Cambodia Property Forum

CNN-Business 360 : Extreme luxury in Cambodia comes at a price

2011-10-14T12:50:00.006+07:00

That's the vision Rory and Melita Hunter have for anyone dreaming of the ultimate luxury experience. They plan to open Song Saa resort on December 31. It will be the first luxury resort on a private island in Cambodia.

The construction of 27 one-and two-bedroom villas are near completion. They will cost upwards of $2,000 per night.

Cambodian Construction Association Launched

2011-10-13T12:20:00.009+07:00

It is a good news to see that finally a construction association in Cambodia was launched to ensure the collaboration among the construction companies, housing developers and the relevant ministries. Hopefully, this association will help to strengthen the standard of construction to higher level and bring in new attractive architectural design to the country.

The construction industry is growing fast and is one of the main pillars contributing to the economic growth of the country. According to Phnom Penh Post, in 2010, the industry contributed an estimated US$620 million to the economy; about 5.5 percent of the Kingdom's GDP, while providing around 150,000 jobs, and there are currently 1,074 construction and design companies, comprising 847 foreign firms.

Vattanac Tower under construction

Soft vs Hard Title Deed

2010-12-10T20:45:00.003+07:00

When talking about ownership of land properties in Cambodia, a question might be simply asked: do you hold soft or hard title deed for your owned property?

Soft Title Deed: an ownership certificate which is, during ownership transferring or registration, only recognized at the commune and district level. Low cost, high risk as there might be many people who own or claim on one property, no paying tax issues etc…

Hard Title Deed: an ownership certificate which is, during ownership transferring or registration, not only recognized at the commune and district level but also at ministerial level and is issued by the Cadastral Office. High cost, low risk as there is only one owner, paying tax issues etc…

During the recent real estate boom and nowadays, when buying and selling the properties, many transactions or ownership transfers are still largely done with soft title deeds and at the commune and district level. The main reasons are that the related parties (sellers, housing developers, buyers, speculators etc…) want 1) to do quick transaction which is usually done less than a week, 2) to avoid paying the higher transaction costs including property registration tax at 4%, ownership transfer fees, other taxes and the ownership transferring process at the Cadastral takes more than a week or sometimes than a month.

For home loans, here in Cambodia, most commercial banks accept only the hard title deed of property as collateral pledged when home buyers seek loans from them. Although Acleda Bank also accept soft title deed and the interest rate charged is relatively high at 13% p.a. or even more than this for other private lenders .

Royal Tower

2010-11-14T10:03:00.006+07:00

According to Royal Group's website, Royal Tower will be Phnom Penh's first Grade A office building by Hong Kong standards. At 36 floors and 65,000 sqm, it will be a landmark building located at the intersection of Monivong Blvd. and the Russian Federation Blvd. Construction will be completed in mid-2013.

Cambodia Property Update

2010-11-09T13:58:00.004+07:00

Overview

Does the real estate sector in Cambodia is getting better or worse? Some optimists said that the situation is now getting better or the real estate sector is being recovered back. Although, many large others thought that this sector has not been recovered yet. Many house properties or lands have been posted for sale but there are few transactions done because its selling prices are still too much high even some people said that it has been reduced around 30% to 40% from its peak during 2008; many constructions of condominium such as Gold Tower 42 and International Finance Center (IFC) or of shop houses are seen to be on hold; the cost of the mortgage (home loan) remains high between 10% to 18% p.a. etc…

Housing development

For the past few years, the housing in Phnom Penh and especially in the outskirt has been strongly developed. Some questions can be asked: how many property developments in the outskirt of Phnom Penh do have the proper construction approval from the relevant authorities? Has the quality of those constructions been checked? Is there any proper sewage system planned or built? As the result, during the flash flood in October, since the sewage system has not been built, many new houses were seen under the water!

Office space

According to CBRE, the office space in Phnom Penh is forecasted around 144,000 square meters by 2013. This projection was likely based on the figures from Gold Tower 42, International Finance Center (IFC), Canadia Tower, Delano Business Center, Icon Tower, Phnom Penh Tower, B-Ray Tower etc…The renting price is known to be between $10 to $35 per square meters.

