As the Phnom Penh Urban Area Expands Rapidly, Chaom Chau, Kakab is seeing huge Residential & Industrial GrowthIntroduction:Covering the majority of the western part of the capital, Pou Senchey district (locally called ‘khan Pou Senchey’ or Khmer: ខណ្ឌ ពោសែនជ័យ) is currently the largest of all 12 districts of  Phnom Penh and home to about 184,000 residents. As of today, Pou Senchey is administratively subdivided into 10 communes (locally called ‘sangkat’ or Khmer: សង្កាត់), namely Boeng Thum, Chaom Chau, Kakab, Kamboul, Kantaok, Ovlaok, Phleung Chheh Roteh, Samraong Kraom, Snao, and Trapeang Krasang.It shares borders with four other districts, namely Preaek Phnov district to the north, Sen Sok and Meanchey to the east, and Dangkao to the south.Market Summary:Pou Senchey, since the last decade, has seen a rapid pace of development, especially in the realm of residential, commercial, and industrial sub-sectors, leading to a considerable land price surge across the district. Observed within the period of the past three years, the district experienced an average annual growth of 31 percent in land prices, from US$110 p.sqm. in 2013, when averaged across the whole district, to US$170 p.sqm. in Q3 2016. Within those three years, 2014 and 2015 marked the strongest growth for land prices, yet during the course of three quarters of 2016 the prices were sluggish to move upward due to the situation that overall real estate market has cooled down steadily since late 2015.Fortunately, recent housing and plot land subdivision market stimuli practiced by many of developers have been seen to bolster the market growth again, albeit slowly, and this trend will continue helping boost market demand and thus keep real estate prices from going down negatively.Land Market and Pricing:In general, market prices for land across Pou Senchey district grew 31 percent y-o-y since 2013 until 2015, while the two bustling communes of Chaom Chau and Kakab grew about or less than 10 percent y-o-y because prices in the two communes were already high compared to the rest of Pou Senchey’s other communes.In term of land values and major business hubs, however, Kakab and Chaom Chau stand out from the rest thanks to their strategic locations as well as coverage of prime streets ideal for business positions. Kakab commune is immediately adjacent to Tuek Thla of Sen Sok district, while Chaom Chau commune is westwards next to Kakab.In Chaom Chau, land prices across the whole commune ranged from US$35 p.sqm. in undeveloped zones to a peak of US$1,800 p.sqm. along prime streets (e.g. Confederation de la Russie) and bustling commercial hubs. The average market price in Chaom Chau was US$400 p.sqm in Q3 2016, growing from US$320 p.sqm. in 2013. The average growth for land market prices was eight percent y-o-y.Immediately adjacent to Phnom Penh International Airport, Chaom Chau covers some part of the capital’s arterial street, namely Confederation de la Russie (Russian Boulevard in English), National Highway 3, and National Highway 4. Further, it shares a long distance of Veng Sreng Blvd.With similar geographic positioning, Kakab shares a similar market value as does Chaom Chau, but being closer to the central business hubs of the capital makes Kakab stand out in term of land prices and commercial demand. Land prices in Kakab commune grew 10 percent annually, from an average of US$380 p.sqm. in 2013 to US$490 p.sqm in Q3 2016. Kakab’s land market prices could range from a small base of US$70 p.sqm. in the undeveloped areas to a peak of US$2,080 p.sqm. along prime streets and in the most bustling commercial hubs.Nevertheless, a notable land price growth was mostly witnessed in less developed communes, as speculation seemed to be challenged by high prices in prime hubs and along major streets, but this speculative vision rather spilt over across the underdeveloped suburbs of Pou Senchey. For example, less developed communes such as Samraong Kraom, Kaboul, Snao, and Trapeang Krasang experienced a land price surge of about and more than 40 percent y-o-y, mainly due to their small price base and high price jump, as driven by the trendy development of plot land subdivisions.Samroang Kraom, which shares a long distance of Tomub Kop Srov Road, was seen with a remarkable growth in land prices following the road development that is currently almost complete. In 2013, the average market price of land in this commune was about US$45 p.sqm., and in Q3 2016 the average price reached US$150 p.sqm.. The average annual growth in the Samroang Kraom was almost 80 percent within the period of those three years.Similarly, Kamboul, Snao, and Trapeang Krasang experienced a big jump in land price growth, mainly driven by (1) increasing plot land subdivision development, (2) increasing demand for low-price land parcels and housing in the peripheral suburbs of the capital, and (3) the rapid pace of urban expansion especially since early this decade.Prime Street and Pricing:Chaom ChauChaom Chau is located west and south of Phnom Penh International Airport, being home to a large number of business hubs and residential zones, relatively similar to its neighbor Kakab. Residential towns and commercial activities concentrate only along the commune’s prime streets, thus making property prices along the streets higher than its less developed or undeveloped outskirts.In the third quarter of 2016, average land price along Confederation de la Russie (Russian Boulevard in English) in Chaom Chau commune was US$1,520 p.sqm., with a price range from US$1,400 p.sqm. to US$1,800 p.sqm.National Highway 4, the Kingdom’s arterial road interlinked with the capital’s main boulevard Confederation de la Russia, could be offered on the market at US$430 p.sqm on average. The base price started from US$140 p.sqm in the farther west parts of the commune and a peak of US$1,300 p.sqm. in the areas close to Chaom Chau Circle.On Veng Sreng Boulevard, land market prices could range from US$600 p.sqm in a less developed zone to US$1,550 p.sqm. in a more commercial zone, with the average market price at US$850 p.sqm.KakabKakab is closer to the city center, being home to Phnom Penh International Airport. The commune shares four of the capital’s main streets along which a large number of businesses are based, thus creating high values for land prices there.One of the high value, prime streets in Kakab is Confederation de la Russie (Russian Boulevard in English), along which land price could be about US$1,650 p.sqm. in Q3 2016, ranging from US$850 p.sqm. often for a large portion of vacant land, to US$2,080 p.sqm. for a prime commercial location.Another high value, prime street of Kakab is Street 2004, running off Confederation de la Russie through to Wat Ang Taminh Street. Along Street 2004, the average market price for land was US$1,300 p.sqm., with a range from US$800 to US$1,850 p.sqm.Next, along Oknha Try Heng (Street 2011), which runs off Confederation de la Russie through to the crossing railroad, average land price was US$780 p.sqm., with a range from US$570 p.sqm. to US$1,200 p.sqm. On the other hand, Street 105K is less competitive in land prices. By the third quarter of 2016 the average market price along this street was US$300 p.sqm., even if in the sought-after locations the prices could jump to US$750 p.sqm.Trend & Outlook:Market & Pricing TrendLand price growth across Pou Senchey district seemed stable since early last year, and it is predicted to see a slight increase over the course of the next two years by going through to 2018. In general, Pou Senchey’s pricing growth dropped negatively to 0.2 percent over the course of the first three quarters of 2016, though this has almost no impact on general price growth within the whole district.However, land prices as well as other properties in the form of land in Phnom Penh will start to pick up markly again by 2019.Urban ExpansionThanks to its many available large portions of land for new developments and  land properties with comparatively low prices, Pou Senchey has been seen with tremendous opportunities for urban expansion and relocation or new positioning of complementary services and amenities.Residential towns, several other types of cluster housing, and commercial establishments have been positioned in many different parts of the district, especially the district’s outstanding communes of Kakab and Chaom Chau, resulting in an increase of population there and leading to increasing demand for new housing units and related infrastructure improvements.Opportunities have been there since many years ago for Pou Senchey mainly thanks to its strategic locations, coverage of capital’s arterial roads and main streets, and large space available for urban expansion to host the increasing number of population as well as industrial and commercial positioning. Further, the increasing demand for development parcels with comparatively low prices also offer the district lots of opportunities for growth.Since recent years, it is notable that a number of developments have concentrated in the commune of Kakab and Chaom Chau, both of which shares arterial roads and main streets, along which commercial activities exist to complement the increasing number of residential communities nearby the areas.Tomnub Kop Srov Road, one of the capital’s ring roads, will be soon complete, while Veng Sreng Boulevard was rehabilitated by being expanded 22 meters wide and paved with concrete. Both of the roads run through parts of Chaom Chau and other parts of Phnom Penh. These establishments have created numerous opportunities, added further property values, and drawn new development potentials to the areas, especially along those streets.In Kakab, recent developments are in the realm of residential and commercial subsector. Notable developments under construction are Budaiju Residence (condominium project) and Lion Mall (commercial and shopping complex) along Confederation de la Russie, as well as many other cluster housing projects, both complete and under construction. Up to date, in Kakab commune alone, about 2,700 new cluster housing units have been complete, and 950 are under construction. Nevertheless, 3,300 units of the planned housing projects have been halted construction so far due to unsatisfactory pre-sale results.Industrial Trend:Increasing land prices and rental costs in the zones nearby inner city center will force existing factories that rely on rents to consider relocating to the suburbs such as western parts of Pou Senchey where rental costs and cost of living of workers are much lower. Easy access to National Highway 4, which directs to the Kingdom’s most important seaport, might also weigh the consideration for new factory and other industrial park positioning.As of today, Pou Senchey is already home to 40 percent of the total factories in Phnom Penh, ahead of Dangkao (22 percent) and Meanchey (15 percent).Learn more about Cambodia today in our detailed location profile!Click here to download your free copy!

