Realestate.com.kh spoke with Mr Van Chanthorn of TownCity Real Estate about the best ways to invest your money in Cambodian real estate.
If we have enough money, what type of property should we buy?
If you have just enough money to begin investing in real estate and you’re looking for a monthly income return, then you should purchase one to two condominium units or a flat or apartment inside central city for leasing. It’s much more convenient to rent and could be a stable source of income of up to around $1,500 every month.
For those looking to purchase properties for both investment and residential use, consider buying a Borey property in the city. Aside from having a strategic location, there’s also more opportunity for sale and rent in the short-term. However, the profit here is limited and there aren’t really any huge returns to be made any more.
But for investors that already have a significant capital for real estate investments, they can opt to get a pre-established-facility or landed commercial area/development plot that would cost around $2 million to $5 million. This will produce a profit through increased rental costs and easy leasing terms, or a profitable sale to the right developer.
For investors who have an overflow of money that are looking to buy for future investment returns through a property sale, a projected profitable areas of investment that most people are taking for granted are on the outskirts of Phnom Penh. The reason for this is because there will be a lot of new long period developments just outside the city that will give you a significant investment return after 5 to 6 years.
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What is your ideas or expectations of the future of the real estate realm in Cambodia?
For me, there are a lot of current developments being done and already available in the north, the west, and the southeast directions. If we are looking to the southeast direction, we see that there are many borey project developments like the Borey Peng Huoth and Borey High Tech.
In the eastern part of the city, areas along the national road 6 such as the Chroy Changvar peninsula are expected to have plenty of condominiums, boreys and residential projects in the long run. Meanwhile, the northern areas have been in development or quite some time now. So, both big and small borey projects are already in place, especially in the satellite cities of Camko and Grand Phnom Penh International City. These development projects have been successful because there of good infrastructure, higher density of people and growing commercial areas. They’re also particularly successful because there are many roads connecting to the other provinces like Sihanoukville and the Kampot province.
We tend to forget the east direction, but it’s also now under serious observation as a future development site. Also, for the future, the south part of Phnom Penh will also be the best target direction for investment. Based on my vast experience, land prices are higher and rapidly increasing because of the development goal of the government in the south of the city and the investments of expats here. And because of this, road infrastructures are becoming more and more possible in the south. Nowadays, the real estate market values in those areas are offered at an affordable price. Therefore, all investors should be in a hurry to invest now! These prices won't last long.