Gold Tower 42 on hold

CityStar Asia - Ream Development

2010-07-16T20:49:00.006+07:00

According to Cambodge Nouveau dated July 2010, CityStar Asia, which owns more than 200 ha land in Ream and 300 ha land on Koh Takev and Koh Russey, plans to make an investment of $40 million to build hotel resorts and villa houses for sale…Mr. Etienne Chenevier, Executive Director in Asia, said that the selling price of villa houses will be between $170,000 and $200,000. He expects the clients from Phnom Penh and France.

New look of Vattanac Capital Tower

2010-06-03T10:18:00.004+07:00

Source: Cambodia Daily, 02/06/2010

Phnom Penh High-rise Buildings

2010-06-02T12:23:00.008+07:00

Even though the real estate and the construction have been hit hard globally and in Cambodia, but the situation seems to be ok for some large real estate developments in Phnom Penh as such Gold Tower 42, Rose Condominium, De Castle Royal, Camko City, Posco Star Rice, Phnom Penh Tower and Grand Phnom Penh International. These billion dollars investments will shape a new look of modern high-rise buildings of office center, luxury apartment and condominium (concrete monsters, sic) in Phnom Penh City between 2 to 5 years ahead. This similar development was already seen in Bangkok 20 years ago and in Ho Chi Minh 10 years ago respectively.

Golden Tower 42

A $300 million of tall building development which integrates shopping center, office space, sport and fitness center, luxury apartments and penthouses, has been started since 2008 and it is scheduled to be completed by the end of next 2011.

Camko City

The 1st phase of the $2 billion investment of Camko City located in Toul Kork district is expected to be completed in earlier 2011. The investment cost of this first phase is amounted around $60 million that include 6 condominium buildings and villa houses. The area of Camko City will also locate the first Cambodian Stock Exchange compound that is scheduled to be finished in the end of 2010.

Price

Despite some rumors said that the real estate price in Cambodia has been falling down significantly after the global financial crisis, the price of unit condo or villa house of the development projects above-mentioned remains unchanged or is still high. Like for Golden Tower 42, the price of the normal unit condo is between $200k and $400k, for luxury condo or penthouse, the price is around $1.2 to $1.3 million. At Camko City, the price can be found from $100k up to $350k per unit of condo.

Koh Rong's Projects

2010-02-18T10:56:00.007+07:00

Royal Group’s projects on Koh Rong

Royal Group, one of the large important investors in Cambodia, has 2 important development projects in the Tourism sector: at Ream, a concession located on the East and the South of the airport (Kang Keng Airport) and another concession on Koh Rong Island in Sihanoukville (on the gulf of Thailand) said Mark Hanna, General Director.

For Ream project on the 1,681 hectares land, the master plan has not been developed yet and the environment impact assessment is being studied.

For Koh Rong, the master plan has already been approved and the infrastructure developments that are very important for the island of 7,800 hectares has been begun. In its first phase, it includes a place for the basic loading of necessary equipments, doing the groundwork to build a road and the airport. Water will be taken from water towers and from hydro-electric dam. At the beginning, the electricity will be generated from diesel generators, and then later on, it will be from hydro-electric dam. The total cost of the basic infrastructures before the construction of hotels, houses etc. was estimated around 1 billion USD. The airport will be cost around 120 million USD.

With the projection of large numbers of job creation, there will be around 100,000 people to living in the central of the island with all necessary services, shops, schools, hospital and security. There will be about 40 hotels and each hotel will employ 3 to 400 people.

Nature will be largely preserved. They don’t want absolutely to copy Phuket. On the 7,800 ha, they will develop only around 5,000, of which a maximum of 20% will be built. In the town, there will no buildings exceeding the 4 storey tall.

Mr. Mark Hanna said we will start on a small scale with a small resort at the water front, eco-tourism style and with limited number of services, for a 100 USD per night. This resort will be accessible by a small plan of 10 sits from Phnom Penh, with the runway on land, which will be operational within 6 months.