Key Trends:7.0% GDP for 2016; Predicted 7.1% for 2017.GDP rate higher than South East Asia average GDP by 2.5%.Primary sources of GDP growth includes Agriculture, Garments & Footwear, Construction and Tourism.Construction most dynamic engine of GDP growth for 2016.First 8 months of 2016 FDI in real estate increased over 700% since 2015, totalling $7.2B.Inflation levels moderate.GDP per capita rose almost $100 to $1,216 in 2015, and forecasted at $1,325 for 2016.Cambodia raised to “lower-middle income” bracket as of July 1 2016.US$ appreciation, and a slowing China and EU having some downsides on Cambodian market.   GDP Trends:Rami Sharaf, Member of International Advisory Council, APCO Worldwide, said in an interview with Realestate.com.kh in late 2015 that, “the major attraction for foreign investors considering whether they should invest in Cambodia is the ASEAN-member nation’s steady economic growth: 7.5% average for the last 5 years, year on year. This places Cambodia as the 21st fastest growing country globally.”While this GDP rate has slowed somewhat in 2016, it still sits at a level of growth that is outperforming Southeast Asia’s aggregated GDP by approximately 2.5%, according to the recent Cambodia Real Estate Highlights 1st Half 2016 report from Knight Frank Cambodia.In 2015, the Asian Development Bank (ADB) had forecasted GDP growth for Cambodia at 7.2% for 2016. However, this growth rate was retracted slightly by the ADB this year to 7.0% for 2016, and forecasted for 7.1% in 2017.The Word Bank agrees with ADB’s index prediction for 2016. The Bank cites that “the garment sector, together with construction and services, are the main drivers of the economy. Growth is expected to remain strong in 2016, as recovering internal demand and dynamic garment exports offset stagnation in agriculture and softer growth in tourism.”Downside risks cited by the World Bank also include “potential renewed labor issues, continued appreciation of the US dollar, slower economic recovery in Europe, and spillovers from a slowdown in the Chinese economy.”Given the comparatively high reliance of the economy on the garment and footwear industries, Knight Frank Cambodia mentions that, “there is a growing need to improve the quality and productivity of the labour force for Cambodia to sustain GDP growth at current levels.”If Cambodia cannot continue to support the quality, price and productivity efficiencies of the garment and footwear industry, key market investor groups may look to shift their manufacturing operations to other destinations that can produce more-competitively than Cambodia. If this occurs, Cambodia’s GDP will take a sharp decline.Diversification of industry is another mechanism that Cambodia can use to combat potential risks of a decreasing garment and footwear market share, and this is something being actively promoted within the Council for the Development of Cambodia’s (CDC) Cambodia Industrial Development Policy 2015 – 2025.The need for the Cambodian Government to take an increasingly proactive approach to long term economic policy was also mentioned by the World Bank, suggesting the benefits of the ASEAN alliance may take some time to directly influence GDP levels: “Improving the overall business environment would enhance competitiveness across sectors, underpinning product and market diversification, while also helping firms to be well prepared to take advantage of the single market and production base goal set by the ASEAN Economic Community.”Nevertheless, both the ADB and the World Bank were in agreeance that with the current economic growth trends and the continuance of moderate levels of inflation, disposable incomes for the Cambodian population should continue to increase yearly, supporting domestic consumption growth and improving overall economic stability in the medium-to-long term.The Cambodian Ministry of Economy and Finance cited that GDP per capita was $1,135 as of 2014, rising to $1,216 in 2015, and forecasted at $1,325 for 2016.Meanwhile, as Cambodia was reclassified by the World Bank from “low-income” to “lower-middle income” as of July 1 2016, there is potential for a reduction in aid and development support and a potential decrease in preferable trade duty exemptions.Lower-middle income criteria means there is now a Gross National Income (GNI) per capita falls between $1,026 and $4,035, as compared to less that $1,025 for low income nations.The Bank states that, “improving the public investment management framework to scale up publically financed infrastructure would be advisable in the face of declining donor-financed capital.”Given that this new classification may influence agreed duties and tariffs for trade from Cambodia to certain key markets, this also calls for continued improvement in the skills and efficiencies of the garment and footwear sector (as noted above). Higher barriers for trade will mean that costs of manufacturing will need to decrease in order to maintain the sector’s international competitiveness.While this new classification may mean a lower reliance of foreign aid for Cambodia, an increase in the lower-income bracket seemingly should benefit the retail and retail real estate sector, increasing disposable incomes and fueling consumer expenditure. It should also have positive effects for the domestic residential real estate market moving forward, increasing the number of earners applicable for home financing and higher standards of accommodation purchasing and renting generally.FDI Trends:According to the ASEAN Investment Report 2016, foreign direct investment (FDI) into Southeast Asia's least developed countries grew at the end of last year. According to the report, Cambodia, Laos, Myanmar and Vietnam saw a 38% increase, supposedly due to multinational companies entering the markets to stake their claim in the newly formed Asean Economic Community (AEC).However, overall FDI flows to Southeast Asian Nations bloc dropped by 8% in 2015, to $120 billion. EU investment fell 20% to $20 billion; and U.S. capital decreased by 17% to $12.2 billion.Nevertheless, Foreign Direct Investment (FDI) in the Cambodian property sector continues to grow rapidly. Total investments in real estate were $7.2 billion between January and August 2016, representing a massive 700%+ increase from the preceding period.  The source of this FDI is various, with a total of 18 countries contributing. Yet the MLMUPC states that China was ranked number one for construction and property FDI, South Korea second, and Japan third.Construction Trends:In a recent construction sector report, the MLMUPC said it had approved 1,753 projects worth $7.2 billion in the first eight months of 2016, compared to 2,305 projects worth $3.3 billion in all of last year, a 400%+ increase.   Since the year 2000 until June 2016, the MLMUPC has been said to have approved approximately 35,206 projects, equal to 85 million square meters countrywide. For this 16 year period, a total $32.3 billion construction investment has been accomplished by the Kingdom.Meanwhile, the MLMUPC has also released information for the first five months of 2016 that confirms 990 new construction projects have been approved since the start of the year, compared to just 2,305 approved projects throughout the the whole of 2015. Local media have speculated that this is in part due to an increase in administrative efficiencies within the Ministry in 2016.The World Bank accounts for this large increase in demand for housing and huge investment in the construction industry as an indicator of the return of political stability in Cambodia and rising incomes amongst the general population.According to Ross Wheble, country manager of Knight Frank, in the Cambodia Real Estate Highlights 1st Half 2016, the outstanding turnout of new construction projects in 2016 so far has ultimately led to a stage of moderation as a means to address the short-term risks in the market. By doing so, Cambodia has the potential to climb the ranks and outperform Southeast Asia through the process of diversification, and “robust growth is expected to continue.”Recent reports state that the Ministry of Economy and Finance estimate construction growth will moderate to 15% in 2016, and 10% by 2020, compared to 19% in 2015. In slight contrast, The Cambodia Infrastructure Report from Business Monitor International suggests that overall construction sector expansion is forecast to grow 9.9% in 2016 and 9.8% in 2017.However, approximately 10-20% of launched projects have halted construction in the first half of 2016, according to various industry sources. Hence, it is unlikely that these halted projects have been accounted for in the reports released to date in 2016.  Learn more about Cambodia today in our detailed investor guides!Click here to download your free copy!

