The long-awaited construction of a bridge across the Tonle Sap River in Phnom Penh is almost complete. This will be a significant development in the city, easing traffic congestion that has plagued the area for years.The bridge will be a crucial link between the eastern and western parts of the city and will also provide a direct connection between two major districts: Russey Keo, National Road 5, passing through the roundabout OCIC Boulevard to National Road 6 in Chroy Changvar. The bridge will contribute to improving the transportation of goods and services across the city.The bridge has a total length of 922 meters and a width of 20.5 meters. The speed limit on the bridge is 40 km/h. As the country prepares to celebrate Khmer New Year, the Phnom Penh Municipal Administration announced the temporary opening of the bridge across the Tonle Sap River yesterday, following orders from Prime Minister Hun Sen.The total cost of the project is about 35 million US dollars. The Overseas Cambodian Investment Corporation (OCIC) undertook the construction of the bridge. The construction company has a long history of involvement in infrastructure development projects in Cambodia.  Looking for the best property in Cambodia? Click here! Article by:

The Royal Government of Cambodia is taking proactive steps to address the issue of stalled investment projects in Sihanoukville, as per Letter No. 356 of the Council of Ministers dated March 29, 2023, from the Office of the Council of Ministers. Sihanoukville, the coastal city in Cambodia, has been a major investment hub in recent years, with various construction projects such as hotels, commercial buildings, hospitals, schools, restaurants, and casinos.However, some of these projects have experienced delays, suspensions, or lack of investment and business activities since 2016. To tackle this issue, the Cambodian Government has introduced a series of measures to build investor confidence and market demand in the short, medium, and long term. The government's approach to resolving the stalled investment projects in Sihanoukville involves several steps, including the identification of the stagnant investment projects. This will be followed by a thorough study and analysis of the status of each project. Consultation and information sharing will also be provided to the relevant stakeholders.Additionally, the government plans to develop programs to promote and raise awareness about the importance of completing these investment projects. Furthermore, the feasibility of budget allocation and evaluation of the quality of construction will also be assessed as part of the resolution process. To streamline the resolution efforts, the government has categorized the investment into four groups based on their nature and potential Group 1School projects, hospital projects, duty-free shopping projects, housing projects for retirees, affordable housing projects, and other projects with high economic potential as determined by the Royal Government.Group 2Investment activities that fall under the Investment Law of the Kingdom of Cambodia, and other relevant laws and regulations.Group 3Business activities such as guesthouses and non-suburban housing construction under the Investment Law of the Kingdom of Cambodia.Group 4Fundraising activities of joint ventures and/or governance in compliance with the law and provisions in force. Each group of projects must comply with specific conditions to be eligible for the government's incentives for settlement:For projects in Groups 1 and 2: the investment capital must have been built between 2016 and 2020 and not yet completed, with a minimum investment capital of 1 million US dollars.sufficient resources in terms of construction completion and implementation of the investment project.a master plan and investment plan must be demonstrated.For projects in Group 3: the minimum investment must be $500,000, and sufficient resources for conducting business. a business plan must be presented.For projects in Group 4: joint venture and/or governance fundraising activities must be properly registered according to the law and provisions in force. This initiative to resolve stalled investment projects in Sihanoukville is aimed at promoting economic growth, creating employment opportunities, and attracting further investment in the region.By addressing the issues faced by these projects and providing tax and customs incentives for their completion, the government aims to boost investor confidence and create a favorable investment climate in Sihanoukville.

Edition 8 of the Retail Insights report from The Mall Company (TMC) offers a round-up of Phnom Penh’s Retail Real Estate Supply as of the end-year 2022, which was a record-breaking year for Phnom Penh’s Retail Real Estate market, and a glimpse of what is in the pipeline.TMC is currently tracking 56 retail spaces/properties across Phnom Penh but their data shows occupancy dropped to 62% by the end of last year so there are still headwinds. We discuss the opportunities and challenges with TMC Managing Director, Simon Griffiths.Why Was 2022 A Bumper Year For Cambodian Retail Property?At the end of 2022, the total existing retail supply in Phnom Penh reached 716,253 sqm net leasable area (NLA) and the highest retail supply growth ever recorded in Cambodia - a 53% increase over the 12 months.As the Retail Insights report states: “On 31st December 2021 Phnom Penh’s total modern retail supply was 467,829 sqm with total modern retail supply reaching 716 253 sqm, therefore witnessing the highest retail supply growth ever recorded.”Simon Griffiths said there were three reasons for last year’s records: “Firstly, AEON Meanchey and Chip Mong 271 collectively supplied the market with 140,000 sqm NLA which was 57% of the total retail NLA supply that entered the market during 2022.  Secondly, the popularity of the ‘community mall’ class of retail asset for land owners looking to develop a new project and for borey developers looking to add value to their residential/borey has meant new community malls came online across Phnom Penh. These include Fun Mall and Euro Park.At a deeper level, development lifecycles for ‘shopping malls’ are 4-5 years. So in the case of AEON Meanchey and Chip Mong 271, development decisions were made as far back as 2017 when supply vs demand dynamics were more equally balanced. In 2022 we witnessed that  development pipeline comes online resulting in a bumper year for new retail supply.”Other key takeaways for 2022 from the TMC report indicated that:Shopping Malls contributed a supply of 359,223 sq.m (NLA) of modern retail space in Phnom Penh.Community Malls have been the retail class of choice for many developers and contribute 197,455 sqm (NLA) of modern retail space in Phnom Penh.Shopping Centres contribute 73,460 sqm of NLA.Retail Podiums contribute 76,915 sqm of NLA.Retail Arcades contribute 9,200 sqm of NLA.What is the Future of Retailtainment in Cambodia?We wrote previously about the trends in retailtainment in the Kingdom which has seen retailers and malls in particular try and diversify their attractions to appeal to a changing consumer market.What more will be offered in this area in the future to attract more customers, and what types of retailtainment would work for the Cambodian market?Griffiths said of the topic: “There is a general misunderstanding about ‘retailtainment’ which is that by adding ‘entertainment’ retail classes to a project this is ‘retailtainment’. Retailtainment is a much more holistic concept than that and requires understanding that consumers are looking for an ‘experience’ when engaging with retail and not just looking to spend time at standard brick-and-mortar stores flanking a central corridor. Consumers wish to be engaged, they wish to be entertained, they wish for their senses to be excited about what comes around the next corner.”He added: “When talking about retailtainment in this context, the common area plays a major role. There are international malls that have incorporated slides between floors, zip-lines, climbing walls, shows, exhibitions, street entertainers, mini-theme parks, inflatables, photo booths, selfie spots, decorations, games, raffles and the list continues. All of these can make a retail project retailtainment and it is not just adding ‘entertainment’ trade mix, it is the adoption of a ‘retailtainment’ culture ingrained within the project's design and executed by operational and marketing teams for the mall. It cannot be faked and should not become a gimmick.  It needs to be quality, well thought-out, planned and executed.”The TMC Managing Director feels that retail developers in Cambodia have not yet fully appreciated retailtainment as a concept, although adds that AEON “have begun pioneering retailtainment and AEON Meanchey is a demonstration of their adherence and belief in the ‘experience’ and ‘retailtainment’ and should they ever develop another shopping mall, it would be reasonable to expect retailtainment innovation within the mall design taken to the next level.”What Malls Are Being Developed In The KingdomWith occupancy rates dropping, there are concerns of saturation as a number of large malls are still being developed, especially in the capital of Phnom Penh. The TMC Retail Insights report suggests that 9 modern retail centres are expected by 2024, and 72 Retail Centres by 2026. The total modern retail supply in Phnom Penh will reach 1,022,824 sqm by 2026.“At its core, demand is underpinned by consumers.  How many of them are there within a catchment area, how much discretionary spend do they have, what are the age and social status demographics? While the Cambodian population is growing, as is discretionary spending, and the emerging middle-class, it is not growing fast enough to keep up with the growth of new retail supply, meaning there are not enough customers to be able to have profitable stores in all the malls, so effectively demand is not keeping up with supply” added Griffiths.He says that subprime spaces within malls which are typically on higher floors, in the corners of projects, or non-street-fronting units within community malls are suffering from the weaker demand. Opportunities In The Cambodian Retail SectorIn terms of the demand for luxury and high-end brands, Griffiths feels that the existing quantity of these in the Cambodian retail supply is only 2.7% of the total NLA supply but this is set to grow with the launch of The Peak Mall. “There is an opportunity here as the vast majority of the existing retail supply has a similar positioning in the mid-market, so the luxury sector is somewhat an untapped market. In terms of the luxury sectors’ target consumers, there is a low volume, but high discretionary spending - they are somewhat recessionary proof.  Luxury retailers and consumers have high expectations and demands so developing luxury retail supply is complex and must be coupled with a high degree of operational expertise and luxury market knowledge and understanding.”NLA growth is also anticipated in the Retail Arcade and Retail Podium retail space until 2026 - the key is understanding the target consumer, competition and brand market positioning. For international brands the comparatively low rents and the fact businesses can be 100% foreign-owned are appealing.High percentage growth in retail arcades (288%) by 2026 due to the fact the existing amount of retail arcade space is circa 10,000 sqm NLA. Naga 3 connecting to Naga 2 through an underground retail arcade will increase the new supply.Retail Podiums represent a significant amount of new supply at circa 225,000 sqm of retail NLA entering the market by 2026. Latent retail podium supply has been built but has not launched with circa 150,000 sqm NLA currently complete, vacant and not released to the market. Supply growth will grow significantly (220%) and the total supply of retail podium space will reach 228,000 sqm NLA.Growth of borey projects means developers are seeking to provide additional benefits to their buyers through community malls. Community malls have become a good choice for landowners eager to develop their own projects too.Modern retail is still relatively nascent in Cambodia - and many opportunities to enter the market and for brands to set their market positioning EG: European & international brands or products with a mid-to-low market positioning in Europe.What About Outside of Phnom Penh?Griffiths says that Siem Reap’s dependency on tourism has meant lower demand from retailers and the rebound means “It will take time to restore consumer demand and therefore retailer demand for new retail space. It is certainly one to watch closely with the new airport and as other major developments in the pipeline begin to come online in the coming years.”For the coastal city of Sihanoukville, he agrees that there is a wait-and-see approach. “There is a lot of interest but also a lot of uncertainty as to what the future of Sihanoukville will look like. Investing in a retail project right now would not be prudent, but watch this space, the potential is bubbling below the surface. We expect modern retail projects to be part of the mix in revitalising Sihanoukville.You can download and read the full Retail Insights 8 from The Mall Company report here. TMC hopes to release more on Cambodian retail occupancy data in Retail Insights in Q2, 2023.