The town and the resorts will be progressively developed together. There will be a road for cars, 2 golf courts, a marina, a water park…and it will be in full activity in 3 years time.

Mr. Mark Hanna is confident that lots of tourist visiting Koh Rong Island will be from Europe, Australia, Hong Kong, Singapore…and from Asia.

He finally estimated that the investment for this new Indochinese Riviera can reach 23 billion USD on the next 20 years.

(Source: translated from Cambodge Nouveau, No. 284, Février 2010, p.11)

Foreigners will have ownership on properties in Cambodia

2009-12-08T10:11:00.003+07:00

Cambodian ministers have recently approved a draft law allowing foreign ownership of buildings such as apartments and office buildings.

The draft law was aimed at attracting investors, facilitating the growth of real estate market, and pushing the development. Foreigners will be permitted to own only buildings and apartments, not the land beneath them.

The draft law is expected to be approved by Cambodia's parliament and senate, and then will be promulgated by King Norodom Sihamoni.

Posco Star River (Continue)

2009-11-10T10:37:00.004+07:00

According to Phnom Penh Post dated on 10 November 2009, the US$300 million, 237,500-square-metre riverfront complex, located in Chamkarmon district's Tonle Bassac commune, will consist of 1,000 apartments in three apartment blocks - one 45 storeys tall and the other two 42 storeys each and it will begin selling units in its three-tower Star River apartment complex development following Khmer New Year in advance of a planned completion date of October 2013.

Posco Star River

2009-10-21T16:50:00.003+07:00

The world's leading construction company Posco E&C will realize new dreams in Cambodia.
POSCO E&C is an affiliated company of POSCO which is the world leading steel maker that has the world largest iron works.

The arriving of this giant group to Cambodia will help to restore and build a strong confidence on the real estate investment made by South Korean.

Unusual high price of property in Cambodia

2009-10-21T13:28:00.005+07:00

It should be not usual that property prices in Phnom Penh increased in some cases by as much as 1,000 percent from 2005 to July 2008-when the market crashed-with the most expensive and on the capital's riverfront rising about $5,000 per square meter, a more than 900 percent increase from $550 per square meter in 2005, according to statistics from Bonna Realty.

Why is it happened? The simple answer is that many sellers/buyers, banks and real estate agents just want to make quick cash gained from this dangerous business. And since many transactions have been made, it ends up with high price of property; cash is tied up in lands and no more buyers…

Still there are many lands or houses asking for sale but no buyers. Many estate agents in Phnom Penh have published their nice report for sale properties but not a fair one, sometimes, just normal villa house worth more than $1 million etc…How they measure those value of properties, is it real? Phnom Penh is still far behind New York, Paris, Bangkok or Singapore in term of infrastructure development.

Many banks tried to hide their % NPL stated as low as possible. Do not forget that recently, their loan books have also increased significantly and unusually. Surely, a large part of it has been involved in estate speculation by Cambodian’s borrowers.

Tall Building Structures in Phnom Penh

2009-09-16T10:01:00.006+07:00

Canadia Tower or OCIC Tower

Canadia Tower or OCIC Tower will be now the tallest occupied structure in Phnom Penh City. The building has 29 storeys (Height: 111.75 M).
Even though with a little delay, the grand opening ceremony is expected before 2010.

De Castle Diamond

The 18-storey De Castle Diamond is finished, expected around the end of this year or beginning of next, it will be the largest condominium complex in the capital, with 178 units set on 2,500 square meters of land.

De Castle Royal

Located on No. 34-36, Street 288, Sangkat Beung Keng Kang 1, Khan Chamkarmon, Phnom Penh.
Total Unit Number: 344, with underground 3 floors, above ground 33 floors (Height: 117.00 M)

Gold Tower 42

Located on Monivong Blvd and in middle heart of Phnom Penh, the construction of Gold Tower has been started and the first 12 floors have been promised to be completed by the end of 2009.

What Cambodia should learn from Singapore?

