If you’re exploring real estate in Southeast Asia, you’ll likely come across leasehold ownership — a structure widely used in places like Thailand, Bali, Malaysia, and Singapore.
Unlike freehold, where you own the property outright, leasehold gives you the right to occupy and use a property for a set period — often 50 to 99 years — under a legal agreement.
When done right, leasehold can be a safe, practical, and cost-effective way to invest in premium locations. But understanding who’s behind the project and how the lease is structured makes all the difference.
If the property is:
- Developed by a trusted, well-known company
- Professionally managed by an experienced operator
- Financed by a reputable bank
Then leasehold can offer the lifestyle and investment benefits you’re looking for, with added peace of mind.
Additional reading: Understanding Cambodia’s Foreign Ownership Laws
Why Leasehold Is Used for Waterfront Development in Cambodia?
Under Cambodian land law, private ownership via hard title is not permitted within 100 meters of the sea and 50 meters of rivers. These government-defined setback zones are in place to control development near natural waterlines.
However, these areas can still be privately leased and developed. That’s why leasehold has become the legal and practical vehicle for building along the coastline or riverfront. It enables developers to deliver high-end beachfront and waterfront projects while staying fully compliant with national regulations.
For buyers, this means many true beachfront or riverfront properties in Cambodia will be leasehold, not because they’re risky, but because it’s the only legal pathway to own property in these zones.
That said, due diligence is still essential. Always make sure:
- The project is led by a trusted, reputable company
- Contracts like the Sale & Purchase Agreement (SPA) are reviewed by a qualified lawyer
- The development is transparent, legally sound, and managed by experienced professionals
Further reading: A Guide to Condo Buying: Due Diligence Checklist for Cambodia
In short,
Leasehold can be a smart, secure way to own property — as long as you understand the structure and choose the right partners.
Contact us now for more information-
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