Phnom Penh, Cambodia - April 9, 2023: The real estate industry's finest gathered at the Sofitel Phokeethra on the evening of Friday, April 7th to celebrate the achievements of outstanding individuals and companies in the industry.The prestigious event is organized annually by Realestate.com.kh in collaboration with The Ministry of Land Management, Urban Planning and Construction, The Real Estate Business and Pawnshop Regulator of Cambodia, and the Cambodian Valuers and Estate Agents Association.The event was graced by over 500 of the most prominent and successful real estate players in the country's industry. The nominees and award recipients were evaluated based on their industry leadership, innovation, business growth, impact, and overall excellence.Over 30 winners from the leading property developers and agencies in Cambodia were announced throughout the night, and they were awarded the iconic trophy, prestigious CREA seal, and gold plaques to confirm their company's success.The top development of the year winners included Forest Harmony, which won the top award of the evening, The Development of the Year. Le Condé BKK1 winner of multiple awards took home Condominium Development of the Year, whilst Borey Dragon Land 598 won the Best Landed Property Development of the Year, and Angkor Grace, another multiple award winner, won Hotel Development of the Year.The top developer of the year awards included a joint winner for the overall Developer of the Year from both Prince Real Estate Group and SIHA Property, while Forest Harmony was back in the thick of it, taking home the Best Landed Property Developer of the Year, as was Le Condé BKK1 for the Best Condominium Developer of the Year.Canopy Sands - Bay of Lights, Daline Property, Borey Sovannaphumi, Meanchey Residences, Borey Bosba and Morgan EnMaison were some of the other notable winners from the developer categories.The top Agency of the Year award was shared between CBRE and CPL Cambodia, while C-Herald, Vanguard, IQI, and Khmer Foundation Appraisal rounded out the agency awards for the evening.The event was opened with a spectacular video highlighting the industry's growth over the last few years, as well as paying homage to Van Molyvann, the grandfather of Khmer Architecture.In an interview after the awards, the CEO of Realestate.com.kh, Tom O'Sullivan, thanked the efforts of the judging panel and highlighted the success of the 2023 awards. "With more than 100 nominations this year and over 50 entries, this real estate awards event was the most successful of its kind ever to be held in Cambodia," O'Sullivan went on to thank "the massive support from all the sponsors including Hanuman Beer, I.A.A.C Advertising, B2B Cambodia, and Legend Cinema.Complete list of winnersDevelopment winners Development of the Year - Forest Harmony - KampotCondominium Development of the Year - LE CONDÉ BKK1Township Development of the Year - Bay of Lights Borey (Landed Property) Development of the Year - Borey Dragon Land 598 Affordable Condominium of the Year - One 70 CondoPremium Condominium of the Year - LE CONDÉ BKK1Waterfront Development of the Year - Morgan EnmaisonRetail Development of the Year - Prince International PlazaHotel Development of the Year - Angkor Grace Residence & Wellness ResortDesign of the Year - Angkor Grace Residence & Wellness ResortLifestyle Development of the Year - Angkor Grace Residence & Wellness ResortBest Borey (Landed Property) – Eastern Phnom Penh - Borey Laorthmey PenhchetBest Borey (Landed Property) – Western Phnom Penh - Borey UptownBest Borey (Landed Property) – Northern Phnom Penh - Borey Dragon Land 598Best Borey (Landed Property) – Southern Phnom Penh - SIHA Residence by SIHA PropertyRegional Development of the Year - Bay of LightsAffordable Housing Development of the Year -  Borey UptownBoutique Housing Development of the Year - Borey SovannaphumiSales & Marketing Strategy of the Year - Borey BosbaLuxury Development of the Year - Mean Chey ResidencesBest Residential & Commercial Shophouse of the Year -  Daline Property DevelopmentCommunity Development of the Year - WorldBridge Sport Village Innovative Real Estate Marketing Campaign of the Year -  Borey Lorn City LotusseaDeveloper winners Developer of the Year (2) - Prince Real Estate Group & SIHA PropertyCondominium Developer of the Year -  LE CONDÉ BKK1Borey (Landed) Property Developer of the Year - Forest Harmony - KampotCSR & Social Impact Developer of the Year - Canopy Sands DevelopmentAgency winners Hall of Fame / Personality of the Year - Edward Lee Prince Real Estate Real Estate Agency of the Year (Enterprise) - CPL (Cambodia Property Limited)Real Estate Agency of the Year (Corporate) - CBRE Cambodia Agency - Research / Valuation Firm of the Year - Khmer Foundation AppraisalProperty Management Firm of the Year  (2) - CBRE Cambodia & C-HeraldAgency - Employer of Choice (2) - Vanguard Investment and Consultancy Services & IQI CambodiaAgency of Choice (3) - C-Herald Property Service, IQI Cambodia & Khmer Foundation Appraisal

The Cambodian government approves a new draft taxation law to promote and enhance the business sector, strengthen fiscal compliance, and boost the economy in all areas. The Cambodian government has approved a new draft taxation law that is set to have a positive impact on the country's business sector. The law is designed to enhance the favourable investment environment, strengthen fiscal compliance, and ensure fair competition, ultimately boosting the Cambodian economy in all areas, with a particular focus on supporting SMEs. While not yet complete, the new tax law aims to fill gaps, facilitate, and ensure consistency by compiling a set of tax laws and regulations under a single decree. This will enable the government to achieve its goal of becoming a high-middle-income country by 2030 and a high-income country by 2050.Last year, the GDT collected $3.45 billion in revenues, surpassing the $2.81 billion annual target. The approval of the new draft taxation law is expected to contribute significantly to further revenue generation, resulting in more resources being available for the development of the country's infrastructure and public services. Overall, the new draft taxation law is currently limited, and additional announcements are anticipated in the upcoming weeks. Implementation of the new tax law is a step in the right direction towards achieving a more robust economy and a higher standard of living for the Cambodian people.

Following recent scares in the US and European banking sectors with the US collapse of Silvergate Bank, and then state-chartered commercial bank Silicon Valley Bank’s (SVB), First Republic Bank (a commercial bank and wealth management services provider) was bailed out by a dozen lenders who deposited $30 billion to shore up liquidity. Europe was next in the sights as Swiss UBS was asked to agree to buy its embattled rival Credit Suisse for $3.2 billion as part of a government-backed, cut-price deal.Global markets have been jittery but the National Bank of Cambodia (NBC) made it clear that there’s no reason to be “panic” at a time when the country (like most of the region) is trying to regain economic ground lost during the pandemic. So how stable is the Cambodian banking and financial sector?Prime Minister Hun Sen has also publicly said that the SVB’s collapse will neither affect Cambodia’s economy nor the banking sector, while Chea Serey, the new Deputy Governor of NBC, added, “We do not need to panic like them as banks in our country are strictly supervised… However, on behalf of the authorities, we still keep tracking whether or not it would affect our economy and how it would affect us.”Prime Minister Hun Sen confirmed that banks in Cambodia had enough reserves to withstand the risks under the National Bank of Cambodia’s reserve requirement policy. “I urge anyone who has deposited money in a [local] bank not to panic. We call on the people to place their trust in [regulators’] abilities to manage the Cambodian banking and financial sector – banks have enough reserves to resolve any issues,” the premier stated.One of the main fears all governments want to avoid is the panic withdrawal of funds from their bank accounts amid concerns - as many still have the deep wounds from the financial crises in their psyche - from both the 1997 Asian financial crisis and the 2008 global financial crisis - the latter of which had a minimal direct impact in Cambodia.Cambodian Financial Market StabilityStephen Higgins is the Co-Founder & Managing Partner of Mekong Strategic Capital and has more than two decades of experience in banking and financial services, communications, leadership, and strategy. He specialises in financial services and renewable energy, and has advised on some of the largest transactions in Cambodia in recent years.At the start of the year, Higgins commented on the strengths of the Cambodian finance sector, following the market report on Cambodia’s financial sector's strong loan growth during the pandemic. RRRs are central bank regulations that set a minimum amount of cash which financial institutions must hold in reserve. The Cambodian RRRs for foreign and domestic currency deposits currently stand at 12.5 per cent and eight per cent, respectively, according to the NBC.Higgins indicated that the local financial sector showed remarkably strong performances during the pandemic, and although 2023 is likely to be a little more challenging (as it will be for many countries globally), for long-term investors the underlying fundamentals are still really strong. He remains confident that in the long-term, Cambodia will continue to be one of the highest growth economies in the world.He had also pointed out that liquidy would be tighter as the loans for the past two years had been high in the Kingdom. Most loans in the Cambodian financial sector are also secured against collateral.“There’s a big issue with liquidity in the local market, as there is regionally, but that was happening well before the SVB collapse. This is why deposit rates are going up so much, everyone is fighting very hard for deposits”  he told us. “We don’t actually expect much, if any, impact on the sector here from the SVB collapse and the problems that have followed. Banks generally have pretty big capital buffers in Cambodia, and most are owned by big foreign parent banks who wouldn’t let a subsidiary fail.”In terms of the Cambodian properties sector, we asked if he felt there were any concerns, especially in terms of loans and refinancing of loans in Cambodia. “Getting a loan is harder now, and interest rates are going up, so it’s not a great time to look for a home loan and even worse time to be trying to refinance a loan. Still An Opportunistic Time To Buy In Cambodia?Buyers with cash savings, and in particular overseas investors, have seen this as an opportune time to purchase while property prices are down in the Kingdom, and realestate.com.kh for example has been closing several sales to these groups of buyers. Their EXPO 2022 event saw $30 million in property sales over 2 days, and as we wrote at the turn of the year, although trends suggest the domestic property market matured during the pandemic – foreigners are still the main force of real estate investment in Cambodia.One of the concerns has been a potential market oversupply but this means buyers are able to shop around and purchase at great prices - combined with the fact that it's hard to access loans - it offers cash buyers a great time to buy.Investors in particular can identify good opportunities, and as renowned investor Warren Buffet said “be greedy when others are fearful” - the indicators suggest it could be a good time to buy as the markets are comparatively down and the upturn is on the horizon.In terms of his long-term outlook, Higgins added: “Sector loan growth has been too high and too easy for many years now, which can lead to complacency and some banks getting flabby. A period of low growth this year will actually be beneficial for the long-term health of the banks. We’ll have another year (2023) of below-trend growth, before an expected bounce back next year. Longer term, we’re still really optimistic about the outlook for Cambodia and expect it to be one of the highest growth economies in Asia. Just not this year.”To calm any nerves, Higgins is yet another leading figure who says lessons have been learned from the 1997 Asian financial crisis and the 2008 global financial crisis - adding that the Cambodian finance sector is well capitalised “and for the most part, it’s conservatively run.” The banking and financial sector has also shown good performance compared to ASEAN peers in terms of financial growth and stability.Cambodian Property Demand 2023-2024In the recently released Cambodia Real Estate Survey 2023 - we saw some trends and market sentiment indicators which suggested a number of buyers and investors were actively looking into buying in the market. A third of those surveyed are looking to purchase Cambodian property within the next 18 months.As many as 15 per cent indicated that they were looking to buy within six months (the first half of 2023).A majority (61%) indicated that they felt property prices would be increasing by 2024.59% of those looking to buy a property acknowledged that they will need a loan or mortgage to do so.As many as 43% indicated they will have a downpayment of 20% or less.Nearly two-thirds indicated they were still actively looking for second homes or investment opportunities in Cambodia.Cambodia is still forecast to have the highest GDP growth rate among all Asian economies in 2023 according to the IMF (International Monetary Fund).In addition, online searches for property in Cambodia remain strong from a variety of buyers, including high-net-worth individuals who don't require loans.With property prices currently down before a perceived rebound, it remains a good time to make an investment in the right property in Cambodia but it would also be a good time to shop around for the right financing to see if your home loan and savings won't be stretched beyond your means.