Realestate.com.kh caught up with Mr. Ouk Chandaravuth recently at the B.T.S Condominium showroom at the Russey Keo district to talk about the condominium project in detail.Chandaravuth is the Marketing and Sale Director of the Borey Villa Toul Sangke Group. He discusses the current state of the development and why it’s an attractive choice for both personal and investment purposes.Here’s what he had to say:1. Tell us about the location of Borey Toul Sangke Condominium?The B.T.S Condominium development project has gained popularity, mainly due to the developer’s success in selling its past projects. It is strategically located in the Russey Keo district in Phnom Penh. Residential units such as condominiums are offered in this area.The Borey Villa Toul Sangke project also includes a variety of villas and condominiums that come in different sizes. Each and every home has been designed by construction professionals, with quality and beauty in mind. Attention to detail is also obvious. Some of the villas that are available are the Single Villa, Link House, Twins Villa, and Flat houses. Families will also have the option to choose the City Sangkeo Villa type, as they see fit.2. What types of units are available and at what price ranges in the Borey Toul Sangke Condominium project?174 residential units with a variety of sizes are available. The interiors have been uniquely designed by a team of experts, and finished with high quality construction materials. Units at the B.T.S Condominium development start from $40,000 per unit. All units are packaged as one-bedroom spaces, beginning at 50 square meters up.... (We have different size). It also has a smart design, with fittings that allow a unique, spacious, and modern layout throughout each unit.3. How are the sales to date?Around 3 months after the launch date, about 30 percent of the units had already sold. We have proven to the market that the local project has gained the trust of both international and local buyers.4. What is the parking situation like?The B.T.S condominium provides comfort for every resident. The number of parking spaces add up to about 85 percent of all the units and also have security features in place. This is the highest parking space ratio, compared to other recent high-rise buildings in the area.6. Do you have bank loans available or other payment methods?We don’t have any loan schemes in place with a bank, but we have a special method in place for people interested in the B.T.S condominium. The developer provides the ultimate offer by asking customers to only pay $660 per month, with no interest and no deposit.7. Tell us about the unique features of this project?The B.T.S condominium is on a great location, in Russey Keo. It is situated in the business district and sits close to main roads, government institutions, shopping malls, sports clubs, banks, hospitals, schools, and entertainment facilities. More importantly, it’s also located close to the Toul Sangke Market.It promotes a high standard of living through its fully furnished units – comparable to a 5-star hotel. The B.T.S condominium project also provides a range of amenities such as swimming pools, a sauna, a gym, a small market, and a golfing club. So, families will never run out of things to do in this project.8. Why is the Borey Toul Sangke Condominium project better than the others?When people visited the B.T.S. Condominium showroom, they were surprised to see the quality and the workmanship of the unit. We focused on the quality and the best standards of living for families. This is the 3rd project after two successful ones that the Borey Villa Toul Sangke did. People will find interest in it because it offers better standards.A home is important for everyone. So, if you decide to buy one, it must be done carefully. So, if you’re considering to live in a luxury residence with a high standard of living, surrounded by a secure and peaceful community, take a look at the B.T.S. Condominium project.Check out the full B.T.S. Condominium listing on realestate.com.khClick here to download your free copy!

There is an ongoing discussion about the supply of condominiums in the country, and the same question gets asked over and over again – whether it’s true that the country's condominium supply is more than the demand, and how that will affect the condominium market in the future. Realestate.com.khTV discussed this with Mr. Yin Leangkong – editor in chief of the magazine Property View, and presenter and editor of real estate and economics at BTV.A recent Knight Frank Cambodia report stated that “the condominium sector is forecast to grow by 723.5 per cent” by 2020. And The 2016 Century 21 Condo report estimates that there will be over 37,000 units to be released into the market by 2020. What are your thoughts on this and the current talk of a looming oversupply? Do you agree? And how will this affect the market moving forward? In my opinion, I both agree and disagree. If I talk about the negative side, we can just briefly look at the Cambodian lifestyle. It seems that the residential condominiums are not yet popular in the country. Although some people started buying condos gradually, some of them still worry about safety when living on high-rise buildings. For the moment, we cannot adapt. So, the projected surplus in the condominium market, it’s true.The number of condominiums in the current market hasn’t reached 4,000 units yet. But the number of condos on the market could potentially reach a figure of around 40,000 in 2020. So, I’m optimistic that the people's mindset will change in the next 10 to 20 years before the population growth in the year 2025. People have more difficulties to deal with the traffic growth of our country's.And since the economy is affected by these factors, the value of property is already at $40,000 to $50,000. At this price point, we can buy an old flat (second or third floor). If this is the case, the best option is to just buy a condo unit, a standardized housing that provides features such as safety, modern way of living, and other services. We saw it happen already in Thailand, Vietnam and Malaysia.Are there condos worth $40,000 to $50,000?Condominiums worth $40,000 to $50,000 are available in the market and have a strong potential for purchase among the young and middle-class local citizens. It is a response to market conditions. A number of local buyers who purchase luxury condominiums are foreigners or those who have higher living standards.What is the impact of the condominium surplus for buyers?It doesn’t affect the buyer too much. In fact, investors are the ones that will be affected. When the number of condominiums surplus, that means that there are no buyers. So, investors or condo owners are forced to give a discount.If we talk about the price comparison to neighboring countries, the condominiums in Cambodia are cheaper. But if you talk about value for investment and construction, there’s a huge difference because those investments are much more profitable. So, they can afford to give discounts to people who are in the middle-class range who cannot afford to buy housing – a point that many experts have suggested as well. You can invest for profit, but you should also consider the social aspects. Investors should work with people not only for business profit, but also because of a common interest to help them.Given the current market conditions, should investors invest in Cambodia or not?One of the questions investors ask is if it’s the right time to invest in the country, given its current market conditions. Investors will continue to repeat that question. The current political situation in the country is heating up, and the issue of election season is worrisome for some investors. But other investors think that it’s just the same occurrence in almost every country. So, they don’t worry about anything.In my opinion, should investors wish to make an investment in a community of the country, it should be based on the country's economic situation. Cambodia’s a tiger in Asia because of the country's stable economic growth of about 7 percent over the past five consecutive years. The macro-economic growth of the country has improved as well, according to a press release from the Ministry of Economy and Finance.Read more about: Are Cambodian living tastes changing?Click here to download your free copy!

With Strata titles being the more popular choice to enter into the Cambodian real estate market, some foreigners are not aware that they are actually able to utilize other means to own, or at least control, landed properties and land. Grant Fitzgerald, Country Manager of Independent Property Services, reveals – in his interview with Realestate.com.kh – other ways of buying land as a foreigner in Cambodia.Buying Land as a Foreigner in Cambodia via Nominee:Although a bit riskier than buying in your own name, Fitzgerald says that a widely-used method of buying land as a foreigner in Cambodia is through a nominee structure.He explains that “essentially, the nominee structure works by the foreigner buying for the property. However, the title is held in a Khmer national’s name.”But he clarifies that there are security measures that foreign nationals can take in order to protect their investments.He says that you need to secure four documents as a foreigner to buy through a nominee –  1) a mortgage agreement, 2) a loan agreement, 3) a lease agreement, and 4) a security agreement.1. Mortgage Agreement:He explains that a mortgage agreement is registered through the Sangkat and transforms the buyer into a bank, granting property activity by the Cambodian Citizen only through the approval of the foreign national.2. Loan Agreement:Meanwhile, he says that a loan agreement is a “paper loan that accrues interest over time” and is made between the foreigner and the nominee.3. Lease Agreement:He continues, the lease agreement “essentially allows the foreigner to live on the property” through a 50-plus -50-year lease agreement.4. Security Agreement:And the security agreement just basically sets out the obligations and limitations of each party. What Types of Titles Can Foreigners Own Through the Nominee Structure?Fitzgerald expounds that through this structure, foreigners are able to own any type of property or title. He says, “It’s all about setting it up correctly and using those security documents. When it’s done properly, it’s really safe and really effective.”Can Business Entities Own Land in Cambodia?Fitzgerald says that it is possible to own land as a company in Cambodia through a process similar to a nominee structure, but you have to set a specific type of business that you need to do through a lawyer. These are called land holding companies.He explains that a Cambodian national would still need to hold 51 percent of the company, but there are also legal documents these business entities can secure to gain majority of the power and rights, even with just 49 percent of the company shares.Check out our ultimate guide to buying through a nominee structure in Cambodia and learn more!  Click here to download your free copy!

A state visit between the  Cambodian government and the Government of the People's Republic of China last 13th and 14th of October 2016 was participated by both Prime Minister of Cambodia and President of China.This visit in Cambodia brought about an agreement and a memorandum of understanding of 31 points related to various fields, including the strengthening of international cooperation, economy and finance (business), taxation, law enforcement, industry and handicrafts, water resource management and  irrigation, environment, and infrastructural construction.Meanwhile, in the afternoon of October 14, 2016, Sun Chanthol – Minister of Public Works and Transport – signed an agreement for 3 major construction projects with China that are expected to begin construction in 2017. The three new projects include the National Highway projects from Phnom Penh to Sihanoukville, National Road project No. 11 from Neak Loeung to Tnal Toteung, and a project for a bridge across the Mekong river, in the area of Kroch Chmar to Steung Trang.National highway Project from Phnom Penh to Sihanoukville:This project will be built and managed by a private company before transferring to the Royal Government. It will be developed by the China Road & Bridge Corporation (CRBC).The whole project will cost a total of about $1,900 million. According to minister Sun Chan Thol, this new project will be serving as a significant, convenient, and fast transportation means for both locals and international visitors moving between the two areas.  National Road Project No. 11 Between Neak Loeung and Tnal Toteung:   This infrastructure project aims to restore the existing National Road No.11 from Neak Loeung to Tnal Toteung that’s developed and managed by the Kwangchow Van An Construction Management Company. The project will cost approximately $98 million and will measure 96,481 kilometers in length and a road width of 11 meters. The Bridge Construction Project Across the Mekong River Kroch Chmar – Steung Trang:This infrastructure project will build a bridge across the Mekong River in Kroch Chmar district, Tbong Khmum province all the way to the Stueng Trang district in the Kampong Cham Province. This project will cost a total of $57 million. It will have a length of 1,131 meters and a width of 13,50 meters.It’s important to note that along with the construction of the bridge, there is also another project being planned as a technical control project over a the bridge in order to control other technical aspects that will be done in cooperation with the Kwangchow Van An Construction Management Company.Among the 31 points in the agreement and the memorandum of understanding between Cambodia and China, there will also be more agreements for other real estate and infrastructure developments that will be done successively in the future such as: Exchange of Note on the Construction Project for Medical Center Cambodia - China Chinese Yuan Loan Agreement for the construction of Road No. 51 Concession Agreement for the development of the Siem Reap - Angkor International Airport Chinese Yuan Loan Agreement for the construction of Second Ring Road City Protocol Agreement for power plants, operating by coal, 450MV power in Sihanoukville Keep up with the latest infrastructure news on Realestate.com.khClick here to download your free copy!

