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(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:

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How to maintain and manage your property during COVID-19 outbreak

June 6, 2022, 5:06 p.m.

Home & Living

Property Buyers & Sellers Advice

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

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Amenities & Fixtures: What to expect from Cambodian properties?

June 6, 2022, 5:07 p.m.

Home & Living

Property Buyers & Sellers Advice

Curious what about amenities and fixtures can you expect from Cambodian properties? Don’t worry! This guide will run you through the most common amenities and fixtures that you can expect in most Cambodian properties, whether for sale or for rent.NOTE: Common amenities/fixtures DOES NOT mean standard amenities/fixtures. These are merely based on the observation of the most commonly recurring amenities/fixtures from listings. The actual amenities and fixtures will ultimately vary from developer to developer and property to property.Common Apartment/Condominium AmenitiesModern amenities have become more commonplace in Cambodia’s apartments and condominiums. This is not, by any means, an exhaustive list of amenities, but a shortlist of what you’re more likely to see in your search. The rule “your mileage may vary” applies.Fitness Centre(Most fitness centres are located at the top floors such as this facility from The Peninsula in Phnom Penh. Realestate.com.kh)This can be called either a fitness centre or wellness centre, both are essentially gyms where you can exercise or work out. Some developments (on the higher-end, mostly) offer classes like yoga. How well-equipped a fitness centre depends entirely on how premium the development is. But most will likely have the basics of any workable gym.Swimming Pools(All high-end and some mid-tier developments have pools as part of their amenities such as this one from Garden One. Realestate.com.kh)Phnom Penh can get hot, especially around the months of March to June. Luckily, more developments are including swimming pools as part of their range of amenities. It’s hit-or-miss when it comes to mid-range developments, but high-end developments will have all the bells and whistles in a premium swimming pool.Public Wi-Fi(Most, if not all, developments have wifi included in their properties. But since these are for public use, you may want to consider getting your own. Realestate.com.kh)Residential units you buy or rent usually come with their already-provided Wi-Fi. But as with anything public, connection bandwidth will be shared. The public WiFi will certainly suit most people, but if your work is better (and more secure) through dedicated bandwidth, then we suggest getting your own.Public WiFi is mostly decent in Phnom Penh and it’s relatively inexpensive. A single person is fine using a 10 Megabit (Mb) fiber connection (yes, Phnom Penh has a commercially available fiber connection) and it’s enough to watch 1080p 60 fps YouTube videos - all for around 140 to 300 USD a year.Car Parking(Car parking is a must-have in Cambodia. Luckily, most Cambodian properties have parking available for their residents. Supplied)Parking is crucial if you have a car in Phnom Penh. The city is becoming increasingly busier every year and roadside parking is starting to become scarce and inadvisable. Fortunately, developers today incorporate parking spaces for cars and motorcycles in their projects. Even the smallest tower developments find ways to include motorcycle parking at the very least for their inhabitants. If you have personal transportation, this is a must-have in modern-day Phnom Penh.Common Residential Unit FixturesA lot of apartments and condominiums in Phnom Penh make it a point that their units make it easy for tenants to move in, especially when there’s a healthy expatriate population moving around the city every year. As a result, Cambodian residential units are quite generous with fixtures, even from the low end of the market. Here are a few of the most common fixtures included if ever you decide to move in Phnom Penh:Washing Machine(Most properties in Cambodia include washing machines such as this one from The Peninsula Phnom Penh. This is a major bonus for DIY-people out there! Realestate.com.kh)A range of apartments, from the low-end to the high-end already include washing machines in their units. If you’re the type to Do-It-Yourself, then the inclusion of washing machines is definitely something you’ll like. Most apartments and condos include places where you can air out your laundry, so you don’t have to worry too much about that part as well.Airconditioning(In a tropical country like Cambodia, and especially in the concrete jungle of Phnom Penh, air conditioning is a must. Realestate.com.kh)If you’re coming from a country with a cold ambient climate, then you’re in for a treat in Cambodia. Fortunately, all the units you could be looking at have air conditioning units. Do keep in mind, however, that electricity costs in Phnom Penh range from 0.20 to 0.25 USD per kWh - which makes electricity in Cambodia is pretty pricey relative to its neighbors.Electric Kettle(Part of the offensive charm of making it easy for you to move in is the inclusion of simple things such as an electric kettle. Supplied)This is a nice fixture some apartments include and you could even negotiate this as part of the deal whenever you move into an apartment/condo. A landlord might be more than willing to oblige if they can close a deal with this.Bidet / Bum Guns(Bidets or bum guns, as they're more known, are a staple in any property such this one from The Peninsula Phnom Penh. Realestate.com.kh)Bidets are a 21st-century invention seemingly from the heavens. This magnificent piece of modern technology is quite popular throughout the Indochina region - almost like a standard - even in public toilets. Bidets are usually affixed to most Cambodian residential units for rental/sale. A lot of western expatriates have shared their wonder of bidets, so to speak. Some even went so far as saying “Bidets have ruined toilet paper for me”.Television (with basic cable access)(Televisions are nice to have even when internet access is widely available. Most Cambodian properties still include it such as Wealth Mansion in Phnom Penh. Realestate.com.kh)Some apartment/condominium units come with a flat-screen TV. It’s nothing fancy but it’s definitely worth something. They usually include cable channels in it, so, if you’re a tourist/expatriate, you’ll have something to entertain yourself with right away. It’s part of the attractive selling points landlords build to make their properties more appealing to potential renters. Knowing what to expect from a potential purchase or rental can help you better evaluate the bang for the buck you’re gonna spend. While amenities and fixtures shouldn’t be the sole factor to make or break the buying decision, they certainly are worth considering since they affect the quality of life you’re going to have.Looking to buy/rent property in Cambodia? Let us help!Article by:

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Can foreigners Own a Condominium in Cambodia?

June 16, 2023, 6:20 a.m.

Yes, foreigners or non-Cambodians are legally allowed to directly own condominiums in Cambodia. This is mainly achieved through Strata Titles - property ownership certificates issued by The Ministry of Land Management, Urban Planning, and Construction. These titles are recognized on a national level, making them a secure form of property ownership in the Kingdom.It also depends on what nationality you, the agent, or developer may be. Most Australians, for example, are more likely to resonate with the term "Apartment" while Americans and Chinese resonate with the term "Condominium". Cambodians on the other hand will generally associate an older unit as an "Apartment" whilst considering the new most recently completed one as a "Condominium".At realestate.com.kh, we prefer the term Condo, however, we have 40,000's listings for both types and allow users to select multiple property types when they are running a search.So if you are looking for an apartment or condo for sale make sure you select both condo and apartment during your search on realestate.com.kh. Find new developments in CambodiaForeign ownership laws in CambodiaIn 2009, strata titles were introduced and allowed foreign nationals to fully own private units of co-owned buildings in Cambodia. The only fine print in relation to this is that the units within a condominium or strata-titled office must be 30% locally owned, and foreigners can not own properties within that building on the ground floor. Simply put, if a building has a total of 100 units, 30 of those must be owned by Cambodians, and the rest may be owned by foreigners. All new developments for sale on Realestate.com.kh have a "title" section under "project information", where you can see if the property is being sold with a hard title. Read our guide on understanding property titles in Cambodia.Two Main Licenses To Verify Before Buying The two main documents you should ask to see from developers before you purchase a property in Cambodia are The Construction License and The Sales License.If developers have a construction license, it means they are legally allowed to build the property and the sales license permits them to legally sell the property.It is not uncommon for developers to have one and not the other as they are issued by separate ministries and governing bodies.Condominium Vs ApartmentThis is a topic that is frequently raised and discussed. There is no real difference between the two (condos and apartments but some people will say that an apartment is similar to a condo but built before 2009, whilst a condo is a unit within a building that was completed after 2009. Others will say an apartment is for rent, while a condo is the same thing but for sale. To find out the difference between both click herePre-sales PeriodAfter developers obtain their construction licenses they may launch some pre-sales marketing activities. This is very common in Cambodia, during this period developers are allowed to take a fully refundable booking fee from buyers whilst they are waiting to receive their sales licenses.For more details around developer licensing and what you need to know. Check out our ultimate property investor toolbox. Looking for properties in Cambodia? Let us help!Article by:

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Typical payment terms for new developments in Cambodia

June 6, 2022, 5:07 p.m.

Home & Living

Property Buyers & Sellers Advice

If you are thinking about investing in the Cambodian property market, then you may start to think about how you're going to make payment or payments for the investment, and what is typically accepted in the Cambodian market by developers.Just as important you might want to start thinking about what you are most comfortable with. Below we highlight some common practices around payments and payment terms in the Cambodian market and what you can expect.In this guide, we highlight some of the typical payment terms offered by property developers in Cambodia and home loans available for foreigners.Booking feeAs soon as you have made the decision to purchase a property, you will then have to sign a Sales & Purchase Agreement. Upon signing this agreement you will be required to pay a small booking fee usually between a few hundred dollars to a few thousand dollars. This can also be known as a reservation fee. By this stage, you will have already chosen your "payment plan" with the developer.Down paymentAfter you have paid the booking fee (commonly within 2 weeks) you will be required to pay a down payment for the property. The most common down payment ratio is 30% of the property's total value, (e.g. $100,000 unit, downpayment of 30% = $30,000)Instalment payment planAs the name suggests, the most common way buyers pay for the balance of their investment is by (monthly) instalments. Which will be a percentage amount over a period of time. Often 3 years or in line with the completion of the development.Stage payment planThis is very similar to the Installment payment method, however, payments are made in line with construction stages until the building is completed, rather than even monthly payments. (e.g. Once the building has reached the 5th floor out of 10 you will be required to make a stage payment.)Upfront paymentIn this plan, buyers will be required to pay the full amount often within 30 days of signing the Sales and Purchase Agreement. This is the most attractive payment plan if you are looking to get the best price for your investment.Note: there is typically no interest to be paid involved with the payment plans above.Home loans for foreignersAlthough bank loans for off-plan (Condo) properties in Cambodia are increasing in popularity. Most if not all banks in Cambodia will not lend to international investors based outside of Cambodia. However, if you are an expat based in Cambodia with a track record of employment you may qualify for a home loan from a bank.If you have already enquired about a property, make sure you ask if the developer is working with any banks for possible home loans. And remember you can also inquire for a home loan via Homeloan.com.khDevelopers' loansAlthough not very common for foreigners, some developers will offer loans or financial assistance to potential buyers. If you purchase a property on this type of payment plan or via a bank loan you will be paying interest on the loan.To provide property seekers with an idea of what a bank loan may look like for a buyer in terms of monthly payments, you can find a home loan calculator within the property details page on Realestate.com.kh.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:

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Cambodia condo outlook 2020 and beyond

June 7, 2022, 2:21 a.m.

