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!

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

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!

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!

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

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!

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!

On this Saturday 27 August 2016, JCI Cambodia will hold the International Business Exhibition and JCI Entrepreneurs Forum at the Sokha Phnom Penh Hotel from 8am.Realestate.com.kh is extremely proud to be sponsor for this year's event! Alongside its business exhibition, JCI has also prepared a series of talks which will feature distinguished speakers and experts from the areas of Food & Beverage, Real Estate, and Organic Agriculture products. Although speaking about different sectors, the discussion will center on one key topic, “Key Success and Investment Opportunity in Real Estate, Food & Beverage, and Organic Products in Cambodia”. This topics will be divided into two parts, morning and afternoon. For discussing on food and drinks sector, and agriculture sector, there are 4 speakers such as: Kouch Sokly president President of Cambodia Restaurant Association, Dr. Tan Monivann – VP of Mong Reththy Group Co., Ltd. Mr. Chang Bunleang – Operations Manager and Co-founder of Brown Coffee, Mr. Neak Tharen – Board of Directors of Cambodian Organic Agriculture Association and CEO of Natural Garden and facilitated and Moderators by young entrepreneurs Ms. Dek Dary – National VP of JCI Cambodia, Managing Partner at 360 Event Management, and Mr. Khorn Chhundara– CEO of KOI Café Cambodia.Discussions in the afternoon turn to speakers from the real estate sector such as: Mr. Kim Heang – President of Cambodian Valuers and Estate Agents Association (CVEA), Mr. Harry Martin IV, the sales and marketing manager of Worldbridge Cambodia, Mr. Kenn Yeo – General Manager of Orkide Villa Condominium (Mall & Condominium Project), and coordinated by HE Sok Siphana –  President of Sok Siphana law firm and  government adviser.In 2016, we expect participants Entrepreneurs Forum, there are guest 250 to 300, with regular ticket price is $50 and $40 for members JCI YEAC, CIC, BNI, CWEA, CVEA and CRA.For interested participants, you can contact: Tel: 017 59 46 19 or email:  sothearak2510@gmail.com / jci.phnompenh@gmail.com

Phnom Penh, 23 August 2016 - SHUKAKU INC. signs MOU with the DON BOSCO Foundation in order to equip young Cambodians with the skills to build the Cambodian of tomorrow.Under this partnership, the Phnom Penh- based Real Estate Company and the master developer of the Phnom Penh City Center (PPCC) will grant scholarships to 20 students from the Don Bosco Technical School over two years tuition, and sponsor a brand new computer lab at the Don Bosco campus.The Memorandum of Understanding (MOU) with the Don Bosco Foundation will pave the way for a two-year partnership worth more than $69,000.The Don Bosco school is an educational non-profit organization that provides free vocational training to young Cambodians from disadvantaged backgrounds.Roel Soto, Country Representative of the Don Bosco Foundation, said: “We are grateful to Shukaku Inc. for aiding us in our efforts to fight social exclusion through practical education and skill building.”He added, “These scholarships will equip young Cambodians with real-life-proof technical skills and knowledge, crucial learning and development, all of which will enable us to build the Cambodia of tomorrow, today.”The company will also sponsor a brand new computer lab comprising of more than thirty computers at the Don Bosco campus. This is another effort that is part of Shukaku’s commitment to enhance IT literacy across Cambodia and provide a conducive learning environment for the students of Don Bosco. Michelle Lau, Executive Director of Shukaku Inc., said, “This signing is only the beginning of what we hope will be a fruitful and long-term partnership with the Don Bosco Foundation. I continue to be truly inspired by Don Bosco’ s core values of inclusiveness, generosity and excellence - and I trust our relationship will strengthen over the years as we find more opportunities to help Cambodians unleash the full potential of Cambodia.” Ms. Lau also underlined that this partnership is only “the first of many to come.” Under Shukaku’s new “Sustainable Growth Initiative,” the company’s comprehensive community engagement and empowerment program will aim at making a tangible contribution to the communities in which it operates. The program will help build a collective vision to a future of share prosperity through various and long-term income –generation initiatives. Learn more about Shukaku's Phnom Penh City Center project today!