Sen Sok, Phnom Penh - March 24, 2023 - Prince International Plaza is proud to announce the upcoming leasing event, "Taste of Togetherness," which will take place on March 25, 2023, from 2 pm onwards. The event offers aspiring Cambodian entrepreneurs the chance to rent a commercial space at the Prince International Plaza rent-free for up to one year.The event promises to be a fun-filled occasion, featuring influencers, singers, magic shows, live music, and complimentary beers. Visitors are invited to attend the event and participate in the activities.Emily Yu, Senior GM of Business of Prince Real Estate (Cambodia) Group Co., Ltd, stated that "this is an excellent opportunity for Cambodians who dream of having their own store or expanding their existing stores to new customers."To follow the theme of 'Taste of Togetherness,' Prince intends to work hand in hand with the community. Yu adds: “We want to support the initiative of young Cambodians with creative business ideas who intend to start their entrepreneurship journey. We believe in empowering the community by helping to ease the burden of rental costs.”As part of their Corporate Social Responsibility (CSR) program, the Plaza is also offering kiosks, pushcarts, and a course offered by the CBRE on how to become a retailer.Aspiring entrepreneurs and businesses are encouraged to register for commercial leasing by filling out the form by clicking this link Prince International Plaza opened in 2022, is located in the prime location of Sen Sok, Tuol Kok, and Meanchey district, providing modern residential, office, and commercial spaces. It is surrounded by essential facilities such as the international airport, shopping malls, schools, hospitals, and business centers.For more information, please contact:Prince International PlazaContact Person: Mr. Jeremy CheaPhone: +855 16289168Email: jeremy.chea@princereg.comWebsite: https://www.princerealestate.com

Public voting for the Cambodia Real Estate Awards 2023 Agency of Choice Awards begins on the official Facebook page of the Realestate.com.kh. The Agency of Choice awards are the three awards within CREA 2023 that will be judged via public voting based on the number of  likes and shares that each video of the nominees receive. The online voting runs until 25 March 17:00 GMT+7. Check out the Realestate.com.kh’s Facebook page and listen to what each nominee has achieved and their journeys in Cambodia’s real estate sector. Don’t forget to show your support by liking or sharing your favourite candidates!CREA 2023 is the latest of the annual Cambodia Real Estate Awards organised by Realestate.com.kh in collaboration with the Real Estate Business and Pawnshop Regulator, the Ministry of Land Management Urban Planning and Construction (MLMUPC),  and the Cambodian Valuers and Estate Agents (CVEA). CREA 2023 is an annual celebration recognising excellence in the Cambodia real estate industry, and aims to help further professionalise the industry by acknowledging and celebrating the leading agencies for their finest practices and efforts within the Kingdom’s real estate industry nationwide.Agency of Choice AwardNominees for the Agency of Choice Award 2023 include: C-Herald Property Service, CBRE Cambodia, CPL (Cambodia Properties Limited), IQI Cambodia, Khmer Foundation Appraisal (KFA) and Vanguard Investment and Consultancy Services.Gala dinner at Sofitel Phnom Penh PhokeethraThe Cambodia Real Estate Awards 2023 is set for 7 April 2023. All the shortlisted nominees and the broader real estate industry will be invited to join the Awards Ceremony and gala dinner at the Sofitel Phnom Penh Phokeethra. Over 500 attendees are expected to attend, including leading real estate agents, developers, government officials, lawyers, economists, investors, home buyers and more.This event is made possible by Cambodia Real Estate Awards 2023 sponsors.Major Sponsors: Hanuman Beer, B2B Cambodia, International Airport Advertising Corporation Other partners: Tesla, STMarket, Cambodian Investment Management (CIM), AmCham Cambodia, Klassy Watches, Noble Sports Center, Lavien Cambodia and others.Media Partners: Khmer Times, Fresh News, Thmey Thmey, Property Area, and more!

Cambodian Ministry of Tourism (MoT) figures show that mainland China accounted for just over 100,000 of Cambodia’s 2.277 million international visitors in 2022, this was a significant drop from the third of 6.6 million total tallied in the record-breaking year of 2019 pre-pandemic who generated approximately USD $1.8 billion in revenue.In terms of the financial impact of the pandemic, in the whole of 2022, Cambodia’s tourism industry generated $1.41 billion in gross income from 2.28 million international tourists.Ministry of Tourism's Secretary of State Top Sopheak said in March 2023 that "The return of Chinese tourists and investors is a good sign for Cambodia's tourism and economy in the post-COVID-19 pandemic era.” Cambodia hopes to attract more tourists - with a goal of four million international tourists, including 800,000-1 million Chinese tourists in 2023.What Airlines Are Flying to Cambodia in 2023?Key events such as hosting the Southeast Asian Games (SEA Games) and ASEAN Para Games in May will entice visitors from ASEAN, while the Mekong Tourism Forum 2023 has been confirmed to take place in Sihanoukville from April 25-27. These events are all hinged on the Visit Cambodia Year 2023” campaign.State Secretariat of Civil Aviation (SSCA) spokesman Sin Chansereyvutha said back in January 2023 that commercial flights between Cambodia and China had begun to increase following the change to the strict zero-COVID policy regime, which had imposed a limit of 15 weekly flights in either direction.Since the start of the year, airlines have been requesting to resume flights between the two countries, and Norinda Khek, Communication & PR Director of Cambodia Airports added recently “a majority of airlines that operated before the pandemic are back, except the ones flying from/to Japan and the Gulf region.”Before the pandemic in 2019, around 45 airlines connected Cambodia with the world, and at the start of 2023, 27 airlines, including six airlines from China, were operating flights to and from Cambodia.He added that Cambodian international airports were serving 24 destinations and 11 countries and more flights and the frequency of them, especially at the Phnom Penh International Airport were on the way.More recently, it was confirmed that 13 airlines now operate flights between Cambodia’s three international airports and China (including five based in the Kingdom).Cambodia’s network of international airports will reach 9 out of the 10 ASEAN countries by mid-2023 and Cambodia Airports posted online in March 2023 “It's a positive sign for Cambodia’s aviation sector due to most global airlines revive services to the kingdom, while some others are even preparing to start fresh flights to new destinations. We are looking forward to welcoming more airlines flying to the kingdom.”Other New RoutesThree airlines have applied to connect new flights to Sihanoukville International Airport.There have been discussions about direct commercial flights between Cambodia and Japan by All Nippon Airways.Other talks include connecting Da Nang, Vietnam, with Phnom Penh via a direct flight, and possible new routes with India and Timor-Leste.Qatar Airways confirmed it will resume flights to Phnom Penh in October 2023.AirAsia’s new Cambodian subsidiary launched a Phnom Penh-Penang (Malaysia) route at the start of 2023 and is looking to add direct routes with Indonesia.New flights between the capital and Singapore, Koh Samui (Thailand) and others came into effect in 2022, as well as Hanoi to Siem Reap via Bamboo Airways.China & Macau - CambodiaThree airlines had proposed to connect flights to Siem Reap International Airport - in March 2023 China Eastern Airlines safely arrived to drop off its first passengers and would operate weekly direct flights between Shanghai and Siem Reap on Tuesday, Friday and Sunday.Cambodia Airways will add the route linking Phnom Penh and Beijing, with thrice-weekly flights starting on March 27, and the frequency increasing to five weekly from April 17 2023. They already operate flights to Shenzhen and Chengdu from Phnom Penh.Cambodia Angkor Air launched routes between Phnom Penh & Macau in March 2023 with 2 flights/per week every Wednesday and Saturday (they are also looking to open routes to Hangzhou, Shanghai, Beijing and Singapore).Indonesia - CambodiaTwo Indonesian airlines have indicated they will operate direct flights to Cambodia, with the first likely to connect with Phnom Penh within Q1 2023.Citilink, a subsidiary of Indonesia’s flag carrier Garuda, will operate direct flights between Jakarta and Phnom Penh.Cambodia Airports Chief Commercial Officer, Stephen King told Khmer Times that active discussions with a number of airlines about opportunities in Cambodia are undergoing.In addition to the number of new airport development projects in the Kingdom, existing airports are still being modernised. In Q1 2023, the first anamorphic advertising content in Cambodia, was installed at Phnom Penh International Airport by IAAC Cambodia with “spectacular high definition digital screens, part of our multi-million dollar airport advertising redevelopment program across the Phnom Penh, Siem Reap & Sihanoukville airports” said IAAC CEO Jonathan Goldsmid.Both Dara Sakor International Airport and Siem Reap-Angkor International Airport are due to trial operations in mid-2023 and these will add further capacity to the already expected 280,900 flights operating in Cambodia in 2023.Norinda Khek said of the year so far, that 823,000 passengers had come through the three operational airports (7.5 times greater than the total for the same period in 2022).Don't Ignore Cambodian TravellersIn 2022, the number of Cambodians making a trip to other countries increased by over 3,079 per cent, reaching 970,292 compared to 30,517 in 2021. Similarly, domestic tourism saw marked growth last year - with around 13.9 million people travelling to different destinations of the country, according to MoT data. The number of domestic trips by Cambodians was up 198.81 per cent compared to 2021 and 68.50 per cent over 2019. The data from the MoT also indicates that Cambodians contributed about $650 million and that the average domestic trip lasts three days and two nights.The increasing ease of paying cashless has also helped domestically and regionally. The NBC has launched several trials with ASEAN countries to help facilitate digital payments - in Thailand, Malaysia, and most recently with Singapore. The Credit Bureaus of Cambodia and Singapore launched the first cross-border initiative between the two countries in March.Dr. Serey Chea, the newly appointed Deputy Governor of the National Bank of Cambodia said that these initiatives also assist the migrant workers from Cambodia who work overseas.With Air Asia Cambodia set to launch in 2023, Capital A Chief Executive Tony Fernandes believes AirAsia Cambodia can add as many as six million more annual travelers within three years. They aim to open new routes from Cambodia to destinations in Southeast Asia, north Asia and India. Among his wish list to boost tourism are requests for the Cambodian government to remove visa-on-arrival requirements, and decrease high fuel taxes and airport fees. He estimates Cambodia’s airport fees are around 40% higher than other Southeast Asian countries. Fewer travel restrictions, online visa applications for all nationalities, and the ease of paying cashless within Cambodia and across ASEAN are key attractions for tourists and visitors to Cambodia. Aside from tourism remaining a key pillar of the Kingdom’s economy - the ease of investing and doing business in Cambodia remains strong, while the bullish economic outlook plus long-term visa and property ownership options all continue to make the Southeast Asian country an investor destination.