Since January this year, CARE Cambodia and partners have been undertaking the Labour Rights for Female Construction Workers Project, funded by the EU and the Austrian Development Cooperation.Yet who are female construction workers? And why should CARE and construction companies assist them? Initial research for the project reveals some insights.The majority of female construction workers are married with children, and working on constructions sites with their families. They are mostly over 30, a much older cohort than other female workers in other unskilled occupations, such as the garment or entertainment industries. Most women working in construction have little education and have migrated to work in Phnom Penh because they are poor. CARE’s research identifies that these women workers have little knowledge of their rights or protections.Both women working in the industry and employers report that women bring particular skills to the work they do. “Women are good at detailed tasks such as tying metal rods together neatly and they work faster than men.” “Some of women working here can mix cement very well, better than men. They  are  very  organised,  put  away  materials  after  they  complete  their  work, and they clean well.”Despite this, nine in ten female construction workers report that they don’t get paid as much as men and many report that the jobs they do are not the same as men. Roles, responsibilities and rights are different between men and women working in the construction sector and this has implications for both workers and employers.CARE’s training, delivered in partnership with the Ministry of Labour and Vocational Training, explores these issues. It covers the topics of: gender and culture, labour rights, rights for women, and occupational safety. Attendees will gain greater insights into the situation of their female workers, and may learn of ways that women can be both protected as employees and encouraged to work to their full potential.The next training will be held on 25 October and places are limited. More information is available in both English and Khmer. Further sessions will be held in November and December. To reserve a place for your company, please contact Ms Eat Sopheak on 012 721 321 or sopheak.eat@careint.org. Training will be in Khmer.If you would like more information about CARE’s project, please contact the Project Manager, Ms Kalyan Rath, at kalyan.rath@careint.org or Adviser, Ms Adriana Siddle, at adriana.siddle@careint.org.Learn more about real estate news on Realestate.com.kh!Click here to download your free copy!

A study of the Cambodian condominium market shows that buyers and developers often forget to take into account the internal regulations and the management of a condominium before purchasing or selling condominium units.Failure to do so can strongly affect the real estate asset, as internal rules and condominium management can have significant impacts on the value of the units.Some clarifications on the Condominium Law in Cambodia:Since the enactment of Sub-Decree No. 126 on the Management and Use of Co-Owned Buildings, dated 12 August 2009 (“Sub-Decree No. 126”), and the Law on providing Foreigners with Ownership Rights in Private Units of Co-Owned Buildings, dated 24 May 2010, the development of condominiums have significantly increased in Cambodia and, in particular, in Phnom Penh.Indeed, many developments, driven by international and domestic developers, have already been completed and many others are currently in construction with plans to be delivered in 2017 and 2018.  As a consequence, the real estate market in Cambodia provides potential buyers with a lot of options. However, before deciding to purchase, any potential buyer will have to consider various factors, such as the location of the condominium, the description and quality of the materials used, the size and price of the unit, the identity and experience of the developer, and the construction insurance policy.Two others factors, often forgotten, must also be reviewed as they can have a significant impact on the value of the unit and on the sought-after quality of life in a condominium: the internal regulations and the management of the condominium.The internal regulations are essential for a condominium and that is why these regulations are compulsory towards all current and future unit owners. They define the rules of life within the condominium and, in particular, the organization and functioning of the condominium on both legal and practical levels.The purpose of the internal regulations are also to set out the rights and obligations of the unit owners, to define the common areas and the private units and determine their conditions of use, to organize the management of the condominium and determine how expenses, in particular related to the cleaning, maintenance and repairs of the common areas, will be shared by the unit owners.The Royal Government of Cambodia understands that the internal regulations must be reviewed by a potential buyer before that buyer may decide to purchase a unit. Indeed, Sub-Decree No. 126 provides that the internal regulations must be issued at an early stage of the project (i.e. “before announcing the sale or rental of the private units of the co-owned building”)Another indicator of the importance of the internal regulations is the fact that they are required by the Land Office for the registration of the condominium and the issuance of the title certificates for each unit.Therefore, developers and buyers cannot overlook this document which will be in force during the whole life of the condominium and which may be used to resolve many issues which may arise between unit owners in a condominium or between a unit owner and the condominium itself.  It is, therefore, important that the language of the internal regulations be comprehensive and precise to allow for the amicable and efficient resolution of any problem that may arise. Sub-Decree No. 126 provides in its appendix a template of internal regulations.However, this template is very brief and fails to cover many topics such as the use of the common areas, the creation of a contingency fund, the security of the condominium, the powers and responsibilities of the management board, the holding and decisions of the general meeting of the unit owners, and the insurance policies of the condominium, etc.Consequently, it is highly recommended for developers to request the assistance of a professional (especially lawyers) for the drafting of their internal regulations in order to have a clear and comprehensive document. This will improve significantly the quality of the condominium and will surely give comfort to potential buyers.Furthermore, it is also recommended, before purchasing or selling in a condominium, to take into account its management.Indeed, proper management is essential for the good and efficient operation of the condominium so as to not negatively affect the value of the units.Sub-Decree No. 126 provides that a condominium should have a management board or an executive committee set up to manage the condominium but the sub-decree does not specify when the committee or board should be set up and if they are able to delegate their powers. Therefore, the unit owners are free to choose their mode of management and to organize it in compliance with their internal regulations.Generally, two options are offered to the unit owners for the management of their condominium. Unit owners can decide either to assume the management functions themselves or they can decide to appoint a third-party property manager who will bring its knowledge and professional expertise.We have seen in Europe, America and Asia, many cases of bad condominium management due to a lack of qualifications and experience. In these cases, the cleanliness, the maintenance and all necessary repairs and works may not be carried out in time. This always leads to deterioration or damage to both the common areas and private units. This will, of course, ultimately increase the expenses for the unit owners compared to the sums paid for proper maintenance and timely repairs.  We are also aware of many cases where the fees are not collected on time or where many mistakes have appeared in the accounts of the condominium or where inaccurate budgets have been adopted.All these examples of bad management have always for consequence an increase in the expenses and stress for the owners of units and a decrease in the value of the units. This also almost undoubtedly leads to a unit owner who wishes to sell or rent the unit receiving lower value than where proper management is in place.  Therefore, it is recommended to appoint to management qualified people who have the experience and systems in place to handle financial, legal and technical issues and have resources and relationships to ensure that the condominium runs efficiently.The duties and obligations of the property manager will depend on its mandate and the provisions of the internal regulations. A property manager can be responsible for day-to-day management duties, including ensuring compliance and enforcement of the internal regulations, carrying out the technical management and all necessary maintenance, work and repairs, preparing the agenda for the general meetings and the annual budget of expenses and collecting the condominium fees from the unit owners.In conclusion, we would like to highlight that the drafting of the internal regulations and the right management choices are crucial in order to preserve the value of the condominium units and to ensure that the building runs successfully. A high quality condominium building alone is not enough to attract quality buyers and to provide the sought-after quality of life in a condominium.  Clear and comprehensive internal regulations linked with highly qualified management and a high quality development will attract investors and tenants.ON THE AUTHORSING Sophealeak and Charles AMAR, lawyers at Bun & Associates, advise domestic and foreign clients seeking expert advice and innovative solutions in dealing with significant and complex transactions involving both raw and developed properties.  Their work includes advising on all issues relating to real estate investment, project development, construction, asset management. Our real estate team has also hands-on expertise and experience in advising clients on matters related to economic land concessions, special economic zones, agriculture, the environment and mining.For further information, contact: Fax: +855 23 999 566Telephone: +855 23 999 567Website: www.bun-associates.com E-mail: ing@bun-associates.com / amar@bun-associates.comAddress: Bun & Associates#29, Street 294, Phnom Penh, Cambodia, P.O. Box 2326This publication is for your information only. It is not intended to be comprehensive and it does not constitute and must be not relied on as legal advice. You must seek specific advice tailored to your circumstances. Any use of the information contained in this article or the receipt of this article is not intended to create nor does it create a solicitor-client relationship between you and Bun & Associates. Unless otherwise indicated, Bun & Associates owns the copyright of this article. If you seek to reproduce or otherwise use this article or any part of it in any way, it is your responsibility to obtain approval for such use where necessary.Interested to purchase properties with high appreciation poteential? Check out our investor guide on the topic!