Market SummarySen Sok district (Khan in Khmer) has experienced a rapid growth, especially in term of residential, commercial, and infrastructure developments. Thus, land prices in the whole district increased markedly within the last couple of years. By the end of 2013, average market price of land in Sen Sok was US$380 per sqm. In the first half of 2016, average market price in the district rose to US$690 per sqm, with average growth of 27 percent y-o-y from 2013 to 2015. Nevertheless, land market prices across Sen Sok district have stagnated since the beginning of 2016, making Q1-to-Q2 2016 list price ratio to drop to 99 percent, though minimally, as property sellers were testing the market at which a reasonable market price should be met.Tuol Kouk district, on the other hand, experienced a slight rise in land price within the same period, from average market price of US$2,150 per sqm in 2013 to US$ 2,530 per sqm in early 2016, growing at 6 percent y-o-y within the tracked period. However, across Tuol Kouk district, Q1-to-Q2 2016 list price ratio dropped to 99 percent due to real estate market stagnancy since the start of this year.In sum, these two districts both of which lie northwest of the central Phnom Penh have enjoyed a rapid growth in term of residential and commercial developments. The suburban Sen Sok district, for example, has witnessed a noticeable pace of developments, especially mixed-use landed housing and infrastructure, which gives rise to a change in the skyline and rapid surge in land prices over the course of the previous three years. This growth will continue its pace as developers foresee market optimism over the next coming years.Land Market PricingTuol Kouk DistrictOver the last preceding decade, Northern fringes of Tuol Kouk district was the first main destination for residential relocation because of its available large portions of vacant land and a neighborhood of the central parts of the capital.  Land prices across the district, therefore, started to surge ever since. In 2005, average market price across the district was about US$1,100 per sqm, with a threshold of US$450 per sqm along secondary streets to US$1,900 per sqm along primary streetsEarly this year, average land market price across Toul Kouk rose to US$2,530 per sqm, while some of the prime commercial streets could fetch a market price as high as US$5,750 per sqm. Over a decade, average growth rate of land prices in the district was about 10 percent y-o-y, and during the last three years the growth was about 6 percent.Remarkable land price surge was seen in Boeng Kak Ti Muoy and Boeng Kak Ti Pir, both of which are Tuol Kouk’s northern communes adjacent to emerging Phnom Penh Thmey of Sen Sok and densely-populated Tuol Sangkae of Ruessei Kaev district. The former grew at 17 percent y-o-y within the period from 2013 to 2015, and the latter, 13 percent. The two communes’ higher growth in land market prices, if compared to that of other communes in Tuol Kouk, was pushed by two key factors. First, because of their relatively small market price base (from a minimum of US$650 per sqm in the last three years), a small price jump could see an enormous growth in y-o-y rate. Second, their attractive, emerging locations have been ideal for residential towns, high-rise developments, and commercial establishments, all of which pushed market demand to rise. As a result, buyers were willing to accept the offers and through this, the market prices started to increase relatively more quickly over the last three years.On the other hand, many parts of the Tuol Kouk seemed almost to reach their price caps, as many available development and establishment opportunities have now appeared elsewhere throughout many of the peripheral parts of the district and its neighborhoods, offering much lower prices and promising opportunities. Such parts almost reaching land price caps are Phsar Depou, as high as US$5,750 per sqm and Tuek L’ak, as high as US$5,200 per sqm.Sen Sok DistrictOver the previous three years, property market prices across Sen Sok witnessed a double digit growth, with 27% y-o-y from 2013 to 2015. Back to 2013, average land price across the district was US$380 per sqm, and it grew to US$690 per sqm in the first half 2016.Khmuonh, one of the four fastest growing communes (sangkat in Khmer) of Sen Sok district, enjoyed a relative quick pace of residential town (such as Grand Phnom Penh International) and infrastructure developments, with main streets such as Hanoi (St. 1019) almost finished this year and Tumnup Kop Srov Road (the capital’s ring road) due to completion sometime soon. As a result, average growth for land price in Khnuonh commune was 35 percent y-o-y, from US$230 per sqm in 2013 to US$480 per sqm in the first half of 2016, with market prices along main streets ranging from US$300 per sqm to US$710 per sqm.Krang Thnong, adjacent to Phnom Penh Thmey commune and a quick access to the prominent Russian Boulevard, also witnessed a double-digit growth in land prices, with an average of 29 percent y-o-y, from an average of US$110 per sqm in 2013 to US$210 per sqm in the first half of 2016 across the commune. The enormous growth in land prices was driven mainly by residential potentials thanks to many available parcels of vacant land, including residential plot land movements and ongoing town development such as Borey Maha Sen Sok by Japanese developer Creed Group.Phnom Penh Thmey, adjacent to Boeng Kak Ti Muoy and Boeng Kak Ti Pir, the two prominent communes among 10 of Tuol Kouk district, also experienced a double-digit growth, having stood high thanks to its development potentials and strategic market position where several remarkable development projects such as borey New World (La Sen Sok), second project of AEON Mall, and borey Chip Mong Land, to name a few, have already been pinned up on the map. Thus, land prices grew at average 19 percent y-o-y within 2013-2015 period, from an average of US$530 per sqm in 2013 to US$830 per sqm in the first half of 2016. Remarkable potentials in Phnom Penh Thmey commune have been also seen after the completion of main infrastructure, for example, Oknha Mong Reththy and Hanoi Street.Market Performance Tuol Kouk DistrictA central zone of the capital, Tuol Kouk district has experienced a tremendous change in its skyline and infrastructure, which led to an increase of property demand as well as prices across the district over the last three years. Yet, average SP-to-LP ratio across property market in Tuol Kouk was 95 percent in 2015, while average original-to-last list price ratio dropped slightly to 99 percent Q1-on-Q2 2016.Low pricing ratios were noticeable in Phsar Depou Ti Muoy commune, where SP-to-LP ratio went down to 90 percent, lower than those in any other communes across Tuol Kouk district. The low pricing ratios in the two communes could be dragged down by the disruption of Techno Flyover construction process that affected on profitability of prime business spots along Russian Boulevard and its surroundings, thus resulting in less-commercial options for buyers to seriously consider the properties over there.Sen Sok DistrictDespite enjoying a significant growth in most parts of the districts over the course of the previous three years, Sen Sok’s property market heat has been slightly cooled down since early 2016 due to overall slowdown in property transactions. Given that average sale-to-list price ratio (SP-to-LP) was 93 percent in 2015, average achieved sale rate across the district was 7 percent below the original list prices, although H1-on-H2 2015 list price ratio (LP) rose to 101 percent. However, during the first half of 2016, average original-to-last list price ratio was 99 percent Q1-on-Q2.The fact that pricing ratios, typically sale price, went down to 93 percent across property market in Sen Sok district means there were many available properties, especially numerous unoccupied homes and vacant parcels of land, and therefore buyers have more power to negotiate for a lower price. Nevertheless, that average original-to-last list price ratio went down to 99 percent was a sign that many of sellers were adapting their asking prices to cope with less aggressive market demand during the first half of 2016.Outlooks and TrendsWith an organic trend of relocation from the central city to suburban and peripheral areas of the capital in a bid to cope with rapid land price growth, accelerating traffic pressure, and increasingly overcrowded city dwellers, a number of people have started to move out to several suburban parts where they form new towns and communities, remarkably since the five years, and Sen Sok district is no exception.Major development trends have been noticeable across Sen Sok, especially its Phnom Penh Thmey commune, which is situated northwest of its neighboring Boeng Kak Ti Muoy and Boeng Kak Ti Pir of Tuol Kouk district. Today, throughout many parts of Phnom Penh Thmey are situated many of finished housing projects such as (1) two of Borey Peng Hout projects the Star Emerald and the Star Quarteria, all of which are along Oknha Mong Reththy Street (1928 St.), (2) two of Borey New World projects, one of which is located a hundred meters off Mong Reththy Street and another is on Oknha Try Heng Street (2011 St.).Another ongoing Borey New World (La Sen Sok) on Oknha Mong Reththy Street has been almost finished, whereas only its community shopping mall remains under construction. Further, Borey Park Land (Sen Sok) along the same street is due to completion sometime next year.More importantly, the second project of AEON Mall by Japanese developers has been pinned on the map in the most promising zone, immediately adjacent to Borey New World (La Sen Sok) and less than 800-meter-radius ring of Camko City (southeast), Borey Angkor Phnom Penh (north), Borey Park Land (southwest), and Borey Peng Huot (south). These factors have brought about more demand for the area, including housing unitsand parcels of land, thus pushing prices to hike rapidly.Phnom Penh Thmey is a popular location for buying a first home,being voted by 20 percent of the surveyed prospective buyers (conducted by VTrust Appraisal), ahead of other areas such asChrouy Changva (16 percent), Stueng Meanchey (11 percent),Toul Kouk (11 percent), unspecified areas (17 percent), and otherareas combined (25 percent).This research report was a production of V Trust Appraisal.

