Though the road was long and winding, Cambodia has reached new heights in the past decade across many industries - none less, the real estate sector. And along with continuing success, there is also a need to understand how the market is developing in comparison to the region. By studying Cambodia alongside an understanding of similar markets nearby we can better predict the future of the real estate sector, and handle potential problems before they occur.This is according to CBRE Vietnam and CBRE Cambodia managing director, Marc Townsend, who spoke in depth regarding the latest CBRE Cambodia's Marketview Q2 2016 report last week in Phnom Penh.The resounding remark from Townsend was that, “All of us who have been involved in the real estate industry for sometime understand that any market is cyclical. What is happening in Cambodia currently has happened in neighboring markets.”With this sentiment in mind, we can better understand current market conditions in Cambodia - and concepts such as the potential oversupply in the condo market, speculative price growth in Phnom Penh land, and issues regarding credit issues around lending for property - in a context of curb and flow.A downside for the market now offers opportunities down the line as it naturally adjusts itself - and ultimately, a maturing of the real estate market as a whole.CBRE Cambodia’s Marketview for Q2 2016 Recap:The World Bank officially elevated Cambodia to the status of a ‘lower-middle income’ economy at the close of Q2.Hongkong Land’s mixed-use development, Exchange Square, held its topping-out ceremony over Q2, with overall completion set for Q4 2016. Prime sales and rental prices broadly appreciated over Q2, with the exception of serviced apartment rents, which remained stagnant over the quarter. Average quoting rents across Grade B buildings grew by 4.5% q-o-q, while average quoting rents across Grade C stock decreased by 3.9% q-o-q. 2,796 condominium units, across 8 projects, launched over Q2, with Russey Keo district welcoming its first off-plan sales launch. Land & Investment in Cambodia Q2 2016:While foreign buyers are focused on the hottest areas on the market where land prices have reached all time highs, namely central Phnom Penh districts such as BKK and Tonle Bassac, Townsend explains that “the local Cambodian land bankers and landowners are obviously moving in a different trajectory. They’re thinking four to six years ahead.” This is also due to many local buyers being priced out of the downtown market.These local land buyers understand that infrastructure such as bridges, roads and sewage is, and will continue to, drastically affect pricing of land on the outskirts of the city. This has been highly apparent in Chroy Changvar, where land price is rising significantly year on year, at a much faster rate than land in the CBD.Investors targeting the lesser known districts of Phnom Penh that are able to predict these improvements in infrastructure will make large returns in the not so distant future. Given the need for local connections and understanding however, this opportunity remains in the realm of local buyers and agents for the time being.Phnom Penh Residential Market Q2 2016:Although the number of foreign developments are continually growing and expected to contribute to a supply of condominiums of around 25,000 units by 2018, Townsend states that “the local developers are the main players. It may not be that way every quarter. But obviously, the strength and depth of Cambodian developers are growing.”These local developers have a better understanding of the means of the local market buyers, and this is creating more affordable options in the market. These developers often look outside the most expensive corridors of Phnom Penh where, once again, a lesser degree of infrastructure plays a big role in allowing developers to acquire affordable land and ultimately create a more affordable end condo-product. If they are lucky, the infrastructure will come as their project nears completion.Townsend then describes that as the market matures a variety of other property types have been popping up in the Phnom Penh new developments market, such as hybrids, SoHo and smaller units.Mixed-use developments have also made their way to Phnom Penh, a way of developers offsetting their risk in a unit-heavy condo market by combine a mix of retail, residential and commercial options for buyers within a single development.Despite growing competition though, condominium prices have still seen small but steady growth from 2015, up until the second quarter of 2016. It is with this slow growth that Townsend says that, “trajectories have changed from being favorable to the developer to favorable to the buyer.”Townsend explains that if there are no secondary sales from the primary residential market, then it’s a sign that the market’s only going to get worse. Cambodia developers must heed this advice with care.Yet, Townsend notes that it is with this change in trajectory that the serviced apartments market is suddenly playing a much bigger role.As Townsend puts it, “When the residential market dries up or begins to change the trajectory of sales per month or per quarter,” developers begin to look to see if they’re able to convert some of the units to serviced apartment units to cut cost, and assure returns. Townsend notes that the serviced apartment market in Cambodia seems to still be going strong.In regards to the condo market for international investors, Townsend also notes that, “It’s a limited market at the moment. And obviously, at some point, it will come on the radar screen of a wider group of people”. Once Cambodia enters the consciousness of investors around the world, the market has the potential to change dramatically.It seems that so far we have only seen the tip of this iceberg…He emphasizes that it’s important to be out there and getting your story across, and marketing internationally - not just individual developers and agents, but the national as a whole.He adds the need for a diversified investor pool to negate risk across the market: “We need investors from all over the region. Not just from one place. You need to have a balance.” Otherwise, when one set of investors for some reason boycott the market or lose their influence in the country, the market can still be sustained by the overall investor pool.Given Cambodia’s current reliance on condo investors from Taiwan, China and Korea in particular, this word of warning seems highly valid.Phnom Penh Office Market Q2 2016:Townsend mentions that big businesses aren’t as enthusiastic to go to Cambodia for expansion as other markets.He says, “Unfortunately, we’re at that stage where most of the people that are going to be here expanding and upgrading are here already.” So, he doesn’t predict a whole lot of new activities happening in this market.He adds, “The reality is not a lot of those Fortune 500 companies will be coming here. But the ones that are here want to be here.”He also addresses the audience of developers saying, “some of you will be thinking that you can fill your building in a year – not retail, but an office building. When things tighten up and everybody gets the same idea to have coffee at the same time, or go to the lift at the same time, or when the pilot puts the lights on in the airplane to go the bathroom at the same time, the same thing happens in office markets. So, sometimes, some of you may have mistimed it. And instead of taking one year to fill, your building may take three years to fill. This is the reality of real estate and commercial office space in a developing market.”The data gathered by CBRE shows that while supply in the office market has risen drastically – most especially with Grade A office units – occupancy has lowered from 2008. It also shows that the biggest business type occupying these office spaces are the banking & finance and logistics industries, which comes in at 22% and 14%, respectively.Townsend also explains that more and more strata titled office space is appearing in the Cambodian market, and that it’s not necessarily a bad thing - but it is a sort of inflection point because it’s more difficult to handle a strata title building from the developer's perspective.Phnom Penh Retail Market Q2 2016:The retail market is also seeing an increase in supply, mainly with shopping malls, community malls, and retail podiums, where CBRE expects it to only go up even more in the next two years.Their data also shows prime shopping malls, prime retail podiums, prime high street, and prime retail arcade at an average rental rate per square meter of $31.44, $48.3, $30, $52.5, respectively. These developments include the Exchange Square, AEON Mall, and the Naga Citywalk.Townsend says that the market’s maturing, as evidenced by new products like row houses and shop houses. He also says that there is high demand right now for long-term leases that usually comes hand in hand with quality investment opportunities for incoming investors.He says that the Cambodian retail market is slowly gaining traction as well, with the coming of different international brands like Levi’s, Starbucks, Hugo Boss, Long Champ, Salvatore Ferragamo, and L’Occitane.CBRE’s researched data for Q2 2016 shows that these have contributed to the high occupancy rate for the retail segment, where the majority of those who are occupying the space do so for financial & professional prime retail use. It also shows that “26 percent of retailers surveyed identified SEA countries as target markets for 2016.”As a result of this, CBRE is expecting even more construction and expansion for the retail industry.Siem Reap and Sihanoukville Q2 2016:According to Townsend, there are a lot of things happening in Siem Reap and Sihanoukville, in particular, a lot of activities in retail and hospitality. Infrastructure upgrades are also helping shape the two provinces. Just recently, the Royal Railway has restored its services to transport passengers from Phnom Penh to Sihanoukville, for example.He adds, a rising level of infrastructure will, “Obviously drive retail and condo sales, and second home sales.”Some of the properties available here are located in different islands such as Dara Sakor, Song Saa, Koh Rong and Koh Chanloh. But Townsend explains that the current difficulty here is getting people to actually go to these provinces, because there is actually more work that needs to be done in terms of basic infrastructure. But he balances this out and says that prices here are very attractive: Luxury resort villas range in the $2,000 to $3,000 per square meter range, for example.Talking about the competitive pricing in these provinces, Townsend adds, “when developers start to move their total focus away from the primary residential market in the main cities and concentrate on the coast, then obviously where they’re looking for new markets and looking for new product, again you can see this reflected here with that sort of pricing.”Outlook Overall Q2 2016:Townsend also talked about finding new markets that may already be in existence but have just not been captured yet, such as the opportunity to seize the growing interest for retirees.In a report by International Living, Cambodia ranked 21 as one of the best places to retire in the world. Townsend adds, “We’ve got to keep finding new markets, new things, and put some analysis behind it.”One of the sectors that are also being extensively marketed is the industrial sector; where industrial parks and Special Economic Zones are starting to slowly pick up as there is a growing need for increased fit-for-purpose space for factories, according to Townsend.He also mentions that tourism is one of the primary driving forces in Cambodia’s economy, “but you’ve got to get out and market it. You can’t rely on one group. You’ve got to rely on a wider source. And so much of it comes down to that airport. So much of it comes down to infrastructure.” Townsend says that as these things continue to come up across Cambodia, tourism will surely grow.In conclusion, Townsend says that “if you haven’t already started building a retail center, you’re too late. If you’re building Grade A, finish it quickly. If you’re building or thinking about building Grade B and C, just make sure you put enough lifts in, and enough car parks, and enough motorbike spots, because if you haven’t, there’s already enough in the pipeline. If you’re going to build something in the industrial park, you’re probably going to need to heavily spend more money on marketing and be prepared to invest in factory space on behalf of the tenants that hopefully, you can attract either from Europe or North Asia, or indeed, out of China. And if you’re doing a big residential project and it’s got six phases, then look at the resale market.”Be an investor with valuable foresight, stay tuned to Realestate.com.kh news!