2009-08-03T16:53:00.012+07:00

During the 1960s Phnom Penh with its many buildings in the style of New Khmer Architecture , was called the 'Pearl of the East'. During a visit to the city in the 60s, Lee Kuan Yew , Prime Minister of the Republic of Singapore from 1959 to 1990, was so impressed he expressed his desire for Singapore to develop along similar lines. Many of those buildings were designed by a famous Cambodian Architect,Vann Molyvann.

Although, Cambodia today is now far behind from the modern Singapore today in the past 50 years because Cambodia was falling into civil wars for many decades, which have demolished almost completely all Cambodian's infrastructures built during the Golden Age Period 60s so called Sangkum Reas Niyum under the ruling of King Father, Norodom Sihanouk .

Peace has just been restored recently in Cambodia and the country needs to speed up to develop its infrastructures in order to follow the modern world. Many housing constructions and real estate development have also been booming in Phnom Penh City and its outskirts and in major provinces such Siem Reap and Preah Sihanouk Provinces.

What Cambodia should learn from Singapore include:

1.To draw a proper master plan for city development plan, i.e. for 5 years plan, for 15 years plan, for 50 years plan etc…
2.To build and rebuild the water system, the sewage system and the reservoir to clean wasted water.
3.Forming an association of builders with closed monitored from the government similarly to REDAS in Singapore.
4.To enforce the legal system regarding to the effective application of land laws to make sure that Cambodian publics can benefit in general from any development plans by the public and private sector
5.To have a good and proper valuation system on properties, i.e. training all relevant government officials, property agents working in this field and to produce a valuation report with fair and real economic and market value of properties.
6.The government can invest in the young Cambodian generations through sending them to overseas for special trainings in construction engineering and in architecture design etc…

And under the ruling of the current government led by Prime Minister, Samdech Hun Sen, the abovementioned plans can be easily implemented if there is a real commitment to do so. The government can share and delegate some tasks to young energetic Cambodian generations to rebuild the country together. It cannot be of course completed in overnight but at least, there should be a reflection in mind on this issue and to find ways to develop Cambodia as a prospered and beautiful country in South East Asia.

Property Development in Sihanoukville

2009-07-09T11:14:00.012+07:00

Even facing this global financial crisis and local slowdown of Cambodian property market, many property development projects in Sihanoukville have been continuing gradually according to their plans.

“The first phase of 72 units house and 140 units house of BS Holiday Villa project are subject to be finished by end of July 2009 and by end of May 2010 respectively” said Mr. Danh Sophal, Site Project Manager. He continued that more than 90% of the 2 phases has been sold since the project started in end of 2007 and the current prices of house vary from $86,000 to $250,000.

On the Hawaii Beach, the construction of the private resident and the shop house is almost completed. This project is developed by EMARIO Shonan Marine Corporation Ltd

Hilton Park Villa and Borey CPN (Cambodia Property Network) have also started to build the twin houses, the villa houses and the flat houses accordingly since the first quarter of 2009.

Thai Boon Roong Company has started developing its first phase of 100 flat houses and the market (Pearl City Development), which is subject for sale to public, started in November 2009.

Recently,Brocon Group, an Australian real estate investment company in Cambodia announced its plan to develop the multimillion and high end resorts on Koh Bong Koh Oun or Songsaa Island (further reading - Paradise in the making).

The completion of those construction projects will hopefully respond to the high population growth in the next few years, where number of new entrants such as business people, Cambodian and Foreign expatriate, Retired and Long Vacancy Tourists will come to doing businesses and visit Sihanoukville.

The government’s open sky policy will be restarted again with Preah Sihanouk International Air Port, formly called Kang Keng International Air Port, which is subject to reopen for the operation in 27 July 2009. To where, the passengers can take about 1 hour fly from Bangkok, from Singapore, from Siem Reap and 2 hours fly from South Korea etc…

Hawaii Beach Private Resident, Shop House and Hotel Development

Borey CPN

Hilton Park Villa

BS Holiday Villa

Pearl City Development

Property Law – New Rules permitting Foreign Ownership

2009-06-26T11:53:00.003+07:00

Prime Minister Hun Sen said that the implementation of the new rules allowing foreign ownership would lead to an influx of foreign capital investment in the real estate and other sectors.