Since the government’s commitment from the past decade to improve transparency and economic growth through Cambodian real estate law, the Kingdom has been one of the front-runners - and, in fact, one of the fastest growing economies in Asia.This is due largely to the numerous Cambodian real estate law and policies that have been passed and put into effect during this time. A few of these was discussed by Allen Pheap Prak, Legal advisor of P&A Asia, during his presentation at the inaugural Cambodia Property Show organized by Realestate.com.kh and Property Guru.Buying Condominium Units in Cambodia (Legal Qualifications):Pheap Prak mentioned that before the law on foreign ownership for co-owned buildings was implemented, sales of condominium units were really low and needed a quick boost. This is why Cambodia began accepting investments from foreign investors – through strata titles – to increase sales. Title deeds that are in the form of freehold strata titles could originally be held for 50 years and can also be mortgaged and put in a hypothec as collateral. But according to Pheap Prak, this policy didn’t initially have a provision to protect the locals. So, after a year, the Ministry of Economy and Finance decided that foreigners should only be allowed to purchase units above the ground floor and should only be allowed to own up to 70 percent of the property. This way, the occupancy rate goes up without giving any unfair advantages.He also states that a lot of developers have worked around the issue by either placing the parking area at the first few levels or turning the ground floor into a leasable commercial space.Although, if you look at the condominium market today, Pheap Prak mentions that locals are currently buying 40 percent to 50 percent of these condominiums for rental income. So, it’s not much of an issue these anymore.According to Cambodian real estate law, the typical transaction for purchasing a co-owned building in Cambodia requires a sales and purchase agreement. All sales and purchase of real property in Cambodia should have certification or notary by a Cambodian lawyer.But Pheap Prak mentions that if you were to sign a sales and purchase agreement outside of Cambodia, it’s important that you get a notary to witness on your agreements.He adds that if you want to rent a unit or retail space to operate food and beverage ventures, you do not need to get the tenancy agreement stamped by the local state council. However, if you were to rent a unit for office or residence, as a foreigner, that lease should be registered with a notary public so you can get a residence certificate to show that you can be in Cambodia and that you’re doing business here.For a company though, if you’re using it as an office address, you also want to register it because you would have to withhold 10 percent to pay to the government as tax.But it’s also important to note that for leases, it does not make a lease invalid if you’re not registered. Registering just means you’re compliant. Leases with 15 or more years, however, should be registered with the Ministry of Land. They give you a certificate of long term lease which is also valid collateral to use for mortgages and hypothecs.If you have long-term lease on a property, whoever the owner is, they cannot sell their landed property. A lot of foreigners like to register their lease in order to protect their interest, especially if they have a trustee hold or property for them.On top of all this, Pheap Prak also mentions that Cambodia is in the works for developing the trust law to further provide provisions to improve the way transactions are handled.Property Tax:In terms of taxation, just recently, Cambodia signed a double taxation treaty with Singapore which means that Singaporeans do not have to pay 14 percent tax for foreign remittance.  They now only have to pay 10 percent which is the same for Cambodian nationals. Pheap Prak also mentions other scenarios such as having a 10 percent VAT on a sale of a condo and that if you transfer property in Cambodia, especially freehold, 4 percent stamp duty for the transfer is a requirement.He further adds that when you purchase a condo, Cambodian real estate law declares that you’ll have to take care of the property tax which is once a year. It’s 0.1 percent per annum. Property tax does not fluctuate with the market though. It’s important to keep in mind that the Ministry of Economy and Finance has their own index for what your unit would cost in what area, and the prices are usually half the value.If you’re looking to buy for a capital appreciation though, Pheap Prak says that there is no capital gains tax and you can buy as a company or as an individual. He recommends buying as an individual though because, “if you buy as a company, you have to pay 20 percent tax on profit or 1 percent of your revenue. Even though there are no capital gains, it will come out somewhere when you’re declaring profits or dividends to take back.”Legality of Foreigner Opening Bank Accounts:It’s pretty easy to open a bank account in Cambodia. Creating bank accounts usually just require a passport valid for 6 months. Some banks require additional proof though, such as proof of ownership of property.But Pheap Prak says that generally, most foreigners don’t like opening accounts and borrowing from banks in Cambodia because interest rates are high. So, what most foreigners do is they leverage finance in their own country, take the lower interest rate, and then purchase overseas.But banking in Cambodia does have an advantage. Cambodian banks support locals and foreigners to obtain financing of up to 70% of the value of the unit. This is mainly because banks usually work with developers from the start to support the whole project.Pheap Prak explains that “they don’t like to share the end-users going into other banks. And usually, they have an agreement where, okay, the bank will support the project, help split the title. So, usually buyers are more confident when banks are splitting, instead of developers splitting themselves.”With regards to refinancing, he clarifies that banks don’t restrict refinancing, but it depends on the market’s supply and demand. Banks usually loan to a developer only if they have a cooperation agreement with them. He advises that you would also want to take your title deed back and go to a different bank. Most of the international banks are okay with this but the local ones might frown on it. You can do this because once the strata title is out, legally, the banks cannot hold onto your title deed.But in practice, they won’t loan you a mortgage a second time around. This is why a lot of foreigners like to get leverage from their own country and buy overseas.A lot of things have definitely changed in the structure of policies and governance, especially in Cambodian real estate law, but it’s definitely done a lot of good for the economy and for the country. And while many laws are still in the process of getting approval, we can be assured that the future will hold better opportunities because of them.Learn more about investing in Cambodia!

