The outbreak of COVID-19 has forced a majority of people all over the world to stay indoors for an extended and unknown period of time - a situation that puts a special strain on the facilities of any property. So, whether you lease or own your space, have a broad portfolio, or a single asset, as a property owner, the attention you give to your assets, and its facilities, is more crucial now than ever.Equally imperative are the decisions that need to be made in the coming weeks, such as: “Who can enter or use my building and its facilities,” “How do I respond to suspected contamination?” ''How will I keep my buildings operational and protected while most of my workforce is home?” and ultimately, “What is our facility showing our community about our company and our values?”CBRE, a property consulting and management firm, oversees a number of buildings throughout Cambodia alongside millions of sqm of office space, apartments, and condominiums across China, South East Asia, Europe, and America. We have a regional hub in South East Asia where each of the heads of Property Management is in regular contact; sharing information/experiences and jointly developing plans and procedures, especially in these times. This has imparted valuable lessons behind my no-regrets, action-oriented recommendations:Manage entriesThe best way to keep your facility safe is to keep people with the virus at home. There are several ways to approach this, including temperature screening and other sophisticated equipment that could become permanent installations. There are also low-cost options, like increasing lobby signage reminding people to stay home if ill, restricting visitors, and setting up self-check temperature stations.Plan for an exposure-related shutdownIt is likely that you will experience a suspected or confirmed case in at least one of your facilities. Rather than waiting for that moment and having to scramble, prepare a written plan, and educate your site managers, staff, and providers proactively. What to do with the individual? How to isolate them? How to get them home safely? What steps to take? If you think all of this through and get it in writing beforehand (working with your legal, HR, building owner, and key stakeholders) you will mitigate risk and reduce anxiety when the event happens.Clean oftenIncreased cleaning has a direct, infection-control benefit and should be implemented as a preventative move. A full daily disinfection may not be necessary, but the virus lives on surfaces for up to 3 days; and proper, increased cleaning will help lower your exposure. Clean more often and be visible with these services, especially in common areas. As the world opens back up for business, we should expect a lot more cleaning.Energy management and  energy costsAs energy often takes up to 40% - 50% of your building running costs now is the time to be more vigilant. You don’t need sophisticated building management systems or controls but you should watch equipment carefully as you run and you run it differently. Ensure lights and AC are switched off in vacant areas, keep up the maintenance especially on your AC systems for air quality and running efficiency.Treat your suppliers wellFacilities suppliers are becoming critical to business continuity – especially cleaners. A number of our clients have instructed us to work with suppliers to be sure they retain staff and maintain capacity even while client sites are closed or in partial use. These clients understand that their supplier partners operate on thin margins and that their employees operate on even thinner margins with no safety net. We believe these clients are going to be very well served for these actions.Take advantage of the downtime to prepare for re-openingEvery facility has deferred projects and tasks that were waiting for a weekend when the building sits empty. Planned correctly, now is your chance for these projects. We are working with clients to complete delayed projects, replacements, and repairs. Put in place more energy-efficient equipment. Finish that asset condition survey. Our teams in China realized that deferred maintenance on older equipment just could not respond to more intensive HVAC demands, so we are working hard to repair, replace, and upgrade.Communication Keep up to date with all local newspapers and government departments so that you are ahead of the game and ready for any changes that may be enforced. Keep your company, all your clients, tenants and occupiers updated regularly but also limit the channels of communication and avoid participating in gossip groups as misinformation creates confusion and worry.The Future New NormalAs you plan for re-opening, your employees, customers, and suppliers are going to have new expectations for how to run, clean, and manage your facility. At the same time suppliers, landlords, and maintenance teams are going to be managing the surge of work. Consider focusing on three areas:Operations: Inspect and test key building systems to ensure the building is safe and comfortable as you come back to full occupancy.Service Planning: Allow providers of cleaning, food, concierge, HVAC, security, etc. ample lead time to ensure they can get their teams back on-site and fully operationalChange Management: Ensure the occupants are aware of what’s been done, what’s different, and what protections need to stay in place to keep everyone healthy. Set up a hotline to take their questions.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!*This is article is written by Dan Davies, Director of Property Management at CBRE Cambodia.*Note: CBRE Cambodia has set up an unofficial building owners /managers PP Covid-19 group. If you are interested to join please call +855 85 986 934 or email: dan.davies@cbre.com

Property rental Tax in Cambodia is set by the rental received on the following types of properties:Residential and commercial buildings or properties.Industrial and commercial installed equipment.Floating watercrafts/homes or ships used as homestay or place of business.Land without buildings used for stone, mine and coal extraction, lakes and salt pan field.This tax is collected from proprietors or leaseholders.Tax Rate:A foreign investor who buys property in Cambodia and rents it out needs to pay 14% of the gross rate annually while Cambodians have to pay 10%. This gross rental must be included in the lease agreement.Sample (for a Cambodian):5 apartment unitsRented at $200 per weekRental rate$200Number of apartment units5Property Tax 10%($200 x 5 ) x 10% = $100How to register:To register to become a taxpayer for property tax, the first thing you must do under this law is to register at your tax branch. You only need to register the property if it’s worth $25,000 or more. You should go to your tax branch where the property is located and complete two forms: PT01 and PT02.Read here for a more detailed guide on property taxes in Cambodia.When are tax payments due?The tax payment is an annual obligation due by September 30th.Looking for rentals in Cambodia? Let us help!Article by:

(The Ministry of Land Management, Urban Planning and Construction / Phan Soumy)What is a property title?A title or ‘deed’ is an official document confirming who owns the property, its location, and what rights the property owner enjoys. It should be noted that a significant percentage of land in Cambodia is not registered with the National Land Office and has no official land title certificate to secure the land on behalf of the owner.During the civil war period between 1975 and 1979, all Cambodian land title records were destroyed. This made any definitive proof of property ownership impossible after the war. A land law was passed in 1992 to establish the groundwork for land ownership, but it wasn't until its 2001 revision that allowed private ownership of land in Cambodia. The 2001 Land Law allowed for the creation of a land registry system enabling the issuance of Cambodia land titles. To date, over two million Cambodian land titles have been issued to citizens.Property ownership can now be secured by one of three forms of Cambodia land title: Hard title, Soft title, and Private Ownership in Co-owned Buildings – also known as Strata Title. In addition, an LMAP title is also now available.One of the most frequently asked questions is "Can foreigners own land or landed property in Cambodia?" The quick answer is No. The Cambodian Constitution prohibits foreign nationals from owning land and landed properties in the country.There are, however, indirect mechanisms of "ownership" such as the Nominee structure and Land concessions for development. Visit our guide to Property Ownership Mechanisms for Foreigners in Cambodia for more information.Hard Title in CambodiaHard titles are the most secure proof of property ownership and are considered the best Cambodian land title.Hard titles are certification of ownership provided by the Cambodian Land Management and Planning office. Hard Titles also include detailed information recognised and certified at a national level by the Ministry of Land and the Cadastral Office. It should be noted that a transfer tax applies when hard title transactions occur.A quick summary of what is a Hard Title in Cambodia:The Hard title is the strongest form of property ownership in Cambodia.In 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.A 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% per cent 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 weeks.Foreign nationals are constitutionally prohibited from obtaining Hard Titles. By extension, this prohibits foreign nationals from owning land and landed properties in Cambodia.Soft Title in CambodiaA Soft Title is the most commonly issued Cambodian land title. The Soft Title, however, is only recognised at the local government level. Soft titles are provided at the local Sangkat or district office and are not registered at a national level.The Sangkat (commune) or Phum (village) chief will issue a letter of possessory rights, which refers to the right of “possession” of property. A person is in “possession” of the property when she/he physically occupies the property but is not the owner of the land as recognised by the authority.Although not as secure as a Hard title, they are still considered evidence of possession. Historically, many land transactions have occurred as soft titles to avoid transfer taxes and fees. However, most new major developments are being transacted with hard titlesA quick summary of what is a Soft Title in Cambodia:A Soft 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 Cambodians.Estimated to take anywhere between 10 to 12 working days to process.Foreign nationals are prohibited from owning a Soft Title. By extension, this prohibits foreign nationals from owning land and landed properties in CambodiaCambodian Strata TitlePrivate ownership in co-owned (strata) buildings is a recently introduced form of property title that also allows foreigners to legally own property in Cambodia.Co-owned buildings or Strata-titled buildings are defined as buildings in which several owners reside, 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).A quick summary of what a Strata Title in Cambodia is:A Strata Title is a special title commonly used for condo unit purchases that 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 beyond.Foreigners can only own 70% of the total surface area of the building or property.Strata Titles cannot be issued for properties on the ground floor and/or underground.Strata Titles cannot be issued for any property within 30km of the nearest land border.Private 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 issued 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.Strata Titles are issued by the Ministry of Land Management, Urban Planning, and Construction. This 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.LMAP Title in CambodiaTo improve land tenure security, a titling system called LMAP (Land Management and Administration Project) has been introduced in Cambodia.Based on official GPS coordinates, land plots are being registered throughout the country. Should an LMAP title exist for your property already, the borders have been agreed upon between neighbouring parties and are less prone to dispute.A quick summary of what is an LMAP Title in Cambodia:The 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 between 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, the 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 limitation.A Transfer tax of 4% per cent 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. By extension, this prohibits foreign nationals from owning land and landed properties in Cambodia.How to Transfer A Property Title in CambodiaWhen you purchase property or land in Cambodia, 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 MLMUPC.The 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 attorney.A 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 with 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, prepare, and sign the relevant documents.The documentation needed for this step is:The Company’s statute.The 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 per cent 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 the 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 the 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 the 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.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:

Foreigners are 100% eligible to own a freehold condominium in Cambodia under certain conditions.The Cambodian Foreign Ownership Property Laws (legislation passed in 2010), allow foreigners to buy and own properties in Cambodia on the 1st floor or higher of a condominium. The property must possess a strata title and cannot exceed 70% foreign ownership.What does "off the plan" buying mean?Off the plan purchasing is literally what it sounds like. You are purchasing the condominium (condo) prior to its construction based on its design and construction plans. You sign a contract that reflects the agreed price of the condo as per the architectural specifications, any additions or changes you require. Generally, a deposit is required, (the amount of deposit is at the developer’s discretion and can be as high as 50 percent of the purchase price, or even higher), with the payment of these funds made by installments based on construction milestones set by the developer.Investors should develop an in-depth understanding of the installment payment plan triggered by construction stage milestones. These milestones may be based on various different construction stages. Some maybe a simple percentage of completion calculation or reliant on certain physical construction stages being met, such as floor topping of your level, electrical installation, certification of plumbing, etc. Unscrupulous developers may call for payments on milestones that have not been achieved. It is important to ensure investors have independent, suitably qualified advisors to monitor this process.When the building is finished, the developer hands you the keys to your new condo! Be certain to ensure there is a warranty and defects period included in your contract, identifying what is covered under warranty and a clear defect rectification process is in place, including contact details of the party responsible for addressing defects.What’s the advantage of buying off the plan?By purchasing at the development stage, buyers have the opportunity to select condos with the best locations, or prime units, in the development. Obviously, as the development progresses the availability of these prime units decreases.Buying off the plan offers you the flexibility to customise your condo within the limits of construction design. Whether you want to change the floor plan, surface treatments, lighting etc, these changes are easily achieved and are markedly less expensive during development.Off the plan discounts.Developers have loans to service and construction costs to cover. The more pre-launch sales deposits they receive, the better. This motivates the sales team to offer discounts on the purchase price, particularly if the market slows during the construction period. Many developers now offer rental guarantees to potential investors as enticement. These guarantees are traditionally based on a percentage return on investment.Historically, there have been occasions when off the plan buyers have seen substantial capital growth in their investment compared to purchasers who invest post-construction. Investors and speculators find this compelling, however, it is wise to consider that due to oversupply or global financial issues, the opposite can occur.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:

(The Kingdom of Cambodia’s rapid real estate development has been a boon to land-owners across the country. Photo by Ly Vanna.)One of the first things you learn in real estate is that land value continuously appreciates. In the Kingdom of Cambodia, this has become more apparent.This is especially true in the rapidly developing urban population centres (such as Phnom Penh and Sihanoukville) and major public infrastructure works (such as National Road 3, and the road projects in Kampot and Sihanoukville, or near national planned airports etc).According to CBRE’s Fearless Forecast 2020 report, land prices across Phnom Penh’s districts rose significantly. The districts of Daun Penh, Chamkarmon, and 7 Makara have seen the largest appreciation as these started the decade with prices around 2,000 USD per sqm.These same districts saw prices of ~6,000 USD per sqm in 2019; a 200% increase in value. Toul Kork, one of the most recently developed districts in Phnom Penh, has spiked in land value - from ~1,000 USD per sqm in 2010 and closed 2019 at an average price tag of around ~3,500 USD per sqm.(Phnom Penh's land prices have been on a steady increase since 2010. Source: CBRE Research 2021)Property in the countryside has risen as well due to the rehabilitation of major road networks. In the Kandal province, for example, the price per square metre of land was reported to cost $5 USD. But when road works began for the National Road 3, prices spiked to $13 USD per sqm. That may not sound like a lot compared to prices in Phnom Penh, but you have to remember that land in the countryside is purchased in hectares and not at a few hundred square metres.The uptick of land purchases and developments are showing no signs of slowing down anytime soon either. And that’s why you should consider buying landed property while they’re still affordable and profitable!Read the latest on why investing in Cambodia is a great idea.But before you buy, let’s understand the factors influencing the appreciation of land values.Why does land value appreciate?(The inherent value of land is tied with the versatility it provides when it comes to development.)Land has intrinsic valueLand has unquestionable intrinsic value since it can always be used for something that can produce valuable goods and services - something the Cambodian government, the private sector, and a few enterprising individuals in the countryside duly understand.For a better understanding of how intrinsic the value of land is, let’s take a look at cryptocurrency as a store of value. Without anyone accepting cryptocurrency as a medium of exchange, it cannot be used to produce anything else.On the other hand, even if land cannot be used as a medium of exchange, it can be used to build a house or a condominium that can be rented out. It can also be built into a mall to house shops selling a variety of products. If you don’t have any capital, you have the option of converting the land into a simple parking lot where you can charge cars for parking fees.With a few improvements here and there, a land’s inherent value further increases when there’s adequate infrastructure - which leads us to our next reason.Availability of infrastructure(Electricity in the Kingdom is of particular importance to continue its industrial growth.)Underdeveloped infrastructure isn't a problem unique to Cambodia, it still does greatly influence the development and pricing of property in the Kingdom. This holds true in major economic hubs like Phnom Penh and Sihanoukville - cities which are seeing the fastest rates of development of residential, commercial, and industrial projects which stretch the capacity of existing infrastructure to support them.For landed property developers, such as boreys, some developers have to construct their own electric/water supply infrastructure, further driving up the cost of the development.Land, by itself, is mostly useless for most modern-day purposes. This highlights the need for adequate infrastructure to support residential, commercial, and industrial endeavours. In particular, infrastructure for electricity and running water are key factors in the viability of any residential or commercial prospect.Hence, land property with access to the necessary electric and water supply makes for a valuable purchase for most developers.Location, Location, Location(Real estate is business, and business is heavily dependent on location.)As Mark Twain once said, “Buy land, they’re not making it anymore”.There is only so much land available that’s proximal to any city centre. The areas around the busiest and most populated parts of a city or a province will be most sought after due to their proximity to where people want convenient access to. As a city like Phnom Penh expands, it only follows that the accompanying land prices surrounding its busiest commercial and most popular residential areas rise as well.4 Reasons you should consider buying land property todayLand appreciates, your money does not. As Cambodia grows, so does its need for more residential, commercial, and industrial development. More projects from the government and private sector will be unveiled hence buying bare plots of land today, at incredibly low prices, can be a good means of protecting your wealth from inflation and grow it at a pace no savings account ever will.Read here if you want more advice on what you need to know BEFORE you invest in Cambodian land.Here are a the FOUR main reasons why you should consider buying land in the Kingdom:1. Boreys are becoming more popular in Cambodia(Boreys are gated communities in Cambodia offering shophouses, linked houses, and villas to the local real estate market. Phorn Seiha / Realestate.com.kh)Boreys have become increasingly popular among Cambodians as these gated communities provide a sense of community and security to their residents. Amenities such as parks, pools, and activity centres also have value-added appeal to buyers. Developers have also taken interest in the mid-range market to appeal to more Cambodians looking to buy a home.To give you a measure of how popular Boreys are, let’s crunch some numbers: According to Knight Frank’s H1 2019 report, there were a recorded 51,278 Borey houses distributed across 131 Borey developments in Cambodia. By the end of that period, there were 18 more Borey developments launched with more than 22,500 units expected to be added by 2021. Borey developers are also seeing up to 80% sales rates for their projects.In a few years’ time, more than 80,000 Borey units consisting of villas, shophouses, and linked houses will be available to local buyers. It probably goes without saying, that’s a lot of landed residential property coming into the market very soon.2. Rehabilitation of national roads(The rehabilitation of National Road 3 has caused surrounding land prices in the Kandal prices to increase. Photo by Valinda Aim from Khmer Times.)Development is stretching outward the major economic centres (Phnom Penh, Siem Reap, and Sihanoukville) every year. The Cambodian government has announced several major road rehabilitation projects stretching out of Phnom Penh, most notable of which are National Road 2, National Road 3, and National Ring Road 3.It’s also important to note that each of these major national roads is linked with other national roads leading to other parts of the country. It would be best for you to consult your local google maps to see where you can potentially buy land.3. Less management requiredMaintaining an empty plot of land doesn’t require much work or attention. As opposed to managing a business or rental property, all an empty plot of land probably needs is a fence and the ocular inspection every now and then, or maybe even a post to say that someone owns the property.Either way, maintaining a plot of land has comparatively fewer headaches than most other investments.4. Competition doesn’t existNo two pieces of land are exactly the same. At least one or more major factors (available infrastructure, access to roads, proximity to the city centre, land quality, etc.,) will always be different.Comparing that to condominium or borey property developers - who have to spend a lot on marketing their projects - you as the owner of a bare plot of land will not have to go through the same level of competition to acquire a buyer.What to do with the land you bought in Cambodia(Respondents from the Realestate.com.kh Consumer Sentiment Survey indicate they would buy real estate property as an investment over as a place of residence.)As anti-climactic as it may sound; this entirely depends on you. Many people, according to realestate.com.kh’s consumer sentiment survey, indicated that they wanted to buy land property mainly for investment purposes. In a story previously posted on realestate.com.kh, a resident of Kampong Speu along with his friends bought several plots of land around National Road 3 prior to the announcement of its rehabilitation. They expected their investment to profit in a few years but little did they expect they would more than double their earnings in just a few months once the government officially announced the rehabilitation project.If you’re not savvy when it comes to flipping land, and you don’t have a home to call your own, there’s always the option of using the land you own to finance a house.There’s also the additional option of leasing your land. This is a different process altogether but it’s essentially renting your property to an individual or entity that can make better use of it. This keeps you as the owner of the land while you’re paid fees for simply owning property.Again, this entirely depends on the land you have and what your future goals are. If you want to get started, you may check our listings page for properties you may be interested in!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:

Transferring money to Cambodia is a straightforward process, but it is important to have the correct documentation and comply with relevant laws. In this guide, we will cover the essentials you need to know before transferring funds into Cambodia.Foreign exchange controls Cambodia does not impose restrictions on the repatriation of capital or profits out of the country, as long as the transfers are conducted through registered financial institutions such as banks. The official currency of Cambodia is the Riel (KHR), but most transactions are conducted in US dollars. Remittances are subject to applicable withholding taxes.Restriction on foreign exchangeUnder the Law on the Foreign Exchange of September 1997, there are no restrictions on foreign exchange operations through authorised intermediaries, including purchases and sales of foreign exchange on the foreign exchange market, transfers, all kinds of international settlements, and capital flows in foreign or domestic currency between Cambodia and the rest of the world or between residents and non-residents.Authorised intermediaries must provide the National Bank of Cambodia with periodic statements, by type of transfer or settlement and outflows and inflows of capital carried out between Cambodia and the rest of the world, according to the time set by the National Bank of Cambodia. Residents are allowed to hold foreign currencies freely, both in the form and location of such holdings inside the country. However, in the case of a foreign exchange crisis, the National Bank of Cambodia may issue regulations to be implemented for a maximum period of three months, temporarily suspending the enforcement of this provision.Transfers Relating to Investment or Liquidation of InvestmentTransfers relating to investment or liquidation of investment shall be made through authorised intermediaries. The authorised intermediaries shall report to the National Bank of Cambodia the amount of each transfer equaling or exceeding one hundred thousand US dollars (USD 100,000).RemittanceArticle 11 of the Amended Law on Investment of 2003 gives assurance that Qualified Investment Projects (QIPs) have the freedom to send foreign currency overseas, which they purchased through authorized banks, to settle any financial obligations they have related to their investment. These obligations may involve:Payment for imports and repayment of principal and interest on international loans;Payment of royalties and management fees;Remittance of profits; andRepatriation of invested capital in case of dissolution.Reminder!Keep in mind, before transferring funds to Cambodia, it is important to check with your bank in Cambodia to ensure that the correct documentation is completed and compliant with relevant laws. By following the guidelines outlined in this article, you can easily transfer funds into Cambodia without any problems. 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!