The release of the sixth Realestate.com.kh Cambodia Real Estate Survey indicates a number of leading trends within the market, and overall, a positive buyers sentiment in the Cambodia property and real estate sector for 2023.With 2,000 respondents (both Cambodian and foreign) providing property insights about rental and purchase demand, spending power, consumer preferences, and locations of interest, we can garner some interesting insights for the coming year. Who Is Looking To Invest In The Cambodian Property Market - Incomes & Desirable Price RangesA majority of respondents in the survey were over 21 years old and their range of professions and income suggest the nation is well on its pathway to achieving its middle-class ambitions. Consumers with higher spending power were perhaps unsurprisingly notable among older Cambodians and foreign groups of buyers, but there remains interest among the youngest age bracket which indicates the future buying potential of younger Cambodians.Most respondents in 2023 earned a combined household income of over USD $2,000 per month - which was a slight drop compared to last year. The slightly lower income was also reflected at the top end of the earnings for households earning USD $5,000+ per month.Most households sit in the $1,000-3,000 monthly income bracket, and among foreigners, there was greater spending power with 42.5% indicating an income of over USD $5,000 per month.In terms of living situations, the biggest change indicated was among those who lived on their own, which dropped from 26% in 2022 to 17.7% in 2023.There is an increasing supply of apartments and properties, in general, available at more affordable prices - especially studio and one-bedroom condominiums in Phnom Penh. This suggests more young professionals are saving and looking into buying their first property. In terms of property prices, the biggest representation among all respondents was 27% indicating an ideal Cambodian property price range is between USD $50,001 to $75,000. Among foreign buyers, the desired price range was USD $100,001 - $200,000, with more than a quarter expressing an interest in properties valued at $200,000+.Property Market - Buyer Sentiments 2023Phnom Penh remains the most popular area for all buyers, followed by Siem Reap & then Sihanoukville. Within the capital, combining interest from Cambodians and foreigners, the three areas most in demand to buy property in are:Chroy ChangvarChamkarmon / BKKSen SokCambodian buyers expressed interest in all twelve location options in Phnom Penh but foreign demand was concentrated among the three central locations of Chamkarmon, Daun Penh, and Toul Kork.A quarter of the total respondents also indicated that they were renting a property but were looking to buy as first-time homeowners in Cambodia. Although a majority of respondents indicated they would be more likely to buy their next home instead of renting - they were unsure of the timing. This reflects a combination of investors waiting for the opportune time to buy and first home buyers looking for the right signals to enter the Cambodian property market.A third of respondents were looking to buy property in the next 18 months.Nearly 15% indicated they were looking to buy more immediately (within 6 months).A majority (61%) felt property prices in Cambodia will increase over the next year, and a similar number felt property prices are currently affordable in the market.Buyers PreferencesCambodian buyers indicated investment in land as their top choice, and understandably, condos or apartments were most favoured by foreigners. The latter makes sense due to the ease of buying a condo versus other property types - international investors are seeking a strata-titled condominium development. Overall (for new and older property types), while condos are in greater demand for all buyers, borey developments have seen a drop-off in interest across villas, shophouses and linkhouses.However, among only newly finished developments in Cambodia - there was still strong interest in borey properties - potential buyers express far greater confidence in buying a condominium or landed gated property that is complete or nearing completion.In previous surveys, the location of a property or development was the top consideration for buyers, but this year, the “quality of the property” was ranked as most important, followed by return on investment, location, price, and low-interest rates. Rental Market in CambodiaOnce again, Phnom Penh was overwhelmingly the most desired location to rent in, with 70% of all respondents indicating the city as their top rental location, although this dropped compared to 2022.The next three most popular locations in the Kingdom to rent in all saw an increase of interest (most doubling); Siem Reap (9.3%), Kampot (8.6%), and Sihanoukville (4.7%). There was also some marginal interest in Kep and Takhmao.Similar to the buyer market sentiments, condos and apartments were the most popular among renters, with more than half indicating these properties as their top choice - with the biggest percentage to date since the surveys started.Among only the Cambodian rental respondents, shophouses accounted for as much as 60% in 2023, with land the second most popular at 25%.Among foreigners alone, condos and apartments remain the most favourable (74%).Chamkarmon / BKK were the most popular areas to rent in the capital among all respondents, with a quarter indicating so, but the areas are especially in demand among foreigners (58%).When asked what the most important factor was when looking for a property to rent, security, price, noise, and services were key considerations in that order.  Preferences varied slightly when comparing Cambodian renters to foreign internationals, but price and noise remained the major concerns for both groups.Finance & Insurance In the Cambodian Property MarketThere is a sense that property buyers continue to be better informed and knowledgeable in financial literacy and the requirements for purchasing properties in the Cambodian market. The unrealistic expectations of buying a home with a 0% down payment are constantly declining and a majority of respondents indicated that they do require a mortgage in order to purchase property in Cambodia. Cambodian banks usually require developments to be close to completion before providing buyers with finance - these were reflected in the buyer's sentiment and preferences stated earlier. The insurance industry has seen robust growth in the Kingdom over recent years and an increasing number of companies are entering the market offering more competitive and broader range of products. This year, more than half of respondents suggested they would be seeking property insurance and the coverage of the policy was deemed the most important consideration. The ease of acquiring the insurance was the lowest priority and this suggests an opportunity for more established property insurance companies to make their way into the Cambodian property market.Changes In The Property IndustryIn terms of what changes the market would like to see in the Cambodian real estate industry - this year the need for more affordable housing again was the most important selection - with one-third of all responses backing this.The 2023 survey reflects a generally upbeat mood among investors and buyers in the Kingdom’s property sector. There are some key preferences indicated, in terms of location and types of property, but there are also a healthy number of investors and first-time homeowners looking to enter the market. They appear to be doing so with a positive financial outlook, appreciation of risk, and within a reasonable timeframe - while equipped with the household income and current property prices suggesting a good match for affordability.

We recently wrote about the most affordable and valuable areas for property in Phnom Penh, and overall, the property market sentiment is confident in 2023.Developers have indicated the return of interest from foreign buyers from several countries such as Hong Kong, Japan, Singapore, and China - and the country’s recent removal from the FATF grey list also suggests there is renewed confidence for investing in the Kingdom. So if you are looking to invest in property and a condo, as always do your due diligence, but the information below might be timely.Are You Planning On Investing In A Finished Condo Or An Off-Plan Condo – Which One Is Better?Off-plan property buying, needless to say, is when the property is purchased prior to its construction being completed. Buyers can view the design and construction plans but the physical property is yet to be handed over (completed). The main benefits of buying off-plan is the opportunity to secure properties at the best price and on flexible payment terms. Buying early also means the chance to select the best units (most desirable) with the option of adding customisations to the property.Buying off-plan is typically a great investment opportunity given future capital appreciation and attracting higher rental returns based on it being a new property.   The signed contract is based on the agreed price of the property as per the architectural specifications, plus any additions or changes. A small booking fee is required to secure the unit, followed by a deposit after signing the sales and purchase agreement (SPA). Buyers will also settle payment terms with the developer prior to purchasing the property. Typical payment terms can be staged payments over the construction period, or staged payments based on construction milestones. Typically, the higher amount a buyer pays upfront, the better the price they will be able to secure for the unit.  When you buy a completed condo, you can move in right away without having to wait for construction to be completed. Buyers can also walk through the unit and see exactly what they are buying, allowing the purchaser to make a much more informed decision. In Cambodia, home loans are also typically more accessible once a condominium is complete. In a market like Cambodia's, it is highly advised to use a licensed property advisor throughout the whole process. Visit realestate.com.kh who works with all the licensed brokers in the market. Advantages & Risks Of Buying Off-Plan Condos In CambodiaAffordability & Payment Terms: Off-plan properties are usually more affordable than buying units that are ready for occupancy. Buyers could be provided with extra privileges such as a smaller down payment and more flexible payment terms.Great Investments: This could be fantastic profitability as new condos in Cambodia also yield higher rental returns. Property value appreciation ranges between 5-8% (depending on location, and type of development) per annum for Phnom Penh real estate, hence, first-comers usually enjoy the appreciation when they invest in an off-plan project.Move-In Date Uncertainty - A delay in property completion is a risk. Contracts will include delay clauses (grace period) that free the developer from responsibility for a period of time.Changes In Building Plan - The final product may differ from what was initially expected.Market Fluctuations - Based on the state of the market, the value of the properties may decrease before it is completed.Financial Risk - If a developer does cease operations and go bankrupt or if the project doesn’t get completed - you might be left with nothing. Buying Finished Condos - Pros And ConsMitigate Risk - The property is complete, so you can actually view what you are buying leaving little room for unexpected surprises and this mitigate risks.Property Prices - In some cases, very popular properties might sell all units before the handover, so if you were interested, you might need to purchase a resale unit from the owner which is usually at a higher price. Compared to off-plan properties, payment terms might require a full cash payment or a maximum installment.Access To Home Loans - Banks will be more likely to lend on a completed property as opposed to off-plan properties, although foreign investors will rarely be eligible for a home loan in Cambodia.Property Value & Rental Yield - Waiting to buy a completed condo does offer some assurance, but probably less value appreciation compared to buying off-plan. Older properties in Cambodia typically are leased out for a lower price compared to new properties.Three Items That Should Be On Your Checklist Look for developers with a good reputation or reputable agents - Check the legitimacy of the developer with related government agencies and ministries such as the Ministry of Land Management Urban Planning and Construction.The developer hands over the keys on completion of the property but you should ensure there is a warranty and defects period included in the contract.Get professionals involved - a reliable lawyer/property specialist to check the contract for any inconsistencies or dubious clauses & obtain the services of licensed brokers to assist you with the process if needed.Cambodia Property Survey 2023 - Buyers' SentimentThe soon-to-be-released Realestate.com.kh Cambodia Real Estate Survey 2023 saw more than 2000 respondents at the start of 2023 provide their sentiments on the property market in Cambodia.In general, those who completed the survey are mid-high net worth individuals (who can afford to buy a property) so the survey represents a higher combined family income in Cambodia than is normal as well as potential foreign investors. The main takeaways on their feeling towards condos and buying off-plan or a finished unit were:Increased popularity in studio and one-bedroom condominium units in Phnom Penh overall.Condominiums/apartments remain the second most popular of all property types (after land - but this is more challenging for foreigners) - so among only foreign respondents, two-thirds indicated a condo as their top property choice.Respondents are more confident in buying in a condominium that is complete or nearing completion - Nearly twice as many preferred to invest in a condo that was ready to move into over an unfinished condo development.Among only Cambodian respondents, the number was fairly equal in buying off-plan or a finished condo, so this is a greater concern for foreign buyers (with a ratio of nearly 3:1 preferring completed condos).In addition, nearly two-thirds who responded to the aforementioned survey feel that property prices will increase over the next year, so timing might be everything.But ensuring you purchase an investment from reputable developers, and having your documents and obligations checked by professionals in the real estate sector is mandatory if you want to buy confidently in the market and avoid unexpected surprises.

The latest released 2023 land prices for Phnom Penh reveal the most valuable Sangkats in the capital but there remains strong confidence in Cambodia’s economic growth and in the property sector. So what is the value of land, the buyer's confidence in the market and will new buyers be entering the local property market?Property Development In Phnom Penh And Rise Of Land PricesBetween 2000 - November 2022, the Cambodian government approved more than 61,000 construction investment projects with a total registered capital of nearly $70 billion!The cumulative floor area of the combined real estate projects was 173 million square metres, with 2,500+ projects categorised as “high-rise buildings”. In Phnom Penh alone,  there are 1,675 high-rise properties with the second most in Preah Sihanouk (685).The January 2023 land prices from the Ministry of Economy and Finance of Cambodia for Phnom Penh indicate ranges which are considerable, but this can be due to main roads, proximity to infrastructure, and land bordering rivers or lakes which impact price valuations and may contribute to a higher land price.At its peak, land per square metre reached USD $13,000, while land can be as affordable as $20 p/sqm.The 2023 land prices in Phnom Penh indicate the most valuable areas are:Daun Penh7 MakaraBoeung Keng KangChamkarmonToul KorkThe most affordable three Sangkats by sqm in Phnom Penh are:KambolPrek PnovDangkorTowards the end of 2022, the Residential Property Price Index (RPPI) for Phnom Penh showed a continued upward trend and the average house price was $114,164. The RPPI was introduced in June 2022 by the National Bank of Cambodia (NBC) and the National Institute of Statistics (NIS) and is used to calculate the value of an asset in the real estate market. In the banking sector, the house price index is used in providing loans to customers.Optimism In The Cambodian Real Estate & Property MarketAt the recently held Cambodian Great Real Estate Debate, the triple risk of financial headwinds (rising interest rates, inflation, and increase in non-performing loans in the Cambodian market) was a key talking point.Property buyer trends have changed, such as the increasing move away from buying off-plan which was a pre-pandemic preference, as well as the increased general awareness and knowledge of the property market.  There remain some concerns over the possible oversupply of condos in the Kingdom with 41,000 condominiums currently available and an estimated 34,000 due to be completed over the next five years. However, the capital continues to grow in population size and new housing will meet this demand.Developers have also, by and large, indicated the return of interest from foreign property buyers -  from Hong Kong, Japan, Singapore, and now China.Cambodia’s recent removal from the FATF grey list should also promote increased confidence and capital investment in the Kingdom.The soon-to-be-released Cambodia Real Estate Survey 2023 also indicates that a majority of respondents have positive views on the housing and property market for the next year.61% feel property prices will increase over the next 12 months.65.5% indicated they were looking for second homes or investment opportunities in Cambodia.A third of respondents suggested they were looking to buy in the next 18 months.New Investors In Cambodian PropertyThe re-opening of the Chinese market has been seen as a major boon for the investment and potential of the property market in Cambodia (and regionally). Pent-up travel demand has seen more Chinese travelling again in Q1 2023 and this includes tourists as well as potential investors. Bloomberg interestingly reported that “since the end of Covid Zero in December, many rich Chinese have begun traveling overseas to check out real estate or firm up plans to emigrate.” There is no suggestion Cambodia is highly-ranked on the exodus destination list but with an estimated minimum of $150 billion capital expected to leave China, with the Kingdom's welcome and easy immigration and investment laws, it's possible some of that financial capital reaches these shores.Juwai IQI, a real-estate firm that helps sell the international property to customers in Asia, added that the number of mainland Chinese buyer inquiries dropped 26% in 2021 and fell 11% in 2022, but has already increased 55% in 2023.The recent announcement from NBC that Cambodia has applied for membership in the Cross-Border Interbank Payment System (CIPS) should further facilitate and promote Cambodia-China trade, investment, and tourism - but there is no timeline for this to take place. Chinese visitors can also make payments in Yuan in the Kingdom through banking systems such as WeChat and Alipay at some tourist and business sites.Rising Investment Funds In Trust CompaniesInterest in landed properties such as Villas, Shophouse, Linkhouses etc., remains strong among Cambodian buyers but for foreigners has remained flat. However, trust companies in Cambodia can allow for foreign ownership of land and landed property and enable investment in land in Cambodia, indirectly, with the title of the property to be held by a trust.In 2019, Cambodia introduced the new Trust Law and regulations. A trust is a “legal arrangement which allows a trustee to hold a property for the benefit of another person” , says legal firm DFDL. Four types of trusts exist in Cambodia; Commercial Trust, Public Trust, Social Trust, and Individual Trust.The latest data from the Trust Regulator (TR) of Cambodia suggests that 492 trusts were registered with the TR with a combined investment pool of $735 million as of February 2023. In September 2022, Sok Dara, Director General of the Trust Regulator (TR), estimated this to reach a maximum of $600 million by the end of 2022.The TR report indicates that Commercial trusts accounted for a combined investment fund worth $492 million, or 66 per cent of total registration, while Financial trusts and Individual trusts showed investment capital of $175 million and $2 million respectively.The role of trustees with respect to the control and management of the immovable property is a key topic. The Non-Banking Financial Services Authority (NBFSA) has also issued guidelines for the recognition of appraisal companies and real estate appraisers in the field of trust investment, the Khmer Times reported.How Is 2023 Shaping Up Economically?Despite a number of challenges on the horizon, Cambodia is forecast to have the highest GDP growth rate among all Asian economies in 2023 according to the IMF (International Monetary Fund).Some members of the Cambodian financial and business community don't anticipate Cambodia to reach the economic growth that the IMF predicts for 2023 but the views on growth, in general, are positive and more so from 2024 onward.The IMF says “growth is set to accelerate to 4.7 per cent this year from 3.8 per cent in 2022 (in the Asia-Pacific). This will make it by far the most dynamic of the world’s major regions and a bright spot in a slowing global economy.”Property prices have stabilised in Phnom Penh but land prices are still on the move in the most central and popular areas of the capital. Renewed local and foreign buying interest, stronger economic growth than recent pandemic-impacted years, and a buoyant mood about Cambodia’s future should bode well for the property sector in the long run.