Recently, Borey Maha Sensok, the biggest landed housing development by a Japanese company in Cambodia, has received massive interest from local customers.Only 4 months after soft launch, Borey Maha Sensok has been sold out around 80% for its first phase. This sales success is due to the affordable prices, starting from $49,500 per unit, flexible payment terms and home loan/financing options. Presently, the project is under construction, along with road construction and sewerage facilities development.This latest project of the Creed Group, Borey Maha Sensok, is located just 3km from the Phnom Penh International Airport, in Krang Thnong District, Sen Sok Commune, a fast developing area near the upcoming Lion Mall project and AEON Mall 2.Borey Maha Sensok covers a total area of 120,684 square meters and consists of 683 units, including one floor flats (E0), two floors flats (E0E1), and land lots for villas. Common amenities include solar power street lights throughout, beautiful flower gardens and landscaping, a children’s playground, and an exterior gym. Japanese elements are brought into the design also, such as a foot massage path and tree trunk path, and a full equipped garden cabana.According to Mrs. Cheng Sokha, assistant to the Sales and Marketing Director at Creed Group, the project has had high interest from clients because of the trust for the development company: “our project offers concise and fully legal documents for buyers, and the construction quality is strictly controlled by Japanese engineers.”Borey Maha Sensok is the second project of the Japanese investor, Creed group, who has already invested in Cambodia with their first project, Bodaiju Residences, located on Russian Boulevard in front of the Phnom Penh International Airport. Creed Group’s main office is in Japan and has been investing in projects throughout Asia, including Cambodia, Vietnam, Bangladesh, Malaysia, Japan and Singapore.Looking for a new landed borey home? See the full listing for BOREY MAHA SENSOK now!Or want to buy a modern condo? See the full listing for BODAIJU now!

