LinkedIn has more than 187 million members across 200 countries around the world. While some see LinkedIn as no more than an online resume/CV, LinkedIn should be considered an online social media site for business professionals looking to connect, network and engage - and it is perfect for real estate agents. As a real estate agent or professional, LinkedIn is a cheap and handy addition to your online business profile.  For real estate agents, it is also the perfect place to identify targets and initiate sales! In regards to staff recruitment, it is also your window into the professional community, available as soon as you sit down at your computer – allowing you to shop around for your next recruitment drive. Did you miss Part 1? Read it here!Maybe you would like to get started, but don’t know how? Here are a few useful tips, Online Advice for Realtors, from Realestate.com.kh, to boost your real estate business online and use the power of the LinkedIn network!Online Advice for Realtors Part 2: Make Online Connections: After completing your profile, as explained in Part 1, it is time to make some new connections. Start by reaching out to your current friends, existing clients and professional relationships that you have already established outside of the internet. Use LinkedIn’s search to explore by name, company or keyword. Go through your business card collection and add them all to your new online phone book. Choosing “advanced search” will offer a substantial amount of options allowing you to do a deeper dive into keywords, location or industry. Your LinkedIn contact database will now always be updated on your job status, blog posts and can contact you directly via LinkedIn messages. You will also be able to follow their updates, so you stay well informed. One very important note: Be careful approaching strangers and trying to connect with them. This can affect your reputation as a real estate professional. If you do this too much, it can also get you banned from adding any additional connections (if you are marked as a spammer by LinkedIn). Having said that, it is always acceptable to ask your current connections for recommendations or referrals to someone they are already connected to. Check out Online Advice for Realtors: Boost your LinkedIn Profile Part 3 here

LinkedIn has more than 187 million members across 200 countries around the world. While some see LinkedIn as no more than an online resume/CV, LinkedIn should be considered an online social media site for business professionals looking to connect, network and engage - and it is perfect for real estate agents. As a real estate agent or professional, LinkedIn is a cheap and handy addition to your online business profile.  For real estate agents, it is also the perfect place to identify targets and initiate sales! In regards to staff recruitment, it is also your window into the professional community, available as soon as you sit down at your computer – allowing you to shop around for your next recruitment drive. Maybe you would like to get started, but don’t know how? Here are a few useful tips, Online Advice for Realtors, from Realestate.com.kh, to boost your real estate business online and use the power of the LinkedIn network!Online Advice for Realtors Part 1: Perfect your Professional LinkedIn Profile: Your LinkedIn profile must be compelling, concise and clear - so that potential clients, recruits or business relationships can immediately identify your specific area of expertise. With so many members, you must keep your profile clean, complete and up to date - or you will quickly get overlooked among the crowd. Take your time when preparing your profile content: Just as your company website is a direct reflection on the professional nature of your business, so is your LinkedIn profile. You wouldn’t hand out a CV for a job without checking grammar, dates and spelling, so don’t do this on LinkedIn!  Errors within your profile send a message that you don’t want associated with your professional reputation. Add all relevant skills and training you’ve gained throughout your career: Remember, buyers and sellers will research online, digging for details about you and your business long before they ever connect with you offline. Make sure they know your value perfectly before they meet you. Let your unique personality and abilities shine through: While this is a professional network and not Facebook, you do want to inject character into your profile in order to stand out from the masses. Differentiate yourself from the other real estate professionals in your area; that will grab other users’ attention. Make sure you always update your professional headline: Because, your professional headline acts as a short bio which leads people to click onto your full profile, it should be attention grabbing and include words that position you as a leader within the real estate industry. To be found when potential clients search for “real estate” or “realtor” within your area, use words related to your industry and area. You can also optimize your LinkedIn profile with keywords specific to your expertise and location.  For example, if you specialize in leasing apartments in Phnom Penh, Cambodia, your keywords would be “Leasing Specialist Phnom Penh Cambodia.”  These are directly searchable terms that allow people to quickly find you when searching real estate professionals in that area, with skills in a certain niche of real estate. Optimize your profile image: This means using your identified keyword (including your name) in the saved title of your head-shot image – for example: “leasing specialist phnom penh Cambodia john carter.jpg”. In addition, since this is a professional community, make sure your image is a high-resolution head-shot that makes you easily identifiable. Don’t put up a photo from Facebook of you at a night club – remember it is a PROFESSIONAL social network. It also helps to customize your profile URL with your name (first and last) making it easier to locate your profile in the LinkedIn search. By default, LinkedIn will give you an arbitrary URL when you initially set up your profile. But it is easy to customize this link and create your unique LinkedIn URL destination. Check out Online Advice for Realtors: Boost your LinkedIn Profile Part 2 here

Developers in China facing debt problems are turning to buyer’s incentives such as luxury cars in a mad rush to flip an catalog of unsold apartments in a real estate development about seven times the size of Manhattan Island. Hopson Development Holdings Ltd., in May this year, offered a free Porsche to the first 30 home buyers of apartments in their development complex in southern China as a publicity stunt, and market stimulant. As a result of this policy, Evergrande Real Estate Group Ltd. is allowing home buyers to cancel prior purchases in the development and get all their money returned before the completion of the project - demonstrating their mistrust in the developers. These types of grand offers show huge urgency among developers forced to generate quick cash to reduce debt over their developments in mainland China. Yet, a similar story was seen in Melbourne recently as a luxury development in Toorak gave away BMW i3s, the manufacturer’s latest electric model, to the first home buyers to sign up. Developer forgets carpark!

The Phnom Penh Municipality has recently requested more city buses from the Chinese and Japanese' governments in order to expand the existing public transport bus system to 10 routes throughout Phnom Penh city, according to announcements to the press from City Hall spokesman, Long Dimanche.Currently, according to Long Dimanche, there are only 50 buses running on three routes in Phnom Penh. He went on to say that Phnom Penh Municipality will ask China to donate 100 new buses to increase the bus service system, and for the Japanese government to bring 180. Yet, it is currently unclear how many buses will be provided by each country, and whether these buses will be new or used - however, already Japan has been said to have agreed to the formal requests. City Hall hopes that opening more bus routes across Phnom Penh, it should reduce congestion along major streets.  Read another article regarding congestion in downtown Phnom Penh here.