The Cambodia Real Estate Awards 2023 (CREA) is set to take place on April 7, 2023, at the Sofitel Phnom Penh Phokeethra. This is the fourth annual gala event to be held recognising and celebrating excellence within the Cambodian real estate industry. CREA is organised by Realestate.com.kh in partnership with the Ministry of Land Management and Urban Planning, The Real Estate Business Regulator (under the Ministry of Economy and Finance) and The Cambodian Valuers and Estate Agents Association (CVEA). 2023 CREASince 2018, the annual leading real estate awards event has celebrated the very best of Cambodia’s property developers, developments and agents, awarding their efforts in providing quality products & professional services to Cambodia’s fast-expanding property market.CREA 2023 has been a record-breaking year for the awards with the organisers having received more entries than ever before. More than 40 companies, enterprises and projects have submitted entries to win coveted awards so far. All licensed firms and individuals are allowed to participate in CREA 2023.What Awards Are Up For Grabs - 2023 Cambodia Real Estate AwardsOver 25 awards will be presented throughout the night on April 7th which is bound to be a spectacular evening. Awards include the Property Development Of The Year, Landed Property Development Of The Year, Regional Development Of The Year, Real Estate Agency Of The Year and many more. The CREA 2023 categories are segmented as the following:Real Estate Developer / Development AwardsReal Estate Agency AwardsReal Estate Hall Of Fame AwardsTom O’Sullivan, CEO of Realestate.com.kh, said of the anticipation for 2023 CREA:“We have been overwhelmed by the number of entries this year, with over 40 companies thus far and with more to come. In terms of the number of entries, this is certainly the most successful Real Estate Awards in Cambodia to date. In addition, we already have over 400 seats booked for the 7th of April Gala Awards Dinner and the remaining tickets are selling fast. I encourage anyone looking to get national exposure and sponsor, or attend, to get in contact as soon as possible as the event will sell out.” O’Sullivan also added the CREA 2023 is “very humbled by the high-calibre of judges we have assembled for this year's awards, which is led by Head Judge, Eric Wong”. Wong is a Cambodian-Australian with extensive experience in property consulting and business development, primarily within the emerging SEA market. He has worked on a number of leading developments including Millennium Hilton Hotel (Bangkok), The Pano Condominium (Bangkok), Saigon One Tower (Ho Chi Minh City), 530 Little Collins Street (Melbourne), etc.Where and When are the Cambodia Real Estate Awards (CREA) 2023 Being Held?As the organizer of CREA, Realestate.com.kh is excitedly looking forward to seeing all of the leading property developers, agents, agencies, and the affiliated network during the ceremony on April 7th 2023 at the Sofitel Phnom Penh Phokeethra,  “as a celebration of all the achievements made over the past 12 months,” added O’Sullivan.“Of course, special events like these are not possible without the generous support from some of the leading companies in Cambodia, and CREA 2023 is proud and honoured to have Hanuman Beverages, Cambodian Investment Management, B2B Cambodia, Reya Home, Stronghold Trustee, and V-Two K Trading Co., Ltd on board,” he said.The annual Cambodia Real Estate Awards is considered the premier real estate awards in the Kingdom of Cambodia. With the excitement building up for the event, interested brands looking to meet the leading developers & agents, and expand their reach are encouraged to secure the last few remaining sponsorship slots for the CREA 2023.Key Contacts - CREA 2023Cambodia Real Estate Awards - Entry & Sponsorship ContactsName: Annabelle Vong  (ENG, KH)Email: annabelle.vong@realestate.com.kh   Phone: +855 (0) 17 426 797&Name: Muyngy Taing  (CH, ENG, KH)Email: muyngy.taing@realestate.com.kh   Phone: +855 (0) 10 723 379

On February 8 2023, “The Great Real Estate Debate” was held in Phnom Penh and organised by AmCham, with a selected panel of high-profile guests discussing Cambodia's Real Estate & Construction Sector in 2023 and its future.The success of the debate held at The Factory Phnom Penh saw more than 150 people attend, meaning this will likely become an annual event rounding up some of the key industry leaders, and allowing members of the audience to ask them about the changing trends and expectations of the real estate industry in the Kingdom. Property and the associated sector remain one of the core pillars of the Cambodian economy and the panel had a chance to address the uncertainties in the market as the country emerged into a post-pandemic world. So what did we find out and what are the main takeaways from the panellists?Great Real Estate Debate - Cambodia The inaugural Cambodian Great Real Estate Debate resulted in an informative and engaging discussion which offered different perspectives and refreshingly honest viewpoints from members of the private sector and the government.Among the guests on the two panels were:Panel Discussion: The Cambodian Real Estate Market TodayAnthony Galliano - President AmCham Cambodia (Moderator)Ranarith Iv - CEO  - RMB CambodiaMs Kinkesa Kim - Associate Director “Research & Consulting” - CBRE CambodiaBen Li - Founder & Chairman - Urban Village & Factory Phnom PenhPanel Discussion: The Cambodian Real Estate Market in the Next 5-10 YearsTom O’Sullivan - CEO realestate.com.kh (Moderator)Long Dimanche - Deputy Governor Preah Sihanoukville ProvinceCatherine Chan - Founder & Chairman - Urban Village & Factory Phnom PenhArnaud Darc - Founder & CEO ThailasWhat Is The State Of The Cambodian Property And Real Estate Market In 2023?Anthony Galliano opened the Great Debate by highlighting some of the pessimism in the market to get a reaction from the panellists. These negative viewpoints included the declining prices of off-plan properties over the last few years (as much as 15% across the prime office and retail properties) as well as the triple threat of financial headwinds which include the rising interest rates, inflation, and increase in non-performing loans in the Cambodian market.Ben Li as Founder & Chairman of the Urban Village & Factory Phnom Penh (the venue for the debate) re-affirmed that the first part of 2023 had thus far been strong compared to 2022. He confirmed there had been increased interest from Cambodians as well as international investors from Hong Kong, Japan, and Singapore.Ranarith Iv, the CEO of RMB Cambodia added that banks would continue to lend, but due diligence is very important and noted that Chinese visitors and investors returning would be important to the Cambodian economy and the property sector.Ms Kinkesa Kim as Associate Director CBRE Cambodia and working in the Research & Consulting department, said that buying real estate remains a great investment in Cambodia, however, she encouraged potential buyers to focus on developers that have a good and reliable track record, and to invest in completed properties, as rental returns remained healthy in the Cambodian market.Buy From Trusted Developers in CambodiaTom O’Sullivan also questioned the number of projects that will be actually completed over the next 5-10 years and agreed with Ms Kinkesa Kim, that buyers should be investing in properties from trusted developers and buying completed properties. This was a message that was reiterated throughout the discussion.With 41,000 condominiums completed in Cambodia, it is estimated as many as 34,000 will be completed over the next five years.Arnaud Darc was very positive about Cambodia’s recent and future growth and said Thailas was looking to expand into multiple markets in Cambodia. He confirmed there were some concerns over rental rates when it came to commercial rental properties which was a challenge when securing new sites for restaurants, for example.Catherine Chan added that the continued urbanisation in the Kingdom and the use of the Chinese currency will further help with ongoing investment into property.  She also feels that the market is ideally suited for local buyers and that the market fundamentals remain strong after the downturn.The Potential of SihanoukvilleThe Deputy Governor of Preah Sihanoukville Province said that the Sihanoukville population will increase to nearly one million people, up from the current 300,000 with the implementation of a new master plan. The new masterplan is already starting to take shape and he has confidence in the coastal region in the future. The Sihanoukville master plan is being prepared with the support of China’s Urban Planning Design Institute of Shenzhen (UPDIS). Long Dimanche highlighted the draft laws which are under review for Sihanoukville to be a multi-purpose Special Economic Zone which would result in heavily reduced taxes for companies based in the city and will further attract investment and buyers.Darc also questioned the trending negativity around Sihanoukville and said the government has a very clear road map for the coastal region.Long Dimanche also provided further details of the government's step-by-step approach to the issue of uncompleted buildings in Sihanoukville which was one of the main concerns. This process would involve:A survey of the market.Identifying buildings and correct ownership (as many as 1,000 are believed to be incomplete).Understand the legalities behind each case.Incentivise investors/developers who are looking to enter the market. Incentives could include tax breaks for example.On A Sustainable FutureO’Sullivan asked the panel about the challenges of sustainability and Catherine Chan addressed the question saying that property developers should start to consider this issue, confirming it was all of our responsibility. She added that consumers will shift towards this sustainable mindset affirming that these considerations will become increasingly a core part of buyers’ decision-making.Takeaways From The Great DebateOverall, all of the panellists (and attendees) seemed to leave the Inaugural Cambodian Great Real Estate Debate session optimistic about the market in Cambodia and its potential.Robert Eloy an attendee and Partner at AI Consulting Asia said: “As a newcomer to the market in Phnom Penh, we are a market observer for our European investors. We focus on the upper end of the market and have noticed a natural trend of slightly lower economic conditions and oversupply in condos. Prices are still down a little, and good opportunities can be realised, provided that pre-downturn prices have not been overestimated in some areas. Obviously, the reopening of China's borders will bring their investors back into the Cambodian market... the trend is towards recovery and the “big four” (the four largest international accounting and professional services firms - Deloitte, EY, KPMG and PwC) have confirmed this. So for us, it's absolutely time to catch the good opportunities! What the Great Debate taught us, are the possibilities in Sihanoukville and the Deputy Governor's desire to revitalise the region, I remember his phrase ‘the beach of Sihanoukville is only 90 minutes from the capital’ which is appealing (referring to the new expressway connecting Phnom Penh with Sihanoukville)”.The key takeaways included:Current property prices are much more realistic.Tourism is increasing again and is set to continue in an upward trend.The urban population is expected to increase in Phnom Penh and new housing will meet this demand over the coming years.Buying from reputable developers and finished properties was the key advice for property buyers in Cambodia.Sihanoukville has a much more positive outlook compared to recent years.Tom O’Sullivan concluded “All of the pessimistic sentiments were laid bare at the start of each panel. I myself am optimistic, but maybe I have to be. The main feeling of the evening from both pessimists and optimists was that Sihnaoukville has a bright future after years of doom and gloom. There are many great opportunities at the moment to purchase property at great prices but buyers need to make sure they do their research and take the advice from the panel members”.Top tips for choosing a trusted developer in Cambodia:Research to see if the developer has previously completed any projects.Visit completed projects (if the developer has completed any) to understand the quality of the construction.Try and obtain an understanding of the occupancy rate of the completed projects.Ask to see the construction and sales license.Check the company background.Visit the company website for legitimacy.Check to see if there are any reviews online.Connect with a property consultant from Realestate.com.kh (who work with every developer in Cambodia) to obtain an unbiased opinion.