(Being in your 20s and even your 30s affords you so much time and opportunity to earn that you might not have later on in life. It’s also the best time to start saving money for your first home investment. Image Supplied)If you’re under the age of 30, working a decent job, and don’t have a home to call your own, then it’s the perfect time to save for your first house. Cambodia’s property selection, especially in Phnom Penh, are plentiful, and in a few years’ time, you’ll practically be swimming in borey/condominium choices!At the back of your head, you might be saying “But I’m young! I want to see the world and experience new things!” or “Have you seen the prices? They’re so expensive!”. While both are popular concerns, they’re also not as serious as you might initially believe.Why you should start saving for a home while in your 20sBeing in your 20s is probably one of the best times to start saving. Unfortunately, youth is often wasted on the young. Most young working adults spend their money on travelling and expensive food/services - thinking they’ve worked for this, why shouldn’t they spend it?And that’s where the problem lies. Being in your 20s affords you so much time and opportunity to earn that you will not have (to the same degree) in your 30s and 40s. Setting some money aside, especially in your early 20s, will give you a big advantage once you eventually realise the value of owning a home. As the saying goes, “The early bird gets the worm”. The money you should set aside on a regular basis doesn’t have to be big either! By cutting down on things you spend every day or every-now-and-then, you’ll eventually accrue enough savings to consider getting a downpayment.We’re not saying you should completely stop spending on the fun things in life (though if applicable, do it!), but you can definitely compromise on their frequency for the sake of your future home security.Tips to save money every day, every week, every monthLimit the international travel(Carefully selecting and limiting your international travel is a great way to save money. Photo by Economytraveller.com)You’re young and the world is your oyster. But much like the pearl in it, it can get really expensive. If you have a knack for travelling abroad multiple times a year, you might wanna cut that down to once or twice per year, at most.International ticket fares cost no less than $200 USD (return flight included). Of course, airfare tickets aren’t the only thing you’ll be spending on. Depending on how long you’re staying and what you’re gonna be doing, you could budget anywhere from $300 USD to $1,000 USD for accommodation, food, souvenirs, and activities.You’ll be saving around $500 USD per year at least simply by holding off on that trip. We know cutting down on this expense can be a pain for the travel bug in you. But these are substantial amounts you could be saving for a real estate property you can call your own!Limit the expensive restaurants(Good burgers like this can cost upwards of $10 USD per serving in Phnom Penh. Photo by Timothy O’Toole)Cambodia, especially Phnom Penh, is home to a lot of good food! The capital city hosts a multitude of cultures offering their cuisines alongside local Khmer favourites. But as the market for good food grows, so do their accompanying price tags.The best meals are often among the expensive - easily ranging from $20 USD to $100 USD per meal. If you like to spend above $10 USD or more per meal, that means you’re spending around $20-30 USD per day on food. That amounts to around $600-900 USD on food every month, which is a lot!You can scale back on expenses by opting for cheaper (and often better value) food options, or plan your grocery shopping and cook from home more often. Since Phnom Penh is filled with superb food options, good eats can cost as little as $3-5 USD per meal.Food expense breakdownCost per meal (USD)Frequency per dayTotal cost per day (USD)Total cost per month (USD)103309005315450You could save around $450 USD (or more) per month or $5,400 USD per year simply by opting to eat meals at more modest places. Let’s not forget that you can save more money if you know how to cook! And if you don’t know how to cook, it’s a damn good life skill to have, so you better learn.Learn to say “No” to expensive activities/outings(Saying “No” can be good for your wallet and your eventual downpayment for your very own home. Photo by LostPlate.com)We love our friends and family. But constantly saying “Yes” to whatever and wherever they want to do or go can hurt your savings! It’s quite difficult to put a value on activities as these vary wildly. But for the sake of discussion, let’s assume some financial implications:Let’s say you’re spending $40 USD on outings every weekend - and that’s on top of your food expenses such as drinks, movies, transportation, or whatever is trending. If you go out every weekend (4x month) that could be an additional $160 USD of monthly expenses.Activity/Outing cost per monthTotal activity cost per weekend (USD)Frequency per monthTotal cost per month (USD)40416040280Again, activity/outing costs vary wildly. But one thing is for sure: going out every weekend is a bad idea if you’re planning to save money for a future project like owning your very own home.Skip the expensive coffee(Cutting down on your daily coffee can add up to significant savings at the end of the year. Photo by Discover Cambodia)At the risk of being chased out of Phnom Penh with pitchforks and lit torches, we have to say frequent consumption of expensive coffee can be bad for your savings! Let’s crunch some numbers.Cost breakdown of buying coffee per monthCost per branded coffee (USD)Frequency per dayTotal cost per day (USD)Frequency of days buying coffeeTotal cost per month (USD)2.525301502.512.52050You could be spending up to $150 USD per month if you’re spending $2.50 USD per serving of coffee and buying twice a day. Cutting this down to effectively half (in terms of frequency) can save you an additional $100 USD per month or $1,200 USD per year!We understand that this is going to be a tall order for a country that loves its caffeine. But constantly consuming coffee - multiple times a day - can slow down the progress of your savings.If you are looking to treat yourself to one excellent coffee, try out these cafes in Phnom Penh.Track your daily/weekly/monthly expenses(Tracking your regular expenses can you better insight into your spending habits - and know where to save. Photo by Review Geek)Listing down what you spend isn’t a bad thing, it's a smart thing to do to keep you in track! It will provide you with insights into your spending habits. Here are a few questions you can answer by tracking your regular expenses:What am I spending on?How much am I spending on it?How often do I spend on it?Answering the questions above will give you a picture of your spending habits and eventually help you decide on how best to maximise your savings with these questions:How come I’m not able to save any money?Do I really need to spend on this?Can I limit how much I’m spending on this?Knowing your spending habits goes beyond being able to save money, it can actually give you a picture of what your priorities are! Hence, why big companies today are invested in acquiring the financial data of consumers. But that’s a discussion for another day.Curious about home loan options in Cambodia?.Create a separate bank account specifically for savings(Banks like ABA offer convenient ways to create a savings account. Something you’ll need for any savings goal you may have. Photo by ABA)As my mom always says, “Save first and spend what’s left”. Banks like ABA allow you to make a separate bank account easily through your mobile device. Whenever you receive your salary or have money coming your way, we suggest saving a portion first before spending any of it, not the other way around!How much you need to save is entirely up to you as you know your needs best. A piece of good advice on knowing much to set aside is to “save money until it hurts”. This means you should set aside money right away and leave enough to meet your regular necessities. For the sake of putting a figure on it, this could range anywhere from saving 25% to 30% of whatever funds come your way.And remember, do not touch your savings unless it’s absolutely necessary!Read more in our ultimate guide to banking for foreigners in Cambodia.“Save money, it will be worth it”You may have already heard this several times from your elders, and it’s a cliché, we know. But you’ll soon realise that it’s cliché because it’s true.Cutting down on daily comforts will be difficult at first, and the temptation to indulge yourself will be alluring for sure, but trust us when we say it will pay off in the end. Owning a home is the best form of security you can give yourself, and quite frankly, you owe it to yourself to secure your future.So, the next time you’re thinking of buying your 3rd coffee at 5pm in the afternoon, ask yourself, “Do I really need this?”.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:

(The living room of a serviced apartment in The Elysee in Koh Pich, Phnom Penh. Realestate.com.kh)Whether you’re a tourist, expat, or even a local, serviced apartments offer plenty of conveniences not often included in other real estate properties. The “serviced” in serviced apartments particularly appeal to tourists and expats looking to have quality-of-life conveniences “built-in” with their residence.Included services in these apartments usually range from weekly cleaning services, regular laundry services, consistent supply of drinking water, and even a full concierge service similar to hotels. It’s important to remember, however, that service offerings will vary from apartment to apartment. For a more detailed discussion of what you should expect from serviced apartments as a whole, you can check out this brief guide to what makes for a well-serviced apartment in Cambodia.For this guide, we will be talking about where you can find serviced apartments (and what’s included in each one) for a long-term stay in Cambodia.Where can I find serviced apartments in Cambodia?Serviced apartments in Cambodia are largely concentrated in Phnom Penh. According to Knight Frank, an international property consultancy firm, most serviced apartments can be found in the following districts: Boeung Keng Kang (BKK) with 35%, Chamkarmon with 20%, Daun Penh with 13%, and Toul Kork with 12%.If you’re looking for commercialized districts that come complete with modern city staples like shopping malls, markets, banks/ATMs, restaurants, cafes, convenience stores, and offices, you should be considering living in these areas as they make up the city centre of Phnom Penh.What serviced apartments are good for long-term stays?We’ve come up with a few of the best-serviced apartments in Phnom Penh well suited for a range of the tourist/expat market looking to stay long-term in Cambodia. This list is by no means all serviced apartments in Phnom Penh, but a shortlist of what best represents the serviced apartment sector of Cambodia’s advancing real estate market.Silvertown Metropolitan(An aerial view of Silvertown Metropolitan, one of Phnom Penh's upscale serviced apartments. Photo courtesy of Booking.com)Starting Rent: USD $1,000 per monthOfferings: 1 bedroom to 3 bedroomsSilvertown Metropolitan is a high-end development that offers luxury condos, studios, and serviced apartments in BKK1. Expats, most especially, will appreciate the comforts immediately available. And given Silvertown Metropolitan’s proximity to the Mao Tse Tung Boulevard, anyone staying here can easily find their way to wherever they need to go in the city.Their tagline of “bringing L.A. to Phnom Penh” becomes apparent once you see their offerings and accompanying price tags. Starting at $1,000 per month, Silvertown Metropolitan is one of the more upscale and expensive serviced apartments in Phnom Penh. But does its services justify its price? If money isn’t an object and you don’t want any punches pulled in city pampering, then it certainly does. Their services include a 24-hour full concierge, housekeeping, and high-speed WiFi. Each unit comes fully furnished with a complete kitchen and dining area, laundering facilities, a refrigerator, hairdryer, robes, cable TV, towels, linen, and A/C. All rooms are outfitted with modern furnishings popular in posh West Coast apartments. Amenities such as the rooftop pool and fitness centre are also available for use.(An image of a bedroom in Silvertown Metropolitan serviced apartments. Photo courtesy of Silvertowncambodia.com)But if you’re more into what it offers beyond its premises, then it doesn’t differ too much from the other serviced apartments mentioned in this guide. Silvertown Metropolitan is in the mid-point between Preah Norodom and Preah Monivong Boulevard and sits close to Mao Tse Tung Boulevard. All these roads lead to the popular spots in BKK1, the Russian Market, and Riverside in Daun Penh.Silvertown Metropolitan represents one of the higher ends of the serviced apartment sector and with good reason: It tops the discussion when it comes to what condo has the best service and is well-managed in Phnom Penh.Silvertown Metropolitan Property ListingThe Elysee(The Elysee by Dara is inspired by the French monument, Arc de Triomphe)Starting Rent: USD $750 per monthOfferings: 1 bedroom to 4 bedroomsLocated in the French-inspired suburban area of Koh Pich, a.k.a. The Diamond Island, the Elysee is designed after the majestic Arc de Triomphe. And much like the actual monument, The Elysee’s vicinity takes after the iconic townhouses and boulevards of modern-day Paris. The Elysee is also one of the newest serviced apartments developed in Phnom Penh.The Elysee certainly tops this shortlist as its French-influenced design comes with luxury amenities and services without necessarily breaking the bank. Units can be rented out for as low as USD $450 a month which already comes fully-furnished and includes Cable TV, internet WiFi, and housekeeping included in the monthly rental - a good package we’re certain anyone definitely appreciates. Renting here gives you access to a fully-equipped fitness center and steam & sauna within the comforts of the apartment.(An image of an apartment for rent in The Elysee. Realestate.com.kh)Koh Pich island lies east of Phnom Penh’s mainland and is one of the fastest-developing areas in the city. Commercial amenities such as banks, cafes, restaurants, and offices can be found throughout The Elysee’s immediate vicinity. The Elysee sits right on Koh Pich road leading to Samdach Sothearos Boulevard where AEON Mall 1 stands. The same road is connected to Preah Norodom and Mao Tse Tung Boulevard, giving residents access to even more commercial establishments in BKK1, Chamkarmon, and Daun Penh.Koh Pich’s inspired urban design offers a new and unique experience of living in Phnom Penh, making it one of the hottest properties to watch out for - and at a good price. If you’re interested in living in Diamond Island, we highly recommend checking this propertyThe Elysee Property ListingUrban Loft(An image of Urban Loft's exterior in Sen Sok. Photo courtesy of Google Map contributors)Price Range: USD $600 per monthOfferings: 1 bedroom to 3 bedroomsUrban Loft is a serviced apartment located in Sen Sok. While this area is quite some distance from the center centre, Sen Sok itself has seen massive developments in residential and commercial real estate. We recommend this area more for expats rather than tourists as it’s still in the early-mid stages of development and doesn’t have much to offer if you’re not staying long-term.(An image of a bedroom in Urban Loft Sen Sok. Photo from Urbanloft.com)Regardless, Urban Loft offers plenty of space for quality long-term living. Its wide interior design allows for large open-plan condos that maximize light and airflow within each unit. It’s also fully furnished so moving in is easy and quick - something we know expats would definitely prefer. Urban Loft’s spacious units are complemented by an expansive pool and gym. Families living here can avail of the kindergarten and babysitting services. An array of excellent schools are not too far away as Sen Sok is where boreys (gated communities) are becoming increasingly popular among Khmer families.AEON Mall 2, the biggest mall in the city, is just a 5 to 7-minute drive away. And down the road is the popular wholesale grocery Makro. Choices are becoming increasingly abundant in Sen Sok that going into the city proper is starting to become an option rather than a necessity.Urban Loft Property ListingThe View Serviced Residences(An image of The View Serviced Residences in BKK1. Photo courtesy of Agoda.com)Starting Rent: USD $1,000 per monthOfferings: 1 bedroom to 2 bedroomsThe View Serviced Residences is one of the premier serviced apartments in BKK1. Inspired by Japanese interior design, The View’s units offer a simplistic charm many tourists and expatriates would find attractive.The View is at the crossroads of Phnom Penh’s many attractions and modern conveniences. Its location in BKK1 surrounds it with the city’s best places to eat and the newest and biggest shopping centres around in the form of Chip Mong Noro Mall and AEON 1, respectively. Its proximity to popular tourist and expat spots makes it a good choice for foreign travelers wanting to get a peek of the many offerings within the Kingdom.(The View Serviced Residences was designed by Japanese architect Kato Yoshio. Realestate.com.kh)But what’s a serviced apartment without talking about services? Starting at $1,000 per month, residents get fully-furnished rooms, twice-a-week housekeeping, fitness centre, and access to an infinity pool, jacuzzi, and steam room in the common areas. A cafe and restaurant are also serving residents inside the apartment building.Whether you’re by yourself or with your family, just visiting or staying for some time, the View’s units may be what you’re looking for considering its ambiance and location.The View Serviced Residence Property ListingTK Royal One(An image of the exterior of TK Royal One in Toul Kork. Realestate.com.kh)Starting Rent: USD $900 per monthOfferings: 1 bedroom to 3 bedroomsTK Royal One Serviced Condominiums is a mixed-use development featuring offices and serviced residences. Its location in Toul Kork, right along the Russian Federation Boulevard, has made it a landmark of sorts in the area, making it hard for passers-by to miss.The Toul Kork district has developed over the past few years as an extension of the many conveniences available in the Phnom Penh city centre. TK Royal One is one of the district’s more iconic developments as its offerings of office spaces and residential units is a sort of testament to how much Toul Kork has improved in a short amount of time. As such, TK Royal One’s location along the Russian Federation Boulevard gives residents access to a lot of markets, shopping centers, restaurants, cafes, schools, sports facilities, and other entertainment centers now established in Toul Kork.(An image of TK Royal One's spacious living rooms and balcony. Realestate.com.kh)TK Royal One’s residential units come fully furnished and designed to accommodate renters living by themselves or expat families looking to live long-term in Phnom Penh. Each unit is spacious and comes with a private balcony providing an astounding view of the city’s rising skyline. Amenities in TK Royal One include internet Wi-Fi, a fitness centre, swimming pools, a parking area, and a rooftop garden.TK Royal One Property ListingAre serviced apartments worth it?The choice entirely depends on you as you are the best judge of your personal needs and budget. Most serviced apartments in Phnom Penh are proportionally more expensive than standalone apartments without 24/7 concierge services, regular housekeeping, fitness centre, and a swimming pool. If these services are important to you, then serviced apartments could be well worth the extra hundred or so dollars a month.On the other hand, if you’re the type of person who can live without these services, you can save a few hundred dollars which you can allot more to necessities like food or other luxuries like traveling across Cambodia and its neighbouring countries. You can check out several listings of apartments for rent in Phnom Penh here.Looking for other properties? Click hereArticle by:

A rendered image of the luxurious Agile Sky Residence in the heart of Phnom Penh.Can foreigners own land in Cambodia? The short answer is No. But the Royal Government of Cambodia has eased on this restriction by allowing foreign nationals to own property via Strata Titles.Strata title in Cambodia is a relatively new type of property ownership and the only one granted to a foreign national. This type of property title is presently restricted to condominiums, and more recently, office buildings since foreign nationals are not allowed to own landed properties in the country.The question now is, how do you, as a foreigner, get a Strata Title?DISCLAIMER: Foreign buyers, local buyers, foreign buyers with Cambodian citizenship, and companies have to satisfy slightly different requirements to purchase a Strata Title. We strongly recommend consulting a real estate agent to walk you through the specifics of your case. For this guide, we will be walking you through the general steps for an individual foreign buyer.How to obtain a Strata TitleObtaining a Strata Title starts with the owner of the property. But before heading to the sales office of a condo, we advise buyers to first check with the local cadastral office and local commune council if the developer/owner does indeed have legal ownership of the original title. In the case of property developers, this step is meant to verify their ownership of the Hard Title and its eligibility to be partitioned into Strata Titles.Upon completing the above mentioned due diligence, buyers may proceed in dealing with the company itself. While condo developers will likely have representatives to handle sales, we advise buyers to obtain a copy of their company/national ID as another layer of due diligence. This goes double for individual condo owners offering their unit(s) for resale.Once that’s clear, the buyer and the owner of the hard title (or an authorised representative) must physically be present at the same time in the cadastral office to initiate the title transfer. Foreign buyers are required to be in Cambodia for the title transfer as their thumbprint is required to be affixed in the Vente Definitive and the Application for Ownership Transfer, both being standard documents provided by the land department.It’s important to note that the Ministry of Land Management, Urban Planning, and Construction (MLMUPC) requires fully certified documentation of the identity and marital status of the buyer to be supplied and translated into Khmer - this includes the name of the buyer as English names are not permitted on property titles.The requisite fees for title transfers are paid at the General Department of Taxation (GDT). Transfer taxes are paid after the land office reviews and certifies the submitted documents. These same documents will be submitted to the GDT who will then assess the value of the property based on a proprietary set of criteria and calculation methods. An officer from the GDT will then be responsible to perform the evaluation and may take anywhere from 1-2 weeks. After the assessment, an invoice will be issued containing the transfer tax required to be paid.NOTE: It is common practice for sellers to pay the transfer tax, but this can go either way. Be sure to clarify this part of the transfer with the owner.A receipt will be issued by the GDI as proof of payment to the party who made it. This receipt, along with the certified documents will be brought back to the Cadastral Authority at the MLMUPC. A new original title, with the name of the new owner, will be issued by the Cadastral Authority.A sample of a Strata Title issued by the MLMUPC.Other ownership methodsIf you’ve assessed that Strata Titles do not meet your needs, there are other methods such as obtaining Cambodian citizenship, or a company lease, to own landed properties in Cambodia. But those involve completely different steps which are relatively more complicated. We highly recommend seeking the assistance of a Cambodian lawyer to properly guide you through the whole process of these alternative methods.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:

A majority of Siem Reap’s roads are paved, making it easier for residents to move around. Photo from Khmer Times.Siem Reap is an amazing area of Cambodia filled with history. It’s no surprise that many expats chose to move here when they arrived in the Kingdom. Temples, nature, culture and arts are just a few of the factors that make Temple Town so great.This Expat Rental Guide will help you figure out how to find the best expat rentals in Siem Reap. This guide will also answer the following questions you need to know before signing that rental agreement:How much does it cost to rent in Siem Reap?What’s the best property for an expat to rent in Siem Reap?What should I keep in mind before renting in Siem Reap?Realestate.com.kh is Cambodia’s largest real estate classifieds portal. It is home to over 30,000 (and growing) property listings and works with the most reliable real estate developers and agencies across the Kingdom.For this guide Realestate.com.kh is collaborating with Daka Kun Realty, a popular real estate agency in Siem Reap staffed by local real estate experts, to help expats find the right property for their needs!How much does it cost to rent in Siem Reap?There are plenty of quality houses/villas for rent in Siem Reap without breaking the bank, like this one from Daka Kun Realty.For a ballpark estimate, renting in Siem Reap can cost anywhere from US $350 - $2,000 including utilities, this figure is dependent on several factors like type of property, size, facilities and location. Check out our breakdown of the different costs in the guide below.Monthly Rent in Siem ReapRenting a residential property in Siem Reap can cost anywhere from $250 to upwards of $1,800 per month depending on type of property, amenities available and location. A 1-bedroom apartment could cost $300 USD a month or even $600 USD a month if you’re feeling fancy, while a 2-bedroom can cost as low as $500. Siem Reap has a lot of rental properties to the point that your mileage may vary.Houses and villas (houses with yards) are also available for rent in Siem Reap. According to Daka Kun Realty, which has a whole portfolio of landed properties for rent, landed houses usually start rentals at $300 per month.Check available rentals in Siem Reap todayRental Deposit in Siem ReapRental Deposits in Siem Reap (and Cambodia in general) can be the equivalent of 1-2 month’s rent. According to Daka Kun Realty, this depends on the length of stay agreed on: a 6-month lease commonly asks for a 1-month rental equivalent and a 12-month lease could be up to 2 months. Although this may vary from landlord to landlord.The deposit is used to pay for any damages/lost items incurred during your stay on the property. Sometimes this is used to pay for your last month of renting the property. Though this depends on the rental agreement.Electricity cost in Siem ReapElectricity cost in Cambodia is around 800 - 1000 KHR per kWh (0.21 - 0.25 USD cents per kWh). Yes, it is considerably more expensive compared to neighbouring countries like Thailand and Vietnam. It is important to note that some landlords round this up to 0.25 USD per kWh.According to Daka Kun Realty, expat renters can expect the electricity costs in Siem Reap.Property typeCost in KHR per kWhCost in USD per kWhApartment1,0000.25House/Villa7800.19Water cost in Siem reapWater utility in Siem Reap is adjusted depending on monthly consumption. But generally, there are fixed rates employed by landlords to simplify calculations.Property typeCost in KHR per m3Cost in USD per m3Apartment2,5000.62House/Villa1,7000.42Rental TaxesThere is a withholding tax of 14% for rental properties in Cambodia. However, it is common practice for landlords to cover this.What is the best property to rent as an expat in Siem Reap?Siem Reap offers a lot of choices that cater to many different walks of life. Given its diverse population, much of its rentals have also grown to accommodate many different tastes. Find out which one is right for you (and your budget!)Apartments/CondosExpect around $250 per month as a starting price for new/renovated 1-bedroom apartments in Siem Reap. You can find a table below of what prices to expect when renting in the city.Cost of renting an apartment in Siem ReapNumber of bedsMedian rent per month1-bedroom$2502-bedroom$3503-bedroom$500NOTE: These are starting prices of recommended properties for expatriates, especially those looking for western-style apartments like in the image above. You can still find more affordable/premium accommodations by searching on Realestate.com.khAmenities to expect in apartments in Siem ReapRentals in Siem Reap have usual inclusions such as furnishings, appliances, and common fixtures. The only thing missing might be a WiFi connection. However, more landlords have started installing WiFi to make things easier for expatriates.Apartments for rent in Siem ReapHouse/VillaAccording to Daka Kun Realty, houses start at $300 while villas start at $500 per month. Houses/Villas available for rent often come complete with furnished interiors and some additions depending on how premium the property is.Houses/Villas are interchangeable when referring to rental properties. Villas, however, usually have large yards and spacious interiors.Cost of renting a house/villa in Siem ReapType of PropertyStarting rentHouse$300Villa$500NOTE: These are starting prices of recommended properties for expatriates, especially those looking for western-style homes/home interiors like in the image above. You can still find more affordable accommodations by searching on Realestate.com.kh.Amenities to expect in houses/villas in Siem ReapUsual inclusions are the furnishings, appliances and common fixtures. The only thing missing might be a WiFi connection. However, more landlords have started installing WiFi to make things easier for expatriates.Houses for rent in Siem ReapWhere are the best areas for expats to rent?Siem Reap’s central areas are the best areas for expats to rent. They’re close to supermarkets, restaurants, shops, and anywhere else you might need something from. Daka Kun Realty recommends the following areas:Sala KamreukSala Kamraeuk commune. East of the river and south of Highway 6, this area is fairly quiet, but still has a range of restaurants and shops.Svay DangkumSvay Dangkum is across the river from Sala Kamraeuk. Most of the backpacker hostels are here. And don’t forget the famous Pub Street!Sla KramSla Kram is north of Sala Kamraeuk. It’s closer to Angkor Wat park and has tons of local flavour.Things to consider before renting in Siem ReapWhen signing on the dotted line for rental properties, small very important details are oftentimes overlooked. But you should remember that your final lease agreement might not include many important elements that will ultimately make or break a rental agreement. You can check out our guide on a rental checklist worth going over before signing any lease!Things to consider when renting in CambodiaWhether you’re someone new to renting or it’s your first time coming to Siem Reap, we hope this guide has given you a few things to consider for your future rental in the temple town. Now, the real step begins: Find the right rental property in Siem Reap for you!Help me find an apartment/house for rent in Siem ReapArticle by:

Gaining a basic understanding of property taxes in Cambodia is important for property owners, sellers, and buyers in the country. Knowledge of these important obligations will not only make transactions easier but also help everyone avoid unnecessary costs and penalties.This guide is designed to give you a basic understanding of obligations so you don’t go blind into Cambodia’s property market.Overview of Property Taxes in Cambodia:Cambodia has a 0.1% Property Tax applied on Immovable PropertiesProperty Taxes must be paid every year around SeptemberProperties below $25,000 (100 Million KHR) are exempt from Property TaxAgricultural land, industrial, and state-owned lands are exempt from Property TaxLocal tax offices have a valuation matrix called the Tax Base for specific property types and sizes within their jurisdiction, this factors into the final Property Tax that has to be paid.How much is Property Tax in Cambodia?Property taxes in Cambodia are officially referred to as “Tax on Immovable Property” (TOIP) and levies an annual tax of 0.1% on properties that have a value of more than $25,000 (100 million KHR). The term “Immovable Property” includes plots of land, infrastructure on land, and buildings.NOTE: Properties valued under $25,000 are exempt from paying the Property TaxProperty Tax is generally calculated by the following formula:(80%*(tax base)-$25,000)*0.1% = Property TaxSample calculation:Mr. Ivanov owns a reinforced concrete building with 3 floors with each floor having 15m x 25m of floor size. Mr. Ivanov consulted with the Property Valuation Commission and retrieved the following Tax Base relevant to the property:Land price per sqm$1,000Ground floor per sqm$250First-floor per sqm$200Second-floor per sqm$150 Mr Ivanov’s 3-storey building’s property tax can then be calculated like this:Land price25m x 40m x $1,000$1,000,000Ground floor15m x 25m x $250$93,750First-floor15m x 25m x $200$75,000Second-floor15m x 25m x $150$56,250 Tax Base of Mr Ivanov’s property: $1,225,000. Let’s take this Tax Base and apply the Property Tax formula.(80%*($1,225,000)-$25,000)*0.1% = $955 will be the Property Tax Mr Ivanov has to pay every year for his 3-storey building.What is a Tax Base and How is it calculated?A Tax Base is a price per square metre for a certain property type assessed by the Ministry of Economy and Finance. Here is a table of the Tax Base for properties located in Daun Penh, Chamkarmon, 7 Makara, and Toul Kork as of 2018:TAX BASE AS OF 2018TYPE OF BUILDINGPart of buildingBuilding age <10 years (USD/sqm)Building age >10 years (USD/sqm)Reinforced concrete frameworkSemi-permanent structureCondoReinforced concrete frameworkSemi-permanent structureCondoBasement$200$200$200$180$180$180Ground floor (E0)$250$120$600$200$100$500First floor (E1)$200$100$600$150$80$500Second-Fifth floor (E2-E6)$150$80$600$100$60$500Six-Tenth floor (E6-E10)$700$700$700$600$600$600Eleventh floor onwards (E11)$800$800$800$700$700$700 Registration Tax (a.k.a. Transfer/Stamp Tax)The Registration Tax (a.k.a. Transfer/Stamp Tax) is the tax paid for transferring property ownership or right occupancy of land that does not have a standing building on top. This is a 4% tax derived from the Tax Base of the property in question.This property-related tax is crucial to know if you’re someone looking to buy or sell property in Cambodia. Sellers are generally the ones shouldering the transfer tax, though it can go either way - this is best discussed in clear terms with whoever you may be transacting with.NOTE: Properties transferred to direct kin via inheritance are exempted from the Registration Tax. The relevant Prakas states “transfers between spouses, parents, and children, or grandparents and grandchildren, will no longer require this tax”Calculation formula: (Tax Base*4%) = Registration TaxSample calculation: ($100,000*4%) = $4,000 Registration TaxProperty Tax on Rental PropertyLocals and foreigners who own and rent out their properties need to pay Rental/Income Tax every year. A foreign investor who buys property here and rents it out needs to pay 14% of the gross rate annually while locals have to pay 10%.Property Tax on Unused LandThe Unused Land Tax is a 2% tax levied on bare plots of land with no building constructed and abandoned landed properties in cities like Phnom Penh. The Unused Land Tax is determined by the Unused Land Appraisal Committee (ULAC).How is Property Tax paid in Cambodia?Property Taxes can be paid via local tax office branches or through ACLEDA Bank, Canadia Bank, Vattanac Bank, or Cambodia Public Bank. For already registered properties, taxpayers will only need the tax payment receipt of the previous year or their Property Tax Registration ID.For unregistered properties, owners must contact the local tax office their property is in. The following documents will be required for registration:Tax Form PT01 - a form issued by the General Department of Taxation (GDT) that asks owners to outline the specifics of their property.Tax Form PT02 - another form issued by the GDT which serves as a tax application form.National ID Card, Birth Certificate, or PassportResidence Book or Family Book or Residency LetterOther documents may be required depending on the status of those involved in the transaction. We highly encourage seeking legal assistance for more specific matters.Capital Gains Tax in CambodiaThe Capital Gains Tax in Cambodia is a flat 20% rate. The Capital Gains Tax was promulgated through Prakas 346 in April 2020 and was initially to be enacted in July 2020. However, the advent of COVID-19 delayed its implementation to January 2022 to keep Cambodia's property market activity going throughout the pandemic.Contrary to what most people perceive: The Capital Gains Tax in Cambodia is not exactly new; businesses in the Kingdom have always paid capital gains. The material difference now is that it applies to individuals, especially those looking to sell immovable property a.k.a. real estate. A more thorough discussion of Capital Gains Tax in Cambodia can be found here.The Capital Gains Tax in Cambodia can be calculated in 2 different ways:Actual Expense Deduction MethodThis method takes the sales proceeds and subtracts the expenses the seller made on that property to get the actual Capital Gains Tax to be paid. These deductibles can be the purchase cost, consulting fees, registration tax, commissions, and even advertising. These actual expenses are deducted from the sales proceeds and 20% of the difference will be the Capital Gains Tax to be paid.There are more applicable deductibles so we highly suggest you keep tabs on the expenses you made in your property if you are planning to sell in the future.Determination-Based Deduction MethodThis method takes 80% of the sales proceeds and subtracts it from the whole sales value. The result will be the Capital Gains and 20% of it will be the Capital Gains Tax to be paid. This method is highly beneficial for property owners who buy low and are planning to sell high.Capital Gains Tax in Cambodia is expected to be enforced by January 2022. Once the law is in effect, we highly encourage keeping tabs on your expenses on the property to properly assess which method applies best in your case.Looking for property in Cambodia? Let us help!Article by:

Everyone needs to save money for buying property! But, in order to save for your new home, or to borrow for that home, you will need to budget for it. And this budget only gets harder as your family grows…The following are 4 basic budget tips that will help you keep more money in your pocket and get a handle on your household finances, thanks to Realestate.com.kh.First of all, list your monthly income, including everything that earns you money. List all of the costs you have to pay each month: Including rent, power, gas, car repayments, school uniforms, food etc. In short, anything that is a necessity in your and your family’s life.List all of the costs you can avoid from the previous list… This includes all things that are not necessary in your life, including entertainment, take away food, fancy new clothes, travel etc. This represents your “expendable income”: money that doesn’t always need to be spent! It is very important that you and your family are honest about what you don’t really need, if you are serious about saving.Now that you have defined what you HAVE TO PAY and what YOU LIKE TO PAY each month, you can control your budget for the next month by reducing your expendable income spending.Subtract your necessary costs from your total income to see what remains for the next month’s budget. This figure is the amount of money you can potentially save each month if you control your spending habits. Completing this exercise should help you review your spending patterns and make better financial decisions. The better your budget, the more control you can have over your monthly savings.   Ultimately, if you follow these tips, you will be surprised what money you can save to put toward a new home, or to manage home loan repayments. You should read How to Save Money When RentingLook for more information related to home loans in Cambodia? look for real estate for rent in Phnom Penh or real estate for sale in Phnom Penh? Check out Realestate.com.kh today.

When you are looking for the best tenants for your property; regardless of the term of the tenancy, it is necessary to ensure you have a well-prepared property and legal lease document for your prospective tenants.Below are several major things to include in your lease agreements when creating or signing a residential tenancy agreement, thanks to realestate.com.kh:What Is a Lease Contract?A lease contract is a formal document that properly identifies the landlord (lessor), tenant (lessee), and the leased property. This document further states the lease term and rental fee, and detailed terms and conditions of the lease agreement.Who Should Be in the Lease Contract?When it comes to obtaining a lessee,  it is strongly recommended that you draw up a written agreement. This legal contract needs to be completed by the lessor and lessee so that both parties are 100% clear on what their rights and obligations are.This contract also allows and specifies the tenant to temporarily use the property of the owner, legally, in exchange for paying a rental fee to the owner. It is essential that both parties keep a copy of this agreement to refer to when in doubt.In the contract, both parties can set the clauses to protect themselves if any circumstances were to change for either the lessor or lessee and how this should be remedied if these circumstances arise.The Lease Agreement Should Contain:Both parties must sit together and write up clearly what they expect from each other. These include:The description of the property (which describes the current location and overview of the property);●     The names, signature, or thumbprint and addresses of both parties;●     The current rental fee and reasonable escalation in the future;●     The rental payment term (monthly, quarterly, or yearly);●     The deposit amount;●     The monthly payment amount;●     The lease period;●     The notice period for termination of contract;●     The renewable term and condition;●     The lessor's obligations;●     The lessee's obligations;●     The renovation permission;●     The number of residents;●     The tax obligation (In general responsible by lessor, but can be altered according to the discussion).All other costs must be paid by the lessee (waste collection, public light, electricity & water bill) unless otherwise negotiated in the rental agreement.Create an Inventory ListAn inventory list aims to describe all the furniture that is presently existing inside of the property (including photos) before the tenant moves in. This is critical to ensure both parties know what is present in the property - and especially for the lessor to ensure no furniture or chattels are removed without permission or opportunity for redress.The lessor also needs to list down any current defects and the agreement of both parties whether the lessor or lessee must take responsibility to have them fixed. This is generally the responsibility of the lessee. Generally, this is made in a separated document.Ultimately a contract between a lessor and lessee is critical in setting out the obligations of both parties to ensure there is no confusion about any aspects of the tenancy. It will also enable both parties protection if there was any dispute arises.Looking for property in Cambodia? Let us help!

In Cambodia, purchasing a property for the first time can be an overwhelming task. If you are a first-time home buyer, you should consider the following points before you make any financial commitments.Purpose of  the new home:  Different types of houses will bring you and your family different advantages and disadvantages.If you just want a house to live with your family, consider a villa home. Villas offer a lot of space for your family to grow, and a relaxed and private setting. If you intend to buy a home from which you can generate income through opening a retail shop, consider a shop house in a location where you can find consumers. These types of properties allow you both residential and commercial purposes. However, if you really value a location in the central city and want to live a more modern life, you can consider a condo unit. The extra benefit of a condo is that you should be able to rent it into the future, if you decide not to live in it yourself.If you are planning on a profitable resale, you can consider buying a property off-plan (under construction) in a new development project. New Borey projects in the suburban areas usually have high potential for reselling in coming years. Or, if you have more money to invest, you can consider a new condo unit for higher returns when it comes time to resell. However, keep in mind that often these properties won’t be ready to live in right away, and also make sure your choose the right developer with the correct licenses and history.Location of your first home:Purchasing a home at the very heart of the city sounds like a good idea thanks to its fundamental infrastructure and utilities. However, with almost all property prices within central city reaching their peak in recent years, and worsening traffic congestion during rush hours, most new home-buyers (in particular, middle-income class Khmers) are preferring to buy in the suburban areas of the city, at lower prices.The outskirts of Phnom Penh and other urban centers of Cambodia are an untapped area where there are offerings that have high potential for small businesses, commercial centers, population growth, and property price growth. At present, housing projects are shifting towards the suburbs to push the area to become more attractive and populated. Whether you buy to live, do business, or resell, you should look for a good location adjacent to markets, schools, hospitals, and other amenities. Location is an extremely important consideration for any property investment.Budget plan:Preparing a budget plan for your new home is very important for your future expenses. With a clear budget plan, you will be well prepared for your current and future payments. Without a regular income, you may run into problems after your first home purchase. If you’re planning on these costs in advance, it will make it easy for you to decide how much money you should and can borrow money from the bank.Home loan application:Most homebuyers in Cambodia usually do not have enough money to pay outright. This is why they turn to the bank for loan options to pay for their new home. Different banks will offer different types of home loans at various interest rates. However, when you get a home loan, you will be bound by the bank’s terms, including the interest rate charged on that loan. After qualifying for a home loan, you will be required by the bank to submit collateral, income confirmation letter, identity card and proof of a guarantor. For this reason, it might be best to consider your loan limits before you select your dream home.Another option is to pay directly with the developer (if it is a new project). In this case, the interest rate on home loan may be higher than that of the former option - so be careful before you sign up.Extra costs:In fact, purchasing a new home does not mean that you pay only for your property’s price. You also should think about other extra costs in addition to the property’s value. There are a number of fees involved you need to know when you buy a property. Those costs or fees include ownership transfer tax, legal fees, property tax, title verification, loan processing fee, application for registration, property insurance, real estate agent’s fee, and ongoing costs.  Learn more about the details of these extra costs on realestate.com.kh today.Read more great Home Loan and Mortgage Advice, on Realestate.com.kh today! Or, if you are ready, apply for a home loan on Realestate.com.kh today!