Realestate News

Location Profiles

(Cambodia's fast economic rise has put the country in the spotlight of real estate investors from around the world. Realestate.com.kh)[Article originally published in March 2020]The rise of condominiums in Cambodia, particularly in Phnom Penh, has certainly piqued the interest of local buyers, foreign buyers, and even the international media over the past half-decade. But as the Kingdom enters a new decade, you might be wondering, are condos still trending in Cambodia?The short answer is: Yes, they still are.But are they worth the investment? This report will look at price trends and upcoming supplies of condominiums across the Kingdom of Cambodia to help you decide.A look into Cambodia’s condominium sector 2020 and beyondRealestate.com.kh tracked over 100 projects across the country and examined the trend of condominium developments up until 2023. As a guide to potential investors (such as yourself), this brief report will breakdown the trend of the projects tracked across the 3 major population centres namely: Phnom Penh, Sihanoukville, and Siem Reap.The trend of condominium development in each city will be further broken down into popular questions such as:What’s the right price to buy a condominium?What affordable price can I pay for a condominium?How much can I spend if I want a top-class condominium?How many more projects and units are coming?How much can I expect to earn if I invest in a condo today?Will condominium prices increase next year?Phnom Penh(Phnom Penh is at the epicenter of the massive real estate development in the Kingdom. Realestate.com.kh)According to Realestate.com.kh’s Consumer Sentiment Survey 2019, 76% of property buyers within Cambodia are looking to purchase property in Phnom Penh. This isn’t too surprising as the city hosts the Kingdom’s seat of government and serves as the home to over 2 million Cambodians and a healthy expatriate population - making the capital not only the political centre, but at the same time, the primary economic hub of the country. This makes it the ideal place for buyers and investors looking for the widest selection of condominiums in Cambodia.What’s the right price for a condominium in Phnom Penh?In our 2019 Consumer Sentiment Survey also notes that most respondents earning $1,000 (and above) per month expressed they would be willing to spend anywhere from $75,000 to $150,000 on a residential property. The condominium sector seems to reflect this preference as:The average sale price of condo units in Phnom Penh is ~$119,000 across the range of units for sale (1-bedroom, 2-bedroom, and studio units). To be more specific, 1-bedroom condominium units cost an average of ~$110,000 and the average cost of their 2-bedroom counterparts is ~$160,000. While buyers looking for 3-bedrooms will have to fork out an average of ~$290,000. Studio units are also available in Phnom Penh at an average price of $80,000.What’s an affordable price for a condominium in Phnom Penh?For the sake of discussion, we will define affordable as the lowest price you can pay. Realestate.com.kh’s data indicates that condominiums can go as low as $47,000 for a studio type. If you’re looking for a 1-bedroom unit, there are options as low as $65,000. If you’re looking for something bigger like a 2-bedroom unit, you can expect to pay as low as $75,000. The most affordable among 3-bedroom units can be purchased for $145,000.You can start looking at The Hexa and Parc 21 Residences for the most affordable condominiums in early 2020.How much can I spend if I want a top-class condominium in Phnom Penh?Do you want the best regardless of price? Phnom Penh has luxury offerings with generous living spaces comparable to landed villas. Realestate.com.kh’s data shows that luxury condominiums can go up to ~$240,000 for a 1-bedroom unit in Phnom Penh while a 2-bedroom can cost up to ~$390,000. While the best of the best 3-bedrooms can be purchased for $600,000. Studio units are also available in the luxury range costing around ~$135,000.If you’re interested in the best and most luxurious residences Phnom Penh has to offer, you can check out R&F City, Prince Huan Yu Center, and Huangshan International.How many more condominium units are coming to Phnom Penh?Projects launches, completions, and suspensions happen at different times throughout the year. As such, this part of the report assumes that the projects tracked will meet their announced completion dates.(An illustration of a condominium unit in The Hexa, a new development in Russey Keo district. Realestate.com.kh)According to Realestate.com.kh data, almost 22,000 units spread across 30 projects will be added to the current stock of Phnom Penh’s condominium units by the end of 2020. A further 15,000 units, spread across 14 announced projects, will be added in the following year 2021. Another 11,000 units, spread across 11 announced projects, will be added in 2022. And in 2023, we project another 6,000 units across 8 projects that will be added to Phnom Penh’s condominium stock.NOTE: New project launches in the latter part of 2020 (not tracked in this report) may announce completion in the immediate future. The descending trend of additional units above is by no means an indicator of receding development.How much can I expect to earn if I buy a condominium today?There is a mechanism in real estate today called Guaranteed Rental Returns (GRR). GRR is defined as rental income guaranteed by the property developer/management to the property purchaser over a specified amount of time.In Phnom Penh, property developers usually offer 6% to 9% returns over a period of years usually ranging from 2 to 5 years. Simply put, this is the amount of money paid by the developer to the investor depending on agreed-upon intervals. Developers offering GRRs often have mechanisms to find tenants for the property, hence, the investor does not have to worry about renters.But don’t let numbers do all the talking as shady developers may use GRRs as a means of attracting customers without any intention of following through. GRRs should also not be the primary factor whenever you’re considering buying a rental property as a form of investment. We strongly suggest having a written and notarized contract that includes the agreed-upon rental returns over the specified period of time.Will condominium prices in Phnom Penh increase next year?Developers of tracked projects have indicated an increase in prices ranging from 5% to 30% per year. Most developers, however, shared that unit prices would increase by 7% to 8% next year. Buying today might be the best choice if you’re already set on buying a condominium in Phnom Penh.If you’re not in a rush to move in or if you can wait a year, we suggest buying off-plan condominium property from a reputable developer. Buying off-plan has its benefits, the strongest of which being: lower cost and the opportunity to make small adjustments to your unit.Sihanoukville(Sihanoukville's cityscape has considerably grown with hotels, office buildings, and condominiums. Realestate.com.kh)The port city of Sihanoukville has seen massive foreign investment in the past couple of years, especially from Chinese investors. Massive constructions such as condominiums, hotels, and offices sprung up as a result of the new-found economic life. It was the quintessential example of a boomtown as the amount of construction strained the once-sleepy beach town’s existing infrastructure. The ban on online gaming back in August 2019 certainly resulted in the exodus of a lot of Chinese workers - which in turn negatively affected property and rental prices in Sihanoukville. But it’s important to note that not all Chinese expatriates who live in Sihanoukville went to work in online casinos and that the gambling ban only applies to online casinos and not to landed casinos. Some came to work in Chinese-owned properties such as casinos, resorts, and condominiums, many of which are seeing completion in 2021.What’s the right price for a condominium in Sihanoukville?For context, Sihanoukville saw a steep increase in real estate prices due to the influx of Chinese investors and workers. After the ban, prices began to fall and (as of Q1 2020) is seeing a slump due to the mass departure of Chinese nationals. If you’re looking to buy property near the beach, Sihanoukville might be worth considering now. Good thing beaches don’t fly away when the market slows down.The starting sale price of condo units in Sihanoukville is ~$72,000 across the range of units available. To be more specific, 1-bedroom condominium units cost an average of ~$75,000 while the average cost of their 2-bedroom counterparts is ~$165,000. More spacious 3-bedroom options are available at ~$300,000.What’s an affordable price for a condominium in Sihanoukville?Sihanoukville’s residential development was made to attract Chinese buyers who often have high-class tastes. This makes affordable and good-value condominiums plentiful in Sihanoukville today.A 1-bedroom unit in Sihanoukville can be bought for ~$55,000. Bigger units are also available such as 2-bedroom units which can cost as low as ~$90,000. Even bigger 3-bedroom units can be purchased from $240,000. Though keep in mind that some affordable options may be quite a distance from the much-coveted beaches of Sihanoukville.How much can I spend if I want a top-class condominium in Sihanoukville?While luxury properties in Phnom Penh offer big pools, luxury properties in Sihanoukville offer the sea. A luxury 1-bedroom unit in Sihanoukville can cost ~$150,000. While a top-class 2-bedroom unit can cost ~$250,000. Big 3-bedroom units can be purchased for $500,000. As for amenities, there is virtually little difference from Phnom Penh’s developments and you get the added benefit of easy access to the beach.If you’re interested in high-end condominiums in Sihanoukville, you can start with Prince Golden Bay, Prince Tian Xi Wan, and Morgan the Pure Bay.(The Prince Golden Bay is one of the most anticipated beach-side projects in Sihanoukville. Realestate.com.kh)How many more condominium units are coming to Sihanoukville?Sihanoukville will welcome several thousand units in the next few years. In 2020, we could see an additional 5,000 units entering the city’s condominium stock. In 2021, Sihanoukville will usher in over 27,000 new residential units. This is a figure almost twice the size of projected additional units to become available in the capital Phnom Penh. And in 2022, another 4,000 units will be added to Sihanoukville’s condominium stock.How much can I expect to earn if I buy a condominium today?Tracked projects in Sihanoukville offer Guaranteed Rental Returns (GRR) ranging from 7% up to 24% for a period of time ranging from 2 to 8 years. Though we would advise thinking twice about buying property solely based on the double-digit GRR offered by the developer, especially in Sihanoukville as these calculations were likely made before the August 2019 ban on online gaming.Will condominium prices in Sihanoukville increase next year?Developers of tracked projects have indicated price increases ranging from 5% to 8% per year. Some developers initially planned these increases with the influx of Chinese workers in mind. But with the departure of most Chinese expats, and lack of Chinese tourists due to the Covid-19 lockdown, these price increases may meet challenges - something you may use to your advantage as a buyer.If you’re sold on the idea of owning property in Sihanoukville, buying off-plan may be the best option as they tend to cost less and you gain the opportunity to make adjustments to your unit.Siem Reap(Siem Reap's condominium market pales in comparison to Phnom Penh and Sihanoukville but there are a handful of opportunities. Realestate.com.kh)With more than 1 million tourists per year, Siem Reap is unequivocally the Kingdom of Cambodia’s cultural tourism center. But not often talked about is how Siem Reap is the 2nd biggest population centre with over 1 million residents, according to the General Population Census 2019. This figure does not account for the many expatriate communities living and working in the province.Siem Reap does not have the same kind of condominium development Phnom Penh and Sihanoukville have. This is primarily due to Siem Reap’s primary industries relying on tourist traffic; creating a marketplace where hotels and boutique guesthouses thrive while shophouses, villas, and boreys dominate the residential market.What’s the right price for a condominium in Siem Reap?There are still, however, a handful of on-going projects in Siem Reap. Unit prices in the city range from $68,000 to $157,000 according to the projects tracked. Some of these developments are noticeably more spacious than condominiums in Phnom Penh.What’s an affordable price for a condominium in Siem Reap?The lowest price among projects tracked costs $68,000 for a 1-bedroom unit. Bigger spaces are also available with 2-bedroom units costing as low as $105,000. The Siem Reap projects tracked also offer 3-bedroom units costing as low as $145,000.How much can I spend if I want a top-class condominium in Siem Reap?Top-class condominiums in Siem Reap can go up to ~$150,000 per unit. The most expensive among 1-bedroom units cost $75,000. If you fancy a luxury 2-bedroom, it will cost around $110,000. And if you want something luxuriously big, a 3-bedroom in Siem Reap costs up to $160,000.How many more condominium units are coming to Siem Reap?According to projects tracked, Siem Reap’s future condominium stock will be limited in the immediate future with only less than 1,000 units to be introduced by 2021.(A one-bedroom condominium in Sky Park, one of the few condominium projects in Siem Reap. Realestate.com.kh)How much can I expect to earn if I buy a condominium today?Investment returns on condominiums largely depend on the market of potential tenants. Since Siem Reap’s economy largely revolves around tourists who usually do not stay long-term, there are not a lot of condominium developments as the abundant number of boutique hotels offer much more attractive rental rates.In January 2020, the Chinese government has banned its citizens from leaving the country to curb the spread of Covid-19. This has caused tourist numbers to Cambodia to drop significantly as more than a third of its annual tourists come from China. Initial government reports indicate that January 2020 arrivals are down by 60% and February 2020 arrivals are down by 90% - compared to 2019 figures.With the dominance of hotels, boutique guesthouses, and the fears of a viral outbreak, investment prospects in condominiums in Siem Reap may face difficulties in the first half of 2020.Will condominium prices in Siem Reap increase next year?暹粒的跟踪项目未指定价格上涨。但是，与任何房地产一样，我们可以预期价格会上涨。中国政府对公民实施的旅行禁令（早在2020年1月）可能对暹粒的公寓市场构成间接威胁。尽管游客通常不出租公寓，但他们的缺席给暹粒的当地经济带来了沉重压力-使其对希望在该市最大的创收行业中生活和工作的投资者/专业人士的吸引力大大降低。随时了解柬埔寨的房地产行业，并实时获取有关房地产新闻的实时更新。立即下载Realestate.com.kh应用程序！文章作者：