Mr Sam Yang, CEO of Eastland Development HK Co. Ltd., has made waves in the grand scale Cambodian development market in recent times announcing a list of major Phnom Penh based projects. Post Property attended a recent press release where the CEO accepted questions from various local news and TV reporters regarding his wholly positive outlook on the expansion of the Cambodian real estate sphere. While Yang is a relatively young developer on the Cambodian scene, just 30 years old, his experience speaks for itself. Yang studied in both Canada and China, his two homelands, before beginning his professional career in China, holding roles such as GM of Fuying Construction Company; GM of Citykey Development Co., Ltd; Holding Vice President of YueTai Holding; CEO of XingYuan Mining – and, now, in his first Cambodian real estate venture, CEO of Eastland Development HK. See Eastland development properties for sale on realestate.com.kh todayCan you explain Eastland’s latest project? The first Eastland Development project to reach completion will be the “East One International Apartments” project – a condo development which is already 70% sold and under construction in Duan Penh. As we entered the Cambodian real estate market just 3 years ago, we used this first, smaller project to test the market. Based on the success of East One, we are now launching “East Commercial Center (ECC)” along Norodom Boulevard, near the Malaysian Embassy. Inquire about East One Apartments today, on realestate.com.khWhy not start another condo project, if East One was so successful? We decided to build an office building as our follow up project because, based on our research within the local market, we believe that the number one real estate need within Phnom Penh moving into the future is a lack of affordable, sole-purposed office space. There are a growing number of talented local entrepreneurs and small business owners who need a place for their businesses to take flight, without driving them bankrupt. The East Commercial Centre (ECC) will be completed in late 2017 and provide the market with 38 floors of pure office space, divided into small and affordable units, with low management fees, and common areas with all necessary business amenities. Inquire about the East Commercial Centre (ECC) on realestate.com.kh today We are also intimately aware that Phnom Penh has a growing lack of parking space. That’s why the ECC project will include a total of 680 car parks, over 6 floors. And in fact, the following stage of this development will be the East View Residence project, which will include four 38-floor high residential buildings. This will mark our second Cambodian condominium project, for Eastland Development, and will be on a much larger scale than East One. It will have a total of 768 units, and sufficient parking space to accommodate all residents. This will also provide living space for international and local business people working within the ECC tower, meaning they will not have to commute to their place of work. Inquire about the East View Residence project on realestate.com.kh todayWhy did you choose B grade office space for ECC? The current office space market in Phnom Penh is unsuited to the growing demand. These types of start-up businesses are not interested in A-grade office space, as rental rates are too high, and instead now find themselves adapting villas or flat houses into office space. Meanwhile, International companies are increasingly interested in moving an office to Cambodia at low risk because investment incentives are some of the best in the region. Inquire about the East Commercial Centre (ECC) on realestate.com.kh todayAs a developer set to release around 1500 units onto the market in 2017-2018, are you concerned about the property market retracting as the next election approaches in 2018? I am optimistic about 2018. No market in the region is free from these political concerns. Keep in mind, there will also be elections in Myanmar and Thailand in the near future, under similar scrutiny. Three things are clear to me: Firstly, the next great international economic boom will happen within the ASEAN countries. Secondly, out of the ASEAN nations, Cambodia has demonstrated itself to be within the top 3 in regards to political stability. Meanwhile, thirdly, in Cambodia investors can still trust in the US dollar – this is unique. Why is Cambodia increasingly popular for FDI?Is there a real estate bubble on the way? Relative to other international real estate markets, so far Cambodia’s real estate market has only attracted smaller funds of investment. Generally, we are seeing 5-10 million dollar investments in real estate projects in Cambodia. The larger funds of 200-600 million are yet to consider Cambodia; however, it is only a matter of time before these types of speculators come. This means, the Cambodian market still has a lot of potential growth. By 2018, also, 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. See Eastland development properties for sale on realestate.com.kh today

Chamkarmon district has surely been seeing a continuous rise of land prices year after year, BKK, Toul Tumpung and surrounding areas proving to be a haven for foreigners and very wealthy Khmer. But, according to a recent report and commentary from experts within the industry, lack of infrastructure capacity, and trends among locals moving to the city’s outer reaches, will eventually slow Chamkarmon development growth.According to a report from the VTRUST Journal of Real Estate released on October 26 this year, Phnom Penh’s land prices have risen by approximately 10 per cent year after year. In Chamkarmon this climb has been the most extreme. In Chamkarmon district, especially BKK, sub streets cost around $2,000 to $3,500 per square metre, and land along major streets costs about $4,000 to $6,000 per square metre.With property demand continuing to grow within the Chamkarmon district, specifically within Boeng Keng Kang, Tuol Tumpung, Tuol Svay Prey and Oulampik in the first half of 2015, 20 new developments worth over $3.2 billion have been approved to start construction within the Chamkarmon district. These new developments are expected to reach an estimated value of $3.6 billion this year. From 2011 to 2014, according to the report, developments were valued up to only $2.2 billion each year.However, according to Hoem Seiha in a recent Phnom Penh Post report, the director of research for VTrust Appraisal Co., Ltd., eventually this lack of infrastructure will cause land prices to stabilize in the longer term.“With 20 per cent car ownership per household in the city and the ever-increasing rate of the white collar class who commute from different areas to downtown Phnom Penh, the lack of adequate parking solutions will be the daunting challenge for business communities in the CBD,” he said in a recent interview.As a result of this, the outskirts of Phnom Penh will cause future competition with the Chamkarmon district as Khmers move away from the congested inner city. Northwestern Phnom Penh is seeing massive growth, as is Northern Phnom Penh, and also land around the International Airport.As outer suburbs of  Phnom Penh gain stronger infrastructure and pools of private real estate investment funding, such as Aeon Mall 2, Chip Mong Land and New World Sen Sok in Phnom Penh Thmey, Camko City in Russey Keo and Grand Phnom Penh in Chrang Chamreh, the limitation of new development space in the Chamkarmon district will have to ease demand. The focus of the city will likely shift too, as commercial and retail spaces also continue to push outside of Chamkarmon and the CBD.

A developer in Melbourne, Australia, who has built a 72-level tower in the central city, has failed to build the underground car parking promised in the original development plans. [caption id="attachment_79012" align="aligncenter" width="300"] Illustration: Matt Golding[/caption] The developer, the Brady Group, did not provide two of the three levels of underground car parking originally promised, causing the Melbourne City Council  to now consider what enforcement action it can take against the developer.Norman Fay, Brady Group spokesman, did not dispute the developer failure to provide the promised car parking levels when challenged. Mr Fay said an application to retroactively alter the development permit was now being considered by the planning department.Brady Group originally had obtained a 2009 developer permit off planning minister Justin Madden to build the tower, with just one level of underground parking, but later got an updated permit off Matthew Guy to proceed with three levels of underground parking. It is not clear who failed to check if the  building adhered to the updated permit but, regardless, the developer is in breach of their permit.Read more of the latest and greatest real estate news right here on realestate.com.kh

On the eve of Halloween, Realestate.com.kh has taken a quick look at the top 3 most haunted houses in the Kingdom!#3:Famously on the market for sale in 2013 in Siem Reap, this property attracted attention for all the wrong reasons. Let’s just say the Open Home Showing was not a huge success....#2: The oh-so eery Independence Hotel in Sihanoukville was put on the world stage when a travelling poltergeist proved locals were correct when they deemed it haunted!#1: Coming in at number 1,  immortalized in the Korean horror film, “R-Point”, this haunted palace known as the Bokor Hotel was built in the 1920’s and has frightened visitors ever since atop Bokor Mountain in Kampot - until it was eventually abandoned. Happy Halloween from Realestate.com.kh and we hope all your home’s stay ghost free...