Although relatively new to the market, the Phnom Penh-based Land and Houses (Cambodia)(LHC) Group has already established themselves as a standout player in the the Cambodian real estate sector.LHC asserts its presence through five individual companies, each carrying a distinct expertise under their individual brands - yet overseen by the overall group director. The mother company is Land and Houses (Cambodia) Investment Co. Ltd., first established and officially registered with the Ministry of Commerce by Madame Se Lily, an experienced Phnom Penh real estate entrepreneur, in August of 2015. This company specialises in property investment broadly. The other four companies are the Land and Houses (Cambodia) Construction Co., Ltd., Golden Han Fei, Phnom Penh Land Development, and the LHC Architecture.Uniquely, through this network of companies, LHC is able to offer comprehensive services to clients without needing to outsource outside the group.Diversification; the Key to LHC’s Market Offering:With the list of different entities under the LHC umbrella collaborating and consulting with each other, the LHC group is able to offer a range of specialty services that can ensure the group can take property investors, developers and real estate sellers from the start to the finish of their projects, whatever those projects may be.These services include local and international property investment, property development, property consultation and feasibility studies, property and asset appraisals, property management, construction and architectural design. These services are readily available for international, local, and corporate clients. Contact LHC today and find out more!Quality and Excellence; LHC’s merger of International Talent with Local Understanding:Land and Houses (Cambodia) Group also maintains standards of trust and reliability through the use of high-grade materials, high-caliber manpower, and a culture of transparency. This has been achieved by forging joint venture partnerships with vendors from around the region, creating new companies that can draw from international experience, coupled with a firm experience in the local Cambodian market.Managing Director of the Group, Tyler Stuart, is a UK-born real estate and marketing professional with years of experience in the international & local market. Tyler Stuart has a clear focus for the direction of the Group’s companies as a whole, and maintains all staff are aptly specialised, and are driven to reach their personal and company goals.Armed with locally and internationally trained skilled professionals, LHC has already worked on several projects. Their group of researchers, advisers, marketers, analysts, consultants, property agents, and surveyors have collectively used their abilities and knowledge to market, sell and consult developments such as the Borey Varina, Chroy Chongva Residence, Borey Mohasensok, and their most high-profile mixed-development project yet, The Skyline, a 39-storey, 3 tower mixed-use development in central Phnom Penh, covering a total land area of 4,836 square meters. The Skyline boasts a 6-storey car park, and a 3 storey commercial shopping plaza on the ground floors. The project reaches completion in December 2018. LHC is exclusive sales vendor and manager of the Skyline project.Commitment to Follow-through:What sets Land and Houses (Cambodia) Investment further apart from other real estate firms and groups in Cambodia is their unique ability to provide a start-to-finish service, allowing clients to relax and know their property assets are secure.Six reasons why LHC’s service offerings are a cut above the rest include a solid marketing philosophy, a sellable website presentation, a positive and enthusiastic team, immediate buyer leads management, negotiation expertise, and administrative support.They are with you from the start, from purchasing the property and producing feasibility plans, right through to the property management, maintenance and leasing, committed to a long-term partnership with its clients.So, if you’re looking for a one-stop service provider for your real estate needs, whether you are a private seller, current property owner and operator, or a developer looking to launch a Cambodian based project, consider the Land & Houses (Cambodia) Group to assist you through each step of the process.Contact LHC today and find out more!