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Popular investment opportunities in Cambodia for foreign buyers

June 6, 2022, 5:07 p.m.

Realestate News

Property Buyers & Sellers Advice

Favourable foreign ownership laws, a U.S Dollar based economy, rental returns of up to 10% per year, and high yields are just a few reasons why Cambodia is a great investment destination. To help you make an informed decision for your investment in Cambodia, we highlight some of the common types of opportunities that are available in the Cambodian market.Condominiums and ApartmentsThis is the most common type of investment for foreigners in Cambodia, and in many ways, the easiest to understand. Most developers targeting international buyers will structure projects with some sort of rental return scheme or GRR, generally around 5%+ per year for up to three years. Although not all developers will offer a GRR scheme and may opt for offering buyers a small discount on the purchase price, especially if they are targeting buyers that intend to live in the property. A common question you will be asked by developers is: Are you buying for living or investment?*Guaranteed Rental Return (GRR) or Rental Return Scheme (in some counties) is the amount of money often communicated in a percent based on the purchase price of the property that the developer guarantees you as the buyer in return, over a certain period of time. If you are purchasing a property with GRR make sure it is mentioned in your sales and purchase agreement.Learn more about Guaranteed Rental Returns hereStrata titled office space and commercial unitsSimilar to the high demand for more housing in Cambodia, there are also 100's of new businesses and multinationals entering the market. In line with this, developers have identified this as an opportunity to differentiate themselves from their competitors and offer strata-titled office or commercial units for sale. Sometimes this can be integrated into a development that will also include apartments for sale, or it can also be a stand-alone office development project.Serviced Residence, Hotel and Resort-style investmentsAn increasingly common investment type or opportunity that we are seeing in Cambodia is investing in a serviced residence or hotel. This can be highly attractive to many investors that are looking for high and often guaranteed rental returns. It is also not uncommon for these types of investments to have a Guaranteed Buy Back option built into the purchase.A guaranteed buyback is a contract between the developer of a new project and anyone who buys a unit within that development stating that the developer will buy back the unit from the owner after a fixed period of time.Colonial apartmentsCambodia is littered with 100's of old French colonial buildings, and a common trend for foreigners living in Cambodia is to buy an older apartment, with the vision of renovating the property before selling it at a higher price. This is very common in many markets around the world. Whilst there are some great financial gains to be made in this type of investment, we would advise anyone living outside of Cambodia to focus on other investment opportunities in the property market, that come with a long-term lease, hard or strata title.Realestate.com.kh is home to over 30,000 (and growing!) property listings all over Cambodia. Our property advisors are on standby to help you in your real estate search!Need help finding the right property? Let us know!Article by:

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Visa in Cambodia - Comprehensive Guide

October 3, 2023, 9:06 a.m.

