Real Estate in Cambodia.

We focus on real estate in Australia, because that is were we are based.  I thought for a change it would be interesting to choose a country that not too many people are familiar with, and look at their investment and real estate market.

What do you know about Cambodia? Unfortunately most people are only aware of what happened in the 1970's  when millions of people were living in poverty, starvation was rampant, and hideous crimes were committed against it's citizens. These were very dark days.



With the right leadership and hard work, it seems that Cambodia has changed course sharply. There is now a "stable, committed government that wants to develop the economy. There is an economic and legal framework for companies and foreign investors." Says Richard Stanger president of CAMEC (Cambodian Association For Mining And Exploration Companies)

One of the big moves Cambodia has undertaken to show the international market that they are serious, happened a just few days ago.Trading began on Cambodia's stock exchange. It was officially launched in July 2011, but trading began only last week due to finalizing investment laws.  The Prime Minister expressed hope that have the stock market trading will encourage more foreign capital.

Along with the stock exchange, Cambodian infrastructure has improved markedly, along with roading and telecommunications, all things that attract investors. Combine that, with the number of airlines flying directly into Cambodia bringing huge numbers of tourists and increasing numbers of investors, it seems that investment  in Cambodia is going from strength to strength.

So now we know that there is a lot happening on the business side what about real estate? In 2011 construction approvals having increased by 158%.   Then there is the likes of Liam Bailey of David Stanley Redfern  who states "Even though Cambodia property has been among the hottest for the past two years, it seems the surface has barely been scratched on the country's property investment profitability." Adding even more credibility is the resort development of Song Saa Private Island  which is the first luxury private-island resort in the country, that attracted investors from Hong Kong, Japan, Norway, Britain and France.  Then there is the recent announcement that the first Hyatt-branded hotel in Cambodia will be built near the renowned 12th century ruins of Angkor.

There are however, some things to consider, if you are a foreigner investing in Cambodian real estate. "Foreigners are allowed to own freehold condominiums located on upper floors of a building - this is relatively new legislation passed in 2010. Like most other Southeast Asian countries, foreigners are unable to own land on freehold, but it is legal and straightforward to set up a Cambodian land-owning company. Alternatively, foreign land ownership in Cambodia is offered on 99-year leases, the best leasehold tenure available in the region." Another point to consider is  that "whilst Cambodia still remains less developed and civilized than for example, Thailand or Malaysia, current prices for real estate are surprisingly higher than you may expect." Therefore, Cambodia is a market on the rise, but you do need to undertake your due diligence before heading into the market. I sure would like to stay at Song Saa as part of my 'due diligence'.

What do you know about the Cambodian market? Are there other markets you would like me to have a look at?