North Park Condos, the latest addition to the renowned Northbridge Community, offer an oasis of pure tranquility located perfectly in the hottest investment region of Phnom Penh City. See the listing here.North Park Condos sit at the gateway to the city on the newly developed Street 2004 - just minutes to Phnom Penh International Airport, country clubs, golf courses, department stores, restaurants, educational facilities and, thanks to the recent overhauls of the road network in the area, quick access to the city center. Cambodia’s highest quality learning environment Northbridge International School is located at this site. It offers a fully accredited western curriculum. This premier investment and development Company is recognized as the Country’s most dynamic and diversified business conglomerate. North Park Condominium buyers are guaranteed absolute security with their investment now and into the future. North Park Condos offer a balance of contemporary design and modern lifestyle amenities. It is set in a natural, open environment and located within the safe and serene grounds of Northbridge Community.  The world class facilities include a resort sized swimming pool, a children’s pool, modern gymnasium, an outdoor BBQ area and a restaurant. Inquire about North Park Condos today on Realestate.com.kh and find out more!Northbridge Community is a pristine, beautifully landscaped environment and the perfect place to raise a family.North Park Condos are an exclusive, low density, community of less than 250 Condominiums in 3 low-rise buildings, professionally constructed, and designed by renowned international architects. Large balconies and open plan living can be enjoyed in every unit and all residents possess impressive, unobstructed views across the luxurious swimming pool and tropical gardens. 24 hour security is guaranteed together with an international standard intercom system, providing controlled access to each building. 1-bedroom, 2-bedroom and 3-bedroom units are all available, with sizes ranging from 55 square meters to 245 square meters. Inquire today for more information about North Park Condos before these prime condos sell out!

Although the price of land in Phnom Penh has increased continuously until present, it has yet to have any detrimental effects on the flow of trade within the city. Quite the opposite; rising land prices have instilled confidence in the economy and encouraged foreign investors to come to Cambodia and invest their resources in the country, expanding trade and stimulating ongoing economic growth. While land prices are not on par with the region, this is not necessarily a bad thing, say experts. Chrek Sokny, CEO of Century 21 VTrust, said that in 2015 land prices had hardly climbed since the year prior, however, land prices in 2015 seem slightly higher when compared with 2013. He notes that, however, land prices in Phnom Penh vary depending on the region, with some suburbs seeing land prices increase up to 20 percent, whereas aggregate increases only reflect a 10 to 15 percent rise city-wide.      Sokny added, "The rise in land prices currently does not affect the flow of investment because the price of land in our country is a lot less expensive in comparison to neighboring countries." He continued, "The increases in the price of land of 10 to 20 percent are in line with the country’s economic growth, so it does not cause difficulty for new investors at the moment. But if it continues to rise in the next four to five years, that will hurt people who intend to invest in Cambodia."      Sorn Seap, spokesperson for the Cambodian Valuers and Estate Agents Association, raised a similar view to Sok Ny. Seap suggests that land prices are currently rising in line with economic growth because land prices generally rise or fall depending on the state of a nation’s economy.  It is clear that land in Phnom Penh has the highest value; Siem Reap and Sihanoukville follow respectively. He added that the current land price does not affect the flow of direct foreign investment into the Kingdom since there are still a huge number of investors coming into Cambodia seeking various opportunities - mostly from Japan, Korea, China, Singapore, Malaysia, Taiwan, China, Hong Kong and other regional counterparts. "Phnom Penh land price increases on average five to 15 percent per year. If it continues to rise, it will disturb the investment flows in the coming years because the market size of Cambodia, compared with the regional economy, is still small. Therefore, if the price of land were to become equal with regional prices, investors would naturally go to other countries where market opportunities are more profitable," added Seap. He continued, "I think we will be unlikely to see the impact of this phenomenon in the next five years, as the Cambodian economy is still not that robust. Investors both inside and outside the country only come in with a specific purpose and conduct detailed research before they start investing.” Sorn Seap concludes, "It's a real market now though, not an inflated one - because an inflated market would jam when there was a problem, and a real one wouldn’t." For instance, when the land price fell generally during the global financial recession in 2008, land prices along Mao Tse Tung Boulevard did not go down. In fact, in contrast, prices in this area continued to rise slowly. This is because transactions were still occurring along this street, marking it as a real and robust marketplace. “The increased price of real estate and land today is a good sign that we, as a national economy, are on the right track, and we won’t have a problem in the near future,” Seap confirmed. According to a study by World Trust Estate on the price of land in 12 Khans of Phnom Penh in the first quarter of 2015, Phnom Penh land prices have gone up between 10 and 30 percent depending on the area. The areas are defined by whether they contain commercial activities, residential property or industrial undertakings. Particularly, the commercial area along the main road in Khan Chamkarmorn this year has increased between $3,500 to $8,000/m2, compared to only $3,500 to $5,500 the previous year. Land in trade zones located along smaller roads have increased from $2,500 to $3,000/m2 last year, up to $2800 to $4,000/m2 this year. The same study found that the price of commercial land along streets in Khan Tuol Kork has increased from $3,000 to $5,000/m2 in 2014, to between $3,500 to $8,000/m2 this year. Commercial land along smaller roads have also increased to current prices of around $2,500 to $3,000/m2, compared to $1,800 to $4,000/m2 last year. Residential land has risen from $2,800 to $3,500 the year prior, to about $3,000 to $ 5,000/m2 currently. Soeng Bonna, CEO of Bonna Realty Group, said in a phone interview recently that land prices in Phnom Penh are divided into three zones: Zone 1 is the city centre, where land prices seem a little higher. Land price in the suburbs, Zone 2, are still moderate in terms of the size and strength of the economy, as well as incoming investment trends, but the price in these areas is lower compared to other countries’ examples. He said the average price of land in the city centre costs $3,000 to $5,000/m2, which is good, but lower than prices recorded in other countries. He notes that these prices reflect that it is harder to gain revenue and profit from an investment in land here in Cambodia. “Land prices in the neighboring countries are higher than ours, but they have bigger population densities, larger economies, and more investment. If we continue to think our land price is low and keep demanding an equal price, both domestic and foreign investors will lose their ability to invest in Cambodia," said Bonna. He added that prices of land in industrial zones, Zone 3, are ranging from $20 to $50/m2 which reflects the current lack of infrastructure in these areas. Realestate.com.kh is proud to support the CVEA's Property View publication. Click here to get your copy, or if you are interested to join the CVEA today. https://realestatekh.activehosted.com/form/40