According these rules, foreigners who wish to purchase new and second homes in the kingdom of Cambodia, will be allowed to have ownership of homes, apartments and condominiums above the ground floor.

Even though, having the full support from the 15 members of National Valuation Association on this rule, the related government officials must study strongly on the pros and cons of the new rule and to make sure that the Nation would benefit from it in general. Or if possible, the government should form a special group to monitor or regulate closely on the property market, where some those foreigners could participate easily in the property speculation. As the result, it could lead to the unusual high price of property, which many local Cambodians still could not afford.

Expropriation law is being drafted

2009-05-29T17:08:00.003+07:00

According to the Cambodia Daily's article today, "the Cambodia is drafting an expropriation law that would allow authorities to confiscate private property if it is deemed to be in the public interest".

This is the good news for the Country since many public infrastructures have been planned and will be developped although the Government should make sure that the confiscation of the properties must be properly conducted with the fair compensation to the evicted properties'owners.

The draft states that the expropriation involves building large roads, railways, electricity systems or gas pipelines.

Confidence's concerns on Korean Real Estate Developers?

2009-04-30T13:05:00.009+07:00

In just recent years, it has seen many numbers of Korean Real Estate Developers flowing to Cambodia. Large and tall building construction projects have been announced and with projects'names such as Camko City, De Castle Royal, Golden Tower 42, International Financial Center (IFC) and recently Phnom Penh Tower etc...

Although, due to the financial crisis started last year and as Korean government wanted to secure its economic growth remaining strong with financial stability, it has forced to call back Korean investors, who are doing business overseas to return back home. As result, this situation has translated into the delay or the slowdown of many real estate projects in Cambodia. Many buyers who bought and deposited already some money have been worried about this issue and there have been some concerns on confidence on those Korean investors - should they trust or not on them in any other projects made by Korean?

But as confirmed by Im Chhun Lim, Senior Minister of Land Management, Urban Planning and Construction during the ground breaking ceremony of Pearl City in Sihanoukville yesterday, some construction projects made by Korean Developers will continue as usual and just some have been delayed, he mentioned Camko City, which is developing a satellite city in the outskirt of Phnom Penh, has almost completed its first phase of the construction. He continued that the situation will be back to normal or it will attract more Korean real estate investors after signing the MOU in June 2009 by Prime Minister, Hun Sen and Korean President in South Korea.

Pearl City in Sihanoukville

2009-04-29T16:49:00.002+07:00

Today, Thai Boon Roong , one of local giant Cambodian Company inaugurated its first ambitious real estate development project called “ Pearl City” in Sihanoukville and the ceremony was held under the present of Mr. Excellency Im Chhun Lim, Senior Minister of Land Management and Cadastral Ministry.

According to the Company staff, even amidst the global financial crisis, the Company still decided to start this development project after 4 years of plan studied and it is also considered as the biggest city in Sihanoukville including residential village houses, market, school, hotels, hospital, entertainment and cultural centre, condominium and apartment houses etc…The investment project for its 3 phases during 10 years of the construction development was estimated approximately $600 millions.

This project will contribute to the economic growth, the infrastructure development of Sihanoukville and will help to attract more investments into the area, which has a great potential in the future for both industry investment attraction and tourism destination (with its deeper Sea Port, International Air Port, SEZs, Oil Exploration & Extraction, long beautiful beaches and its Islands…).

During his speech of the inauguration, Mr. Senior Minister has positively confirmed that the construction projects in Cambodia as a whole has dropped only about 2%, which is against the figures of 40% made by the international institution. He said that even some big projects are slowing down during this crisis but numbers of small households or small construction projects are still going on and increasing.

Thai Boon Roong is currently under direct control of Oknha Khov Samath, son of Okhna. Theng Bun Ma. The Company owns Intercontinental Hotel, Mekong Bank, Factories and other real estate lands.