Despite recent announcements of large development projects throughout Cambodia focusing on so-called “affordable housing” for the emerging middle class, there remains a massive gap in the market for quality affordable housing for the poor; especially the urban poor as more rural Cambodians flock to cities in search of work. As land prices continue to skyrocket in Cambodia’s commercial centres, those in need of lower-class housing are effectively pushed further and further from worthwhile economic opportunities.Two NGO’s are currently seeking to close this gap, and have discovered a common theme: the need for co-operation and a culture of constructive dialogue between the private and public sector, and NGOs.Habitat for Humanity International is present in 70 countries worldwide, seeking to eliminate poverty housing and homelessness from the world.As Kif Nguyen, national director of Habitat for Humanity Cambodia stresses, “research shows that about 2 million houses in Cambodia do not meet minimum quality standards when it comes to design, durability, access to water/sanitation but also land tenure. Sub-standard housing is one of the key bottlenecks to inclusive, sustainable development across the nation – because poor housing in not only the consequence of poverty, but also a critical root cause.”Furthermore, says Nguyen, “by 2030, according to the National Housing Policy, Cambodia will need 1.1 million more houses to fulfill demand, and the vast majority of this demand will come from the lower-class particularly in urban areas.”Meanwhile, Building Trust International, a UK registered NGO, offers building design assistance to communities and individuals in need. David Cole, CEO of Building Trust International which has offices in Cambodia, believes that “housing can be a tool to inspire family [and] community investment in areas long after the initial projects are complete - through incremental housing design; and in the formation of jobs and training.”In Cambodia, both of these NGOs provide support for sustainable housing solutions that can meet the needs of the growing urban and rural poor. They also promote transformational community development through financing low income home loans, and encouraging support for their projects from both the private and public sector.A recent project in which Habitat and Building Trust has collaborated on in Cambodia is the design and implementation of the “Framework House” project, a highly sustainable, affordable house built from local bamboo and wood, costing the end buyer just $2,500.Cheap, but highly innovative, these homes are specifically designed for Cambodia. Shutters help encourage air flow and passive ventilation throughout the house while large, overhanging roofs allow for water catchment.The design and testing phase for the Framework House is complete, and the two organizations are now turning towards the next phase: higher-density multi-storey social housing design for urban areas. However, to make these projects succeed on a large scale, both organizations understand that assistance from the public and private sector is crucial.According to Nguyen, the government has already provided assistance and has shown some general willingness to further the collaboration into a larger scale. For instance, in Battambang, Habitat worked with the local Government to facilitate secure land tenure to families who have lived precariously on a large swath of public state land for many years.While the process of gaining secure land tenure is just the first step for sustainable housing development, Nguyen lamented that “it wasn’t easy. But, it can be done.” After each family receives a land certificate, Habitat then assists with the on-site development of homes and infrastructure projects such as roads and drainage systems.“Provision or subsidies of land is the key. We have the technical solutions – we can build affordable homes of high quality, as Habitat has done around the world, but as land prices soar in urban areas, we need support from the public and private sector in gaining access to land in adequate locations and at prices which won’t exclude the low income earners from the market,” added Nguyen.Through “Land Sharing” initiatives in which the three sectors genuinely co-operate, Nguyen firmly believes all Cambodian’s could achieve a decent standard of living. “The NGO sector has the knowledge of social housing and technical ability to design these projects; the private sector has the money; and the Government may facilitate access to land. If we create a culture of co-operation and constructive dialogue between these three sectors, we can change the status quo – and everyone can win.”Market Development is also another string on Habitat’s bow in Cambodia, as the organization supports low-income families in gaining access to home loan finance.“We helped 6000 families’ access home loans last year alone, but with increased support from the government, we have the potential to bring home financing to the masses. It is a viable market, and the largest share by far – but it requires more understanding and education throughout the lower-class and within the micro-financing industry,” he said.“In Cambodia’s three main urban centers, namely Phnom Penh, Battambang and Siem Reap, existing communities will need a portion of subsidized land for low cost housing or else today’s baby boomers will be priced out of the highly inflated, speculative land prices - which is increasingly what we are seeing,” says Cole. Currently, the rapid urbanization being seen in the city suburbs are pushing organizations like Habitat to look as far afield as Oudong when seeking affordable land to house families in need.“Whilst it is good to hear that people are talking about investment in affordable housing without government subsidies, says Cole, “the cost of units in these projects will still exclude many key workers and service professionals, or indeed lead to unsustainable debts and the social problems that follow.”“If real affordable housing of a good quality is to be achieved in urban centers such as Phnom Penh, we believe that the government must either provide land at a subsidized rate for building, or allocate land and build municipal housing with the support of organizations like Building Trust and Habitat - with fixed rents being paid to the government to recoup costs, maintain and build further projects,” confirms Cole.Click here for current  properties for sale in Cambodia and current properties for rent in CambodiaCheck out the best real estate news on Realestate.com.kh

Serving as a stronghold for political and economic stability for seven decades, the Kingdom of Thailand is now at a standstill as it grieves the loss of King Bhumibol Adulyadej – the world’s longest serving monarch. The King, who also served as Thailand’s main father figure, passed away yesterday at 2:52pm, Thailand time. The Royal Household Bureau characterized it as a peaceful death.Dealing with Uncertainty:Meanwhile, as crowds gathered at the hospital to show their sympathy, many are also concerned about economic changes arising from a new leadership. The King’s governance had brought about both political and socio-economic stability for the past decades. Some fear that foreign property investors in Thailand, a traditionally popular market in the region with attractive returns on investment, will see this small window of uncertainty as a foreshadowing of a decline in the market.Alex Evengroen, ceo of real estate firm Key Real Estate Co., Ltd., weighs in on the situation and says, “The challenge in Thailand’s real estate industry will be to keep improving and moving forward for foreign as well as for the local investors in Thailand. We will have to wait and see if in the near future the policies in Thailand will stay as it is or will become more flexible for people worldwide.”Property Investment Moving With or From Thailand?Although mixed perspectives are being drawn from this unfortunate event, some experts are hinting that potential investors may choose to place their money in nearby emerging countries like Cambodia until these uncertainties are eliminated and stability is once again ensured.Bobby Peoples, Country Manager of HomeConnect  Cambodia – a premier expat home search company – explains, “Due to the death of King Bhumibol Adulyadej, the military junta must show the Thai people during the following period of uncertainty that they can provide security, stability and political reconciliation. If they fail, both Thai investors and foreigners looking at property investment in Thailand may look to Cambodia as a safer option. Although this remains to be seen.”Evengroen, however, remained skeptical. He explains, “As a specialist in the Real Estate industry I do not think it will affect the Real Estate market in Cambodia due to the fact that not many Thai investors or homebuyers have invested in the real estate sector in general.”But Evengroen remains hopeful. He continues, “I hope that in the near future both countries will come together and discuss potential opportunities for the industry what hopefully will improve the ties and strengthen relationships for the future.”The world has lost a great man, and Thailand has lost the father of its people, but is it also about to lose an economic battle? The next few days are critical, and people will be at the edge of their seats, anxiously waiting as Thailand enters into a new chapter of its history.  Keep up with the latest real estate news, every day of the week!Click here to download your free copy!

Within the past two decades, different forms of land titles have popped up. Transactions have made a steady change as a result of that.And Grant Fitzgerald – Country Manager of IPS Cambodia – gives a bit of an overview on each type of title during his recent talk with Realestate.com.kh.Soft Land Titles in Cambodia:Fitzgerald mentions that soft titles are the most common form of land ownership. Around 85 percent of all properties in Cambodia are owned through a soft title and are registered both at Sangkat and Khan – council and district – levels only. He mentions that soft titles are transferred in less than 10 working days at a low cost.Hard Land Titles in Cambodia:Fitzgerald explains that hard titles are “the strongest form of ownership here in Cambodia.” Hard titles are registered at a national level – through the Ministry of Land Management, Urban Planning and Construction. Transfer of hard titles are done at the cadastral office and usually takes 12 weeks to complete. You also have to pay a 4 percent transfer tax.LMAP Land Titles in Cambodia:Fitzgerald explains that the LMAP or the “Land Management and Administration Project” came into existence in 2002 with the help of the World Bank. He says that the project was designed “with the idea of improving the quality of the information on the property titles here in Cambodia.”Similarly, the transfer costs and timeframe are almost the same between LMAP titles and hard titles. The difference though is that LMAP titles are anchored on GPS points and are aimed towards more rural geographical locations.Co-ownership “Strata Titles”:Fitzgerald explains that “strata titles are available for foreigners, where the others aren’t.” He also mentions that strata titles have a much more specific set of qualifications. Among these qualifications is the restriction of foreign ownership of up to only 70 percent of a building, provided that it does not touch the ground floor. It’s only applicable for buildings built after 2010 and should not be within 30 kilometers of any national border.Strata titles are also recognised at the Ministry of Land Management, Urban Planning and Construction.  And both transfer time and transfer costs are similar to Hard titles and LMAP titlesCheck out IPS properties for sale and rent on Realestate.com.kh today!