What makes Boeung Keng Kang 1 such an enduring presence and attractive destination for residents, new businesses, condo and hotel developers who continue to pay top dollar for the centrally located area of Phnom Penh - it remains the city's hottest neighbourhood. The Appeal of BKK1 Phnom PenhIts clear that Boeung Keng Kang 1 remains one of the most desirable and key districts in Phnom Penh and thus remains one of the most popular areas of this growing city (the data supports this and we will get to that later).The location of BKK1 is definitely a major factor, being interconnected and encompassed by four of the city’s busiest roads: Sihanouk Blvd to the north, Mao Tse Toung Boulevard the south, Norodom Blvd in the east and Monivong Blvd to the west - they are among the first street names most residents of the city get accustomed to.The diversity of accommodation, food and beverage outlets, selection of diverse offices, rooftop and ground level bars, the plethora of chic cafes and the ever-changing retail outlets which include stylish boutiques in BKK1 means it maintains its high price point, and popularity.New Brands Choose BKK1Simon Griffiths, Managing Director of The Mall Company, said that BKK1 is often the location of choice for new brands (most notably international brands) entering the Cambodian market. “Either AEON 1 or BKK1 is where new brands choose to establish their first store location and then expand from there. The reasons are the high concentration of expats with BKK1 as the premier residential & apartment location in the city, and the high discretionary spend of the surrounding demographic residing or working within the catchment.”2022 saw more than 99 new brands enter the Cambodian market and nearly 350 brands expanded their presence. Meanwhile, over 600.000 sqm of retail space was added in the capital, with nearly 250,000 sqm still under development. Although retail prices and occupancy rates naturally dropped during the pandemic - there was a wholesale shift in the food and beverage, hotel, retail and grocery offerings in BKK1.361° a global performance and lifestyle brand is a new addition, while locally owned Scarlet Fiber offers bespoke and locally designed fashion, and brand stores from Adidas, Charles & Keith, Pedro, and Zandos are all within the suburb.Boeung Keng Kang 1 still caters for all palates and the wide mix of international franchised food, fine dining, or streetside local Cambodian food makes the area attractive to residents, businesses, and tourists. Restaurants such as Pizza 4Ps, which opened its first location on the Sisowath Quay riverside (which remains extremely popular), have recently opened its second location situated in BKK1 in 2023. The Brown Cafe flagship roaster is located here, as are the ABA Phnom Penh headquarters, while new themed cafes such as 2D Cambodia are gaining in popularity. There still remains an element of charm walking the bustling streets within the Sangkat, as high (and higher) highrises are complemented with ground-level outdoor spaces such as that found at Penh 278, or the hideaway whiskey bars and authentic Khmer noodle houses, Japanese sushi eateries, co-existing with well-known local and international franchises from the USA, Europe and across Asia (Starbucks, Cafe Amazon, Papa John's Pizza, Dominos Pizza, Carls Jnr, KFC, etc.)Where else can you sample local and international craft beer (Embargo, Cerevisia or Duplex), wander over to specialised whiskey bars such as Odin and then join fanatical fans in a sports bar (Score), or join backpackers at singalong clubs, or simply fine-dine with a glamourous skyline view?Rooftop bars with expansive views of the city are chic and these include Highground Sky Bar and Baitong. The continued growth has also not prevented mom-and-pop type stores from surviving, in some cases thriving.The area is incredibly diverse but the ever-increasing and looming condos are evident and some streets have seen wholesale changes as they give in to high prices from developers. Some popular expat hangouts such as the hostel Mad Monkey and bar/restaurant Aussie XL have moved out of the area, while Zeppelins closed permanently.However, this does not detract families from wanting to live in BKK1 as the area also is home to several Cambodian and international schools, a short walking distance to Bluebird British International, Invictus International or iCAN British International schools.The addition of more supermarkets (Lucky Supermarket, Super Duper, AEON MaxValu, the new FairPlus Express) and online shopping makes it even easier to make sure a household is stocked up.The area's first, and still only mall - Chip Mong Noro Mall - opened in 2020 adding cinemas as well as additional retail space, food outlets and a meeting point for BKK1. Griffiths added that the area is “notably absent of big box stores as the rents are too high for large spaces and few large spaces are available.”He concluded “Ultimately BKK1’s growth will be hampered by the available infrastructure - namely roads and parking. If the area becomes inconvenient and limits the number of customers visiting due to traffic conditions and if the demographics within the catchment area cannot grow further, then there will be a threshold to the number of retail stores that the area can sustain and it will reach saturation point.”Property Prices in BKK1According to the latest data from the Ministry of Economy and Finance of Cambodia, Boeung Keng Keng I land price per sqm ranges from USD $4,900-$10,000, which is still $1000 per sqm higher than the next most expensive in the capital of Orussey I - so yes, the land is less affordable within BKK1.But BKK1 is the hottest location in Phnom Penh, so it demands the highest price per square metre in the capital. This is reasonably affordable compared to regional capital cities such as Bangkok or Hanoi. Office rental, retail, and condo rental prices have all dropped over the past few years due to the combination of financial impact of the pandemic and BKK still remains in the top 3 most developed Sangkats in the capital. There were 59 Green Net construction projects (under construction, partial, or on hold) in the area in 2022, with 30 of these residential projects, 12 mixed use and 9 office developments reported by CBRE.900, 000 sqm of office space was added in 2022 in Phnom Penh with a healthy amount in central locations such as BKK. Just under 600,000 was still under development.The city also boasts as many as 24,000 additional hotel room keys to the market in 2022.Examples of new condos and apartment projects under development in BKK1 include: Le Conde BKK1 (due 2024) - A 43-story building set to include a BKK Avenue retail store & boutique reading space, sky Jogging Track, indoor swimming pool & fitness centre, Children’s Play Paradise, Immersive Sky Garden, co-working space, rooftop sky bar, and infinity pool.The Flora Suites (due 2024)- The 38-storey condo and office complex provides a sky swimming pool, club & sky restaurant.Time Square 306 (due 2025) - The 45-floor property provides a gym, kids' play area, games rooms, infinity pool, & decking area with a garden.Golden Tower 322 (due 2023) - The building is already a landmark and will offer both office and living space in the heart of the capital, with an infinity pool, Jacuzzi, open-air hot-spring bath, sauna room, gym, sky bar, and an outdoor recreational area.Recently completed residential projects include:J Tower 2 - A 43-storey Japanese-affiliated condo offering a gym, spacious parking area, boxing ring, cafe, swimming pool, jacuzzi, and a sky bar.L'attrait - The 26-storey high-end Japanese-developed condominium was completed in 2021.M Residence - 29-storey condo offering a sky bar, a sky swimming pool, and gym centre was added to BKK in 2021.Picasso Garden City - Mixed building with a hanging garden, banquet hall,  infinity & paddling pool, gym, international business office, F&B, Picasso art auction centre.What Is In Store For The Future Of Boeung Keng Kang 1?With the high prices not deter developers from establishing new condos, mixed residential properties, or even hotels, and the promise of even more tourism in the future, there will only be more brands and outlets popping up in BKK1. Accor announced its first Mercure hotel in Cambodia, the Mercure Phnom Penh Boeung Keng Kong 1 is set to open in 2027.Griffiths adds that “there will be a constant turnover of retail stores within BKK1 as it is still a highly desirable location resulting in a continued vibrant and active retail real estate sector in the area.”Although city or Sangkat planning has not traditionally been a strong characteristic of the city, there should be some foresight from the authorities. If BKK wants to be the urban living, retail, and foodie hub of Phnom Penh in the future, the area could entertain the idea of increased heritage preservation, pedestrian-only streets on St 51, St 57 or St 63 In the evenings or weekends, and feature more collaborative culture and street style festivals in the Sangkat.Griffiths added “The drawbacks of BKK1 congested roads, especially at peak rush-hour times and school drop-off and pick-up times, and a lack of parking (curbside parking is a remedy of sorts but adds to the congested narrow streets). Pedestrianising parts of BKK1 has potential but the lack of zoning makes it extremely challenging as there are so many stakeholders.”Does the area want to be a downtown Tokyo with bright lights or a Sukhumvit-style attraction with a diverse range of desirability that becomes a traffic nightmare? The identity of BKK1 has always been morphing but with the land the only capped resource, for it to be a world-famous hotspot and attractive hub that caters to Cambodians and international visitors and residents alike - while maintaining its investment pull - BKK1 will continue to modernise and diversify.