Property price is going down

2009-04-01T11:00:00.006+07:00

Recently, there has seen numbers of sellers who are now trying to sell out their properties - asking the price which said be to down from 30% or 50% from the previous offer during last year 2008 - although, it is still remaining high for some places like in Sihanoukville.

On and near the beach front land, the asking price varies from the low one at $139 to high one about $1,042 per sqm from Otres, Ocheuteal to Independent Beaches.

Some local real estate agents said that the price or value of properties in Cambodia is based on the mouth of the sellers who asked what they preferred - and sometimes not really consistent with the infrastructure development or the real market values. Simply talking there is no real system yet to calculate that property price.

Buyers are just waiting for the property price going down - and its number presents very low.

Some experts said that the time to buy should wait in 6 months or in 1 year more in Phnom Penh, Siem Reap or in Sihanoukville, when there will be more debtors starting for foreclosure - and the price will be much more low.

For now, the future looks uncertain - that is now depending on the world economic driver- US reassuring the recovery - the financial stability - and the good governance of banking system etc...

Loan tighten continued on the construction industry

2009-03-03T17:46:00.004+07:00

Despite recent lifting off the restriction from National Bank of Cambodia in order to restore back the good climate condition of construction sector, many larger commercial banks in Cambodia still apply the policy to restrict the requested loan for the purpose of construction, property investment etc...This will drive for many real estate developers to be struggle in funding their current construction projects.

Everything is now depending on the recovery in the world economy especially in US and in Europe etc..., which will bring the situation back as normal.

Foreigners could own properties in Cambodia?

2009-02-20T17:38:00.005+07:00

The law being drafted by the goverment will allow foreigners to have ownerships on house apartment, condo etc.. But it is limitted off to own land properties.

If it comes to reality, it will be a good news for some foreigners who are interesting and searching in buying the properties in Cambodia. This also ease to push the growing of real estate sector development.

Understanding the Foreclosure?

2009-02-19T16:31:00.003+07:00

Recent IMF/World Bank reports on the financial banking sector in Cambodia reflected that some local commercial banks may face the increasing on the non-performing loans (NPL) during this economic slowdown amid the global financial crisis. The banks with large exposure to real estate sector, tourism sector and garment are now on the alert.
Only international standard banks are currently improving their risk management and are ready to prepare for any foreseeable events of writing off the bad debt, which drives to the foreclosure of borrowers’ collateral assets such as land, house building and other fixed assets etc…

According to National Bank of Cambodia (NBC)’s rules, any late loan repayment of more than 90 days is considered as NPL. More than 180 days, the loan will be written off.

The foreclosure often heard in the banking sector is occurred when the borrowers could not repay or has no more financial capacity to service the bank’s debt on time and the bank will use all its right to get it money back and sale the borrower’s collateral assets after obtaining the decision from the Court or the borrowers agree to sale it by themselves. Actually, the banks do not want it happened since it is complicated such as consuming lots of times with lawyers or the Court and high costs/fees on the borrowers’ side etc...

NBC lifting off its restriction to ease the Real Estate sector

2009-01-28T09:49:00.003+07:00

National Bank of Cambodia has recently announced to lift off its restriction of 15 pc putting on all commercial banks in Cambodia to restrict on the real estate speculation.

Many real estate agents, developers and investors are now happy about this good news and they hope to have fresh cash to start or to replay their game again, which has been sleeping for several months.

Read more...

New Real Estate Association in Cambodia

2009-01-08T13:14:00.003+07:00

According to Phnom Penh Post's article dated on 7th Jan 2009, "the Real Estate Development Association of Cambodia (REDAC) was formed December 19 to represent the interests of real estate development firms in Cambodia. Its members include around 30local and foreign companies, including members from Korea, France, Hong Kong and the US".

It is a good sign for the real estate development in Cambodia in the future as with this creation, it should not just protect the interests of real estate enterprises but it must also take into account on the housing consumers, the environment and the nature in general.

Read more...

First Real Estate Expo in Cambodia

2008-11-21T10:07:00.008+07:00

First Real Estate Expo will be held in Cambodia starting from today on 21 to 23 November. This event is organized by Whale Group Co., Ltd.