Details are emerging in the market regarding a major new development project in central Phnom Penh. Royal One, a project of the Royal Group of Companies (Cambodia), will have two towers and stand with a height of 62 floors. It will be located strategically along Monivong Boulevard – in front of the Ganesha Statue, not so far from the airport – and will have a view of the cityscape.Innovation and Design of Royal One:The Royal One project has been designed around the concept of effective land use, allowing two towers to fit into a relatively limited land area - the plot being located on Monivong Boulevard, near to Central Market and Canadia Tower. The first of the two towers will serve as an office building and the second one as a hotel and residential building. A retail podium will also be constructed, along with several parking  floors.Aesthetically, the developers will be utilizing lines and patterns as an attempt to give it a modern and sophisticated appeal. They also plan to feature a modern man-made waterfall in between the two buildings, further intensifying their aim to turn it into a “forever landmark”. Prices for luxury condominium units are projected start at around $3,500 per square meter. The construction of The Royal One development will start in 2017 and is expected to reach completion by the end of the year 2021.About the Developer of Royal One:The Royal Group is a holding company and a large diversified conglomerate that has investments across various Cambodian industries – telecommunications, banking, resorts, education, media, insurance, trading, property, and agriculture. Among the many successful projects they’ve invested in are the Embassy Palace Serviced Apartments, Northbridge Communities, North Park Condominiums, Royal Park Resort in Siem Reap, Hotel Cambodiana, Titan King Casino & Resort Hotel, and the Royal Railway.Find out more and inquire about ROYAL ONE this project today!Click here to download your free copy!

Dear Valued Readers, We are delighted to announce the release of the October 2016 edition of the "Cambodia Real Estate" magazine, powered by Realestate.com.kh! Being part of our exclusive subscribers database, you will have the chance to access our online version before anyone else in the country! In this edition of the Cambodia Real Estate magazine, we review what to keep in mind when investing in plot land in Cambodia; we take a look at the rise of the Toul Tum Poung/Russian market district of central Phnom Penh; and we consider the current issues in the Cambodian valuation industry and how best to address these gaps. And of course, you can check out a huge selection of real estate listings for sale and rent across the nation, and a prime selection of new project property reviews. Smart real estate buyers and sellers know the market inside out before they make their decisions. Because of this, "Cambodia Real Estate" magazine includes valuable analysis, insider advice and easy to read guides about how to invest intelligently in Cambodia. Get your Free Copy!

The Municipality plans to build a bridge across the Tonle Sap River to connect from Chroy Chongva Peninsula  to the Russey Keo area in Kilometre Number 6. On October 7th,  2016, The Municipality of Phnom Penh organized a meeting with officials to discuss a plan to build a new road and remove the old railway. Meanwhile, in terms of the construction of a new bridge across the Tonle Sap River, Pa Socheatvong – Governor of the Municipality of Phnom Penh – said that "the budget for the construction of a new bridge has already been prepared, and the construction will start soon."He specified that in the  next step, technical experts will conduct a study of the area and location conditions to ensure that both the east and west ends  will benefit in terms of traffic and the interest of the local population. As of now, the east side is being developed as a satellite city.He said, "The project for the west riverbank of the new bridge will be built on the old railway in Sangkat Russey Keo, Khan Russey Keo, across Route 5, and across the river, towards Street No. 70, Dam of Toul Kork.The governor mentioned that in order to tackle the negative impact of the traffic and to accelerate the process of the building, local authorities will cooperate with the Ministry of Public Works and Transport to take out the old railway and replace it with the construction of a concrete road, measuring 30 meters wide, with a total length of 6 kilometers.He said when these two projects are completed, it will ease the traffic congestion at the entrance in Phnom Penh. This will make it more convenient to travel along National Road No. 5 at Kilometre Number 6, toward the Bridge of Chroy Changva. This will especially benefit the people in the Russey Keo area, who used to cross the Chroy Changva Bridge.Regarding the new project, In Setha, Advisor of VTrust Appraisal, believes that the project will be completed because it was thoroughly discussed as part of the government’s strategic plan for the area.He explains that there are currently only two national roads in the city that serve as entry points – Road No. 5 and 6. In some occasions, such as Phchom Ben Day or Khmer New Year, the traffic worsens. So, building the new road or bridge will help ease the traffic situation, both in the area and the whole city.He continues to say that building this new bridge is important to the local people. When the bridge construction is completed, another commercial road will follow. And this will bring more business on the road side. Some anarchic houses will also be removed, and more developments will reach the area.After the planning of the new bridge is completed according to the standards of the government, there will be 4  bridges across the Tonle Sap River; 2 in Chroy Changva, the Bridge of Prek Phnov, and this new bridge project in  Khan Russey Keo.Find out more the recent development news in Cambodia with Realestate.com.kh!   Click here to download your free copy!

Sihanoukville International Airport (formerly Kang Keng Airport) was established in the 1960s. After the Khmer Rouge period, services in the airport stopped until it started operating again in early 2007. But it wasn’t until 2011 that a scheduled service was formally done.A tri-weekly trip from Siem Reap’s Angkor International Airport began in December of 2011, where it was further adjusted in 2013 to accommodate trips from and across Sihanoukville, Siem Reap, and Phnom Penh.Mr. Sin Chansereyvutha, the Director of the State Secretariat of Civil Aviation said that Sihanoukville Airport is the largest airport in the country, which may be the case for the next 10 to 15 years.He explains that the economy of Sihanoukville had increasingly grown stronger, thanks to the economic contributions of the business sector, industry sector, transportation, imports and exports, and tourism. Sihanoukville is becoming a region of great potential as well for the real estate sector as the region was transformed into a special economic zone. Another important factor is the Sihanoukville Autonomous Port, an international port. This is key for economic growth.In addition, Sihanoukville is also a tourist destination for both local and international tourists, with the Sihanoukville International Airport offering convenience and comfort to travelers.There are also domestic and international flights going to Ho Chi Minh City, Phnom Penh, and Siem Reap, along with options to take private aircrafts and helicopters.The Sihanoukville International Airport also has the same geographical environment as the airports in Japan, Hong Kong, and Singapore, where they are near the ports and the sea.Find out more about new development on Realestate.com.kh !Click here to download your free copy!

Habitat Condos are a unique collection of boutique condo units, located across 14 floors, on cosmopolitan Street 21, of Phnom Penh’s Tonle Bassac district.With their showroom now open - and the opportunity to take possession as soon as November - Habitat Condos represents an assured asset with no uncertainties. Moreover, with the strata titling process underway, Habitat Condos is able to guarantee full freehold ownership upon signing and handover.Constructed to international standard and quality, Habitat Condos meets all embassy employee guidelines, with fire, electrical, security and construction standards of first-world quality and safety.   The developer, Intan Kosem, Cambodia born - educated in Australia, Switzerland and the USA - brings a homegrown sensitivity to Habitat, along with an international appreciation of quality and delivery, all underpinned by  a passion for living spaces that are sustainable and harmonious. Co-developer, Michael Davitt brings to the project his vast experience in construction in Australia.Reassuringly, with DK Sanctuary Apartments as a benchmark for the developer, the quality of construction, maintenance and property management services at Habitat are guaranteed. The company’s previous residential project, DK Sanctuary, also in Tonle Bassac, has maintained a consistent 95% tenant occupancy since opening in 2010. Its residential apartments are presently home to diplomats, CEOs and other senior managers. Strong occupancy levels, backed by testimonials, and a proven rental and property management record—along with the integrity of the construction—underline the developer’s ability to deliver a high-yielding investment in a competitive residential market.With experience in designing the Hard Rock Café in Siem Reap and Audi Showroom in Phnom Penh, Claire Croste of JPMC Architect & Consultant Ltd. has brought a wealth of experience to the Habitat development. With reputable builders, MEP contractors and designers (e.g., SpaceLogic from-Singapore, Luxury Machine -hotel and condominium security and access control) working alongside her, the outcome has been a residential development that sets a new benchmark for design and lifestyle within the cosmopolitan environs of Phnom Penh.  All units include beautiful hardwood floors, harvested from sustainable forests in Cambodia by a reputable international company, with full line traceability. Electronic key systems come standard, with CCTV throughout, and fire-fighting systems and codes in place, complemented by smart TV connections and ceiling ducted A/C systems in all units.Also inclusive to the property are dedicated community areas which include a rooftop saltwater swimming pool, gym, and a BBQ area on the upper rooftop. The top floor duplex units offer stunning views and benefit from a private direct access to these facilities.All buyers are guaranteed unobstructed views as neighbouring properties comprise new low-rise residential housing (30-40 meters) along with manicured areas of green space (an increasing rarity in downtown Phnom Penh). Habitat’s Tonle Bassac location is ideal, with Aeon Mall, Nagaworld, the newly opened Naga Walkway with luxury duty-free shops, Nagaworld II hotel and casino, and the capital’s famed riverside a walk or a short tuk tuk away. While, with the rest of Tonle Bassac on your doorstep and BKK1 just minutes away, the entertainment and dining options are as boundless as they are unique.The Numbers: The average net price is $2780/m2, at a medium gross price of $1750/m2, with a range of unit sizes and styles available, sized between 87m2 to 186m2 (for inclusions, please visit us at showroom or consult the detailed SPA).With a rental rate of return between 8% 10% and no marketing gimmicks, the developer offers a finished product and an honest appraisal of its worth:  “What you see is exactly what you get!” Ready to live, or ready to rent—the choice is yours.The developer’s moto is ‘Our Habitat is Your Home’.You can contact them today at 010 927 450 / 017445083 info@habitat.condos, visit them on www.habitat.condos or www.facebook/habitatcondos and book a showroom visit.See the full Habitat Condo listing!