When it comes to apartment supply, thorough research is needed before investing in properties. You would have to consider the needs and essentials before placing your money into the market, especially with factors like the supply in comparison with the demand. Currently, the increase in supply may mean a significant amount of competition for those seeking to invest in the country. But this might actually be a good thing for buyers at the expense of the developers and investors who have ongoing projects.General Director of real estate company KFA, Nuon Rithy, said that apartment prices dropped between 10 and 20 percent compared to last year due to the influx of supply of apartments entering into the market. This forced some investors to install equipment with low quality, enabling them to lower rent prices. This is especially true for owners of apartments who have not updated their properties in a while. Rithy said, "The market currently is competitive in price, service and quality.” So, investors who do not think about their projected profit will have problems in the future.  He continues to say that “apartments that have not installed swimming pool on the top, no parking and gym are really faced with problems intensified in finding tenants."The General Manager of the company Asia Real Estate, Po Eavkong, backs this up and explains that the apartment market is also competing with the condominium market which has grown rapidly as well. This is because both condominiums and apartments can be used for the same style of living. This is one of the reasons why the margin for the apartment market remains narrow. He added that the rental cost – depending on region and condition – dropped to around 5 to 10 percent.Eavkong warns, "occupancy rate of apartments might have a slight growth this year, but the apartment supply has increased more and more compared to the real demand." He continues, "It's time the apartment and condominium sectors compete from this year, but in terms of the number of apartments currently available, it’s not yet too high."According to the study conducted by Bonna Realty Group last year, the number of apartments in 2015 that were supplied in the market saw an increase of up to about 35 percent compared to 2014, where the number of apartments rose to an estimated 6,000 units.Kim Heang, the president of Cambodian Valuers and Estate Agents Association concurs with the data, and gives further clarity by qualifying that the apartment market has reached the stage of "big fish eat small". This means that old apartments that are 5 to 7 floors in height in BKK1 have to be update their services or risk being demolished to make way for high-rise buildings that will have style design, interior design, equipping services, and material facilities to attract customers. He continues to say, "The current market reached a round that a strong one in this market takes a stance, and the weak will die."However, the consultant chairman of Daily Realty Group Khom Monyroth is not sold on the said idea. He said, "I observed that the occupancy rate of apartments have not changed, especially luxurious apartments in Boeung Keng Kang 1 still have consumers between 90 and 95 percent." He further states that the rental apartment price do not decline in these apartments which are designed with modernity in mind. But he still recognizes that competition in the sector has increased and remains to be a threat.He said that the number of people renting apartments have increased due to investors from Singapore and Japan entering Cambodia this year and because Cambodia has had a more stable start in the ASEAN Economic Community. It is with this that the Cambodian apartment market remains hopeful for its future.Please check out more full condos listings on Realestate.com.kh!This story was featured in the September 2016 print edition of PROPERTY VIEW magazine, produced by the CVEA.Realestate.com.kh is very proud to support the CVEA’s Property View publication. For more information about joining the Cambodian Valuers and Estate Agents Association (CVEA) please click here. And, if you are interested in advertising placement or advertorial in the next edition of Property View Magazine, please contact Mr. Virith via email: virith007@yahoo.com Or call: 078 959 567  or 098 66 26 68

With a growing range of condominium units coming into the Cambodian market, many have expressed their concern over ongoing and future condominium projects which may contribute to an eventual oversupply. But this did not deter YCT Land Pte Ltd, an established Malaysian developer, from constructing what would be a first in this country.Paving the way and utilizing the expertise of Kuala Lumpur-based architectural firm, SW1P Collective, 88 Suites – a “small office, home office” property – will now be introduced into the Phnom Penh skyline and property market.Otherwise known as SOHO, this type of property has been popular in different countries for quite some time now such as in Malaysia and Hong Kong. This is due to its dual-purpose characteristics. This, according to Mr. Chee Eun Tang – the Director of SW1P – will cater to both the younger and older generations who are looking for either self-use or for future investment.For 88 Suites, SW1P has created a tall, elegant, and eco-tropical building that glimmers under the sunlight. The external metal mesh screen not only provides sun-shading purposes while optimizing incoming natural daylight, but is also a design tribute to Cambodian traditional textile. Within that narrow exterior are three types of SOHO units which are thoughtfully finished and furnished to international quality and standards. These units include the 85 square meter SOHO Luxe, 100 square meter SOHO Loft (duplex unit), and the 50 square meter SOHO Executive.88 Suites will also feature the first Intelligent Car Parking System in Phnom Penh which will allow auto mechanisms to park a car without the need for a driver or valet, keeping everything compact, convenient and secured for unit owners."Life in Balance", the SOHO concept for 88 Suites, according to Mr. Tang, promotes a modern lifestyle for "live, work, play."Unit owners live in a comfortable and fully secured environment, while enjoying the convenience of both business and leisure amenities such as the sky lounge with meeting rooms, business centers, infinity pool, sky gymnasium, saunas, 24-hour and 4-tier security system, modern bathrooms and kitchens fitted with products from world-class brands such as Villeroy & Boch, and GROHE. The building will also have wireless internet connection throughout.Located in the heart of the capital in Boeung Keng Kang 1, 88 Suites is accessible to nearby destinations, including the Mao Tse Toung Boulevard, Preah Norodom, Naga World, Phnom Penh International Airport, Sisowath Quay, and the Aeon Mall. It also comes with an impressive 360-degree view of Phnom Penh  City that also overlooks the Mekong River.Amidst the growing number of the usual condominium developments, 88 Suites serves as a breath of fresh air and as a challenge for future and existing developers to step up their game. Should their SOHO concept find success, this may be the start of a whole new property market in Cambodia.See the full listing and inquire today!

THAILAND, 6 September 2016 – Asia Property Awards and Property Report, part of PropertyGuru Group (“PropertyGuru”, “Group” or the “Company”), Asia's leading online property group, today announced a leadership change involving Steve Melhuish, Co-founder and Chief Executive Officer (“CEO”) and Hari V. Krishnan, President and Chief Business Officer (“CBO”). After nine years as CEO of PropertyGuru Group, Steve has decided to hand over the day-to-day operations to focus on the Company’s longer-term strategy, business growth, and key client relationships. Effective immediately, Steve becomes Vice Chairman of PropertyGuru and continues to support PropertyGuru full time. Hari is promoted to become CEO of the Company and joins the two co-founders – Steve Melhuish and Jani Rautiainen – on the Board of Directors (or the “Board”). This transition is part of a process initiated two years ago by the co-founders, Steve and Jani, to develop a world-class leadership team and succession plan. They identified Hari as a potential CEO successor in 2015, with the latter bringing to the table over 15 years of leadership experience in the Technology industry in the US and Asia. At that point, Hari was the Vice President for Asia Pacific & Japan at LinkedIn, having joined them as their first employee in the region. Hari joined PropertyGuru as President and CBO in January 2016. His appointment was followed by a few other key leadership hires, completing the executive leadership team in June 2016. Steve said, “PropertyGuru is in a very strong position today, with our brands holding the number 1 position in all our core markets. Revenue and traffic continue to grow rapidly, and we’re on track to return to profitability next year – after five years of aggressive investment in regional expansion, product innovation, marketing, and developing a world-class leadership team. As such, Jani and I felt that now was the right time to pass the baton.” Steve continued, “Hari’s done a stellar job as our CBO these past eight months. His exceptional leadership and people development skills, and vast experience in managing large teams across a complex set of markets and businesses make him the ideal candidate to continue the PropertyGuru success journey.” Steve co-founded PropertyGuru due to his personal frustrations at trying to find a new home in 2006. Over the last nine years, Steve and Jani have helped to grow the company into Southeast Asia’s leading online property platform, used by over 16 million property seekers every month to find their dream home. Today, the platform generates over S$15 billion worth of transactions per annum for its 35,000 real estate developer and agent clients. Starting out as a two-man team, PropertyGuru now has over 420 staff, and its solutions extend beyond online property search to cover real estate events, awards, print publications and sales collaboration tools in nine Asian countries. “Jani and I remain very much part of PropertyGuru. We continue to be 100% committed to supporting the Company’s mission of helping property seekers across Asia make confident property decisions. Leading this Organisation has been an incredible experience – immensely gratifying and humbling! The success of PropertyGuru has far exceeded our expectations. It’s been a huge team effort and we’re thankful for the amazing support over the last nine years from our Gurus, consumers, customers, partners, media and investors. We’ve built an awesome team and culture at the Company, and we’re both excited about being a part of more accomplishments in the future,” he added. Incoming CEO Hari V. Krishnan, said, “PropertyGuru has been built by a wonderful team of entrepreneurs focusing on real consumer needs in our markets. I am excited to lead the Company’s next phase of growth, working with our talented team to bring more exciting innovations to property seekers and to deliver more value to our customers.” He added, “I am honoured to succeed Steve as the next CEO of the Company and look forward to continuing my partnership with him, which I have truly enjoyed these past eight months. As a result of our continuous consumer-focussed innovations and the biggest investment in research and development in our sector, the PropertyGuru family of brands are stronger than ever. I look forward to working closely with our seasoned leadership team, the Board of Directors, and most of all our talented employees, to serve all of our constituents – consumers, customers, partners and investors.” Concurrent with these appointments, Jani Rautiainen, Co-Founder, Managing Director and Board Member of PropertyGuru Group, will transition into a new Executive Director role. He will be supporting the Group’s longer-term business development, continuing to help shape the Company and product strategy, and remains an active Board member. Lewis Ng, currently Managing Director for the Group’s Singapore operations, will be promoted to become Chief Business Officer, effective immediately. In addition to overseeing Singapore, Lewis will now focus on driving revenue growth across all markets. Steve said, “Jani and I are pleased with Hari and Lewis’ new appointments. We believe the PropertyGuru leadership team is the strongest in the industry and has the depth of experience and expertise to scale and further accelerate the company’s growth over the coming years.