When Dan Kreis, founder, owner and operator of Kep Lodge Eco-Resort, arrived in Kep for the first time in 2005, he found only a handful of locally-owned guesthouses, less than 10 foreign residents, no supermarket, no electricity, no local bar, a coastline littered with little more than deserted villas and an extremely small turnover of tourist traffic.Ten years on, and now selling his business at a margin that would have seemed like a fantastic joke in 2005, Kreis has witnessed, and in many ways assisted, Kep in growing to be one of Cambodia’s most highly regarded tourism destinations and an attractive real estate market. Want to buy Kep Lodge? Check out the property listing on realestate.com.kh and inquire today!What Kreis also discovered back in 2005 was an unspoilt national park with mountains and lush forests reminiscent of his homeland Switzerland. So, having since given up on launching a resort in the already-saturated Thai market, and unsold on the tourism hot pot that is Sihanoukville, Kreis found his paradise in the empty hillsides of Kep.After 6 months of searching for the ideal property, Kreis settled on a block of hillside land backing onto the Kep National Park. Here, tranquility and a view of the ocean was assured at $5 per square meter, for a long term lease of 70 years.Locals, who prefered to live along the main artery road in 2005 where prices were around $60 per square meter, warned Kreis that his tourism venture was absurd - “no tourists will want to climb up the hill to find your property,” they said, and fears still remained among some that Khmer Rouge cadre may be hiding in the mountains ranges of Kep, the region known as one of the last remaining strongholds of the regime. Kreis ignored the local critics though, believing that, “the land was ideal, surely at some point the tourists would have to arrive.”Opening with a 6 bungalow operation in 2007, having built the lodge from scratch with a local team of builders, Kep Lodge became the first western owned and operated business in Kep, and the first eco-tourism venture. Water was well sourced and filtered for guests; as electricity was very limited, water was heated solely with gas; inputs, including the Swiss-inspired menu, were almost all locally sourced; and all outputs of the business were put to use in innovative and ecologically friendly ways. One of the most exhausting tasks at this stage, recalls 46 year old Kreis, was staff training. As Kep’s local education system was near non-existent, and the tourism and construction labour pool enjoyed by Phnom Penh entrepreneurs was impossible to tap from the coast, Kreis had to train his staff extensively, always starting at absolute basics. Tellingly, the first Khmer language Kreis learnt was, “If you don’t do it right first time, you do it again!” Want to buy Kep Lodge? Check out the property listing on realestate.com.kh and inquire today!But Kreis’s job was far from done when the bungalows were built. He still had to find a way to communicate to travellers that Kep was a worthy tourism destination. Unlike today, very few tourists were aware of Kep whatsoever: it wasn't in guidebooks and it wasn’t online, and even less were aware of Kreis’s eco-lodge hidden in overgrowth halfway up the hillside.  For this challenge, Kreis swiss background in web development and tourism marketing came in handy. By 2007, Kreis had finally managed to get the internet on site via a satellite connection to a Thai internet provider. At this stage, hotel booking sites were not well developed or used in Cambodia, so Kreis had to make his own. Kreis begun to create a series of websites in a variety of languages (French, English, German) to highlight the perks of Kep as an ecotourism destination, the most famous of which being visitkep.com and keplodge.com. He also engaged facebook and other social media to advertise his village paradise, and ultimately, draw customers to Kep Lodge. His plan worked, and Kep soon begun to emerge as another stopover in the Cambodian tour. Even in 2007, the lodge enjoyed 80 percent occupancy on average across the year. “Kep’s proximity to Phnom Penh has also made it attractive to expats living in the capital,” says Kreis. These holidayers, predominantly western, come for the boutique style and comfort of Kep Lodge’s bungalows, meanwhile, respecting Kreis’s desire to let guests live close to nature.In 2015, Kep Lodge has expanded to 13 boutique bungalows, occupied almost year round, with a tropical fruit orchard, elegant restaurant and clubhouse, an infinity salt-water hillside swimming pool, and a collection of the most hospitable hotel staff you are likely to find.  Now, the land that Kreis’ dream resort sits upon is valued at up to $90 per square meter, with land by the main road in Kep as high as $150-$200 per square meter.Looking across Kep Village today, the real estate market has expanded beyond comparison too. Around 90 guesthouses are now scattered across the sleepy beach town, with over 50 restaurants and around 200 permanent expat residents - a welcome change for Kreis, who found his early years in Kep isolated from the outside world.  “In fact,” notes Kreis, “Over Pchum Ben holiday this year we saw traffic jams in Kep Village, as holiday makers from across the country took to the coast in numbers like we have never seen before.”   Want to buy Kep Lodge? Check out the property listing on realestate.com.kh and inquire today!

The increase in high-rise buildings across Phnom Penh is not only turning Phnom Penh into business and commercial hub, it is also attracting more foreign investors to inject their investment capital into the country. Sear Rithy, CEO of WorldBridge Land, is currently cooperating with Singapore-based Oxley Holding International to invest in ‘The Bridge’ development, a 45 floor, $300 million project. The same company is also preparing to build the Shangri-la Hotel in Phnom Penh, and three commercial buildings known as ‘The Peak,’ with 55 floors each, located near Diamond Island. Sear Rithy says that the emerging skyline in Phnom Penh is really attractive for investment.  "When foreigners visit Cambodia, they will be interested in projects like ours. If there are many high-rise buildings, they realize this country has been developing and they are interested in investing. They will then consider the legal system and government policy, economic growth, and political stability," he said. "Investment will grow along with the high-rise buildings."  The speed of development shall depend on each government's policy; however, Sear Rithy believes we are currently on the right track. Cambodia is better than all other ASEAN countries, besides Singapore, in regards to the conditions for increased FDI - because the Cambodian government allows foreign investors to own a one hundred per cent share of a company, they are exempt from tax for importing products and tax rates generally in Cambodia are lower.  "Cambodia has adopted a multi-ownership law which allows foreigners to own from the first floor up, which is good because it helps foreigners to be more confident in their ownership rights. It's like Cambodians trying to buy property abroad without having their name on the title of the property. Is it a worry? Yes, of course it is," he said.  According to an unreleased report by the Ministry of Land Management, Urban Planning and Construction that looked at 600 new buildings both finished and under construction, Phnom Penh’s development has been broken down into three categories. While the city is still dominated by buildings that range from five to nine floors, at a total of 361 buildings, it is not a surprise that their numbers showed a growing trend towards upward development. The report found that there are 167 buildings between 10 to 19 floors, 21 buildings were between 21 to 29 floors, while only twelve were above 30 floors, four of which are over 40 floors. Lao Tip Seiha, Deputy General Director of the Construction Department of the Ministry Of Land Management, Urban Planning and Construction, said looking at the change in Phnom Penh’s skyline is an indicator of the country’s development. If compared to neighboring countries, he said that Phnom Penh’s growth is following the same path as other major cities and that the high-rise developments reflect adequate urban planning and infrastructure advances. “More high-rise buildings illustrate that Cambodia has achieved more than it ever has before,” he said. “Foreigners who visited Cambodia even five years ago are surprised by the achievement.”Chrek Soknim, CEO of Century 21 Mekong, agreed that having high-rise buildings could well give more investment potential to Cambodia. He now sees a Chinese company planning to invest in a 500-meter building with high standards in Cambodia, and this reflects a good sign for the country. "Having more high-rise buildings will mean we attract more investors. If there are more investments such as this Chinese example, and they move their head office here, we will get more advantages for the greater economy," Soknim said.  "Cambodia does not have many big companies placing head offices here, so we have more potential to come in the future. But I believe we will attract them to bring their head offices here. Consequently, the GDP of Cambodia will increase to another level," he said. Realestate.com.kh is proud to support the CVEA's Property View publication. Click here to get your copy, or if you are interested to join the CVEA today.