Buying a new home to live in is a necessary thing for everyone in Cambodia, especially in Phnom Penh as most of them are renting but considering buying one for their family. However, buying a new home does not mean that you spend only on the base price of the property - you also have to spend on additional costs associated with the property. Therefore, it is vital that you be aware of extra costs associated with a property purchase in order not to have any unpleasant surprises. Below are several necessary tips on “additional costs” to help first-time homebuyers manage their budget plan for a new property in the event that you are unaware of it. Those additional costs include home loan application and legal fees, ownership transfer tax fee, home insurance fee, real estate agent’s fee, interest on home loan, application for registration and title verification fee, property tax fee, and ongoing costs. Home Loan application and legal fees When purchasing a home, most buyers in Cambodia usually do not have enough money to pay outright. Therefore, they will look for home loan options either with a company project or banks to buy one. However, If you choose a bank loan, you usually get 70% of the home value you are going to buy.Nhoep Nimol, a senior housing loan officer at Canadia Bank, said: “If a homebuyer applies for a home loan, he/she will be charged some fees to cover the charges incurred for valuation and processing of the loan. Then he or she has to pay 1 percent of total loan to the banks.”Ms. Nhoep added: “in the meantime, homebuyers will also have to pay $250 dollars to a lawyer for legal service which includes loan operation, legal advice, property check, and legal processing.”Interest on home loanIf you do not have enough money to buy a home and rely on a bank for a home loan, remember that you have to pay the interest on a home loan every year until the end of the contract. Bank loan terms can range up to 20 years, depending on the decision between homebuyers and the banks.Ms. Nhoep explained that if customers decide to get a bank loan, they need to pay interest which ranges from 8% to 10% per annum. Furthermore, homebuyers are required to submit collateral, hard title, and an income confirmation letter to the banks before qualifying for a home loan.Ownership Transfer tax feeIt is mandatory that homeowners pay ownership transfer tax during the transaction a.k.a. Stamp Tax.  If you choose to buy a home in the Borey project, you will find it easy as the company has a master hard title to be issued to each homeowner. But homeowners have to pay 4% for this ownership transfer tax.Mr. Seng Sopheak, Chief Operating Officer at cplagent.com, said: “you need to pay 4% for the ownership transfer tax. In addition to the 4% transfer cost, buyers also need to spend about $1,000 to the cadastral office which is tasked with the overall operational processing of issuing the title.”“Usually, it takes around 12 weeks to complete the transfer of hard titles done at the cadastral office. A hard title, an ownership certificate issued by the Cadastral office, is the most secure form of ownership and recognized at the national ministerial level as well as at the Sangkat and district level,” added Mr. Seng.At present, due to the economic effects of COVID-19, the 4% Stamp Tax exemption for properties under $70,000 has been extended to 2023.Home insurance feeAlthough a relatively new concept in Cambodia compared to other ASEAN nations such as Singapore, Malaysia, and Thailand, home insurance is gradually spreading in Cambodia with more and more insurance firms starting their operation in the kingdom.Home insurance is currently not obligatory for homebuyers in Cambodia. But some developers such as Borey Peng Houth require their customers to buy home insurance when they buy a home from their project.Commenting on this, Mr. Seng explained that home insurance is crucial to every home buyer in Cambodia as he or she will not have to keep a lot of reserves for all types of risks possibly affecting his or her property. For home insurance fee, it depends on the size and value of the home: If the home price is above $100,000, the homeowner must pay $100 or higher per year and If the price is under $100,000, the homeowner must pay less than $100 per year.In any case, if you get a loan from the bank, Cambodia’s Ministry of Finance and Economy cooperate with banks and requires home buyers to buy home insurance of at least $70 per year.Application for Registration and Title Verification FeeDone at the District Land Office of the Ministry of Land Management, Urban Planning & Construction, you must pay a cadastral transfer fee of KHR 600,000 in order to insert the name of the new owner on the legal documents. Moreover, you also have to pay the title verification fee. According to Prakas 995 dated December 28th, 2012, checking for potential liens or encumbrances under a title will cost you around $12.50.Property taxLike other countries, all the immovable properties in Cambodia need to be paid annual tax; however, it will only apply to the properties with a value of $25,000 and above. According to the Prakas of the Ministry of Economy and Finance, the property tax is collected annually at a rate of 0.1% of the value of the property.To know how much you have to pay for your property tax, there is a clear formula for calculation on it. The property tax is computed by taking 80 percent of the property’s total value, subtracting $25,000, and then multiplying that by 0.1 percent.The property’s value is obtained through a government valuation, depending on several factors such as data collection on relative properties in the market, quality, and location. This tax equally applies to both Cambodian and foreign national who owns the property in Cambodia.Real estate agent’s feeIt is common practice for the seller to shoulder the commission for the agent. But this is not set in stone and there have been instances when buyers pay the agent's fee. It is advised to settle this matter in writing between the buyer and the seller.Mr. Seng explained that in Cambodia real estate agency charges a commission fee of 3%, usually from the seller. But in some cases, buyers also have to pay the commission fee of 3% when they want to buy property from someone. This occurs when the seller is unwilling to sell the property, but the buyer is willing to buy and asks for the agency to persuade the seller to sell their property.Property Management feeThose ongoing costs are usually paid monthly to support daily living including maintenance fees, repair costs, and bills such as internet, electricity, and water. Maintenance fees are paid by homeowners for the upkeep of the building. This fee varies between Borey home and condos/apartments.Mr. Seng says, “For borey home, the maintenance fee includes cleaner, security guard, and public light in the project area. It will be charged between $20 and $50 per month. For a condo, the fee ranges from $0.50 to $2 per square metre. In addition, living in a condo requires you to pay for parking space which ranges from $50 to $60 per month. Furniture and any future renovations can also be regarded as ongoing costs.”Ongoing costs for condos are usually covered in management fees.Looking for a new home in Cambodia? Let us help!

Buying a new home does not mean that you spend only on the base price of the property - you also have to spend on additional costs associated with the property. Therefore, it is vital that you be aware of extra costs associated with property purchase in order not to have any unpleasant surprises.Last week, Realestate.com.kh explained in “Part 1” some basic additional costs including: Home Loan application fee and Legal fees, Ownership Transfer tax fee, Home insurance fee and Real estate agent’s fee. This week Realestate.com.kh will explain the remaining additional costs associated with your property. Below are other extra costs you need to know upon purchasing a new home.Interest of the home loan:When purchasing a home, most buyers in Cambodia usually do not have enough money to pay outright. Therefore, they choose home loan options either with company project or banks. Whether you choose to pay with the company project or banks, you still have to pay for home loan interest.When you opt for bank loan, you are required to submit collateral, hard title, and an income confirmation letter in order to qualify for a home loan. Bank loan terms can range up to 15 or 20 years, depending on the decision you and the bank agreed to; interest rate can range from 8%  to 10% per annum. Generally, banks will not offer you 100% of total home value but only 70%.Application For Registration and Title Verification Fee:Done at the District Land Office of the Ministry of Land Management, Urban Planning & Construction, you must pay a cadastral transfer fee of KHR 600,000 in order to insert the name of the new owner on the legal documents. Checking for potential liens or encumbrances under a title will cost you around $12.50, according to Prakas 995 which is dated December 28th, 2012.Property tax:All the immovable properties need to pay annual tax; however, it will only apply for the property with a value of $25,000 and above. According to the Prakas of the Ministry of Economy and Finance, the tax is being collected annually at a rate of 0.1% of the value of the property.The property tax is computed by taking 80 percent of the property’s total value, subtracting $25,000, and then multiplying that by 0.1 percent. And the property’s value is obtained through a government valuation, depending on several factors such as data collection on relative properties in the market, quality and location.On going costs: This includes maintenance fees, repair costs, and bills such as internet, electricity, and water. Maintenance fees are paid by home owners for the upkeep of the building. This fee varies between borey home and condo.For borey home, the maintenance fee includes cleaner, security guard, and public light in the project area. It will be charged between $20 and $50 per month. For condo, the fee ranges from $0.50 to $2 per square meter. In addition, living in condo requires you to pay for parking space which ranges from $50 to $60 per month. Also, you should prepare some money for furniture and any future renovations.These are the remaining additional costs associated with property purchase. Check out our additional costs part 1 @Realestate.com.kh/news. Realestate.com.kh will explain more details of this topic and you can find it in our full guide online @ Realestate.com.kh/news.