In Realestate.com.kh's Insider Analysis, real estate market leaders share their outlook on the 2016 Cambodian real estate market.    Sam Yang, ceo of Eastland Development HK Co. Ltd.1) What has been the overriding trend in the Cambodian real estate market of 2016 so far, and what has been the effect of this trend on the current market outlook?“I'd say the increased interest in landed properties and commercial real estate. In Cambodia the value of landed properties is largely driven by the increase in land prices. However, it is expected that during the Cambodian elections next year there will be a cooling trend regarding the land market. The price of landed properties is expected to remain relatively stable though they may drop slightly.As for commercial real estate, I believe the market will remain strong due to the great demand exceeding supply, especially towards the so-called “grade B” offices. Moreover, traditionally foreign enterprises or funds prefer to purchase or invest in projects near completion. As there will be only a few commercial buildings finished next year, I believe that the demand will drive this particular market upward.”2) In your opinion, what is one facet of the market that is most in need of development right now - and that you believe is crucial for the long term health of the Cambodian real estate market? Why? And how might this be achieved?“Education of investors is the most crucially needed factor to maintain a healthy market in the long-term. This is because so many non-Cambodians do not have a clear understanding about this country or even Phnom Penh. As for locals, they don’t yet appreciate fully the benefits of living in a condo. I suggest that there is a strong need to increase this country’s exposure to the rest of the world via advertising abroad, introducing the beauty of this country. And that’s something that the government can lead on and coordinate with the private sector in order to achieve success.”Ross Wheble, country manager of Knight Frank (Cambodia) Pte Ltd.1) What has been the overriding trend in the Cambodian real estate market of 2016 so far, and what has been the effect of this trend on the current market outlook?“One overriding trend that we have witnessed so far in 2016 is the increasing amount of investment coming from China.Previously, Chinese investment was mainly focused on infrastructure and construction contracts, but there has now been significant investment by Chinese developers into Cambodia, a lot of which is being invested in Sihanoukville and the hospitality/gaming sector.Whilst there have been concerns raised regarding the condominium market in Phnom Penh, Cambodia is still an attractive investment destination and Sihanoukville seems to be the next hotspot, which is largely being driven by improving infrastructure.Sihanoukville represents not only a tourist destination with much potential but also a key economic hub with Cambodia’s only operational deep sea port and several Special Economic Zones, and this will drive demand across all real estate sectors in the province. The medium to long term prospects for Sihanoukville are very promising; this is highlighted by the recent announcement that the five star luxury resort operator, Six Senses, will be operating an island retreat on Koh Krabey, scheduled to open in 2017, in addition to several global hotel chains eyeing up the coastal destination.”2) In your opinion, what is one facet of the market that is most in need of development right now - and that you believe is crucial for the long term health of the Cambodian real estate market? Why? And how might this be achieved?“Cambodia’s real estate market is still at a nascent stage of development and teething problems along the way are to be expected. However, a key area of focus for any developing country should be infrastructure. This includes both hard (physical infrastructure; such as roads, railway networks, mass transportation systems, utilities) and soft infrastructure (the education system, healthcare system, financial system) - and it is well documented that infrastructure development is important not only for economic growth but also for poverty reduction which, in turn, increases demand for real estate over the long term.The Government has certainly been making progress in this regard, with numerous major infrastructure projects having completed, commenced construction or been announced during the past few years, but there needs to be an overarching infrastructure policy to set the proper framework.A key obstacle to overcome is the funding of such projects, which is particularly relevant in developing markets. One way to tackle this is through planning policy, which is another area that needs to be addressed to improve transparency in the market. In developed markets, it is not uncommon for developers to be required to make significant contributions to infrastructure improvements to ensure that the impact of high density development on the existing infrastructure network is mitigated. With the increasing number of development projects being announced in the Kingdom’s capital, this is certainly an area that needs to be reviewed.”Matthew Rendall, senior partner at Sok Siphana & Associates, a member of ZICOlaw1) What has been the overriding trend in the Cambodian real estate market of 2016 so far, and what has been the effect of this trend on the current market outlook?“I think the residential condo development has remained the overriding trend.  This has been followed by the residential/retail mixed developments. The effect has been to broaden the areas of Phnom Penh where the expat community is considering residing. Whereas this was previously concentrated in the downtown BKK area, now it is common to see people considering residential offerings on the outskirts of town – out toward the airport as well as over the bridges. It has effectively expanded the expat residential area of Phnom Penh.”2) In your opinion, what is one facet of the market that is most in need of development right now - and that you believe is crucial for the long term health of the Cambodian real estate market? Why? And how might this be achieved? “Not sure on this point. However, what is crucial is the need for developers to organize a working exit strategy.  I.e. The long term management of the apartments blocks once the development is finished and completely sold. There needs to be a development of the owner-run body corporate culture (where owners come together as the management body and control the sinking fund etc).  Failing this, the developers either have to manage the apartments blocks in perpetuity or risk the development falling into disrepair. Buyers will start to look at developer's previous developments and judge them by how well they are managed (when deciding whether to buy into a developer's subsequent development).”Hoem Seiha, research director at VTrust Appraisal Co., Ltd.1) What has been the overriding trend in the Cambodian real estate market of 2016 so far, and what has been the effect of this trend on the current market outlook?“For Cambodia’s real estate market of 2016, a notable trend has been a flooded market supply of housing, namely condominium, borey landed housing units, and plot land parcels - all creating daunting competition among developers who have recently added a new focus on the middle-income group in order to stimulate their sales growth.Condominium projects launched for presale within Phnom Penh during the first half of 2016 came up to 13.3 thousand units, doubling the number over the same period last year. However, housing market demand has been slowing down since start of 2016 due to this oversupply and weak buyer confidence.”2) In your opinion, what is one facet of the market that is most in need of development right now - and that you believe is crucial for the long term health of the Cambodian real estate market? Why? And how might this be achieved?“The real estate sector for now has lots of room to improve, but one most important aspect that needs timely consideration is: (1) legal issues to do with plot land development; and: (2) a recent stimulus by residential developers to propel their sale growth following the overall slowdown in the housing market.For plot land development, this type of supply is a good move to drive the overall real estate market, yet the authorities should study it seriously and set up response mechanisms to encourage and protect licensed developers as well as curb with the unlicensed ones in order to avoid long-term legal troubles.For the recent market stimulus, developers have now offered another very flexible option for home and plot land buyers by applying a zero down payment scheme to drive their sales, and, in the short run, the practice looks good and helpful for the overall market.Yet, while banks are very careful when releasing mortgage loans to buyers, most developers have not conducted enough due diligence on their clients before releasing installment contracts, to avoid future defaults. If not well managed, this could, in the medium-to-long term, create over-indebtedness among unqualified buyers and therefore potentially lead to a mortgage crash. Regulators should study this seriously.”Sunny Soo, managing director of Keystone Property Consultants Co., Ltd., an international associate of Savills  1)  What has been the overriding trend in the Cambodian real estate market of 2016 so far, and what has been the effect of this trend on the current market outlook?“The trend of the real estate market of Cambodia in 2016 remains rather similar to its previous years, where foreign developers are still mainly the condominium builders whilst the local developers are still dominating the landed, gated-residential development.The effect has been much talked about lately -  a fear of oversupply in the future market. This fear and worry is only going to continue it seems, considering market optimism is subsiding in view of slower pick up rate in 2016.But the way I see it, it is normal to have winners and losers in a competitive market where development is in-itself a higher risk business. If any developer’s pre-development preparation is not market-driven but rather fueled by optimism alone, this is the price of ego the market has to pay.”2) In your opinion, what is one facet of the market that is most in need of development right now - and that you believe is crucial for the long term health of the Cambodian real estate market? Why? And how might this be achieved? “My take is the legal policies of a comprehensive town and country planning system has to be in place now and that it needs to improve continuously and simultaneously adjusting to a larger vision in the future, notwithstanding market transparency and good regulatory enforcement framework. There is no other way about it. Legal guidance and clearer future planning policies in line with good enforcement will be of utmost importance to serve and lead the market toward a healthier city development; whether the aim is to subside a strained city’s infrastructures or serving a role of directing sub-urbanization. But more importantly it also leads to better self-regulation in the future, and that’s when the level of assurance for a healthier real estate market can be elevated.”importantly it also leads to better self-regulation in the future, and that’s when the level of assurance for a healthier real estate market can be elevated.”    Read the latest and greatest real estate news on realestate.com.kh today!