Searching for expat rentals in Phnom Penh can often be a stressful and daunting task, especially if you are an expat who is new to town. Here at Realestate.com.kh, we've compiled a top 5 list of advice and tips, to ensure your next rental home search will be a great experience.There are no shortage of agents who are ready to assist you finding expat rentals in Phnom Penh - from fully registered agencies, right through to "work from home agents." In fact, you can bet even the good old tuk tuk driver will know a few places for rent if you ask them.But how do you weed out the good from the bad when searching for quality agents with expat rentals in Phnom Penh? How do you save the time & stress when searching for an expat rentals property?Ask your friends or colleagues if they know a great agent: Chances are, if they’ve been in Phnom Penh for a number of years, your friends, family and acquaintances would of dealt with several agents before, and can share their experiences with you. Find out who helped them to secure their expat rentals in Phnom Penh, and learn as much as you can from that experience.Use an a professional agency: Professional run agencies such as the “featured agents” listed at the top of Realestate.com.kh’s “Find an Agent” section, are well established, and, in some cases, this list includes some particularly expat orientated agencies.  Professional agencies with an expat focus should have a full range of listings on Realestate.com.kh and on their own website, fluent English agents, great market insight and experienced with Cambodian rental agreements.  As they offer a free service to potential tenants, professional agencies should be your first call. Some current “Featured Agents” who specialize in expat rentals in Phnom Penh include Yong Yap Property, IPS Cambodia, Knightrank Cambodia.Does the agent understand your requirements? It takes time to visit properties and you don't want to waste half a day viewing properties that are not relevant.  There are agents out there who only hear your budget of $500 and do not care that you want to live in a specific area or that a large balcony is the most important feature you require.  Ask the agent to show you photos of the property first to save time.Check their referrals: Quality agents have a track record of happy clients and would be proud to show you some positive feedback from their previous clients. If they have a testimonial section on their website or feedback on facebook, see what previous clients have said about the agent's service. Don’t forget to consider their after-sales support track record - this is often the difference between an average agent and a very good one.Attention to detail: Does the agent respond emails/phone calls in a reasonable amount of time? Does the agent show up to appointments on time?  Do they dress smartly? All these signs give you an indication of the type of agent they are, and the standard of service that they are likely to bring to you. If the agent makes the effort to present in a professional manner to you, it's a safe bet that they'll provide quality overall service.Found an agent? Now it's time to inspect the properties they recommend! Checkout our property inspection checklist now!

Bodaiju Residences is delicately infused with Japanese and French architectural elements, believes the project's Architect, while bringing the everyday conveniences expected in a modern apartment building to the capital of Cambodia. Bodaiju Residences is an ensemble of six 14-storey buildings woven into the tropical landscape. The project Bodaiju Residence was designed by Ivan Tizaniel, a French architect who has worked on projects that include The Plantation Hotel, in Phnom Penh, and the VIP terminals for both Phnom Penh and Siem Reap International airports. See the listing here. Phase 1 is selling out fast, with huge local interest from Khmer buyers!Each Bodaiju Residences unit will enjoy large covered terraces that are able to act as a second out-door living rooms. Indoor-Outdoor flow is the name of the game, as Tizaniel wished to embrace Cambodia's tropical climate. It may also be a tribute to the Cambodian lifestyle, as local families prefer the option of eating and relaxing outside or inside, depending on the weather. The residences will also host rooftop sky pools, sky parks, a gym, clubhouse, BBQ pit, mini marts, cafes and kids play space, among a host of other features. Inquire today for full information!  “Bodaiju is architecturally inspired by the local climate,” Tizianel, the proud architect said, adding that, “in tropical countries such as Cambodia, we have to provide shade within the design to protect from the sun and get natural ventilation.” One, two and three bedroom condos are all available, and on accommodating financing schemes. Inquire today for full information!  Another unique feature of Bodaiju Residences, is that the car and moto parking lots open up to the ground floor gardens, covered by additional suspended gardens and lush walkways that link all buildings on the second floor. The suspended gardens serve a dual purpose, Tizianel explains: Able to hide the parking lots and, meanwhile, create a nice landscape for the lower level apartments. “The Japanese touch is in the simplicity of details and the relationship with nature,” reflects Tizianel.     Bodaiju Residences brings nature together with the conveniences of metropolis living, in close vicinity to Cambodia’s industrial centers. Located on the outskirts of Phnom Penh, alongside Lion Mall and a quick drive to the Phnom Penh international airport, Bodaiju Residences is equally close to the Phnom Penh Special Economic Zone and other emerging hubs of industry; a great choice of new home for factory management who wish for a convenient location close to the workplace. With construction commencing now, set to be completed by 2018, the project will be built in three phases on a 23,531 square meter area of land. The first phase, which is currently being sold, will include 372 units, while the second and third phase will produce 372 and 184 units respectively.   Click Here to Contact Bodaiju Agents!     Low-entry investment in Bodaiju Residences starts at $100,000. The average net selling price of Bodaiju Residence units is $1,600 to $1,700 per square metre. The Bodaiju Residences project is the first and biggest project to be invested in outside of the city center and instead in front of Pochentong International Airport. This shall be the future focal point of Phnom Penh, and is an attractive position for investment based on rising land prices. It's proximity to both the CBD and the International Airport is an assurance for buyers that their investment will increase in value as the Cambodian economy continues to develop.         Inquire About Bodaiju Residences Today on Realestate.com.kh and find out more!