It's a challenge to switch on the economic and investment news for Cambodia and filter through which projects will actually materalise. New airports though are coming - as many as six airport projects were explored for the period 2019 to 2024 to further promote the aviation sector, which in turn promotes tourism and national economic growth. The four new airports that are under development have a combined investment worth approximately USD $2.8 billion.Nearly a quarter of Cambodia's 17 million inhabitants lived in urban areas by the end of 2022, but this number is set to grow to nearly 8 million people by 2030. Coupled with the government’s hopes that tourism will keep growing and surpass pre-pandemic levels over the coming years, it makes sense for the network of airports to be increased for greater international and domestic connectivity.What Airports Are On The Rise In CambodiaAt the start of 2023, the fourth greenfield airport in the Kingdom was confirmed to go ahead on Koh Rong, adding to the Dara Sakor International Airport, Siem Reap-Angkor International Airport, and Techo International Airport, all of which are invested in by the private sector.A recent development report indicated that as many as 13 airports were in conversation across the country, and there is a  strong case that this is too many for a country the size of Cambodia. There are three current active and international airports serving domestic and international flights, which have all undergone some form of refurbishment and upgrades over recent years.The sudden rush to interconnect the country locally and within the region has also seen simultaneous upgrades to deep sea ports, the addition of new tourism ports, and possibly new and expensive train links and highways - there is a frantic rush to attract investment into infrastructure.Siem Reap Angkor International AirportThe new international airport in Siem Reap was confirmed in 2019, and construction has been underway at Soutr Nikom district, approximately 51 km southeast of Siem Reap and 40 km from UNESCO-listed Angkor Archaeological Park. The airport is significantly larger than the current operational airport in Siem Reap and will cover 700ha with an estimated cost of USD $900 million.The airport is invested in by Angkor International Airport Investment (Cambodia) Co., Ltd, an affiliate of China’s Yunnan Investment Holdings Ltd which holds the rights to a 55-year build-operate-transfer (BOT) model. The group confirmed at the start of 2023, that the airport would be open before the end of the year. As a 4E-level airport, Siem Reap Angkor International Airport should be able to accommodate aircraft such as A340-300, A350-900, B777-200, B777-300ER, B747-300 and B747-400.Techo Takhmao International AirportThe rapid expansion of urban areas in Cambodia, and especially in the case of Phnom Penh, meant there was nowhere for the current international airport to grow, so it makes sense that with increased travel demand - a new airport was possibly needed.Although the new airport is exciting, one of the real benefits for all these years has been the quick and easy access to the existing airport in the capital for tourists, foreign residents and Cambodians.The Techo Takhmao International Airport, located around 35 kilometres south of Phnom Penh, is a joint venture between the Overseas Cambodia Investment Corporation, the Cambodian government, and the SSCA - called the Cambodia Airport Investment Co.By mid-2022, construction of the new international airport was one-third complete, and like the other airports under development, has fallen behind schedule with the pandemic being blamed. Current plans are for the construction to be completed by 2024, with the airport to be operational by 2025. Changi Airport Group provided a boost of confidence to the ambitious plans for the airport - which will be the ninth largest in the world - and as a 4F class designated airport it would allow for larger aircraft to make use of the transport hub in the capital.The project spans over 2,600 hectares, and according to the master plan, the airport will handle 13 million passengers a year in the first phase, 30 million passengers in the second phase by 2030, and up to 50 million passengers in 2050 in the third phase.OCIC says the new airport is planned to contain hotels, a convention centre, office buildings, an ecological park as well as private housing, adding that it will be connected to the city by a motorway, and ultimately with an elevated rail line. Koh Rong International Eco-Tourism AirportSomewhat surprisingly, in early 2023, the news of Koh Rong International Eco-Tourism Airport was announced with the development expected to cost USD $300 million. The project will be led by Royal Group Koh Rong Development Company, and the Koh Rong International Eco-Tourism Airport is expected to take five years to complete.The Cambodian islands remain a key tourist destination for local and international travellers. Even though “Eco-Tourism” appears in the new airport’s name -  it won't dissuade critics of the plan and how the project will potentially impact the environment and ecosystem which will be keenly monitored.Mao Havannal, the Minister in charge of the State Secretariat of Cambodian Civil Aviation confirmed that the development falls under the government-approved framework of a multi-purpose joint venture for Koh Rong city. Initial plans are for the airport to be a 4C class international airport, meaning that the airport can accommodate larger aircraft for international long-haul flights. The master plan anticipates passenger growth reaching 275,314 per year in Phase 1 (a ten-year phase), followed by 265,929 passengers in Phase II, and a limit of 531,858 passengers per year after the completion of its final development.Dara Sakor International AirportThe Dara Sakor International Airport has experienced several delays after being initially announced in 2016, and the latest estimate is that operations will start in mid-2023.The airport is being constructed near the Dara Sakor resort, in Koh Kong’s Botum Sakor district under a similar agreement to the Koh Rong International Eco-Tourism Airport, but in this case, the Chinese-owned Union Development Group (UDG) are leading the project.The airport is expected to be able to accommodate Code E aircraft (such as the Boeing 777 and Airbus A340), with 4 helicopter terminals, and capacity for 7 million passengers and 10,000 tons of air cargo per year.The airport covers 4.5 hectares and has an expected development cost of USD $350 million (although there has been no recent update taking into account the delays.)What Do These Airports Mean For The Construction And Real Estate Sector?Prime Minister Hun Sen recently said the new Siem Reap International Airport will play a major role in increasing the country’s economy and tourism when it opens in late 2023. “This large-scale international airport will bring a boost to the economic development in our northern region, including the provinces of Siem Reap, Oddar Meanchey, Kampong Thom, and Preah Vihear,” he said.It goes without saying that the construction and development of the airports lead to a number of associated projects such as improved infrastructure, additional retail, F&B, accommodation etc - not only on-site but in the surrounding areas.This will increase demand for cargo facilities, hotels, guest houses and other forms of short-term accommodation, restaurants, cafes & bars, and the spillover from the construction of new improved transport links will see petrol/gas/EV charging stations, roadstop cafes and more.Airports attract the need for industrial space and specialised cold storage facilities, warehouses, data centres, and mass food production facilities.Cambodian international airports in 2023, serve 24 destinations and 11 countries which are not yet at the pre-pandemic level. Once new airports come online, and new routes & destinations are added, with the support of well-placed advertising campaigns & additional quality tourist attractions, Cambodia could well be set for an unprecedented boon in tourism numbers and investment over the coming decade.

Many foreign nationals have chosen to buy property in Phnom Penh, Siem Reap, Sihanoukville, Battambang and other emerging urban hubs in Cambodia. With inbound tourism and visitors set to increase in 2023, especially from China, there will be increased demand from international property buyers looking for investment opportunities in Cambodia. The government hopes tourism growth in 2023 will reach 4.3 million international tourists (double the number from 2022).Some investors might not be permanently based in-country, and even if they have relocated here, it's useful to understand certain key aspects of property management in Cambodia and what services are available, whether you are a remote landlord or not.What Are Some Of The Key Reasons To Buy Property In Cambodia As An Investment?There could be several reasons why anyone would buy property as an investment. For Asian UHNWI (ultra-high net worth individuals) for example, real estate is an important store of wealth and assets remain a key part of a mixed portfolio.Cambodia is quickly establishing itself as a global destination for investment and living for international communities. The country has a positive outlook for economic growth and political stability, while the new Cambodia investment law further promotes favourable international investment.There is also no freehold on foreign exchange in Cambodia and there are no restrictions on the remittance of capital or profits into or out of Cambodia (1997 Foreign Exchange Law).Buying real estate as an investment means:Access to US Dollar assets at a relatively low costDiversify risk through asset portfolio allocationPositive (possibly passive) cash income from renting out the propertySource of income in retirementFreehold property rights can be passed on to the familyA second holiday homePrime condos were priced at USD $2,189 per sqm by the end of 2022. In terms of the condo supply, this reached 28,000 units across 95 buildings in Phnom Penh at the end 2022, and is projected to increase by over 50,000 units to reach a total of 80,000 by 2025 (realestate.com.kh data).The urban population of the Kingdom is also expected to increase substantially, rising from 4.3 million in 2014 to nearly 8 million people by 2030.What Does Property Management Entail?Even before purchasing a condo in Cambodia, you should have a certain base level of knowledge about the property and its implications.Property management refers to taking care of the essential aspects of maintaining a property, and also keeping tenants satisfied if you are renting the condo. In condominiums, in particular (and we are focusing on this type of property as they are the most common and legal form of property ownership for foreigners in the Kingdom), this might include maintenance of lobbies, passenger/service lifts, and common areas used by co-owners and tenants in the property or all aspects of the condo itself such as electrical and plumbing, paint, decoration and other utilities.Within condos, a homeowners’ association (HoA) can also be formed by co-owners in Cambodia and is usually formed once a building is 70% occupied. The HoA might pick a property management company to maintain shared spaces paid with fees collected from the tenants/co-owners.Who Will Manage The Property? Investors can benefit from engaging with project-based Rental Management Agreements, the services of a 3rd Party Property Management Company, or using a trusted associate to manage the letting of a property if they don't want to take care of the day-to-day management.The Ministry of Economy and Finance has issued licenses for property management in Cambodia since 2015-2016 and the industry continues to improve and develop, so it's recommended to take some time to research and speak to several reputable agencies if that's the direction you are looking to take.Facilities Management refers to maintaining the exteriors and interiors of the condo including windows, landscaping, driveways, lobbies, passenger lifts, gyms, and other shared facilities. Often, the fees paid as part of the management fee cover the facilities management in a condo.Physical Management is the service provided within individual properties and is applied more to buyers who purchase for investment purposes and require someone on the ground to manage their properties. This service allows overseas-based investors to manage their properties in Cambodia without physically being in the country.What Are The Benefits Of Property Management For Overseas Investors?As detailed here, if you are a property buyer in Cambodia but based overseas, there are benefits to using a reliable property management service.Allows investors abroad to oversee their properties - During the recent COVID-enforced travel restrictions, many found themselves unable to manage properties from abroad. Investors might find it easier to hand over the responsibilities to a professional local service.All-Inclusive Solution to manage multiple properties - If foreign investors intend to purchase multiple properties, managing these can be time-consuming.Hassle-free Tenant management - Tenants (if the properties are being rented out) might leave and need to be replaced. The Management companies will screen new tenants, take care of the FPCS (if needed), lease and documentation and handle all requests from tenants. For overseas-based property owners, especially if there is a time difference, this could be a huge time-saver. Services offered by realestate.com.kh, include a complimentary marketing campaign to ensure occupancy of a unit if buyers purchase through them. What Costs Are Included In Property Management In Cambodia?Property management fees in Cambodia can range from $1-2 and are multiplied by the gross area in square metres. The gross area refers to the size of the unit itself as well as the share of the common areas. Sinking Fund - Some Cambodian developments allocate a portion of fees for a separate sinking fund used to address unforeseen expenses for the building.Tenant screening and leasing - These are classified as optional services and would cost a nominal fee (around 10% of the rental fee).Dispute resolutions -  These are also classified as optional services and cover instances such as tenant evictions.Should You Be Buying A Condo In Cambodia Now?Some of the main considerations in the Cambodian market are location and potential for growth in the long term, as well as safety and security. Having some insight into what is planned in the area in terms of access to amenities would be beneficial - Cambodia is still rapidly developing and cities are expanding while the wide-scale modernisation and tenant expectations are constantly changing. Results from the Realestate.com.kh Real Estate Survey 2022 indicated that 90% of respondents thought that property was a good investment in Cambodia. And that condos and apartments were the second most popular property type to buy. Cambodia is expected to register a 5.6 per cent GDP growth in 2023, according to the Ministry of Economy and Finance, and although the Cambodian construction sector is set to see modest growth of 1.7 per cent in 2023, and real estate is expected to achieve similar marginal growth of 1.2 per cent this year, investment opportunities should be based on mid to long term prospects depending on the goals.With rising global demand, increased foreign investors’ confidence (and new favourable laws), as well as the full reopening of Cambodia’s borders, the Kingdom is anticipated to do well economically in the future and it could be an opportunistic time to purchase property in Cambodia whether as a home, investment or retirement property.