On the 20th of August 2016, the Cambodian Valuers and Estate Agents Association (CVEA) conducted a public forum regarding "Today’s Real  Estate Industry in Cambodia" at the Sofitel Hotel in Phnom Penh. The discussion-based event was joined by an eclectic group of stakeholders – including property developers, media organizations, real estate agencies, banks, and the general public.In a panel discussion about the “Opportunities and Challenges of Housing development,” Ms. Chan Socheata, the Head of the Office of Business Management Housing Development at the Department of Industry and Finance, said that “everyone needs to posses their own house. So, why do they need to have a legal license? How is it significant or important for the buyer?”What does a developer need to do while Licensing a development project in Cambodia?She mentioned that “generally, before the issuance of the license for any project development, the ministry evaluates through its checklist to find out whether the development has a clear and strong source of income, capital, collateral, land title, and other assets that support their project, especially because project owners need to make a business plan to present to the ministry.”“The ministry will check whether it’s a good business, and if it can be successful in the future or not. In some cases, there’s a need to research on the sales strategy of the project, because sometimes a project’s owner does not do an in-depth market analysis with the surrounding market. And another reason is to find whether this project causes a bubble market. So, if this case happens, the ministry can take measure immediately,” says Socheata.Socheata also mentions, “If we find that the sale price of this project is under the market price, we can allow managers to reconsider again about the selling price – comparing start cost and other conditions – in order for them to sell at a good rate.”How much upfront capital is required for a developer licensing a development project in Cambodia?“The project development needs to have at least 2% of the total capital deposited in the bank of Cambodia or any commercial bank in Cambodia. Even though this deposit money is a small amount, it shows that the development has its capital. And it also causes the customer to trust the project too,” she added.  Socheata concludes by saying that “all project developers have to get a license from the Ministry of Economy and Finance. And this is something that any buyer should seriously consider before buying residential properties off plan, whether condo or borey. Keep in mind to ask whether that project has got a license in order to protect your own benefit and not waste money with unnecessary trouble.”Check out the latest Boreys and New Developments on Realestate.com.kh today!

According to recent Khmer Times report, after a year-long feasibility study by the Japan International Cooperation Agency (JICA), the Cambodian government is now seeking $800 million funding in order to undertake development of an automated gateway transit (AGT) system for the capital city, Phnom Penh. An Automated Guideway Transit (AGT) system is an automated, driverless transport system where vehicles are guided along a "guideway" or rail system. Most are rubber tired, but some systems have steel wheels. It is somewhat similar to a SkyTrain, Tram or Monorail system, depending on the design. “Through the evaluation, the AGT is the most flexible system in terms of geometric design among other alternatives such as a metro, monorail, LRT

On the 20th of August 2016, the Cambodian Valuers and Estate Agents Association (CVEA) conducted a public forum regarding "Today’s Real  Estate Industry in Cambodia" at the Sofitel Hotel in Phnom Penh. The discussion-based event was joined by an eclectic group of stakeholders – including property developers, media organizations, real estate agencies, banks, and the general public.In a panel discussion about the “Opportunities and Challenges of Housing development,” Ms. Chan Socheata, the Head of the Office of Business Management Housing Development at the Department of Industry and Finance, said that “everyone needs to posses their own house. So, why do they need to have a legal license? How is it significant or important for the buyer?”What does a condo or borey buyer or investor need to consider regarding the Licensing a development project in Cambodia?Ms. Socheata said that “buyers should ask for more information before deciding to buy a condo and seriously consider whether this project has gotten a legal license from the ministry.”She added that “if the condo and borey project is licensed, it is a really good condition for buyers because licensed projects are guaranteed to be safe for buyers. And if there is conflict, the ministry is also easy to reach for a suitable solution for both parties.”For instance, Socheata notes, there are some buyers who don’t want to pay money to the Borey 999.  Even if this is the issue of the individual, it will affect this licensed project as a whole. So, the committee of the ministry is allowed to help by going to the root cause of the problem and negotiate with the company to get the project owner negotiating with the buyer.Condo and Borey Buyers need to be aware that buying from a licensed project guarantees that:The Ministry has checked whether the condo or borey development has a clear and strong source of income, capital, collateral, land title, and other assets that support their project, especially because project owners need to make a business plan to present to the ministry. The ministry will check whether it’s a good business, and if it can be successful in the future or not.The ministry also often researches the sales strategy of the project, because sometimes a project’s owner does not do an in-depth market analysis with the surrounding market.To obtain the license, the project development company must to have 2% of the total capital deposited in the bank of Cambodia or any commercial bank in Cambodia. Even though this deposit money is a small amount, it shows that the development has its capital. “And it also causes the customer to trust the project too,” Socheata added.   Socheata concludes by saying that “all project developers have to get a license from the Ministry of Economy and Finance. And this is something that any buyer should seriously consider before buying residential properties off plan, whether condo or borey. Keep in mind to ask whether that project has got a license in order to protect your own benefit and not waste money with unnecessary trouble.”Check out the latest Boreys and New Developments on Realestate.com.kh today!