Realestate.com.kh understands that the Phnom Penh rental market can be a little daunting for expats fresh to the Kingdom looking for a new home. In light of this, Realestate.com.kh has taken a survey of the average prices of rental properties in Phnom Penh, and let you know what differently classified Phnom Penh rental properties are likely to provide.Not surprising, Phnom Penh offers a host of real estate options for expat renters - whether it be a traditional wooden Khmer-style townhouse, a classic French-inspired Villa home, or a state of the art condominium unit, built by an international investment company. Clever expat or local renters can win in the Phnom Penh market place if they know what is available, and what reflects a reasonable price for those properties. The following should be a good start, thanks to Realestate.com.kh! We can break the Phnom Penh rentals market into four broad categories: Full-Serviced Apartments, Western Apartments, Khmer-Style Shophouses, and Renovated Shophouses.Let’s explore the attributes of each type of Phnom Penh rental property, and the average cost of leasing in different areas of town.1) Serviced Apartments in Phnom Penh: Luxury is increasingly in demand in Phnom Penh - but as the supply of luxury serviced apartments begins to exceed demand, luxury can also be very affordable. Full-service apartments provide almost everything you could want in a Phnom Penh apartment.Expect, at minimum, western style architecture and interior layouts, natural light, views, modern equipped kitchen including an oven, modern bathrooms, and expansive closets. Services such as laundry, Internet, cable, water, and even concierge services are included in the new breed of serviced apartments around Phnom Penh. Most of these accommodations also include one or more elevators, security, car, bike, and moto parking, gyms and/or swimming pools. Expect organized rent collection and hasty replies to your maintenance requests. You will almost certainly have air con.Serviced apartments are generally easy to find in the city, but expect prices to be higher than other types of accommodation, and don’t be surprised if vacancy rates low. Service apartments are somewhat impersonal, compared to other types of Phnom Penh rentals. Due to their size and relative vacancies, it may be more difficult to get to know your neighbors or your landlord. For a young professional or family, however, this extra space and privacy may be appreciated. They are also generally high rise apartments, so chances are you can land a great view of the city! Rough Price Range for 1 Bedroom Service Apartments:CBD - Chamkarmon, Daun Penh = $1000 – $1700 per month;Outskirts - Toul Kork, Sen Sok, Olympic, Toul Tom Poung = $800 – $1200 per month.2) Western Style Apartments in Phnom Penh:A “Western Style” apartment is a term that is thrown around a lot on the Phnom Penh rental market – and those properties fitting this description can vary widely. A “western” apartment can in fact represent anything from a few apartment units on the third floor, to a unit within a high-rise multi-unit tower. However, generally, those properties termed as western-style apartments in Phnom Penh have more amenities than those sold as Khmer-style units.So called “Western apartments” are generally newly constructed, have windows in every room and plenty of natural light, western style toilets and a kitchen with full cooking amenities; this should include all standard appliances and plenty of cabinet space, counter space, and an integrated cooktop. Often these apartment’s bathrooms will include a hot shower, a bathtub and floor tiles. A western style apartment should have a larger living space with somewhat modern lighting fixtures.Western apartments will also generally be furnished, and with furnishing such as plush sofa’s – as opposed to purely wooden furniture preferred in traditional khmer houses. Internet, cable, water and sometimes cleaning are generally included in the rental rate. Some of these properties will have elevators and might even have shared rooftop terrace areas. Expect parking for bicycles and motos. You should always get an air conditioner – in fact, this can be the sole reason the seller has called it “western.” Essentially, the “Western” label should lead you to believe that the construction is of a higher standard, as is the overall security of the building.For a foreigner there is also the benefit of having many foreign tenants, making it easy to make friends when your first settle in. Owners of western apartments are generally more experienced with this market and will follow through with your rental maintenance requests. Price Range For 1 Bedroom Western Apartments (non serviced):CBD - Chamkarmon, Daun Penh = $600 – $1000 per month;Outskirts - Toul Kork, Sen Sok, Olympic, Toul Tom Poung = $500 – $700 per month. 3) Khmer-style Shop House: A Khmer-style shophouse is still one of the most common property types in Phnom Penh, found in nearly every Phnom Penh neighborhood. They can also be built into three or four-story low-rise row homes. A shophouse, khmer style, is generally about four meters in width and roughly 16 meters long. The doors to enter will be in the front or back of the shop house, and the walls on either side will almost always have no windows. In a khmer-style shophouse, bedrooms won’t generally have windows, and if they do, they will face toward the interior of the home as opposed to the outside – thus, generally providing no natural light.Bedrooms will normally have movable dressers or rattan shelving, as opposed to inbuilt storage space provided in the more modern designs of apartments. Kitchen layouts in Khmer-style shop houses are generally fairly basic too. Expect to see a sink or two and a one burner gas cooktop. Don’t expect an oven and you will be lucky if you get much cabinet space.Don’t expect hot water, anywhere in the house. Bathrooms generally won’t have a separate shower or windows - but will be well equipped with floor to ceiling tiles, and the infamous bum gun. Bathrooms are just “wet rooms” without a separate shower in many cases. Home furnishings are seldom included, and if they are, expect them to be either rattan or wood. Expect, in terms of furnishings, no more than chairs, coffee table, and a table for eating.Although basic shop houses are still surprisingly popular with foreign renters, ultimately, their simplicity creates a kind of charm – and the price gap between these common shop houses, and new serviced units entering the market, are incomparable. Those that accept these shophouses for long term rents are generally expecting the landlord to make improvements or are being permitted by the landlord to make changes and modifications to the home themselves. With the right design and decoration, this style of house can be tailored to your preferences, and made to look much more valuable than their rental price. Expect to live close to your neighbors and get to know your neighborhood – which is a valuable experience for many expat renters. Rough Price Range For 1 Bedroom Khmer-style Shop Houses:CBD - Chamkarmon, Daun Penh = $300 - $400 per month;Outskirts - Toul Kork, Sen Sok, Olympic, Toul Tom Poung = $300 and under per month.4) Renovated Shop House:A renovated shop house, basically a khmer shop house that has undergone a makeover, can be harder to find in Phnom Penh. But when you find the right renovated shop house, you can get the authentic khmer style of living, with all the western amenities at hand. Adding to your search, the renovated shop house can often appear camouflaged from the outside as they generally have the same construction and outward appearances as the standard Khmer-style shop house.However, look inside to discover a gem – as the owner has in fact renovated the apartment interior with Western finishes, fixtures and amenities, yet still encapsulated in the same 4 x 16 meter layout. Keep your eyes peeled for new floors, added windows, and updated lighting fixtures. Other home furnishings will be newer – such as plush couches/sofas, and maybe a glass coffee table. A clear sign that a shop house has been renovated are the addition of external windows in the bedroom, facing the outside.Bedrooms may also have added features since the renovation, such as built-in closets, built-in shelving and air-conditioning. Renovated shop house kitchens will usually have cabinets for storage, and newer, western style appliances. Still, be aware that furnishings and construction may be cheap and require maintenance.Renovated shop house are great for foreigners who want to live comfortably on a budget while meanwhile maintaining the charm and community of living in a Khmer-style shop house. Owners are quite often friendly to expats and eager to please throughout the contract. More importantly - the prices are affordable. Rough Price Range For 1 Bedroom Renovated Shop Houses:CBD - Chamkarmon, Daun Penh = $600 - $700 per month;Outskirts - Toul Kork, Sen Sok, Olympic, Toul Tom Poung = $400 - $600 per month.Learn more about the Phnom Penh Market here. Check out our pre-signing checklist for rental properties now!

Although a relative newcomer the market, Bodaiju Residences has already sold over 60 per cent of Phase 1, according to Tomohiro Yakushi, vice president of the Japanese developer Creed Group. See the listing here.Yakushi believes that the reason for this is that most new developments across Phnom Penh aim solely to capture foreign investors but, Bodaiju Residences, the largest development in Cambodia by a Japanese Company, has gained huge interest by local investors and home owners who understand market potential and the need for well-financed projects in Cambodia, especially those located in strategic areas.In fact, Her Excellency Louk Sovanna from the newly formed KH Niron Investment company, a local property investor, has already announced that they have purchased 37 units at a total cost of around $5 million, according to a recent report in the Phnom Penh Post.“Unlike other condominium projects that mainly target foreigners, we aim to target locals pursuing home ownership and high standards of living,” said Yakushi. Bodaiju Residences have already gained local confidence:  the key to success in the Cambodian new developments market.“We mainly want local people to live here - not only foreign investors buying and selling condo units. We want to add real value,” Yakushi said. Hence, the majority of sales thus far are local Cambodians, at around 65 percent of Phase 1 sales; in addition, Korean buyers represent 15% of phase 1 sales, Japanese equate to 10%, Singaporean, 5%, and the remaining 5% of the units have been sold to other nationalities. This demographic will provide a multicultural and vibrant community in Bodaiju Residences.Inquire about Bodaiju Residences today on Realestate.com.kh and find out more!Based on current sales success, the Creed group predicts that at least 75 per cent of sales in Phase 1 will be complete in October 2015, according to a recent interview with the Phnom Penh Post.Creed is also making financing available, for local and international buyers. In fact, financing is available for up to 90 per cent of the property value by ORO Financecorp—a subsidiary of Creed Group— meaning that property investors can acquire loans starting from as low as 5 per cent interest.“This means that the low-entry investment starts at $100,000,” Yakushi adds. The average net selling price of Bodaiju units is $1,600 to $1,700 per square metre.The Bodaiju Residences project is the first and biggest project to be invested in outside of the city center and instead in front of Pochentong International Airport. This shall be the future focal point of Phnom Penh, and is an attractive position for investment based on rising land prices. It is a widely known developer's rule that very few property markets around the world fail to grow in areas near international airports.Inquire about Bodaiju Residences today on Realestate.com.kh and find out more!