" Real Estate Expo is a new and relevant response to the country current property development. The one-stop exhibition expects to welcome 40,000 real estate cosumers. It is a "must see" event for all the real estate industry " according to Whale Event Management's website .

The question is that does this event would really help to boost the real estate sector in Cambodia, which is also now being impacted by Global Financial Crisis. As well, there is a real estate selling slowdown in many places. Some of many housing developers are suffering from lack of funds to continue to their construction projects and many sales were cancelled by the buyers.

Some real estate businessmen from Sihanoukville revealed recently that if this situation of non buying/selling transaction keep continuing for other 3 or 6 months, there will be a big crash, huge drop in properties price, many lossers etc...

Risk prevention for real estate buyers

2008-09-25T09:26:00.005+07:00

Ministry of Economy and Finance organized on 23rd September 2008, a workshop about the management-control and issuing license to real estate developers, with the aim to inform to all real estate buyers about the risk when buying properties from housing developer without license.

The government of Cambodia has formed since October last year a Inter-ministerial to take control on the real estate development business, assisted from Ministry of Economy and Finance and Ministry of Land Management.

This goverment group will make and execute the laws and will ensure that the real estate developers in Cambodia must have Housing Development License,Compulsory Insurance for Construction Site and before starting their construction projects, they must deposit 2% of the total invesment capital to the deposit account of Ministry of Economy and Finance at National Bank of Cambodia. They could get it back when their construction project finish.

As well, the real estate developers must have the bank account with any commercial banks in Cambodia and are required to advise to their housing buyers to deposit the money directly to that account.

Recently, the housing development in Cambodia has grown noticeably although many real estate developers have no license and the inspection's quality of construction project has not done well.

New Sokha Hotel in Sihanoukville

2008-09-11T18:10:00.004+07:00

The ground breaking ceremony was done yesterday for a new Sokha Hotel Group on Sihanoukville's O'Chheuteal beach.
The hotel will be built on 15 hectare section of a 54 hectare plot on the beachfront.
This is new 5-Star Hotel of 500 rooms(1 phase) of Sokha Hotel Group which is owned by Cambodian tycoon, Neak Okhna Sok Kong, also president of Sokimex petroleum company.

According to the Cambodia Daily dated on 10, September 2008,Sokimex has also started construction on another 500-room hotel on Chroy Changva peninsula opposite the Royal Palace a $1 billion holiday resort on Bokor Mountain in Kampot province.

Real Estate Bubble in Cambodia?

2008-09-09T18:24:00.003+07:00

Due to a global economic downturn and the hot border dispute with Thailand, there is a warning sign for real estate speculators in Cambodia that the real estate bubble is near.
For now the price of property is too high, there are more sellers in property market while there are low demands.

Although, some real estate experts said the price in Cambodia is very competitve than in Thailand and Vietnam.

The question is that real estate bubble in Cambodia?
Every thing should depend on the future Cambodian government which should ensure long political stability and the double digit of economic growth through fully apply the rule of laws and the diversification of economy sector-hydropower,technology, oil and agro-industry etc...which could attract more foreign direct investors to the kingdom of Cambodia. As the result, there should be no real estate bubble in this country.

New Town in Kep?

2008-08-22T13:48:00.004+07:00

Recently according to published article of The Cambodia Daily dated 19 August 2008 :"Development Project Planned for Beach in Kep".

An ambitious new development projected to cost $2 billion in planned for Kep, an investor said.

The development by Mekong Project Development International will reclaim 400 hectares of land along 6 km of beachfront property there in order to build a major new resort town incorporating about 10,000 housing units, including high-end bungalows, a university, a golf course and a 31-hectare park, according to Seng Vanntha, financial director of Seng Enterprise, one of a consortium of investors in the project.

In 2008, we have seen that number of development projects were planned. If it could become realistic in the coming years, it would be time for the prosperity to Cambodia.