Cambodia has 3,827 construction projects nationwide with a total floor area of 6,596,936 square meters according to the Ministry of Land Management, Urban Planning and Construction, but if the pandemic taught us anything, it's that those at the lowest end of the economic scale need more support. So what social or low-cost housing is there in Cambodia and what more should be done?At the tail-end of last year, Cambodian Prime Minister Hun Sen made a publicised plea for private real estate developers to come up with projects for low-cost residences, adding that there was high demand, especially among civil servants and low-income or middle-income consumers.To qualify as affordable housing in Cambodia, units must be priced at USD $30,000 or below. With the goal of moving the nation economically forward to achieving high-middle-income status, what affordable housing is available now and what are the challenges in adding more?Economic Status Goals - A Changing CambodiaPrime Minister Hun Sen has said that “sustainable economic growth over the past two decades has moved Cambodia from a low-income country to a low-middle-income country and is striving to achieve its vision of a high-middle-income country in 2030.”The gross national income (GNI) per capita in Cambodia was expected to reach USD $1,785 in 2022 and should increase to USD $1,924 in 2023. Lower-middle-income economies are classified when the gross GNI per capita is between $1,036 and $4,045; and high middle-income economies – with a GNI per capita between $4,046 and $12,535.Undersecretary of State and Spokesman of the Cambodian Ministry of Commerce Penn Sovicheat said the RCEP, which came into effect in 2022 would also be a catalyst for long-term and sustainable trade growth and will help Cambodia move from its least-developed country status as soon as 2028 (the target was 2030).However, Heidi Dahles, an adjunct professor at the School of Social Sciences, University of Tasmania has argued that “GDP is an unreliable measure of the country’s economic performance, obscuring the scope of social inequality, low wages and poverty in rural areas and the informal sector.” She adds that 18 per cent of Cambodians still live below the poverty line.What Do The Finances Suggest - Is Affordable Housing Viable?It is estimated that with the increasing attraction of the nation's booming cities, there could be as many as 7.9 million people living in Cambodia’s urban areas by 2030. This represents a huge increase of the estimated 4.3 million from 2014.In 2017, the government had even announced ambitious plans to meet this growing demand by adding 55,000 affordable new homes every year. Minister of Land Management, Urban Planning and Construction Chea Sophara had predicted that, by 2030, an estimated 800,000 urban homes will need to be added to the housing stock to meet this explosive demand.The National Program for Development of Affordable Housing was established in 2017 and this  Affordable Housing policy was intended to provide developer incentives such as tax breaks, ease of obtaining permits and licenses and more. It does require projects to include at least 100 low-cost housing units and the price range per unit to be between $15,000 to $30,000 or lower. The main sticking point it seems is that to apply,  the location of the development must be within 20 kilometres of the capital or cities. By 2020, it was reported there were only five affordable housing projects comprising 8,331 landed units and 7,256 strata units.Salah Essa CEO of Management Venture Asia Co. Ltd has been heavily involved with Worldbridge Homes affordable housing projects including involvement in the design phase, and project construction management. The company is a Phnom Penh-based business consultancy group which helps facilitate business ventures, taking products to market and market research all throughout Asia and have a key interest in sustainable development.Essa says the Cambodian government have “covered this important property sector with clear rules and regulations as well as incentives to the keen developers' ' and affirmed the law around the affordable housing projects should not accede USD $30,000 in to be included within this category.Ha adds that “landed property is the most favourable type of property to live in for the majority of local Cambodian even though living in condo concepts has started to be more. The main challenges are the land cost, and location, as the properties have to be affordable and accessible by the residents. These two challenges need to be assessed as they will impact the cost of building these affordable housing or apartment type of properties in Cambodia.”Despite the economic and property boom slowdown over recent years caused by the pandemic, there has been and still is plentiful development. Cambodian Valuers and Estate Agents Association (CVEA) president Chrek Soknim also argues that the rise in Cambodian land prices makes it challenging for developers to build affordable homes. He suggested some of the measures that could promote more of these affordable projects would be; land concessions, and infrastructure support from the government such as providing access to clean water and electricity to the sites.There is already in place an exemption on stamp duty which applies to residential properties valued at less than $70,000. The stamp tax on transfers of immovable properties in Cambodia covers the tax paid when an immovable property is sold, exchanged, gifted, or succeeded.Examples of Cambodian Affordable Housing ProjectsMr Sunheng Ek, (a Project Coordinator at the Ministry of Economy and Finance) and Marketing Manager at CREED Group who are a market leader in affordable housing in the Kingdom, said they provide shop houses and townhouses (called link houses) at affordable prices ranging from USD $27,000 at their Borey Maha Boeng Trea development.Ek says, “To some extent, affordable housing provides the most basic needs of the community, from residential to commercial spaces but still has the full set of public standard-based utilities.” He adds that some of the challenges of developing affordable housing in Cambodia include the balance between affordability and quality, and the post-pandemic impact on those in the lower and middle-income brackets.However, he strongly believes there is a need for these projects and there will be a trend among developers to produce more and there is demand. He also says this should be based on providing good standard properties and not ones which are purely revenue based, to make the market inclusive for both investors and residents. “We understand that the quality of the construction has to be set as the highest priority to improve those in the lower income brackets, rather than selling cheap and unsustainable developments of poor quality and repute,” he added.Properties from CREED interest-free payments from as little as USD $150/month, and offer payment plans as one of the most attractive schemes for customers who are facing difficulties with low income. They also try to cooperate with local banks to offer lower interest rates and offer long-term instalment options.Worldbridge Homes General Manager Sothirith Yuk says that Worldbridge Homes (a subsidiary of Worldbridge Group of Company) are also focused on affordable housing developments in collaboration with the government (on a public-private partnership model). They have developed the first and biggest affordable housing project in Cambodia.The Serey Mongkul satellite city is located in Sa Ang district in Kandal province and consists of 2457 units including three community landscape parks. The first phase was already handed over in 2018 and the next two phases are currently being handed over. The homes’ price ranges are from USD $25,000 to $38,888 per unit. He adds “affordable housing is so important in any country, either developed or developing ones, as not everyone can afford to purchase houses currently available in the markets. And Cambodia is no exception. Moreover, by developing these affordable housing projects, we also aim to bring about the social impact from our business providing more access to home ownership for low and middle-income families.”It appears that there are still challenges to adding more affordable housing within the Cambodian market, even though private companies and the government are trying to address this. With cities expanding and land prices rising, although the average wages are set to increase too, there are still limited options in social housing for Cambodians with little to no income.

The riverside in the capital of Phnom Penh often seems to elicit a love-or-hate reaction, but until the pandemic struck with its economic hammer blow, the area along Sisowath Quay was at the heart of most tourists’ visits to Cambodia. COVID-19 obliterated businesses along the river-facing quayside, it's still visibly bearing the scars with many closed and vacant shophouses.The area though was due a rejuvenation, and new hotels, restaurants and developments mixed with the popular eateries, bars and guesthouses that survived the pandemic, as well as the longstanding heritage and colonial buildings offer a glimmer of the changing face of a new riverside. What Is New To The Riverside In Phnom PenhOver the past decade, the riverside area has seen many changes with the selection of bars, restaurants and hotels becoming more diverse, which is important to the budgets and tastes of all travellers whether it be domestic or international tourists and visitors.In terms of hotels, Tribe and KVL are new additions while others still hang in stasis with their development coming to a halt during the pandemic. In 2022, Accor also announced it would open its first Ibis budget hotel in Cambodia with the Ibis budget Phnom Penh Riverside.Popular F&B establishments such as Oskar and Metro survived and the addition of the 313 Quayside mall was somewhat of a surprise; Rukkha Sky Bar & Tapas, The Waterside restaurant, Starbucks, Pizza 4Ps and the selection of Asian restaurants have been welcome additions.The survival of rooftop bars such as Juniper, and long-standing Italian restaurant Pop, and the selection of budget-friendly bars and restaurants are a relief too. Amanjaya Hotel took the time to undergo major renovations but the popular FCC stays in a status of limbo/construction.Between the quayside mall and the night market, there has also been the addition of a new Mexicano restaurant and the rooftop The Hideout sports bar and restaurant, while further along Hummus House still remain popular.Infrastructure Set to Change The AreaThe two main infrastructure projects which may change the face of the riverside area are the proposed development of the bridge from the night market across to Chroy Changvar. The Cambodia-South Korea Friendship Bridge construction is due to start in 2023.The ongoing Yuetai Phnom Penh Harbour development will be occupying approximately 1.2 million sqm, and include a commercial development with a construction area of 1.17 million sqm. The project is split into four phases, from Chroy Changvar Bridge down to the Titanic Restaurant.Blending A Modernising City With Heritage PreservationFor many years, there have been suggestions of making the riverside, or sections of it, more pedestrian-friendly and even banning vehicle traffic for certain time periods. There have also been voiced concerns about protecting the style of the area and the many historical buildings in the vicinity. How does the city modernise, expand and maintain its legacy?The Sisowath quayside is still home to some of the biggest cultural tourist attractions in the city, most notably the Royal Palace and adjacent museums, the pagodas such as Wat Analoum and the Preah Ang Dornkeu shrine and Wat Phnom. The Chaktomuk Theatre and the French colonial buildings near the Cambodia Post Office are both of historical and heritage significance too, while the more than a century-old Chinese House still lies vacant but protected.Soreasmey Bin Ke, the founder and CEO of Confluence (a Cambodian market-access firm) partnered with Trove (a New York-based tourism development advisory firm) to recently present a Sangkat-level urban tourism plan to the Ministry of Tourism and detailed heritage preservation. He said, “The main objectives were to create a plan capable of supporting the sustainable local economic development of the proposed areas: Phsar Kandal Ti Mouy/Riverside and Wat Phnom/La Poste areas.This will enable the local community to gain benefits from the natural and cultural heritage. Our work was based on the best international models adapted to the Cambodian context, so the framework we suggested is able to enhance the quality of the tourism potential in a structured manner, and provide a replicable model for localised urban tourism planning across Cambodia.”He added that there were two main outcomes - the creation of a local stakeholder tourism steering group involving the public, private stakeholders, and community who will manage and progress the recommendations in the plan. Secondly, a full audit/inventory/situation diagnostic of the project area was also completed, including asset mapping to assess the current situation regarding tourism development and its potential.”In total, there were 40 key recommendations based on four key areas; sociability, access and linkages, uses and activities, and comfort and image. In terms of city planning and maintaining the local heritage, Soreasmey added, “I do believe heritage preservation today is key to Phnom Penh’s future. Our capital city is no longer a small city, we can see how it has expanded both horizontally and vertically. A tremendous job has been achieved in terms of infrastructure, and more is coming - a massive new airport, ring roads, flyovers, a possible tramway, skytrain or cable cars will complement the 100+ public city buses already serving the city. Public parks have also been announced in the near future.This is great, but we should not forget the soul of the city. Our city lives through two main assets, its history and what is left of it and its people. Some iconic colonial buildings have been destroyed, but Phnom Penh has kept its soul alive, with its dozens of pagodas, historical sites, markets, and eclectic people. This is already a victory.”This mix of new and old is one all growing urban centres face globally and it's a balancing act. “We want to preserve and highlight everything that makes Phnom Penh unique. This creates an experience that is worth staying for, and coming back for. How can we utilise the treasures of the urban heritage, history, culture and architecture to spur tourism development? That is the major challenge we need to have a solution for if we want Phnom Penh to rise as the next landmark city of Asia.”In late 2022, a Future City Summit was held and urban transformation, city retrofitting and urban technology co-investment were discussed. The event concluded with a deeper discussion on pedestrian transformation and sustainable landscape design on the proposed Preah Sisowath Quay - Riverside Heritage Walk.Living Forum, a group of Junior Research Fellows from Future Forum, who utilise research, design, and policy formation to shape Cambodia’s urban outlook said, “City planning, we believe, is about developing communities that are more liveable, affordable and sustainable. There must be an emphasis on people, especially when making decisions for urban mobility. Transportation infrastructure should prioritise augmenting and completely replacing vehicle-centric streets with new public transit lines, revamping old ones, and improving walkability and likeability.Consequently, the space gained from this process can then be reallocated into additional public spaces, which serve social, economic, and cultural purposes. Easing the commute to the riverside and active public spaces positively impacts the prospects of rehabilitating and preserving architectural heritage. Phnom Penh should commit to an integrated approach, taking into account economics, heritage, sustainability, and governance.”On maintaining heritage they were also adamant. “It is not only crucial, it is existential. For a city would not be much without heritage, character, uniqueness, and creativity. As such, all of these are key livability criteria, and having good livability attracts more skilled workers, visitors, innovations, and investment. To put it simply, livability correlates to a city’s potential.”In conclusion, they reiterated that a “strong sense of identity brings livability, and livability brings tremendous value in both tourism, investment, and other economic benefits.Efforts to enhance creativity and cultural productivity are also a sign of expansion and modernisation - they are not necessarily mutually exclusive preservation. Modernisation doesn't always mean importing something completely new but finding ways to make living easier and more accessible for people, while also maintaining Phnom Penh’s identity. In short, modernisation should be a way to iterate and evolve locally inspired and contextually relevant urban design and planning.”

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