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Are you planning to retire in Cambodia?In the 2019 InternationalLiving.com's Annual Global Retirement Index, Cambodia was named as the 12th best place in the world to retire. This was the fourth year in a row that the Kingdom held that title.In the 2021 edition, Cambodia again ranked as one of the most affordable destinations to retire and one of the best countries to retire overall.You can find out more in our ultimate guide to retiring in Cambodia which details the costs, benefits, property, and insurance expectations. See more below about the visa required by retirees in Cambodia.Is a visa required to stay in Cambodia?Yes, a visa is required to stay in the Kingdom of Cambodia for all foreigners. However, Cambodia has some of the most flexible visa regulations possible for foreign tourists, expat professionals, and retirees to visit and live in the “Kingdom of Wonder,” in the region.Whether you’re a tourist or a resident, a visa is required to visit or stay in Cambodia long-term. In 2019 the visa rules were constricted regarding long-stay visas, giving a preference for those who are locally employed or of retirement age.Types of Cambodian visasTourist visaThe tourist visa (T class) is for travellers who know they will be staying for 30 days or less. The 30-day tourist visa is available to travellers in advance or on arrival (for most nationalities) for a cost of $30 if you obtain it directly at the airport. The tourist visa is single entry only and can be renewed once only for an additional 30 days for a fee of between $30 and $50.At the expiry of the additional 30-day extension on your tourist visa, you must leave Cambodia and come back to obtain a new visa. If you are planning on staying in Cambodia, a tourist visa is not the best one for you, so start with a renewable ordinary visa instead.Cambodian “Ordinary” Visas (E Class) If you wish to stay in Cambodia for an extended period, you will need to apply for a 30-day E-class visa (not an online e-visa) when you arrive. The visa is valid for 30 days and costs $35 (subject to your nationality). An ordinary visa can be extended indefinitely.Before your 30-day expiry, you will need to go and extend your visa. Due to language barriers and uncertainty, if it is your first time extending your visa, a lot of expats will use the services of an agent. You can choose an EB, EG, ER, or ES visa extension, known as an EOS, or extension of stay.The 4 Types of E-Class Visas in Cambodia(Please note: that during the global COVID-19 pandemic - the visa situation in Cambodia has been temporarily different and no visas on arrival have been offered. Visa regulations and requirements should be checked with your relevant embassy from overseas. We recommend you follow the official government announcements on issuing visas).EB visa extension The EB business EOS (Extension of Stay) covers most expats in Cambodia, including those who are working, their partners and children, freelancers, and volunteers. The current rules (as of January 2019) require applications to provide a stamped letter verifying their employment with a Cambodian company). This visa extension is renewable and can last for 1, 3, 6, or 12 months. Please note only the 6- and 12-month visa extensions allow multiple entries.Spouses and children of EB visa holders will need to submit the visa holder’s employment letter. The letter needs to state that the company supports the application for the spouse’s EB EOS as a non-working dependent, and includes the dependents’ passport information. You will also be required to bring proof of your relationship to the visa holder to renew your visa extensions.If you are self-employed and have a registered business in Cambodia you can write a letter confirming your employment. This letter must be stamped with the registered Cambodia business stamp. Further information on setting up a business in Cambodia can be found here.An EB visa extension does not automatically give you the right to work in Cambodia. To be legally employed, you will need a Cambodian work permit and employment card issued by the Ministry of Labour and Vocational Training.EG Visa Extension The EG visa extension is designed for those seeking employment in Cambodia and can last 1, 3, or 6 months. If you have had a previous EB visa extension you probably will not be granted an EG visa, as they are not intended for expats who have already been in the country for a long term. The EG visa is only for first-time visitors to Cambodia.ER Visa Extension The retirement visa extension is for ex-pats of retirement age. You simply apply for ER (retirement) extensions. Here are the requirements:You must be 55 or older.You cannot be employed.You must be able to prove you are retired (with a pension or social security documentation) and have enough funds (bank or retirement fund statements). For more information, please read our ultimate guide on retirement in Cambodia. These extensions can be valid for various lengths of up to one year. Prices are similar to working visa extensions which cost around $290 for a full year with multiple entries. Various agencies throughout the region can assist and help you with processing.Although the ER visa is popular and the price point is much lower than in neighbouring countries, you are not permitted to seek employment in Cambodia. For those wishing to work or operate a local business a Business Visa is required. It is worth noting some US companies are present in Cambodia and you might find them with job postings on popular US employment portals. More jobs in the US.ES Visa Extension The ES visa extension is a student visa. Applicants for the ES visa extension are required to provide a letter from a registered Cambodian school, as well as documentation to demonstrate they have sufficient funds to support themselves. The ES student visa extension can be issued for 1, 3, 6, or 12 months.Other Visa Types for CambodiaThe visas mentioned above are the main types most foreigners will be looking to secure for a long-term stay in the Kingdom. However, there are some other visa types for children of foreigners those working in NGOs and international visitors of the government.K-Class VisaThe K-class visa is intended for those of Cambodian descent who hold a foreign passport, which is valid for free for a lifetime visa.B-Class VisaThe B-class visa is for employees of organizations that are in Cambodia at the government’s invitation EG: United Nations or World Health Organization.C-Class VisaThis is a free visa for employees of international NGOs that have a memorandum of understanding (MoU) with the Ministry of Foreign Affairs.Cambodian visas for childrenAll non-Cambodian children are required to have an E-class visa to enter the Kingdom. If the child has at least one Cambodian parent, they can apply for a free K-class visa.Work Permit in CambodiaThe Cambodian Department of Immigration requires all foreign nationals to obtain an official work permit/employment card to be eligible to work in the country.Foreign nationals wishing to work in Cambodia must also meet the following conditions:Have a job offer from an employer compliant with relevant regulations regarding the employment of foreign nationals.Have legally entered the Kingdom of Cambodia.Possess a valid passport.Possess a valid residency permit.Be fit for the relevant job.Have no contagious diseases.You can read more about being an expat in Cambodia in our guide.Register on the Foreigners Present in Cambodia System (FPCS)The FPCS app records foreign information when they arrive in Cambodia at any entry point. It also records their data when they leave Cambodia.The main purpose of FPCS is to protect foreigners' safety and security in case of an emergency when they are travelling throughout Cambodia and was introduced and enforced in early 2020.Seeking more information on property in Cambodia? Tell us what you need, and let us do the searching for you!Click Here

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Home financing options for foreigners in Cambodia

June 7, 2022, 5:39 a.m.

Are you looking to finance your new home or investment property?The banking sector in Cambodia can be quite complex and is not clearly defined when considering loan applications from foreigners.This makes the process very difficult for expats, if not impossible, to secure a loan for housing from a Cambodian provider.Most Cambodian banks and small lenders do offer financial services for Cambodians, however, there are fewer that cater to the requirements of foreign buyers.Can foreigners own land in Cambodia?The short answer is no, but the Royal Government of Cambodia has eased this restriction by allowing foreign nationals to own property via Strata Titles.What are my options?If you are a foreigner to Cambodia but have a local Cambodian partner, there are a variety of loan options available to you, however, please note the loan and property title will have to be in the Cambodian's name.The exception to the rule is if you purchase a condo. This is a popular way for most expats as it gives you the security of tenure.If you want to better understand property titles in Cambodia, we suggest you read our comprehensive guide.Where to start looking for a home loan?If you are seriously considering investing your hard-earned savings in property in Cambodia and need to secure a home loan, please consider using a reputable agent to assist you. Not only are there language barriers, but there is also different terminology that you may not be familiar with.Whilst a contract may be provided in English, a Khmer contract will overrule the English version. Unless you are fluent in Khmer reading and writing, it is recommended you seek assistance to protect your investment.You can learn more about some of the best banking institutions and the ultimate guide to banking in Cambodia.RecommendationReputable companies such as Home Loan can guide you through the maze. They will do all the hard work for you by finding a lender who suits your needs.Click here for more information on home loans available to foreigners in Cambodia. 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!

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How to get Cambodian citizenship by donation

June 6, 2022, 5:07 p.m.

Realestate News

Property Buyers & Sellers Advice

Want to live, start a business, and buy land in Cambodia?The Cambodia residency by donation laws allows you to do just that. Cambodian residency (citizenship) by donation is one of the legal pathways to achieve citizenship in the Kingdom; the others are: citizenship by naturalisation, citizenship by investment, citizenship by marriage, and citizenship by birth and descent.To become a citizen through providing a donation can take anywhere between 3-6 months and there are a number of requirements including:Applicant must be 18 years of age or olderApplicant must have a current and valid passportApplicant must have a current valid visa for entry into CambodiaApplicant must be of sound mindApplicant must be in good healthThe applicant must have a qualifying investment in Cambodia of at least 1.25 billion Riel (USD $311,000).Similar to a citizen by investment, the citizen by donation's only difference is that the applicant donates the money to the Cambodian government’s national budget, and that donation will be used for the betterment of Cambodia & its people. The non-refundable amount of 1 billion riels (about US$250,000) must be donated to be eligible.Cambodian Citizenship BenefitsAs a Cambodian citizen, you can take advantage of the local benefits that are not legally available to other foreigners.You are entitled to own land & property in your own name.You are able to live in Cambodia with no visa requirements and enter or leave the country as and when you like.You are eligible to apply for government concessions and licenses that are only available to Cambodian nationals.Travel to other ASEAN countries with ease.You can learn more about the types of land titles and property ownership in Cambodia for citizens and foreigners.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:

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A guide to shopping malls in Phnom Penh

June 6, 2022, 5:08 p.m.