The successful sale of the Oknha Peich Boutique Hotel on 18 February 2016 - prior to construction completion - serves as a celebratory and momentous milestone for Kingsland Global, and the company's Cambodian arm. Slated to be completed in the 2nd quarter of 2017, the hotel was sold to Vivaz Holdings Pte Ltd at US$13.4 million.This early sale is not only an exciting but significant achievement for Kingsland Global, which signifies the company’s firm belief in producing quality projects and moving further into frontier markets.Managing Director Mr. Jeremiah Lee said, "As we align our future plans to fit into Cambodia's changing landscape, we look forward to realizing this exciting opportunity to deliver our standards of excellence and quality to Phnom Penh’s community and the citizens of Cambodia. We look forward to making larger steps with our partners and associates, making Kingsland a leading developer in Cambodia over the ensuing years.”The project is currently in its fitting out phase as it works towards the completion of the 13-storey, 88-room luxurious boutique hotel that the Oknha Peich Boutique Hotel sets out to be. As the project gradually nears its completion date, Kingsland Global is looking forward to every subsequent success and future opportunity that will sharpen and refine its repertoire with the undertaking of every project. Another upcoming iconic development, One18 Residences, is a luxurious 24-storey apartment providing quality living and hotel-like amenities right in the heart of Phnom Penh city. Look forward to a first-class residential experience like none other when the project is completed.For more info on Kingsland in Cambodia, please get in touch with Kingsland (KH); (Address) No. 34 Street 200, Boeung Riang, Duan Penh, Phnom Penh, Cambodia (Tel) +855 77 3399 20, (Fax)+855 23 2217 07/08 or Kingsland Global Headquarters (Singapore); (Tel) +65 6362 8998, (Fax)+65 6363 7031; or email info@kingslandglobal.sg

There are many modern residential homes in Phnom Penh city, whether they are villas, boreys or condominiums. But looking at the different types of properties, it is apparent developers are increasingly interested in building high-rise condominiums that are suitable with the local standards of living and are marketed at this group of buyers, particularly the young and modern Khmer families.Find out more about new developments on Realestate.com.khBut what do the local Cambodian buyers think about living in a Condominium? In terms of the standard of living in Cambodia, the concept of high-rise residential units has already become a trend. As Mr. Vorn Chan Thorn, CEO of Town City, puts it: "If we have sufficient financing and want to have a monthly income, we can buy a condominium in the city for leasing because it is convenient and brings in a fixed monthly income of about $ 1,500." Many people today are also changing the way they think about the standard of living, where comfort and privacy are held in high regard. These are things that those who buy a condominium need, according to businessman Pin Pisey. He says, "I bought a condo a year ago near Sansam Kosal Pagoda. I bought it with a bank loan, and I wasn’t interested in buying it for resale. I like the atmosphere of living like this, it has security and privacy."Condominiums are also now adapting quickly with a more modern and younger generation. Mr. Ros Chesdathepadey says that he’s lived in a condo and just bought a new unit at D' Seaview at Sihanoukville. He adds, "I’ve lived in the Rose Condo approximately 2 years and living with safety, good environment and in the center of town - it is private and there are various services together in condominiums, such as: shopping malls, gyms and swimming pools, all the service in condo very convenient"In contrast, Mr. Mao Sambath said, “I think that condominiums are very nice and offers a modern way of living. However, it is not fit for the Cambodian lifestyle yet. I will not buy a condominium because most of the developers are not trustworthy. Most of the time, they don’t own the land and they use the customer’s money to construct the building. What if the sales aren’t as good as expected? The project would stay still. And who likes a 99-year plan? We need assets for the future generation. Who would not love living life in the heart of the city, above everyone? But condominiums aren’t good investments yet for Cambodians. There are many lands and houses available. I’d rather buy a house and then decorate it nicely. I would not buy a condominium and then worry for the rest of my life about the future of the building, the quality of the building, and all the hidden costs for monthly services.”It seems like there’s a shift happening for the way of life of the locals, and foreigners who come to work or live in the country."The number of housing purchases and loans for condos are more noticeable for both domestic and foreign guests. Locals think it’ easier to live in these types of properties in particular because it’s in or near the center of the city. Foreigners buy them for investment and for residential use", said Heng Sreyneang, the Housing Loan Officer at Canadia Bank.“The Borey Villa Toul Sangke condo project’s concept is focused on helping locals change their standard of living from traditional to a more modern one. It also aims to provide comfort. This residential property is exactly that. It brings a high standard of living.” This is according to Mr. Andy Kong, the general manager of the Borey Villa Sangke company.As a newly-released Century 21 record says there is a total of 110 condo projects with 148 individual buildings, both finished and ongoing, or around 37,570 units slated through to 2020. Will the local market grab the chance to live in these new style of homes? Time will only tell.Find out more about new developments on Realestate.com.kh

Cambodia has been seeing more and more businesses enter the country’s growing economic sphere. This comes as a result of the country’s increasing capacity to entertain an even more dynamic business structure. Specifically, office spaces have been thriving in the property market of late and are one of the aspects that investors have taken great interest in. Chairman of Phnom Penh BG Serviced Offices, Mr. Anthony Galliano, spoke about the current and upcoming trends for office space in Phnom Penh during a recent interview with realestate.com.kh.Is there a need for more office space in Phnom Penh?Grade A office space in Phnom Penh:Having an an impressive run during the first quarter of 2016, Galliano refers to the needs for specific grades of office spaces and confirms that there is a lesser demand for Grade A office properties right now. When asked about it, Galliano comments, “perhaps not A, but for certainly B and C grade, there’s demand out there” - because they are inexpensive alternatives that do not sacrifice much in terms of a company’s specific requirements.Grades B and C office space in Phnom Penh:While both are certainly lower classifications, Grades B and C remain more popular options within Phnom Penh – especially in the central region – because of geographic factors and the availability of this grade of office space, Galliano says. He explains that “there’s certainly office space more on the outskirts of town which is cheaper, but people really prefer to be within the town.” So, prices vary greatly on location.Will the specific needs be addressed for the office space in Phnom Penh market?Galliano is certainly optimistic for office space rentals in the coming years. As the demand rises, the supply will surely follow as well. This is also something that is held on to by Lim Pusithavrith, the leasing management officer of Vattanac Tower. Pusithavrith says that the target occupancy rate of developers for the office space market is at 80 percent, just a few more percent value away from the current 74.4 per cent. And with five more Grade B and Grade C office buildings rising soon, this target does not seem too impossible to reach and even exceed.Investors may want to think of inquiring about possible office spaces they can rent out for additional business income, as long as these spaces are centrally located. However, shortly, they may find themselves looking at properties on the outskirts of Phnom Penh if they need to keep costs down.Find office space in Phnom Penh for rent now!Find office space in Phnom Penh for sale now!