500 metres from the Prime Minister’s office and about 200 meters from Techno Overpass, the newly developed 11-storey shopping centre along Russian Boulevard - Parkson Mall - is coming for Cambodia shoppers at the end of year 2016, or early 2017.A renowned Malaysian-based shopping mall vendor, the Parkson group, has invested $117 million in Parkson Mall in Phnom Penh. This new project is an international standard five star mall, occupying a total area of 70,000 square meters land size. So far, Parkson mall is 75 to 80 percent complete. Now, decoration and painting phases are all that remain to be done.Renowned brands have already partnered with the new mall, for instance Forest, Polo, Durban, Bata, Crocodile, Renoma, Padini, Burberry Kid, Timberland, Kiko, Dek Dek,Etro, Lacoste, La Mer, Chanel, Christian Dior and Swarovski.This Parkson Mall will also have restaurants, gyms and fashion boutiques, retail shops, and a gold Screen Cinema. Already, around 80 percent of the retail stands have been sold to vendors.The Parkson Mall brand has 45 storey in Malaysia, 58 in China, 9 in Vietnam, 16 in Indonesia and 1 in Myanmar. Parkson still plans to continue expanding in new and existing markets.The group also plans to expand to three outlets in Phnom Penh in the future. The second project site will be in front of the International Phnom Penh Airport, and another one next to the Bridge Condominium.This project seems likely to have competition with Aeon Mall Shopping Centre and the upcoming Aeon Mall 2.  Keep up to date with what's happening in Phnom Penh with the latest news from Realestate. com.kh!

Strata Titles have been a staple in the real estate sector for years, but how did it start and how does it work exactly? Grant Fitzgerald, Country Manager for Independent Property Services Cambodia, gives us a rundown on the topic in his recent interview with Realestate.com.kh.How did the Strata Title Law Start and Evolve?Given Cambodia’s desire to grow economically, Fitzgerald explains that the government created the concept of building co-ownership for foreign investors through Strata Titles. He states that there had been much confusion as to the allowance and limitations of this concept since its introduction, but he clarifies that the strata titles are only applicable for buildings constructed after 2010. He adds that foreigners can only own up to 70 percent of the property which should be above the ground floor, and should not be within 30 kilometers of any border.How Strong is a Strata Title and how do End-buyers verify it?Given that the strata title is legitimate, strata titles are a strong form of ownership, Fitzgerald qualifies. He says, “The Strata Title’s registered at the Ministry of Land Management, which is the highest level of government here. So, any title issued at the ministry is a very strong form of ownership.”To verify the legality of the title, you should do ask for both the master hard title and the master development plan. Fitzgerald explains that this gives you access to key information such as the owner’s details, the property details, and the title classification itself – if it really is a hard title. He said, “A part of the process of applying for strata titles is that it needs to be built on a hard-title property. If a developer doesn’t have a hard title, they have a soft title, then they won’t be able to apply for a legitimate strata title condominium.” A developer will also not be able to apply without first submitting a master plan. In addition to that, foreigners aren’t allowed to own properties only with a soft title.Fitzgerald also advises to check the sales and purchase agreement for any reference to strata titles and co-ownership. Without mention of it, he says it should raise a red flag.How is a Strata Title Turned Over/transferred?“The titles are officially applied for when the units are a hundred percent finished and they’re ready to be handed over. That’s when the final paperwork for the strata title’s submitted,” Fitzgerald mentions. He also says that all parties must be present in the country in front of the ministry for transfers to occur. Fitzgerald also mentions that names of the spouses are not required to be on the title unless a buyer wants their spouse to be on it. In this case, the spouse should also be present for the transaction.Strata titling has recently undergone a crackdown due to leniency in the past. And as the government pursues ways to improve growth, we maybe yet to see the strata title law and practice evolve into, hopefully, better forms.Please read more: Cambodia Land Title Classifications Explained, Once and For All!

Toul Tum Poung, better known to most expats as Russian Market, has long been a destination for shopping and eating for locals and tourists - the district being centered by a large traditional wet market, full of stalls stocking everything from motorbike parts to silk, herbs and spices to electronics, and almost anything in between; ideal for anyone in search of a sensory shopping experience.Yet in the last few years, Toul Tum Poung (TTP) has moved beyond a stopover destination and transformed into a hotspot for expats living in Phnom Penh. It has also attracted attention from affluent locals, some seeking a home closer to their inner city workplace and others looking set up retail or accommodation venues.With this inflow of money and foot traffic, retailers are flocking to the area to launch trendy bars, restaurants, gyms and fashion boutiques, with innovation and influences being drawn from the eclectic community here. Meanwhile, apartment and condo developers are also centering in on the area, given the popularity of the area for expat renters and buyers.The cause of this newfound popularity can be traced to a rise in rents and land prices in the Beong Keng Kang (BKK) districts; this area of Phnom Penh once being the first-choice for this class of residents. Yet as condo and hotel developers have dominated land purchases in the BKK suburbs, land prices have risen as high as $7,000 per square meter; and with some of the highest occupancy rates in the capital, rents have jumped significantly also.Celia Boyd, co-owner of LOT 369 cafe and bar in TTP, mentions that “a lot of expats have started moving to TTP because it was still fairly central, but not nearly as expensive as BKK, and in particular BKK1. There are still some great markets, shops and restaurants around, but the area still has a local Cambodian charm.”And unlike other areas in central Phnom Penh, TTP isn’t awash with backpackers, says Boyd: “Tourists come to the markets, but it's not an area for backpackers like street 271, or Siem Reap's Pub street, for example.”“It’s also easy to get around,” continues Boyd, “most places are walking distance from each other in this area, and there's a nice community feel to it.”Brendan McCarthy, proprietor at Long After Dark bar and eatery, notes that, “Life in Russian Market tends to operate at a slightly gentler pace, the community is extremely friendly and it has its own unique rhythm that resonates well with us.”“More and more interesting eating, drinking and shopping options are popping up all the time which is adding to the vibrancy of the suburb,” adds McCarthy, “and I think that the same neighbourhood charm that drew us to the area initially is responsible for this growth.”The boutique fashion industry is rising across the capital city in waves, and none least in TTP. There are more and more boutique vendors such as ESQ, a trendy clothes shop opposite the main market, are opening every month, ideal for those who want a western shopping experience, complete with aircon and fitting rooms. For the best bargains though, or tailored shoes and clothes, stroll around the central Russian market - and get ready to haggle!Seng Hour, co-owner and grill chef at the Toul Tom Poung Grilled Seafood BBQ restaurant, opened his shop in 2012 on the side of the main market. These days Seng’s restaurant serves up over 80 kilograms of freshly barbequed seafood - crabs, fish, shrimp, lobster, shellfish and squid - every night of the week.Seng says his secret to success has been the quality and freshness of his food, fast service and high-hygiene standards, allowing his restaurant to outlive many around him.But Seng say’s it wasn’t always so busy: “The TTP area is completely different than it was just two years ago. Before only few people from around the Russian market came to eat; now local people from Toul Kork and Sen Sok come together with friends and family just to visit our restaurant.”Seng notes that foreigners didn’t really know about his restaurant before, but now “we have lots of foreign diners because they are living in apartments in the area. And more and more serviced apartments are launching in TTP these days.”Yet, as comes with any suburban development, residents of Toul Tum Poung may start to feel its gentrification when it comes to rental rates and sale prices in coming years - just as those in BKK experienced before.Keiko Fujita-Hix, co-founder and owner of Sesame Noodle Bar in Toul Tum Poung, notes that since her restaurant opened in 2012, rents have risen over 50%. Meanwhile, in her venue’s case, the restaurant will soon have to move location - as the landlord looks to convert the section into a new apartment complex development site.But Keiko notes that Sesame will definitely stay put in Toul Tum Poung, even if they need to move venue.“There is a unique community spirit that exists here,” says Keiko, “and a community that our business has invested in - we are close to workers’ family homes, our loyal clientele of diners, and other local businesses that mutually support us, and we wouldn’t want to move anywhere else.”Check out the best properties for rent in Toul Tum Poung on Realestate.com.kh now!