(Malls in Phnom Penh are growing larger with every new launch. Photo: Chip Mong 271 Mega Mall. Courtesy of Chip Mong Group)If you still think Cambodia is just about Angkor Wat, pagodas, and food hawker stands, you’re sorely mistaken! The country’s capital, Phnom Penh, is home to several retail shopping malls that house both international brands and local up-and-comers which serve Khmers, expatriates, and tourists with everything they need.In this guide, we’ll take a quick look at the most popular shopping malls in Phnom Penh.Popular shopping malls in Phnom PenhChip Mong Noro Mall(Chip Mong Noro Mall sits along Preah Norodom Boulevard - the retail offerings are complemented by BKK1’s many commercial establishments / Supplied)Operating hours: 9 AM - 10 PMLocation: #199 Preah Norodom Blvd (41), Phnom PenhThe Chip Mong Noro Mall is one of the more compact malls on this list. But what it lacks in size, it makes up for in its enviable location. Located in BKK1, right along Preah Norodom Boulevard, Chip Mong Noro Mall offers a supermarket, restaurants, selected retail stores, and still manages to include a parking area and cinema with multiple theatres. The mall was officially opened in December of 2019.The Chip Mong Noro Mall’s design is easily accessible from BKK1, which is a popular commercial area home to schools, office villas, embassies, restaurants, and other retail stores.Notable shops in Chip Mong Noro Mall:StarbucksTOUS les JOURSS&P Thai RestaurantLouisiana Fried ChickenDim Sum EmperorsSanta FeChip Mong Noro Mall has all the key essentials for what customers need when shopping. So, if you live around the BKK1 area and want to avoid the bigger but more crowded mall options, then a trip to Chip Mong Noro Mall could be of great convenience.AEON Mall 1(AEON Mall 1 was the first international mall chain to enter Cambodia. Photo courtesy of TheLostPinay WordPress)Operating hours: 9 AM - 10 PMLocation: 132 Samdach Sothearos Blvd (3), Phnom PenhIf you’ve spent enough time in Japan, then you’re probably familiar with AEON. The Japanese giant first entered the fledgling Cambodian shopping mall scene in June of 2014.The AEON 1 mall has since become a household name among inhabitants of the capital, resulting in reportedly several thousand visitors per day (peaking around the weekends and holidays).Notable shops in AEON Mall 1:SuperdryStarbucksThe Body ShopSwensen's Ice CreamPedroPotato CornerNojima Electronics StorePandoraLotteriaAkemiuchiAEON Mall 1 hosts fast-food chains, restaurants, a large supermarket, appliance stores, retail outlets, and a cinema with multiple theatres. There is also a bowling alley, and a gym is situated on the top floor.It was the biggest purpose-built shopping mall at the time of its opening and is a testament to Phnom Penh’s growing development diversifying taste for modern goods and services.AEON Mall 2 Sen Sok(AEON Mall 2 in Sen Sok is the biggest shopping mall in Phnom Penh today (as of 2021). Photo courtesy of SenSokTown.com)Operating hours: 9 AM - 10 PMLocation: St No. 1003 Village Bayab Commune, Phnom PenhAEON Mall 2 opened in 2018 and is the capital city’s biggest purpose-built retail mall (as of 2021). Situated within Sen Sok, a district in the northwest of Phnom Penh’s city centre which in recent years has become an area renowned for its rapid urbanisation and modernisation.Notable shops in AEON Mall 2:VersaceBlack CanyonIMAXDecathlonKrispy KremeCarl's JrKinokuniya BookstoreNojima Electronics StorePandoraAjisen RamenAkemiuchiAEON Mall 2’s outlets do not differ much from AEON Mall 1, with many famous retail outlets, restaurants, a large supermarket, and an even larger cinema (which also has the first IAMX theatre in the country). AEON Mall 2 is situated close to many other large warehouse-style outlets and has become a popular shopping destination for the residents of Phnom Penh.Look up properties available in Sen Sok now.The third AEON Mall is under development in the south of the city and will be the largest of the three AEON Malls in Cambodia. It is expected to be completed in 2022/2023.Olympia Mall(Olympia Mall is a landmark development in 7 Makara flanked by the Olympic Stadium, a range of condominiums, and local markets. Photo courtesy by Booking.com)Operating hours: 9 AM - 10 PMLocation: Monireth Blvd (217), Sangkat Veal Vong, Khan 7 Makara, Phnom Penh, Cambodia Olympia Mall is a mixed hybrid retail space becoming more popular in industrialising countries as it includes a residential condos in the development.The location is in the busy 7 Makara district, an area with high foot traffic surrounded by apartments, condominiums, hotels, embassies, and local markets. The mall is adjacent along Monireth Boulevard, a major road cutting through Phnom Penh from the southwest to the northeast right into Daun Penh.Notable shops in Olympia Mall:Ice WatchNauticaHerschelLacosteMinisoHelen KellerBeringPandoraRevlonJansportOlympia Mall has all the essentials you would expect from any modern mall: fast-food outlets, dining restaurants, retail choices, and a cinema.In late 2019, Olympia Mall’s developer has announced a further expansion of the mall as part of a “second phase” development. If you’re living in the 7 Makara district, Olympia Mall is your definite go-to for big retail options in Phnom Penh.TK Avenue(TK Avenue is a must-visit if you’re looking for a urban mall with open pathways between shops / Realestate.com.kh)Operating hours: 9 AM - 9 PMLocation: Corner Street of 315 & 516 Phnom Penh, 12151TK Avenue features an “open space” aesthetic and is one of the first upscale and urban boutique malls in the capital. As its name suggests, the mall is designed like an avenue where clusters of shops are separated by pathways for people instead of cars.Its layout fits quite well in Toul Kork, a recently developed district with a reputation for residential and commercial properties.Notable shops in TK Avenue:ShisiedoAdidasHavaianasThe SaemCrocsT-ShopMetroThe AlleyAuntie Anne'sGoldland Ice CreamTK Avenue has a good selection of coffee shops, bars, fast food chains, dining restaurants, supermarkets, and even a small cinema. Compared to purpose-built shopping buildings.The open-air design and limited greenspace allows you to simply sit back and enjoy the surroundings.Eden Garden Mall(Eden Garden Mall seems indeed like the garden of Eden in Phnom Penh’s expanding concrete jungle. Photo courtesy of EdenGarden KH)Opening hours: 24 hoursLocation: City Center Boulevard Phnom Penh, 12201Eden Garden Mall opened in 2018 and is one the of new trending malls utilising an open-air design in the layout. Eden Garden Mall features plenty of green space that complements its shops and food and beverage outlets. A supermarket is also present that provides for the residential projects being developed around the area.Notable shops in Eden Garden:Yellow Cab PizzaMumusoS&P RestaurantStarbucksDim Sum EmperorsHops Craft BeerLobster Bay Seafood RestaurantTwo Cows RestaurantLegend CinemaIts location in the northern portion of Daun Penh - an area mainly populated by new boreys and condominium developments. Other new commercial properties are also present which are starting to attract residents looking for alternative options from the conventional shopping locations.If you’re looking for a chill place to hang out without being too far from the city centre, then Eden Garden is a place you definitely need to check out.You can search through all of the properties for rent in Daun Penh here.Midtown Mall(Midtown Mall sits along a major road surrounded by big boreys and international schools. Photo courtesy of TripAdvisor)Opening hours: 8 AM - 9.30 PMLocation: City Center Boulevard Phnom Penh, 12201Midtown Mall is a community shopping mall located along St.2004 in the capital and its design allows for natural light to flood sections of the mall - with its mix of wooden and metal aesthetics adding a premium touch to it.Notable shops in Midtown Mall:Brown CoffeeThe Asian KitchenHandcrafted Beverage53 Central Coffee & PhoSake RestaurantLegend CinemaSake RestaurantAs Midtown Mall’s immediate market is primarily suburban (consisting of big boreys and schools), the mall provides a large supermarket, fast food chains, dining restaurants, coffee shops, retail stores, and a cinema.Its strategic corner location along a major road makes it very accessible to visitors, even those coming from areas outside the southernmost portion of Khan Sen Sok. Malls opening later in 2021 and beyondThe great reception of retail malls has shown investors that the Cambodian market is ready for more development in this sector - something that is being answered in kind by developers. Here are a few of the upcoming shopping malls opening in Phnom Penh this 2020 and beyond.Chip Mong 271 Mega Mall(Chip Mong 271 Megamall is one of the biggest malls in Phnom Penh and is expected to breathe new life into the growing district of Meanchey. Image courtesy of Chip Mong Group)Chip Mong Group is gearing up to be the leading mall chain in Cambodia with the amount of retail and land development projects they have lined up. Their biggest mall project (yet), Chip Mong 271 Mega Mall, broke ground in 2019 in Khan Meanchey.It is reported to have 160,000 sqm of floor space to rival the biggest malls in Cambodia. Chip Mong 271 Mega Mall is expected to open in 2022.Phnom Penh Mega Mall(The highly anticipated Phnom Penh Megamall was set to open in late-2020 but has been delayed. Photo courtesy of Skyscraper City)Despite several delays, the One Mall is still under development along National Assembly Road. The building comprising 11 storeys, including two floors below ground an its retail outlets are said to include, supermarkets, a food court, cafes, fashion, jewellery, cosmetics stores, restaurants, electronic stores as well as child-oriented shops.AEON Mall 3(AEON Mall 3 is expected to be the biggest mall in Cambodia once it opens in 2023. Photo courtesy of Cambodia Properties)AEON was the first international mall chain to recognize Cambodia’s potential as a new investment market and they’ve certainly reaped the rewards.They are now building a 3rd AEON Mall and is set to be the biggest mall in Phnom Penh at 174,000 sqm. AEON Mall 3 was recently approved to begin construction in Khan Meanchey and is set to open sometime in 2023.YT Mall(The upcoming YT Mall will feature an indoor zoo - something that will set it apart from the increasingly competitive retail space in Phnom Penh. Photo courtesy of YT Group)The YT Mall is an upcoming mall in Steung Meanchey commune developed by Yuetai International Group (YT). The YT Mall’s design is reported to include an indoor zoo - something that’s definitely going to be popular with the kids. The YT Mall was expected to open in 2020 but updates have been scant.There are more than a dozen other malls opened and under construction in 2021. With plenty of shopping malls still coming to the city, there will be great competition and new brands and franchises to appeal to shoppers!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:

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Thinking about property in Cambodia, What’s your motivation?

June 6, 2022, 5:07 p.m.

Home & Living

Property Buyers & Sellers Advice

What is the driving force behind your decision to invest in a market that may be completely different from your present portfolio?Cambodia is an emerging nation, known for its beaches and mountains, historical sites, you can step back in time in a local village, unchanged for decades, or enjoy bustling vibrant growing capital city.Thinking about retirementWhile Thailand has historically been a popular destination for retirees, Cambodia is rapidly gaining interest both for those retirees presently based in Thailand, or those looking for an alternative to retirement in their country of origin. In fact, InternationalLiving.com's Annual Global Retirement Index for 2019 has named Cambodia as the number 12 best place in the world to retire. Access to inexpensive quality healthcare, ease of visa processing and an ever-increasing expat community makes Cambodia an attractive retirement destination.Holiday Home & InvestmentWhile the average rental returns may not equate to those achieved in your country of origin, the lower market entrance costs, fees and services combined with the local purchasing power of your dollar, puts Cambodia on your investment portfolio. Whether you enjoy the hustle and bustle of city life or the beachside lifestyle opportunities abound for those investors wishing to combine the flexibility of having a holiday home, while receiving an income in your absence.For personal use onlyWhether you are contemplating retirement, using Cambodia as your home base or working here, purchasing a property versus renting is a common occurrence for expatriates. Finding just the right place, in the right location for the right price requires research and access to market knowledge. Click the link below for further information.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:

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Tax on Rental Properties

June 7, 2022, 7:14 a.m.

Realestate News

Property Buyers & Sellers Advice

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:

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Understanding property titles in Cambodia

June 7, 2022, 6:29 a.m.

Property Reviews

Property Buyers & Sellers Advice

32049 views

Buying a condominium in Cambodia with leasehold

June 6, 2022, 5:07 p.m.

Home & Living

Property Buyers & Sellers Advice

Foreigners are 100% eligible to own a freehold condominium in Cambodia under certain conditions.The Cambodian Foreign Ownership Property Laws (legislated 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.Buying a condominium in Cambodia with leaseholdThis method allows foreigners to purchase real property, either landed or strata-titled, and register the title deed in the name of a Cambodian citizen. The foreigner and the Cambodian enter into a long-term rental agreement by which the Cambodian citizen leases the property back to the foreigner for a set lease period. This lease period could extend to 99 years.Have a read of our guide on purchasing a condominium in Cambodia as a foreigner.Purchasing through a leasehold does not allow the foreign to enjoy the feeling of freehold ownership. Most foreign investors expect full ‘ownership' of their property, therefore the concept of paying a large amount upfront, effectively renting back property for decades, can be an issue for many foreigners.However, by engaging suitable trustworthy legal representation, the drafting of a watertight agreement in terms of the property and the lease arrangement can make this a reasonably secure method of owning real property in Cambodia.Under this arrangement, the foreigner may sell the property at any time and keep 100% of the revenue from the sale.Get more information on understanding property titles in Cambodia.A Cambodian citizen is not permitted to disagree with or obstruct the sale. The foreigner retains the original copy of the new title deed as a security precaution.It must be noted that the sale of the property is impossible without the original copy of the title deed.Relationships are importantAlthough the foreigner can sell the property at any time, there is a requirement for the Cambodian citizen’s signature or thumbprint identification to be included in sale documentation, therefore entering into such an agreement requires an excellent relationship and a high level of trust.Realistically, if a foreigner has the capital, the building falls under the 70% foreign ownership threshold and the apartment is not on the ground floor, there is no real reason for purchasing a condominium on a Purchase – Leasehold basis.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:

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Do I need a bank account to buy property in Cambodia?

June 6, 2022, 5:07 p.m.