Policies, construction, infrastructure, and population: These have all played an important role in the stages of growth in Phnom Penh. Having been resilient to extreme pressure in the past decade, the city has made for itself a society and an economy that is now conducive for progress.But of course, all success stories share a page in their book with struggles and difficulties. This is exactly what CEO of Cambodian Investment Management, Mr. Anthony Galliano, has pointed out in his interview with realestate.com.kh about how Cambodia has evolved and about what current issues it will have to address in order to move forward in the next few years.In an anecdotal account shared by Galliano, he shares that it was very different a few years back when he arrived in the country. He states that “there was no Canadia Tower, there was no Vattanac Tower” and the country was largely only known to the outside world for the temples of Angkor Wat. But since then, Phnom Penh has sort of reinvented itself into a place that is extremely welcoming to foreigners, building upon the architectural and structural remains of its history. For example, currently 4,017 serviced apartment units make up the body of the capital city and this is continuing to grow. This is far from the less than one thousand units that were available back in 2009. And different types of developments have also been built during this period. Galliano says, “From 2008 till now, it’s just been incredible.” But he also warns that this is also scary for several reasons.Population:While there has been a surge of construction projects for both commercial and residential spaces, Galliano states that the lack of sustainable growth in the Phnom Penh population might soon cause an imbalance in the market and cause an oversupply. It is also important to understand that unlike in Jakarta and Thailand where people flock towards the bigger cities for opportunities, Phnom Penh does not have that component. At least, not yet. Income Status:Even with the recent announcement of the World Bank that Cambodia is now a lower middle class income status economy, Galliano explains that it may still not be enough for these lower middle-class workers to afford the types of developments that have been and are currently being built in the city. He adds that an unabated expectation of these concepts make it even more dangerous for the city in the next couple of years after 2016.Credit:Since the city started growing, enforcement has been stricter, but a few things have also become laxer such as the availability of credit. But Galliano clarifies that the scale of credit growth is something that has already been recognized and being addressed by the National Bank of Cambodia. He says that though credit is freely available, it is still “not to the extent of other markets.”Addressing the Concern:In conclusion, Galliano states that effective urban planning and intentional targeting of issues such as traffic through the construction of infrastructures will greatly alleviate and offset these concerns. Should these hurdles be overcome by both the market and the government, then Phnom Penh will continue to reap the benefits in the future. If not, there may be troubled times for the economy ahead. Invest wisely, and know the Cambodian market inside-out with our in depth investor guides.

According to a recent August 5th 2016 “Reminder Notification from the General Department of Taxation to Property Owners to Comply with Prakas No. 493 SHV. BrK concerning Property Tax Collection” all property owners in Cambodia need to be aware of their annual property tax obligation. The reminder states that payment for annual property tax is due no later than 30th September, 2016. Anthony Galliano, ceo of Cambodia Investment Management, notes that, “Although the obligation for all property owners to make an annual payment of property tax was reinforced since Prakas  NO. 493, dated 19th July, 2010, there is still a degree of non-compliance and outright avoidance. Being a non-corporate tax, this is one of the very few direct personal taxes, and the average Khmer remains reluctant, making enforcement within the general population much more complicated.” Nevertheless, the tax should be paid, and non-compliance is increasingly being punished. In the “Reminder Notification” the GDT notes it has observed that some property owners have failed to comply with this annual tax obligation and the GDT encourages those property owners to pay the property tax by the approaching deadline. Failure to do so in punishable by law. Learn more about Cambodia property tax today on Realestate.com.kh!

Fourteen years had passed since the Royal Railway in Cambodia ceased operations for passenger services between Phnom Penh and Sihanoukville due to deteriorating facilities and financial losses, only to resurface onto the radar once more when the company reopened in 2013 for freight services. The railway however has reentered the public consciousness again lately having announced earlier this year that they would be holding a grand reopening and resuming its passenger services between Phnom Penh and Sihanoukville during the Khmer New Year. Now, a few months has passed and reports regarding the new passenger services have been largely positive.Why Now?Though operations for this route only stated last April, the actual rehabilitation program has been underway for years now, with the ADB and the AusAID funding the restoration and the upgrades, the government of Cambodia having outsourced the operations of the railway back in 2009 for an exclusive concession that would last 30 years for Toll Royal Railway. The project’s estimated cost at that time, two years ago, reached up to $143 million. And while the south line from Phnom Penh to the beach town of Sihanoukville has already been completed, other projects under that funding such as the northern line connecting to Thailand at the Poipet border is also nearing completion. Here the tracks at Poipet are expected to connect the Kingdom of Cambodia to Thailand by rail by the end of 2017 - in order to improve both tourism and trade between the two countries, and raise Poipet’s capabilities as a logistics and trade hub.An Inexpensive Alternative for Travellers and Commuters:More expensive than taking a regular bus at $4 and just a bit cheaper than an air-conditioned van at $12, an advantage of riding a train removes the element of traffic from the equation, slashing out an hour or two than it normally would to reach Takeo, Kampot, Kep, and Sihanoukville. It also costs less than a regular flight which can cost up to $140. Given the current traffic situation on the national roads 3 and 4 toward Sihanoukville, generally busy with trucks moving freight to and from the Sihanoukville port, the railway offers a comparatively safe alternative to road travel. According to an article released by The Guardian last June, a one-way ticket between Phnom Penh and Sihanoukville will only cost $7, while a $6 ticket will get you from the capital city to Kampot. These prices do not seem to have changed as of yet.Capacity:Five carriages have been restored and reupholstered to accommodate around 300 people. Two of these are air-conditioned carriages that can accommodate up to 170 people will run under the “blue line;” the other two carriages, which can accommodate 130 people, have fans built into them and will run under the “yellow line”. The last carriage is intended for travelers who may require a more privacy. The air-conditioned cars will travel towards Sihanoukville during odd days and return on even days, while the carriages fitted with fans will run on a schedule opposite to that.Running on a Schedule:According to the Royal Railway website, train operation runs every weekend, even on public holidays. They have also set up an office in Phnom Penh in the hopes of increasing sales for all destinations. Their office, Central Railway Station, Sangkat Sras Chork, Daun Penh, Phnom Penh, is open from 8:00am to 4:30pm on weekdays and 6:00am to 12:00 noon every weekend. For more information on train departure, arrival, pricing, and booking, you can contact Royal Railway at 078 888 582 or 078 888 583 or send them a message through their contact form.Learn more about transportation services in Cambodia in our in-depth location profiles!

Whether you are looking for your dream home or buying a property for investment, the place to be is at the CAMBODIA PROPERTY & INVESTMENT EXPO ’16. It is where the latest commercial, industrial and residential properties from top developers are showcased. What’s more, you can get the best deals as there will be special discounts and free gifts offered only at the Expo. Make sure you drop by at the Diamond Island Exhibition & Convention Centre, Koh Pich, from 8-10 September 2016 for the Biggest Property Show of the Year! When you are at the Expo, you can also visit CAMBUILD’16 – Cambodia’s Biggest International Building, Construction and Interior Décor Show for the latest building and interior design products. See the full list of property developments on show at this year's expo and find out how you can join this years event!

