sale and Purchase Process in Cambodia?Kiri explains that the real estate sales and purchase process in Cambodia are relatively simple. Once you find a property you like, you have to do your due diligence first. This includes doing the title search to check on boundary issues and checking the accuracy of measurements. Then, you should do the negotiation of terms with the owner. Once you come to an agreement, you can go about signing a sale and purchase agreement. After that, you simply have to submit the transfer documents to the Cadastral office and pay the stamp duty tax. The necessary transfer documents will then be brought back to the Land Department so that the transfer can be processed.Once the transfer is complete, you just need to do your confirmatory due diligence. Kiri says that this is when you confirm that the property was properly transferred and that there are no spelling mistakes or errors in the information.Foreign investors can check out our Ultimate Land Buying Guide for more information on obtaining land and landed properties in Cambodia.What are the Relevant Taxes?Kiri also talked about the recent change in taxes. For instance, if a 4% stamp duty on property transfer was only required when transferring hard titles, this is no longer the case. Transferring a soft title now bears the same percentage tax. Kiri adds that the 4% is not the contract price. It’s the value assessed by the tax department. By law, this should be shouldered by the buyer. But in practice, this is often shouldered by the seller.Kiri also states that if a property is sold by a real regime taxpayer or a company, the gain will form part of the taxable profit which is taxed at 20%. He also mentions that a 10% withholding tax is applicable to the lease of property.Another thing you must keep in mind is that the arrears of annual property tax must be settled first before a transfer can be made. This simply means paying the tax that is billed at the end of a year rather than being paid upfront at the start of a year.There is also a tax for immovable property. This is computed by first multiplying the total property value to 80%, subtracting 100 million Riel from that. You then multiply that by 0.1%.According to Article 2 of the Land Law:“Immovable property within the meaning of this law includes immovable property by nature, immovable property by purpose, and immovable property by law”Immovable property by nature is characterized as “all-natural grounds such as forest land, cleared land, land that is cultivated, fallow or uncultivated, land submerged by stagnant or running waters and constructions or improvements firmly affixed to a specific place created by man and not likely to be moved.”On the other hand, immovable property by purpose are “things fixed to the ground or incorporated into the constructions and which cannot be separated therefrom without damaging them or altering them, such as trees, decorative attachments, as well.”Immovable property by law is characterized by “all rights in rem over immovable and movable properties that are defined by law as immovable property.”For other tax information, check out our guide on property taxes in Cambodia.Sereyrath Kiri has given an overview of the documentation and the sales and purchase process. But it is still important to keep yourself updated to prevent any issues when you move forward with a purchase or sale.Interested in buying property? Click here

Scouting for your dream home can be an exciting process, but it can also be a disheartening one if you have your priorities mixed up. This is true when deciding whether or not to get a home loan first.There’s a general notion that home shopping should come before applying for a loan. But is it really more efficient?Sure, you might think that knowing the cost of a home first would serve you well because you can get a ballpark range as to how much financing you’d need to get. But buyers are usually disappointed after going down this route. Banks are not magical wallets you can take money from any time you want to. There’s a limit that banks set, depending on their evaluation of your application. And there’s a computation they have to base the loan amount off of. Sometimes that means they can only approve half of the price of your desired home. This can be disappointing for some, especially if you’ve already gone through an exhaustive search for properties.Pre-approved loans also save you more time. Instead of waiting to get your loan approved to purchase the home, you can get bargaining power by having the money at hand already.Knowing how much you can spend gives you a more realistic perspective. You can then budget your finances. This removes any oversized fantasies and gives you the ability to adjust your home shopping flexibility, leading you to revisit your checklist to see which features of the home you really need.This also helps you plan out your future expenses after the purchase of the home, like mortgage interest rates, and out-of-pocket home repairs you’d be willing to pay for as well.Should you decide to get a home loan pre-approved, you’re also opening yourself up for better opportunities you may not have been aware of. Loan officers have many interactions with people in the same situation as you. They can offer you practical tips and advice on several topics from their own experience. It also allows you to study the loan terms better instead of rushing through it once you’ve already found your home.Want to learn more about how you can make money by investing in real estate wisely?  Get on Realestate.com.kh today, the best source of information for property buyers & Sellers in Cambodia.