Realestate News

Property Buyers & Sellers Advice

You don’t need a Cambodian bank account, but here is why you should open one.If you are intending to purchase your new home/investment in Cambodia, opening an account is not a legal obligation.Many expats choose to keep their bank accounts from home open and use them as their primary source of cash. It quickly becomes evident with mounting ATM charges (up to $5 per transaction) for foreign cards in Cambodia (and the home banks often charging the same), this is not the most economically viable way to conduct daily spending.What are my options if I don’t have a local bank account and want to purchase a property?You can use a lawyer's account and/or transfer monies directly to a developer. If you choose to transfer directly to the developer please ensure you seek legal advice prior to doing so.The benefits of opening a local bank account for investment propertiesIf you plan to receive rental from your tenants locally, having a local bank account reduces your transfer fees. It's also much easier to have access to local funds and local transfers through bank apps. This will allow you to pay expenses when overseas with minimal fuss and cost.As with any foreign country, there are high-risk factors of transferring large sums of cash directly to an unknown person/persons. And while Cambodian law is becoming more sensitive to the needs of foreign investors, anyone looking to invest in the Kingdom would still do well by securing their bases and opening a bank account if possible.If you are interested in opening a bank account in Cambodia, please read our ultimate guide to banking for foreigners in Cambodia. 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:

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Buying a condominium off the plan

June 6, 2022, 5:07 p.m.

Home & Living

Property Buyers & Sellers Advice

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:

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The 4 big reasons to buy land property today

June 6, 2022, 5:07 p.m.

Comparisons

Property Buyers & Sellers Advice

(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:

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A Guide to Transferring Funds into Cambodia

May 29, 2024, 1:37 a.m.

Realestate News

Property Buyers & Sellers Advice

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!

21891 views

What Is Maintenance Fee?

September 5, 2023, 6:50 a.m.

Property Reviews

Realestate News

Homeownership comes with a range of financial responsibilities beyond the initial purchase price. One aspect that homeowners often encounter is maintenance fees. In this article, we will explain the concept of maintenance fees and general costs in Cambodia.What Is Maintenance Fee?Also known as service charges or due, these are recurring payments that individuals or entities make to cover the costs associated with maintaining and managing a property, service, or asset. These fees are often used to support ongoing operational expenses, repairs, upgrades, and other essential services. Maintenance fees can be charged on a monthly, quarterly, or annual basis, depending on the arrangement. In the context of homeownership, maintenance fees are typically associated with condominiums and boreys. Residents pay these fees to cover the upkeep of common areas such as landscaping, swimming pools, elevators, and security services. This allows property owners to collectively maintain the shared facilities and services that enhance their quality of living. In Cambodia, fees go towards hiring property management companies to oversee the day-to-day operations, address resident concerns, and enforce community rules.How Is the Maintenance Fee Calculated?While a one-size-fits-all formula for calculating maintenance fees doesn't exist, the final expenses are influenced by several factors like the type of services provided (such as common area cleaning, lift maintenance, and security), the facilities available (such as pools and gyms), the size common areas, and the quality and quantity of services demanded by residents. For a condo, the fee ranges from $0.50 to $2 per square metre and for Borey, the maintenance fee will depend on the developer, some might include a security guard, landscaping and garbage collection in the project area. Why Is It Important to Regular Maintenance?Similar to any other asset, it's essential to recognise that a property will inevitably age over time. This ageing process can significantly impact its appreciation and value, especially if you intend to sell it. It's crucial to keep in mind that properties naturally undergo changes as they age. Consequently, it's worth considering the implementation of effective property management to oversee the maintenance of the property. This approach ensures that quality maintenance is consistently upheld. In conclusion, maintenance fees are a crucial aspect of homeownership within shared communities. While they represent an ongoing expense, maintenance fees contribute to the value and overall appeal of the property.If you are interested in learning more about properties in Cambodia, our real estate agents are ready to assist you. Contact us today. Click Here

18054 views

What Is Sinking Fund ?

July 14, 2023, 2:01 a.m.

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When purchasing a property, it is essential for buyers to consider the importance of long-term maintenance and sustainability. Thus, having a reliable financial mechanism is crucial to meet eventual repairs or major renovations. This is where the concept of a sinking fund comes in handy. In this article, we will explain the significance of a sinking fund, exploring its purpose, relevance in real estate, calculations, and how it operates within the local contextWhat is a Sinking Fund?A sinking fund is a designated pool of money set aside by an individual, corporation, or homeowners' association to accumulate funds over time for a specific purpose, such as repaying a debt or financing future expenses. It involves making regular contributions or deposits into the sinking fund with the goal of accumulating enough funds to meet a future financial obligation or goal.Purpose of Sinking FundThe primary purpose of a sinking fund is to ensure that there are adequate funds available when needed, thereby reducing sudden financial burdens. It is commonly used in various contexts, including corporate finance, personal finance, and real estate. In corporate finance, companies may establish sinking funds to gradually set aside funds for the repayment of long-term debts, such as bonds or loans. This allows them to systematically retire the debt over time.On an individual level, sinking funds can be used to save for significant purchases or expenses, such as a down payment for a house, a vehicle, or a vacation. By regularly contributing to the sinking fund, individuals can accumulate the necessary funds and avoid the need for excessive borrowing or draining their savings all at once. How are Sinking Funds Relevant to Real Estate?Sinking funds are also relevant in the context of real estate, particularly when it comes to strata buildings or condominiums. In real estate, a sinking fund is a financial tool utilised by owners' corporations or homeowners' associations to ensure the availability of funds for future maintenance, repairs, and refurbishments of the property. For example, in a condominium, the sinking fund is set up to cover common emergency expenses and major capital works related to the building. This fund is built up over time by contributions from the individual unit owners, typically through regular payments or levies. The purpose is to accumulate sufficient funds to address significant expenses that may arise in the future, such as roof replacement, elevator repairs, or structural renovations.By establishing a sinking fund, it can proactively plan for and finance the ongoing maintenance and improvement needs of the property. This helps distribute the financial burden among the owners and ensures that adequate funds are available when necessary, preventing the need for sudden special assessments or significant increases in fees.How are Sinking Funds Calculated?Using examples from other countries, sinking fund fees are calculated based on an audit of the building known as a sinking fund forecast. This audit is undertaken by a suitably qualified surveyor engaged by the owner’s corporation. This audit looks at the condition of the building, plant and machinery, and calculates the life cycle of these items, forecasting either the plants’ replacement or refurbishment in a set number of years, for example, 7, 15 and 20 years from the date of the audit. The audit will also calculate what these works may cost in the future. These costs will be broken down into per lot fees paid either monthly or annually, to be held in trust by the owners’ group until the refurbishment is required.Sinking Funds In CambodiaAlthough the Cambodian Government introduced the 2009 Sub-decree on the Management and Use of Co-owned Buildings that requires “ the co-owners to establish a management board or an executive committee as agreed among themselves following the prescribed internal regulations” the requirement to establish a sinking fund and its associated requirements are not completely covered by this decree.If you're a newcomer to property investment in Cambodia or eager to make an informed decision, reach out to our real estate experts today for a consultation on the Cambodian property market. At Realestate.com.kh, we offer current insights and help customers find their dream properties every day. If you are interested to learn more in detail about the properties available in Cambodia, our real estate experts are ready to assist you. Contact us today. Free Consultation Here

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