Realestate.com.kh would like to present another of our featured agencies - Century 21 Cambodia. [caption id="attachment_78813" align="aligncenter" width="580"] The Century 21 Cambodian team.[/caption] Check out Century 21 listings for rent and for sale on realestate.com.kh todayCentury 21 Real Estate was founded in 1971 and is today the largest and most recognized real estate company in the world, with 7,100 offices worldwide, in 74 countries, and more than 100,000 real estate professionals. Cambodia will be the 75th official country for Century 21 Real Estate. Century 21 Real Estate is the largest company providing comprehensive training and marketing support for its affiliated offices worldwide. As a result Century 21 Agents are recognized as the most skilled real estate professionals in the world. The Century 21 Asia Pacific countries comprise over 10,000 Century 21 agents and is regionally the strongest brand in real estate services. In addition to a strong regional presence supporting Century21 Cambodia, China has more than 15,000 Century 21 Agents and Japan has over 13,000 Century 21 Agents, making the Century 21 Brand the strongest in Asia. Kevin Goos, CEO of Century 21 Cambodia, says that, "What we are doing in Cambodia is entering the market and increasing the level of professionalism with the Cambodian agents, so they can compete on a international level and work in the global market place."  The current real estate brokerage market has remained much the same as it was before the World Economic Crisis in 2008. In 2014, with the implementation of Century 21 Real Estate in Cambodia, Century 21 Cambodia will raise the standard practice of real estate service across the entire market in Cambodia. Through Century 21 Cambodia award winning training programs and brand support, C21 will provide all the tools to make Century 21 Agents succeed in Cambodia. "We have done this in every country and it worked every time," says CEO, Kevin Goos. Century 21 Cambodia Real Estate is a business that helps local companies to take their real estate offices to the next level, to network with international buyers, and for them to use the brand that everyone knows and trusts worldwide Check out Century 21 listings for rent and for sale on realestate.com.kh today

Are you an Expat expecting just a temporary stay in the Kingdom? Are you nervous about signing long-term leases when you are not sure if you can satisfy the contract length? Are you finding that most Cambodian landlords are unwilling to have tenants stay for less than six months? Here is a guide to Long v Short Term Rental Lease in Cambodia, from Realestate.com.kh.Learn more about Phnom Penh rental market and other Cambodian rental advice here.Here's a check list for securing your dream Phnom Penh rental!Benefits of a Long Term Lease:Signing a six-month or year lease locks in a rental price in a market that is growing in leaps and bounds every year.Rental rates climb 10-15% annually in Cambodia, especially in the urban and tourism centers, and as new buildings offering all types of modern amenities continue to enter the rental market, these prices will continue to rise.A long term lease will save you from a price hike when the lease term ends and you are no longer able to find an apartment of the same value for the same price.Signing a long-term lease will also grant higher negotiating power: the landlord should be more flexible because they know you will stay for a longer period of time. They may add furnishing that you request, and negotiate on set rates.Remember that most owners want to build and maintain a relationship with their tenants. A long term lease allows this trust to develop.If you end up securing a lease for longer than you are able to stay in Cambodia, many expats are seeking shorter length, sub-lease agreements. This will give you the opportunity to finish your lease agreement payments through a sub-lease with a short term tenant. It pays to check with the landlord that will be possible before signing the leasing contract.Alternative, the landlord may allow you to transfer the entire lease to a new tenant that you have found - if you can't satisfy the contract. Enjoying this guide to Long v Short Term Rental Lease in Cambodia so far, learn more about Phnom Penh rental and other Cambodian rental advice here. If I do sign a long term lease, what sort of contractual and non-contractual terms can be negotiated with the landlord?Most importantly, the monthly rental price – as despite what the landlord and agent may say, in the Cambodian market there is always an element of flexibility in it!Consider requesting the installation of window screens, new or more fans, and new or improved furniture.Rates for services, such as water, electricity and rubbish collection may sometimes been thrown into the final rental price, at no extra charge.You should check whether the landlord is open to a sub-lease if you can't stay for the whole length of the lease agreement. If they are, let them know that they will have an opportunity to screen the new sub-leasing tenant before they are accepted. Also, check whether they are open to transferring the bond to the new sub-leasing tenant. If the new landlord accepts these terms, the additional lease length shouldn't be such a risk to you.Remember, negotiation is about compromise. Consider the landlords objectives and unique circumstances - and try to compormise a rental agreement where both parties can feel satisfied. Here is some useful real estate negotiation advice. Enjoy this guide to Long v Short Term Rental Lease in Cambodia, from Realestate.com.kh? Here's a check list for securing your dream rental!