According to Phat Sok, Head of the Land Department from Ministry of Land Management, Urban Planning and Construction, and Ms. Chan Socheata, Head of the Office of Business Management of Housing Development at the Department of Industry and Finance, “Cambodia currently does not have law or regulation in the management of plot land, however the government with relevant ministries are currently working on the drafting a law on “Business Management of Real Estate Development.” ARE YOU LOOKING TO BUY PLOT LAND? Read our ultimate guide to buying land in a plot land development now! Regarding the draft of this new law, Oknha Cheng Kheng, ceo of Huttons CPL said that, “making a law to have legal control over the company selling subdivided plot land is highly significant and timely.” He explained, “we have to think about the positive impact and negative side with the long term health of the market in mind. If this law is applied, it will be able to defend any conflict which is arising after the purchasing of that land. For instance, in the past there have been some companies that have promised to build the road and sewage system for customers within the plot land development, but ultimately they are not keeping their promise. If we have this law, we can make sure that they are legally obliged to fulfill their promises to the buyer." Oknha Kheng also directly questioned the government’s criticism of plot land developers given the current void of legislation. Oknha Kheng notes that “having been a service provider of plot land, I have observed notable progress in the sector. But I have also seen a lack of involvement from the authorities in regards to people’s education surrounding construction quality - some of which directly affects the municipal infrastructure, and the issues this causes when residential properties are under construction. At this early point of the construction progress there are no outright bans or instructions from the authorities guiding the developer. Then, suddenly after the construction is complete it is announced by the authority that the building is illegal. This state of affairs should also be taken into account by the relevant ministry.” Lina Thav, Executive Chairman of POD development in the project of Surin Phom Green Community, said that he supported a law governing the plot land subdivision companies: “Obviously our company wishes to fulfill its legal obligations and all safeguards required by law - such as responding to requests to display the master plan of the project to the government and customers, and the infrastructure plans to the Ministry of Land.” Suy Kokthean, Executive Director of the Vision to Social Advancement Organization, said that “since we do not have legal control over the plot land subdivision currently occurring, this creates problems for customers trying to purchase plot land now and in the future.” Suy notes that “plot land subdivisions have the potential to become areas of anarchy, where people build homes in any way they see fit. This will mean messy and poor-quality construction, building with no respect to borders easements. Furthermore, who will control zoning? What is stopping people from building factories and renting to workers, in the same area other buyers wanted to build a home?” He added “ This is an unpleasant thought for those who will buy plot land thinking it a good place to build a family home in the future.” He finally said, “if plot land management law is applied well, we could avoid these type of issues.” This discussion was held at the recent Cambodian Valuers and Estate Agents Association (CVEA) public forum entitled "Today’s Real  Estate Industry in Cambodia" at the Sofitel Hotel, Phnom Penh. This public forum event was designed to benefit key stakeholders in the Cambodian real estate sector such as developers, construction companies, real estate sellers and buyers, financial institutions and estate agents. Kim Heang, the president of the CVEA, also mentioned about the need for legal control over property sales and urged the government to establish the law relating to the subdivision plot land management law as soon as possible in order to facilitate the industry and to protect the interest of customers wishing to purchase plot land. Heang said that now is the ideal time to define what are the current issues in the real estate sector and find appropriate solutions to fix these problems. If these changes are not made quickly, the consumers will suffer in the longer-term. In particular, regulation is needed regarding plot land subdivision guidelines, condominium sales and development, boreys and correct licensing procedures for the Ministry of Economy and Finance and the Ministry of Land Management, Urban Planning and Construction.  BE A SMART PLOT LAND INVESTOR: Read our ultimate guide to buying land in a plot land development now!

As Cambodia’s only licensed, specialist mortgage provider, First Finance provides under-served Cambodians access to long-term housing finance to grow their security and wealth.And, importantly, First Finance offers some of the most flexible and Cambodian-appropriate conditions for loaning, Kingdom-wide. For those of you who have been seeking a home loan but facing rejections at other banks, please read on... First Finance can help you!Tell us about First Finance:First Finance was established in 2009 after a successful concept testing in 2006 by our local founding company First Home, with joint venture from Singapore based Phillip Capital and Luxembourg based Insitor Fund.Back in 2006, it was very difficult for those who have low-middle incomes to buy a house since banks puts more focus on high income customer. Seeing this challenge, our founding shareholder puts together a concept to provide finance to those with low-middle income to purchase their dream house.Although licensed as MFI, First Finance focuses on micro-mortgage which is very different from other MFIs.What type of customers can loan from First Finance?  First Finance focuses on low-middle income households. Those with regular income are able to apply for a loan from First Finance. This include salaried employee, and self-employed (ie, Tuk tuk driver, shop vendor…etc). Even though the client does not have written evidence of the monthly income, our staff are trained to assess the income and monthly repayment capacity of the client to determine the loan amount.How much can I loan with First Finance?Our product ranges from USD2,000 to USD60,000.Besides home loans, what other services does First Finance offer?First Finance focused on micro-mortgage. In addition to home loan, we also provide loan to construct or renovate a house. Client may also take loan from First Finance to buy land for residential purpose. In addition to the three products above, First Finance also extend personal or business loan to our existing clients to use for personal purpose or to extend/set up new business.In summary, we have four products – home loan, home improvement loan, land loan and home equity loan.Is there anything else you would like to say to your customers?For those who think that they cannot afford a home, we encourage them to visit First Finance as we can help them to own their dream home. In addition to accepting soft title, First Finance allows up to three co-applicants per loan application. For every individual, no matter who you are, owning a home is possible with First Finance.Find out more about home loans today at Realestate.com.kh!

Knight Frank has just released the Prime Asia Development Land Index for the first half of 2016. The index chart’s prime residential property land prices (land used for apartment or condominium development), commercial space land and offices and prime development land across 13 major Asian hub cities. Phnom Penh prime land prices are show to have cooled notably since last year. The report notes that prime residential land index in regards to Phnom Penh land is now at 5.8% in the first half of the 2016, slowing compared to the first half of 2015 when it was as high as 16.2%. This marks a fall in prime residential land prices across the city. Prime Office land similarly was reported to have taken a fall. In H1 2016, the index for Phnom Penh land records 5.6% - compared to 14.8% the same time last year. Prices aren’t falling, but the rate of growth is slowing. The tables show price increases for the first half of the year (5.8% growth for residential) and price growth during the past year – year to June – so the increase from June 2015 to June 2016 (16.2% for residential). Thus, if we double the 5.8% to give an indication of price increases over 2016, we would get 11.6%. So, it’s still good growth, but it shows that the market is slowing down but not declining (11.6% growth compared with 16.2% growth). Ross Wheble, country manager for Knight Frank Cambodia, comments that, “Whilst Phnom Penh land still ranks within the top four cities for year on year growth in prime land prices, for both residential and commercial land, the figures for the first half of 2016 indicate that the rate of growth is slowing which, in part, can be attributed to the anticipated short term oversupply of condominiums which has impacted on demand for land in prime locations. However, whilst the rate of growth is moderating, land prices are still expected to achieve double digit growth over the course of 2016 and we continue to see investment inflows into Cambodia.” These trends in Phnom Penh appear to come with a region wide cooling. The report details that Asia-wide development land investment volumes are on par with the same period of 2015. The residential index slowed in pace to 1.9% across the region, compared to 2.8% the half year prior. However, office development land however rose 3 points, from 1.9% to 2.8%. Want to read more, check out the latest Market Highlights report from Knight Frank Cambodia.