(A sample of office space for rent in Phnom Penh. Photo courtesy of Raintree Cambodia)The real estate sector of Cambodia has progressed tremendously in the past few years with a lot to do with foreign direct investment bringing big companies and entrepreneurs alike in Phnom Penh. As such, office spaces have grown in demand to house rising local businesses and foreign companies wanting a piece of Cambodia’s growing market.Overview of office spaces in Phnom PenhThere are many options for companies to set up shop in Phnom Penh. The city offers a wide range of office space choices and it’s only growing with each passing year.Knight Frank, a real estate consultancy firm in Phnom Penh, released a report called Cambodia Real Estate Highlights First Half 2019. In their report, they indicated 4 key findings for Phnom Penh’s office sector, namely:The completion of Diamond Twin Tower, Elysee Tower, and Prince Holding contributed approximately 46,444 sqm of net lettable area (NLA) to the Phnom Penh office stock, taking the total office supply to 463,701 sqm.Diamond Twin Tower, a mixed development comprising condominiums, office and retail components, was the thirst stratified office building to be added [to] Phnom Penh’s office stock.The new incoming supply placed downward pressure on the overall average occupancy, dropping 5.2 percentage points [from 88.5%] to 83.3% during H1 2019.Yield-driven investors may be attracted to stratified office investments as the condominium market continues to cool down.There has been an overall increase in available office spaces in Phnom Penh as of 2019. The Knight Frank report also projects that the growth (if monitored projects are completed on schedule) would more than double by the year 2021; offering up to 1,059,170 sqm NLA.Office spaces in Phnom Penh are distributed in the following areas:Daun Penh (32%) - considered Phnom Penh’s (Primary) Central Business DistrictChamkarmon (25%)7 Makara (17%)Boeung Keng Kong (15%)Toul Kork (4%)Sen Sok (4%)Meanchey (2%)Chroy Changvar (1%)Office Space Grading in Phnom Penh(An office meeting room in Phnom Penh. Photo courtesy of Canadia Tower)The year-on-year expansion of the capital’s business activity gives investors a chance to choose from a healthy selection of Grade A, B, and C office spaces.Grade A - These offices are what would be considered high-end. These are commonly located in high-visibility locations. Grade A offices are outfitted with top-of-the-line equipment, amenities, and modern HVAC systems. They’re spacious and aesthetically pleasing in terms of outside appearance and interior design. These are office spaces that are commonly associated with your multinational conglomerate who can afford the small fortune to keep these offices looking impeccable.Grade B - These are what would be considered middle-of-the-market office spaces. Some Grade B spaces offer the aesthetics and comfort higher-end offices might offer with some compromises. Nevertheless, facilities offered by Grade B office spaces usually are more than enough to cover the basics for a decent work environment. It’s arguably the most popular office-grade companies go for since it’s usually much cheaper than Grade A offices.Grade C - These offices are relatively the lowest priced and the poorest-quality in a given market. Grade C offices can usually be found outside a city’s business district and/or in old buildings over 20 years old. While this office-grade seems unattractive on paper, they do serve companies who are on tighter budgets and do not require a position proximal to the city’s business district.Office Space Rental PricesAccording to the Knight Frank H1 2019 report, office rental rates remain fairly stable over the past few years. The report states:“As a result of continuous office supply swelling, specifically Grade B and C, office rentals remained unchanged across all grades. Grade A, B and C offices command rentals ranging between US$28 to US$40 per sqm per month, US$18 to US$29, and US$9 to US$18, respectively. (excluding service charges and tax)”Of course, when it comes to Grade A office spaces, more luxurious (and expensive) options are available - coming with all the bells-and-whistles an office manager could ask for. One example is the Diamond Twin Tower located in Koh Pich which, according to the Knight Frank report, sells (via strata titles) its floor space anywhere between USD$2,800 to USD$3,600 per square meter.How to find office space for rentThere are various means to find offices for rent in Phnom Penh. You can find real estate agents who have a network of office space lessors. These real estate agents can save you a lot of headaches in terms of time spent looking for the right space, and negotiating the prices with the lessors. We recommend going through an agent since they will also walk you through the whole legal process of securing the lease.You can also search for office spaces (and agents) by visiting Realestate.com.kh, the leading real estate website in the country. You can find more than 45,500 properties, subdivided by region, price, and amenities. Realestate.com.kh has a long list of commercial real estate agencies and agents you can contact directly.Popular Office Spaces for Rent in Phnom PenhCORE@PPSEZThe CORE@PPSEZ project is located near the entrance of the Phnom Penh Special Economic Zone. This development includes 10 shopping units, 40 specially-designed office units -- providing convenience for future expansion into trade and factory spaces.The project is designed to provide easy access to trade and to increase productivity. The project will be a profile for various business, trade and industrial activities that offer international quality services and the starting price of this project is $100,000. These include elevators, security, 24-hour room monitor, 500 square meters of a production facility for private cargo handling. The CORE@PPSEZ construction began on August 1, 2016, and opened in March of 2018.Emerald HubEmerald Hub offers affordable office units in the form of a co-working space. It is the most popular option for part-time employees and freelancers. Here, you can work independently or meet with other like-minded people who have different skills and knowledge. Emerald Hub also offers other services such as cleaning, photocopying, hot and cold water, coffee, tea, and many more.The lowest rental price is at $30 dollars a month for a small unit. But if you need a temporary place where you can rent by the day or a week, they also provide flexible and easy ways for people like entrepreneurs who are just starting a new business.The mixed-use developments are usually not only developed for residences. It also includes facilities like shopping malls, offices, and hotels.AMASS Central TowerAMASS Business Center is located in the center of the BKK1 District (also known as the Embassy District), considered to be one of the most prosperous and wealthy districts in Phnom Penh. Surrounded by four main urban roads, the AMASS Business Center is surrounded by hotels, cafes, bars, banks, and supermarkets. It is not only conveniently located within major transportation routes but also places itself near many high-end residential and business office projects.Rental here, considering its ideal location, comes at a great starting price of $18/sq. metre.Office VillasThis isn’t exactly one company offering their spaces, unlike the ones mentioned above. Office villas are villas in high-traffic areas of Phnom Penh (such as BKK1) that are rented out by companies in lieu of high costs of conventional office spaces in the more expensive parts of town.Typical rental prices for villas range from as low as around $6/sq. metre to $25/sq. metre. However, longer leases or opting to sign as an anchor tenant may see these rates reduced. Beware though – working out a fair lease can be a challenge in the Phnom Penh commercial property market, and Cambodia generally, as villas (and other property for that matter) will often be priced according to your presumed budget rather than fair market value.Increasingly, however, villas around Phnom Penh are being pulled down to make way for new luxury developments and condominiums or being secured and modified for retail purposes. A decrease in supply has increased the value of those villas that still remain.Tax for Real Estate RentalIn the past, the landlord or property owner would normally withhold 10% of the rent from its lessor. In a sub-lease situation, the tenant of the real estate entity would withhold 10% of the rent on the sub-lease to the real estate company.  Instruction 18410, a tax update from the General Department of Taxation (GDT), now provides an exemption with the withholding tax on the sublease if both the lessor and lessee are registered taxpayers.“Instruction 18410 is another example of the GDT responding positively to the market, which identified this as a duplicate tax for real estate entities, a withholding tax obligation in this case on both the Lessee and Sublessee on the same exact space,” commented Anthony Galliano, CEO of Cambodian Investment Management.Office space outlook for Phnom PenhPhnom Penh’s available office spaces are projected to increase by 130% according to Knight Frank. The report projects that rental prices will either remain static or be pressured down as more office spaces open in the immediate future.The report further projects that stratified offices (spaces that can be acquired via strata titles) are attracting more investors as Phnom Penh’s condominium market reaches equilibrium. Investors also note that business tenants tend to sign longer-term leases - which helps boost the confidence of those investing in the construction of stratified offices.The main challenge to the long-term future of conventional office spaces is co-working spaces in Phnom Penh. Co-working spaces are gaining momentum among young entrepreneurs, digital nomads, and start-ups in Cambodia. The flexibility of terms offered by co-working spaces, along with cheaper overhead costs, to companies on a shoestring budget is starting to attract medium-sized businesses as well.Whichever office is more suitable to your needs, Phnom Penh offers a variety of choices! If you’re interested in exploring currently available options, be sure to check out our listings and/or contact our partner agents directly.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:

Sihanoukville is one of the major tourist destination of Cambodia and is seeing a rapid economic growth. Currently, tourism and real estate are the main drives of its development and investors are rushing here not to miss out on the benefits of investing in the housing and hospitality sector.What are the types of Houses for Sale in Sihanoukville?Currently, the housing sector in the province is growing significantly due to the increasing demand of the tourism sector. Several kind of residential properties can now be found such as flats, villas, apartments, and resorts for tourism or business.Borey for sale in SihanoukvilleBoreys are regarded as a gated community occupied by people looking for a modern living space, and they usually offer different types of residential units such as apartments, villas, and shophouses. Borey projects available in this area include Borey BS, Borey Peal City, and the Borey Hillton Park Villa. These borey projects typically start with 1-bedroom with a starting price of $60,000.Condo for sale in SihanoukvilleAs in the rest of the country, the supply of condo projects in Sihanoukville is growing too.One of the prime condo projects that saw an early investment opportunity in Sihanoukville is D'Seaview Condominium project. The development is located only1 km from the coast of Sokha beach and the fresh air and the beautiful natural scenery provides comfort and great atmosphere to those living there. Residential units range from 1 to 3 bedrooms and are suitable for those looking for a modern lifestyle by the beach.Another condominium project in this area is The Royal Bayview which is located along the coast of Independence​ Beach. The project will feature 1.344 units and will also have a 3-storey shopping area. The Royal Bayview is expected to reach completion by the end of 2019.Another project located near by is The Blue Sky Tower, which is located in Sangkat 2, with a starting price of $40,000.  The Nest Apartments Seaview Condominium is also rising on the in the area and is located along the coast of Hawaii beach. It has 9 storeys and has unit sizes ranging from 30 to 126 square meters with a price range of $28,500 to $52.500.It is clear therefore that the number of residential condominium projects rising in the coastal areas is growing very fast.Why are residential developments in Sihanoukville attractive?Currently, a number of infrastructure projects are under construction such as The railway system, the airport expansion, the Sihanoukville port development. This development will not only help boost the growth potential of the region and provide confidence for investors, but it will also ease the transport of materials and reduce the price of condos in the area. In addition, Sihanoukville is becoming very popular due to its location, and clean beaches.As mentioned earlier, tourism is also growing very fast: the Department of Tourism expects tourist numbers to run up to 3 million annually by the end of 2020 -- 1 million of international arrivals and 2 million locals.What are the potential areas for investment in Sihanoukville?Sangkat 4 seems to be one of the best options for residential area. It is located alongside the beach and includes the Ochheuteal Beach and stretches for 4 kilometers. It is located along the coastal road towards Serendipity beach and is a very popular area because of its convenience in terms of transportation and international trade.There is no doubt that Sihanoukville is becoming increasingly popular; whether you are looking for a vacation house or looking to relocate by the beach, is it certainly worth to check what the market is currently offering.Find out more about new developments in Sihanoukville on Realestate.com.kh now!Take 2 minutes to complete our survey and win and IPhone 8!

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 selling your home, should you stick with one real estate agent or list your property through multiple agents? Both options have clear advantages and disadvantages that sellers may want to consider before deciding. Listing with Multiple Agents:- If you want to make a quick sale, listing your property with multiple agents would seem like a logical choice. And there’s a good reason for that. You get more exposure. These professionals can utilize different avenues such as the newspapers, buyer networks and internet property listings to spread awareness for your property. More exposure means a gathered interest from a larger audience.- The downside to using multiple agents though is that you’re working with a range of people and various sales strategies that are often times totally different from each other. This also entails that there are different degrees of understanding as to what type of buyers are qualified for the sale. This may mean the information about your property becomes different than you first intended as it travels between agents and their networks - which will mean the buyers they present are not necessarily sold on the correct info.  - Hiring multiple agents also means that negotiations will be done in isolation. The ones competing won’t be the buyers but the actual agents. This hurts your cause because you might find out too late that someone else may have made a higher offer.- There is also the risk of running into “commission cowboys”. These are self-professed private agents who will do anything to make a sale. This doesn’t always get you the best buyers.Listing with an Exclusive Agent:- The thing about listing with an exclusive real estate agent is that their sales strategy – if it’s the right strategy – it can save you a whole lot of time and effort. It focuses in on making sure that you get a good deal, with the right buyer without demanding too much. This also offers the agent more flexibility to adjust their strategy based on your needs and on the current market’s feedback.- You can hire a professional that specializes in your kind of property too. It is important to note that one effective person can outdo a hundred ineffective ones. Make sure you choose your agent wisely.- Having an exclusive real estate agent also makes it easier for the buyer. Buyers would rather think about their personal needs more than they think about which agent they should contact. Keeping everything singular eliminates any possibility of confusion and makes it more convenient for buyers to make an offer.- Exclusive agents also sometimes package property management services into the mix as a form of incentive. This is something you won’t get from multiple agents.- The downside to this is that information about your property is limited to the stream of influence your agent has. Your reach is much more contained.Want to learn more about how you can make money by investing in real estate wisely? Get on Realestate.com.kh today!Ready to make a listing? Sign up for an account with us now!