Cambodia has seen an impressive annual GDP growth of 8.1% for two decades now. This didn’t go unnoticed. The Asian Development Bank even named it as Asia’s New Tiger Economy in 2016. One of the area that experienced significantly growth, is the real estate sector.
According to the Khmer Times, the rush of investments last year in the construction industry alone reached $8.5 billion, covering a span of 13 million square meters. This barely even scratches the surface at 0.007% of the entire land area of Cambodia, suggesting that the investment opportunities in the near future are countless.
But now that we have assessed that Cambodia’s real estate is rapidly growing, what exactly are the best New Developments in Cambodia for pure investment purposes?
Phnom Penh City Center
The PPCC will be Phnom Penh’s first and only Central Business District by the time it’s finished in 2035. It is situated at the heart of Phnom Penh and is expected to transform the country’s developing capital into a city of the future. The PPCC will cater to both locals and expats who are seeking a mix of innovation and international-standard infrastructure for residential and business purposes. The area is expected to hold a range of properties that will bring in around 56,000 residents and 190,000 visitors daily.
Investors have a wide variety of New Developments in Cambodia they can choose to purchase either for setting up shop, resale, or future rental returns. Among the best of them are located at the One Park Condominium, The EDGE, and Residence 90 projects.
One Park is one of the most sophisticated and holistically-planned mixed-use developments in Cambodia yet. It has a low-density design and a state-of-the-art base level infrastructure. It also has North-South facing buildings that was designed from research that considered natural forces like shade patterns and wind flow as well.
The One Park Condominium has a modern European aesthetic and comes with amenities like swimming pools, children’s play areas, and gyms. Shophouses in the development have also been completed and have been turned over. The units are almost 100% sold with prices starting from $170,000 per unit.
Find out more about the One Park development on Realestate.com.kh
The Edge is a 93-unit exclusive 4 to 5-storey freehold development. What sets it apart is its new Retail Office Versatile Office (ROVO) concept. ROVO units are designed to provide flexible spaces for businesses to set up based on their business type. These includes cafés, restaurants, a start-up office, a bank, a boutique hotel, studios, and meeting rooms. ROVO units also have a timeless design that combines Khmer artwork, brick walls, and neutral finishes. It also utilizes natural light through the use full height glass facades.
Find out more about The EDGE development on Realestate.com.kh
The Residence 90 project is an exclusive gated development that is surrounded by municipal developments, a sports complex, a driving range, and other upcoming mixed use and residential establishments. It is bordered by Monivong Boulevard and the Russian Boulevard.
The Residence 90 development will have a range of villas that come with community amenities such as a clubhouse that’s equipped with swimming pools, a gym, a BBQ area, and a children’s playground.
Find out more about the Residence 90 development on Realestate.com.kh
The growth of New Developments in Cambodia , especially of Phnom Penh has sparked interest in developers to discover other potential areas for the real estate sector. Their search led them to Sihanoukville. The area is not new to the market, however, recent changes such as the revival of the Royal Railways and the reclassification of Sihanoukville into specific zones has also given developers more confidence to seek out opportunities here.
The area also saw a 17% increase in tourism figures last year and shows no sign of slowing down. That’s a total of 1 million visits for the first half of 2016.
Talks have also been circulating that Sihanoukville will gain a special status that will allow foreigners to legally buy property in the area.
Part of the number of developers who saw Sihanoukville’s many opportunities early on are also the ones behind D’Seaview Condo.
D’Seaview is a first-of-its-kind mixed-use development that’s located near the most beautiful beaches of Sihanoukville -- Cambodia’s premier tourism destination and fastest growing business hub outside of Phnom Penh. It is surrounded by traditional Khmer restaurants, discos, night markets, bars, shopping plazas, and spas.
The developers of the project are also offering a deferred payment scheme where investors can purchase a unit with a down payment of 30% and deferring the remaining 70% to the completion of the unit. This means an absorbed fit out cost of around 5 percent of the purchase price. This will also guarantee a 30% rental return over a 3-years period at 10 percent a year.
Find out more about D’Seaview development on Realestate.com.kh
Cambodia is still on its early stages of growth in the property market. And as 2017 approaches, the market is becoming even more interesting. This is according to Simon Griffiths, Senior Associate Director of CBRE Cambodia.
He explains, “With greater competition, developers shall increasingly offer better guaranteed yields and deals to foreign and local buyers. Against the backdrop of stagnant low interest rates in developed economies, guaranteed yields of five percent and above represent ways to appreciate wealth rather than in real terms losing it as it sits in the bank – but crucially only if the private foreign investors trust the developer and the investment holds its value.”
So, if you’ve done your homework and you’re looking to invest in New Developments in Cambodia , take a look at the above mentioned properties because now may not be a bad time to do it.