The Phnom Penh serviced offices market is a relatively new real estate market in Cambodia that has made a huge impact on the local business sphere since units started to become available in Phnom Penh a few years ago.Mr. Anthony Galliano – Chairman of BG Serviced Offices in Phnom Penh – recollects from his experience in Cambodia that before 2012, serviced offices was almost a non-existent industry.Galliano explains, “I think, conceptually, the market took its time to understand the model. But it’s been a fantastic business.” He continues to say that serviced offices are now an established business model in Phnom Penh, with many different operators across town.The All-in-one Solution:One of the qualities that have made Phnom Penh serviced offices popular is the convenience of not having to bring in all the tools for business - instead, they are already waiting for you. This is particularly useful for new foreign owned business ventures, especially the small scale, looking to test the Cambodian market without all of the hassle of transporting an entire business abroad.Galliano says that the good thing about set-ups like these is that you’re not just paying for the space. You’re paying for that space and everything in it.But of course, depending on the office grade, different things will be included.The Variations:Galliano details that you can currently rent Phnom Penh serviced offices from the 10 to 46 square meter range and it will only cost you around $25 to $28 per square meter a month. If you are a startup and just need a small office, the 10 square meter unit should be enough for a two-man staff set-up. But prices can still vary depending on which office grade you opt for. Currently, there are a lot of C-grade serviced offices around Phnom Penh.Galliano explains that this is because A-grade offices initially had very high rental prices compared to local norms. But because landlords have come to their senses and gave more realistic rental rates, it’s now seeing an increase in demand.He adds that B-grade offices fill up really quickly now too because it’s better quality than C but still affordable. Another reason for the B grade popularity is because the supply is not as large as C-grade offices, says Galliano.As evidence of this growth in higher grade offices, Regis will be doing higher scale and higher quality serviced offices to take advantage of the growing demand.As a precaution though, Galliano warns that C-grade offices are okay, but you have to look for the right landlord and be able to discuss terms with them. Since this is a lower grade office, landlords tend to be less generous and attentive.Renting Versus Owning:When asked about the developments who are now targeting office strata titles to be able to offer office ownership opportunities for locals and foreign investors, Galliano says that it’s a strange concept because it may not serve the best interest of business owners.He explains that this may cause difficulties in transferring from one office space to another, especially for an expansion or merger. He states, “You don’t want to be stuck owning an asset that you have to pay for,” because it will only bring you additional business costs. He clarifies though that while it may have some potential, right now the economics of this offer just doesn’t make sense to him.No matter the case, there is a clear expectation of continued growth for the office sector in the next couple of years as Phnom Penh continues to attract new business venture from abroad.Find out the latest Commercial space outlook in Knight Frank’s H12016 report!

In their abstract for a paper entitled “Infrastructure Development and Real Estate Values in Meru County, Kenya”, authors Mbaya Murungi and James Gatauwa describe infrastructure as an element that directly affects property value. The ease, convenience, and accessibility these infrastructural developments bring plays a key factor in how properties are sold, anywhere in the world.If this relationship is true, then this should predestine Cambodia’s future real estate growth and can suggest an increasingly positive outlook for buyers getting in the market now. As investors flock towards the nation and its growing economy, newer infrastructures also continue to quite-literally rise from the ground to help both sides of the economic spectrum, the wealthy international investor and the local populous. And while these new amenities will add costs for both purchasers and renters, it will also provide ease and comfort for people moving into different regions of the country.  Phnom Penh International Airport Expansion:Property Report, in their recent article, states their case in showing the correlation between airports and rising real estate prices. They mention a growing interest by wealthy investors with properties located nearby international bound airports, thereby increasing sales of prime developments in the area.As such, a $23 million expansion of the Phnom Penh International Airport by a Malaysian company in 2015 drew an enthusiastic reaction as it was expected to bring in more tourists and more wealthy investors. This was however short-lived as the announcement that the project was halted began to make its rounds, along with news of demonstrations that were being held by neighboring residents of the PPIA. In response to this, soon came news from the Senior Government Minister regarding plans for a totally new airport near the city outskirts. If the plans push through, the government’s target date of completion would be 2025. With this new airport, the government also seems to be considering mass transportation systems upgrades to fast track those travelling to and from the airport into the city.In line with this, new types of multiple entry tourist and business visas are set to come into effect on September 1 2016, easing entry requirements greatly for regional investors and retirees.Completion of Railway to Poipet:Hosting a Thai-Cambodian border in its area, Poipet has long been a transition town where cargo and travelers pass. But delays in this small gateway town have traditionally plagued logistics and trade inefficiencies.One solution that has been put forward and is now nearly within reach is a new railway system that will connect Phnom Penh and Poipet. This new system is expected to allow much more direct access to Bangkok from Phnom Penh and vice versa. With only 6 more kilometers of tracks needed, completion is expected at the end of 2016.In addition to this, Sihanoukville is also expected to experience a boost of trade and tourism through the reopening of the passenger railways that connect it to Phnom Penh.Sihanoukville Port Development: Other than the over-arching improvements currently being implemented in the humble beach town of Sihanoukville, a great deal of work has also been put into the expansion of its port area.Having the only deep sea port in the country, particular emphasis has been made to ensure that it is able to accommodate sufficient trade and transactions. The expansion and functionality upgrades throughout the years has brought many business owners huge benefits and is the overriding factor that is drawing new foreign direct investment into the province. The Sihanoukville Port Multi-purpose Terminal Development project alone, which Japan has helped fund, will cost around $75 million and is estimated to be completed by the end of 2017. The end goal for Sihanoukville Port is that full size cargo vessels will be able to port at Sihanoukville, making long haul import and export around the world less costly and faster. Currently, Sihanoukville can only harbor feeder vessels that would then need to travel to ports such as Hong Kong, Singapore and other regional post in order to transfer containers onto the larger long haul vessels. In the future, full size haulers will be able to travel direct to worldwide destinations.Roads and Transport:With the growing population of Cambodia and particularly Phnom Penh, accessibility and traffic definitely play a big role in the values of residential and commercial properties.So, news of Japan donating 140 new buses, valued at over $10 million, was received well by the Phnom Penh working class. These units are expected to service the citizens much more efficiently by 2020 as bus lines are set to continue to increase yearly. Currently there are 10 lines across Phnom Penh. The regional road systems of Cambodia are also expected to experience changes in the next few years. China – through the firm Henan Provincial Communications Planning, Survey, and Design Institute – will develop an expressway along National Road 4 (Phnom Penh to Sihanoukville) after the go signal was given for the China Road and Bridge Corporation to push through with a proposed highway project recently.This comes at a time when Sihanoukville is under a period of growth and developmental changes; and, as anyone that has travelled to the beach town by road will know, a wider, direct highway will benefit this growth hugely.In addition to this, National Road 5 is also expected to strengthen the efficiency of trade with Thailand through a recent grant from Japan.Learn more about Cambodia in our extensive location profiles!