Jum reap sour! And welcome to another Realestate.com.kh property review. On this week’s show, we’re live at Apennines Condominium showroom in Phnom Penh with Ms. Vatey, sales manager at the Apennines Condominium project.See the full listing and inquire today!Tell us about the location of Apennines Condominium:Apennines is a modern condominium strategically located in one of the fastest-appreciating districts of Phnom Penh city - Toul Kork. More specifically, the location of our project is at house 40, Street 604, Sangkat Boeung Kak 2, Khan Toul Kork, Phnom Penh - just right behind Pannasastra University Toul Kork Branch. Apennines condominium is located just 10 minutes drive from Phnom Penh International Airport, and is also surrounded by schools, restaurants, supermarkets, sports clubs, coffee shops and entertainment centers.Tell us more about the developer:Apennines condominium is developed by KHSI INVESTMENT PTE LTD, an award winning architecture & engineering company with a wealth of experience in both Malaysia & Singapore. KHSI is uniquely committed to optimizing best standards and creating modern and quality lifestyle living through innovative and creative means.What sort of features does this condo have?Standing a total of 17 storeys tall, 1, 2 & 3 bedroom condos are available in a variety of sizes. All units’ interior has been uniquely designed by Singaporean experts, and fully equipped with high quality fittings. Shared condo facilities include a swimming pool, pool deck, gym; and the unique perfect car parking system, a car parking elevator.What does KHSI offer to buyers?Home loan is available through RHB and Phillip Bank.Freehold ownership titles, for locals and foreigners. Full security (CCTV, security guard 24/7).Great common facilities such as swimming pool, fitness center, gardening and minibar.Full property management and maintenance of the building (interior and exterior). An enticing GRR package of 6% annually.The first Car elevator parking system ever to be used in Cambodia, which is efficient, secure and convenient - and maximising space. How does Apennines Condominium stand out above the rest of the condos coming online in the market?Our architectural design (interior and exterior) is from award winning architect, EDP Architect Malaysia. Our engineering structure has been designed by LSW Consulting Engineer Singapore. The structure of the building includes reinforced Concrete walls and transferred floor technology, a feature unique to other projects currently in Cambodia.And our project is located in a residential area that is a hotspot for potential investment returns.  What types of Units are available?Type A: 89.72m2; Type B: 132.62m2; Type C:  67.74m2; Type D: 110.22m2 - with prices starting from $150,000.If you want to find out more, come and take a full showroom tour with Ms. Vatey today in Toul Kork; and while you are there, check out the construction progress of the project, located just down the street!See the full listing and inquire today!