Jay Cohen, Director and Partner of Tilleke & Gibbins Cambodia, joined Ivan Cano, Content Manager of Realestate.com.kh, in sharing an introduction to Guaranteed Rental Returns.Cambodia’s property market has seen massive growth and changes over the past decade. The influx of foreign investors made the landscape quite the competitive field and many new property investment opportunities throughout the Kingdom now come with Guaranteed Rental Returns (GRR).What are Guaranteed Rental Returns?In layman's terms, GRR is a future rental income that is guaranteed by the developer or management company to the property purchaser for a contracted period of time after the purchase agreement is signed.For example:Property Price$100,000Guaranteed Rental Return (GRR)6% per yearGRR Period2 yearsExpected Rental Return$12,000 over 2 yearsSharon Liew, CEO of Huttons CPL, notes that Guaranteed Rental Returns is a reassurance scheme for new investors looking to try out a new, somewhat uncharted international market. Standard net returns being advertised in the condos and new developments market range from 4 percent to 9 percent, normally for a two to five year period.Key considerations for Guaranteed Rental ReturnsFor potential investors faced with promises of Guaranteed Rental Returns, there are several points to consider before signing that dotted line.Make sure the GRR is on a contractual documentFirstly, it is crucial to find out exactly what is underwriting the guarantee. If it is merely a paper promise it is potentially illusory - a marketing exercise that will collapse after the developments launch. However, if there is an actual contract in place, containing the potential for legal recourse should the income not be generated, the GRR presents some value.“If there is a GRR scheme, the investor needs to make sure the GRR is set out in writing,” said Jay Cohen, Partner and Director of Tilleke & Gibbins Cambodia, highlighting the importance of having the Guaranteed Rental Return rate in writing. “There needs to be some sort of contractual document that sets out the rights to the GRR”Guaranteed or Gross Rental Returns?After setting the GRR out in writing, investors need to consider additional costs that may reduce an investor’s expected return; a common mistake that some novice investors make is to take the Guaranteed Rental Returns being offered as a reference point to calculate their returns.Jay Cohen notes that investors need to be careful and understand what other costs may be imposed by the developer that may reduce their GRR. “Often in GRR schemes, there may be other costs that will reduce that amount. For example, management fees, sinking funds, utilities, furniture packages, and property taxes” he said.For example:Property Price$100,000Guaranteed Rental Return (GRR)6% per yearGRR Period2 yearsExpected Return$12,000 over 2 yearsManagement fee per month$125 ($1,500 per year - $3,000 for 2 years)Utility bill per month$80 ($960 per year - $1,920 for 2 years) Expected return: $12,000 after 2 yearsCosts over 2 years: $4,920 (Management fee + Utility bill)Net Return Return: $7,080 over 2 yearsJay emphasizes the importance of having the GRR and the associated costs of owning the property to be on a contractual document and from there, understand what is their net return over the contract’s expressed period of time.Sam Kiers, Director of Sales and Marketing at Elevated Realty, agrees: “This ultimately leads to investors seriously considering the time it takes for the investment to turn profitable.”Desmond Yap, General Manager of Yong Yap Properties, believes that if it is the developer offering GRR, it is fair to assume they have done their calculations and have ensured they will not create a loss of profit for their company. “Thus, in effect,” says Yap, “the buyer is paying for their own Guaranteed Rental Returns.”Know the going rate of similar propertiesJay Cohen notes that developers often look at surrounding properties of a similar tier along with calculating their desired ROI to come up with a GRR offer. Jay additionally impresses on investors that it is not uncommon for developers to inflate the rental guarantee figures to create a good impression on buyers considering the longer-term benefits of their investment. The opposite is true as well that a developer can undercut GRRs if they are confident they can rent/lease the property out for a much higher price.For investors, another consideration about any GRR promise should be whether the rental income figure appears realistic and achievable in the current market, keeping in mind where the property is located. If it is clearly unrealistic, the investor should foresee a dramatic reduction in returns on their unit once the guaranteed rental period ends.Sharon Liew explains that “In general, the projected GRR is usually lower than the market rental rate by about 20 percent, to protect the developer from any losses - this means, that anything higher than 20 percent (per year) is likely too good to be true.”What happens after the GRR period ends?“After a GRR period ends, the investor takes over the property and they have an obligation to lease it out themselves,” said Jay Cohen. Depending on the developer, they may offer their services to lease an investor’s property post-GRR for a nominal fee/arrangement. Jay Cohen emphasizes that this should be spelled out in a contractual document to avoid ambiguity or the requirement of additional services resulting in more fees.Do a background check on the developerIt is advisable that the buyer must consider whether the developer or their property management company in fact has the ability and resources to manage the property properly and sustain rental tenants for the property over the guaranteed period.Liew confirms that “The developer’s credibility and presence in Cambodia are extremely important, as most GRR only kicks off after the development is complete. This makes upfront rebate on Guaranteed Rental Returns a more attractive option.”Look for an experienced property management operation, with past success in the local market.“Be sure to check the validity of the GRR agreement and the quality of the management team," says Desmond Yap, “and, if possible, see how the management company is arranging their finances.”Force Majeure, enforcement, and dispute resolution of GRRsGuaranteed Rental Returns in Cambodia came at a time when the real estate market was booming. Business travelers and tourists were flying in and Cambodians from the countryside were flocking to big cities like Phnom Penh to find work - constituting a large base of property buyers and renters. But COVID-19 has disrupted this growth.So can the developer reduce the GRR under certain situations? Can the developer altogether stop paying the GRR if there’s a force majeure event? “It depends,” says Jay Cohen. He reminds investors that the GRR is a contract between the purchaser and the developer. “Whether the developer is allowed to reduce the GRR because of events like a pandemic, or a force majeure event, that really comes down to the nature of the contract”.Cambodia has legal concepts of force majeure. Jay says that developers may rely on this law but warns this may be a difficult issue as it is not clearly spelled out under Cambodian law.He suggests that a “dispute resolution” be negotiated between the investor and the developer. “Give some thought to dispute resolution,” he said, “the agreement may be regulated by Cambodian law, and may give investors the choice of the Kingdom’s courts or arbitration”.“Arbitration in Cambodia may be a good path as it’s faster. So that may be a way to enforce the agreement” he said.Recap and additional tips when considering Guaranteed Rental Return offersJay Cohen reminds investors there should be a document aside from the Sale-and-Purchase Agreement (SPA) that clearly sets out the GRR, obligations of the developer, and any other additional expenses to be shouldered by the purchaser.Additionally, even if a GRR is reasonable and competitive, they are not the sole indicators of a good investment. Saraboth Ea, Managing Director of  Maxem Property warns, “GRR needs to be considered amongst many other factors that determine whether an investment is a good value or not. This will consider the buyer's objectives and investment timeline, which varies from individual to individual.”“As the market matures,” continues Ea, “We hope to see developers put less emphasis on rental returns, and establish a good balance between local buyers who will reside in the property versus those who buy purely as an investment.”Looking at both sides of the Guaranteed Rental Returns debate, the rental guarantee is important for investors who need immediate reassurance on their investment - however, the guarantee is only as good as the strength of the company offering it. Ea says that a healthy skepticism around GRR is only natural in Cambodia, as it is a relatively new concept for local buyers and investors: “Rather than being the sole incentive for a buyer, we view it more as a gauge of the developer's confidence in their project.” Looking for property investment in Cambodia? Let us help!Article by:

Mortgages (or home loans) are an essential consideration for most people buying, selling, or simply owning a home. While the concept of borrowing from a bank or lender appears simple - home loans can be a lot harder to understand than you might first think. However, realestate.com.kh is here to help with our “mortgage matters” series. And when you are ready to consider a loan more seriously, we can even put you in touch with Cambodia’s leading lenders.Inquire for a home loan here.Drawing on  the experience of others who have mortgages (any number of your friends and family who already have a home loan), and with a little extra homework, we believe that any body can make sound financial decisions.What is a Mortgage?A mortgage is a loan, quite simply, with your house and land used as security for that loan. That means, if you don't pay back the loan in the prescribed time frame, the lender (usually a bank) has the right to foreclose your home. Foreclosing means to take possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments. Basically, the bank takes your home and sells it to settle the debt. The loan is secured by a “lien” (in other words, the "mortgage") against the property in question (your house and land). The lender still doesn't own the house, you do. But if you can't pay, they have the lien with your house as their collateral/security.  You still have full ownership rights - yet subject to the mortgage.When looking for your first mortgage is it most important to consider two things: What you can actually afford?What you can borrow?Why are these two questions different? Because, the lender/bank is never going to look at how much you spend in a month on partying with friends, or movies and dinner, or how happy you'll be with a big payment.Put in your loan requirements in realestate.com.kh's mortgage calculator now! In reality, they may well be willing to loan you considerably more than you think you can spend on your home mortgage. You must consider this seriously - because only you know how much flexibility your lifestyle and spending habits have, which ultimately determines how much you can afford when searching for a new home. If you miscalculate this - you risk not being able to satisfy payments and ultimately losing your new home.Learn more about how to budget better for you and your family here.A lender/bank will look at your income, and future income potential vs. your proposed debt, as well as your bank savings and credit history. Having considered these factors, the bank will then determine how much of a risk you'd be for the lender/bank to take on and issue a loan. Meanwhile, they look at the value of the house you want to buy, and potential future value, and compare against the interest rate of the loan you'll be getting. After this analysis, the bank/lender arrives at a loan amount that they consider a healthy risk. If all things go to plan, this loan amount will match (or potentially exceed) what you need to satisfy your down payment and the final price of the house you want to purchase.Read part 2 of Realestate.com.kh’s “mortgage matters” series. And when you are ready to consider a loan more seriously, get in touch with Cambodia’s leading lenders.