Owing a significant part of its recent economic growth to international property investment, Cambodia has come into force as one of the leading emerging economies in Asia. Preferred by neighboring countries for its massive growth potential, it’s no surprise that infrastructure is being developed quickly due to the increase in demand for properties – most of which comes from Chinese investors. As confirmed by the Agence Kampuchea Presse, “Currently, China is the biggest foreign investor in Cambodia followed by South Korea, EU and Malaysia.” And the numbers continue to grow each year.
When asked why Chinese property investment in Cambodia is such a hot ticket in recent years, current president of CVEA, Kim Heang, says that it has to do with a lot of things that mostly relate to diplomatic relations, convenience, and currency: The Diplomacy of Chinese Property Investment in Cambodia: He explains that China and Cambodia have long-standing diplomatic and military relations which transcends into business and investment dealings. China provided Cambodia a loan amounting to $12.4 million just after it erased the Kingdom’s debt in the recent past so that the government can start repairs on the Angkor Wat. In return, Chinese nationals are welcomed with open arms for any opportunity to collaborate or to invest in the vast lands of Cambodia.
Special projects such as infrastructure developments are also awarded to Chinese companies because of the amount of trust that has been formed between the two countries. This diplomatic relations has also lead to a sea of people moving from China to Cambodia with no problem at all. Convenience and Chinese Property Investment in Cambodia: Heang says that it feels just like home for Chinese moving to Cambodia because there is a high value placed on Chinese people in Cambodia, more so that other countries. Locals are not only more accommodating, but a lot of them also speak the Chinese language.
This makes it easier for Chinese people to transition into whichever area they choose to settle in, whether it’s in the busy streets of Phnom Penh or in scenic places like Sihanoukville and Siem Reap. Another factor that contributes to their interest is the convenience of flying in and out of Cambodia at any given time. The flight from both countries takes approximately two and a half hours, which is relatively fast if you have meetings in between the two countries.
Businessmen also profit from this because they can easily address certain emergencies and issues as they come about. Currency and Chinese Property Investment in Cambodia: Chinese buyers are especially motivated by US$ investments, as it represents a very stable currency. This is obviously available in Cambodia. Also, Chinese investors love to pay in cash - and the Cambodian market is also very open to this.
Taxes and extra costs are low in the Cambodian property market also, even when moving money in and out of the country. At the end of the day, along with the government’s continuing initiatives to create policies that will benefit local and international investors, Cambodia will see an even more profitable future for the property and land markets as Chinese investors continue to come to the Kingdom. Check out more on the Cambodian investment climate in our Cambodia Investor Guides!
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