As with established markets all over the world, the Cambodian real estate market right now is an outcome of an evolutionary process that involved many things. And much of what it will become is part of that evolutionary process.This is what the Chairman of the American Chamber of Commerce in Cambodia (AMCHAM) and the International Business Chamber (IBC), Mr. Bretton Sciaroni, believes.In an exclusive interview with Realestate.com.kh, Sciaroni discussed the many factors that have played into shaping the laws, policies and environment of the Cambodian real estate sphere as we now know it.Cambodian Real Estate in the Past:As one of the first foreign lawyers in the country, Sciaroni has had vast experience in business dealings and law in the Kingdom. In fact, he negotiated the first foreign investment deal in 1993 for a $60 million brewery venture.Sciaroni recalls that it wasn’t always smooth sailing for the real estate market. He says that after Pol Pot was kicked out, the communist constitution made it difficult for the citizens to go back to their former land because all the land title documents had been destroyed. But around 1988 or 1989, a proper land titling system was put into place.Another key event that shaped how Cambodia real estate transactions are made nowadays was the National Elections in 2008. According to Sciaroni, it was normal for activity in the real estate market to slow down months to a year before elections. However, the international financial crisis added another layer of issues that the government needed to address. Sciaroni adds that at this time it was a “superheated real estate market environment.”Cambodian Real Estate Now:The country has since recovered from those tough times.When asked about why he stayed despite having to go through those hurdles, Sciaronii says that “the growth rates have been unbelievable.” A contributing factor to this is that the government is now very open to foreign investment and the citizens are more confident in the electoral process.As evidence of this growth, new developments like the Exchange Square building and the prestigious Shangri La are already underway.Sciaroni notes though, “So much needs to be done and so much can be done”.He says that the current challenges that Cambodia faces are only stepping stones to a more dynamic future for the Cambodian real estate industry, and the society as a whole.Cambodia’s Bright Future:The past has proven to be the perfect testing ground for Cambodia’s potential.And with many changes, such as having His Excellency Chea Sophara take over as the new minister for the Ministry of Land Management, Urban Planning and Construction, it can only get better, says Sciaroni.Now we have an improved communication system where industry professionals and the government can have an open dialogue. Sciaroni believes that the past is not bound to repeat itself in these new times with new approaches.But he adds that there are still many more things that need to be set in their proper place. He says, “So, what we need to do: we need to encourage the government to continue to work towards getting the laws and policies in place. We really need these laws and policies in place to help the growth continue.”Cambodia is one of the new lands of milk and honey. It’s a land of opportunity, but it definitely will not come without a little bit of work.Learn more about investing in Cambodia today!

The perception of foreign nationals towards Cambodia often seems to have grown old like the ruins of Angkor. In fact, there is more to the country than temples...There is an understanding among some international investors and businesses that the country is still underdeveloped and poorly regulated. This is a myth Dr. Simon Vancliff, Investment & Development Director of ING Holdings, the developer behind ING City, has debunked during the recent inaugural Cambodia Property Show organized by the leading real estate portals of Singapore and Cambodia, PropertyGuru and Realestate.com.kh.Vancliff explains that this is far from the truth. In fact, there are large economic zones and developments coming to Cambodia, and this is increasing every year. In fact, just this year, Coca-Cola has decided to invest $100 million into the Phnom Penh Special Economic Zone in order for them to be able to build a plant and expand their distribution inside the country and region, as according to the Phnom Penh Post last April.Large business entities have also established ties with the country such as Akira, Toyota, Samsung, ICBC, BMW and Suzuki, just to name a few. These companies, Vancliff says, recognize not only the inexpensive labor they are able to harness, but also the political stability of the land and its foreign-investment-friendly environment.He also enumerates other reasons why investing in Cambodia is ideal. Other than political stability, Cambodia has an advantageous location in the region, favorable investment climate, largely dollarized economy, increasing trade integration, improving transport and connectivity, lower costs in telecoms and internet, untapped natural resources and land, underpenetrated and growing domestic consumer markets, an unleveraged financial position, stock exchange and a flexible financial market. Furthermore, since the population is in the bracket of the working-age population, the demographics are also well suited for investment.Vancliff mentions that the Cambodian stock exchange will have around ten to twelve more companies joining soon and will continue to grow. He further strengthens his case by stating that Cambodia is now truly the “Pearl of Asia”, having a more centralized Governance system, and is raking in huge investments for infrastructural upgrades. As an evidence of this, more and more airlines are creating direct flights to Cambodia every year.One of the Kingdom's traditional weaknesses for investors - electricity costs - are also predicted to go down as more and more clean and solar energy plants are on the way to creating better solutions for energy consumption and supply.This will be especially true in Cambodia property areas like South Phnom Penh, says Vancliff, where the population is less dense and have more centralized amenities, such as water. Vancliff adds that there are also plans to install underground fiber optics and phone lines. New roads are also coming thick and fast, such as Hun Sen Boulevard, that will open in mid-2016. This will allow easier transport and access to resources that are once unavailable in the area.As the Cambodia property market and infrastructures grow, Vancliff hopes that the worldview towards Cambodia encompass more than just about the Angkor temples. While its grand history has been preserved, Cambodia continues to push towards global economic competitiveness.Want to find out more about Cambodia? Check out news and updates on Realestate.com.kh now!

With the release of 13,730 new condo units through ‘off-plan’ proposals during the first half of 2016 in Phnom Penh alone, it seems that there is no backing down for developers in the real estate market in Cambodia as both the number of condominiums being built and the number of sales in the market continue to rise.But if you’re a property owner or investor, you may want to consider getting a dynamic property management team like Emerald+ so that you can avoid the stress of juggling different aspects and requirements of your investments. Whether it’s your first property asset or you are aiming to diversify your portfolio, Emerald+ offers an all-around property management solutions to protect your property from both anticipated and unforeseen issues.Taking a 360-Degree Approach:In a recent interview with Realestate.com.kh, Ms. Sou Monypich, General Manager of Emerald+ said that the demand for property management services will begin to rise in the next couple of years - just as the supply in different real estate markets increases drastically as well. She adds that the involvement of Emerald+ in various large-scale projects during this time of growth has given them an advantage that allowed them to develop a competitive standard of operating procedures to benefit both the customer and the property owner.Among the services Emerald+ has to offer is property maintenance, customer care, staff trainings, audits, asset management, marketing, and even equipment provision. They also provide their services for a wide range of property types including condominiums, boreys, and corporate offices.Venturing Out:During the interview, Ms. Monypich also mentioned Emerald+ is working alongside its sister company, Emerald Architect, to provide well-rounded solutions to help cover other aspects like landscaping, design consultancy and construction for both the interior and exterior designs of a property. She adds that this is a step towards bridging the gap in the current market where there is a shortage of companies providing these sorts of services.They have also branched out into offering effective business solutions through the Emerald Hub by creating a co-working space where young entrepreneurs can nurture their skills and ideas to pursue the start-up businesses that they are trying to build with limited means.The Heart of the Company:Ms. Monypich also states that the strength of the company, the heart of Emerald+, lies in the skills and the wellbeing of its people. This is why they provide comprehensive and ongoing training for all of their staff.More than that, Emerald+ also teaches their employees the value of good and meaningful customer service, which is vital to their business model. This is accomplished through various activities that enable their employees to attend and organize charity events that make a significant impact in communities across Cambodia.Despite its young age, the company has accomplished a lot already. It is a testament to the capacity of Emerald+ to follow through with their promise of total property management and protection.Find out more about Emerald+ today!