Royal Group and Millenium Group will invest $2 Billion for Cambodian Resort

2008-07-11T13:36:00.003+07:00

According to Bloomberg July 10- "Royal Group , which owns Cambodia's biggest mobile-phone operator, plans to raise as much as $2 billion with Hong Kong- based Millenium Group to build resorts, casinos and an airport on an island off the coast of Cambodia". Details at Bloomberg.com

This is another good news for a real estate development in the Kingdom of Cambodia. Next National Election is coming soon and everyone is hoping that the new government will assure more political stability for the Country.

Tallest buildings rising in Phnom Penh (2)

2008-06-19T17:21:00.004+07:00

Sung Bonna, president of local real estate firm Bonna Realty, said that of the major real estate projects in the country, he had the confidence in the IFC. “In terms of location, in terms of the credit of the company, in terms of the timing, this looks like a good idea,” he said.

Famed architect Vann Molyvann , who designed the Independent Monument and Olympic stadium, said Wednesday that the high rise projects are good for the city, but he questioned whether too many of the projects are coming to soon. “I think now it’s not a good time…If they can start with the small projects it can be better,” he said.

Recently, there was rumor that Gold Tower 42 will not be built as the company took all money and went back to South Korea…Why? But accordingly, it has been reassured by top management of the company during a conference talk organized by CTN, that the rumor is wrong.

Gold Tower 42 will be started and to be finished in 2011. Until now all retail space in Gold Tower has been sold and 60 percent of residential units are spoken for.

Local firm Royal Group has also announced they plan to begin construction on two 25 -story buildings near Phsar Thmei by the end of the year.

Tallest buildings rising in Phnom Penh (1)

2008-06-19T17:18:00.003+07:00

Construction is set to begin on Cambodia’s tallest building as officials broke ground on the 52-story International Finance Complex that will dominate the skyline of the Kingdom's low-slung capital after its completion in 2012.

The $1 billion project, developed by IFC Phnom Penh, will include a main office tower surrounded by several smaller glass-and-steel structures, making it the latest in a string of mega-projects set to transform the city’s urban landscape in the next decade.

The International Finance Complex, located on a 6.8-hectare site near the Russian Embassy on Sothearos Boulevard, will contain 1,064 residential units in six towers ranging in height from 44 to 51 stories. There will also be a 34-story service apartment building, a school and other facilities.

“The IFC Phnom Penh project [is] a symbol of Cambodia’s recent economic growth and will become a new landmark of Phnom Penh,” said Kevin Kim, CEO and President of GS Engineering & Construction, the project’s South Korean contractor, at the June 18 groundbreaking ceremony at the building site on the Bassac River.

“I am confident that under the strong leadership of Mr. Hun Sen, the Cambodia’s economy and stability will continue to grow and be open to more Korean firms entering the Cambodian market” said GS E&C Chief Executive Officer, Kim Kab Ryul

Koh Puos Bridge Construction Project

2008-06-19T17:13:00.003+07:00

The construction of a 900 meter bridge from Sihanoukville’s Hawaii Beach to Koh Puos (or Snake Island) has been started. This project costs about 20 millions Euros and will be finished by 2011.

Russian company Kos Puos Investment Group , which signed a 99-year lease to develop the island in September 2006, said in a statement the project will create up to 25,000 new jobs. The total cost of this international hotel & resort is estimated around $300 millions and this project is subject to be completed in 10 years.

Thaksin aimed to build a new modern city in Koh Kong province

2008-06-19T16:44:00.007+07:00

Cambodian-Thai Border

Koh Kong Bridge

Koh Kong Safari World

Thaksin is interested in buiding a new modern city in Koh Kong province by developing another casino and entertainment complex, morden residential houses,schools, hospitals. The amount of investment is not known yet.

Koh Kong: land prices are about soaring?

2008-06-04T11:45:00.005+07:00

After the recent renovation of N.48 and the four bridges financed by Thai government's loans and funds, which link from Phnom Penh to Koh Kong Province,and as announced by Prime Hun Sen recently, there will be multi-millions invesment of a five star hotel & resort development by a Chinese company, there are more and more poeple (local and international tourists) have been pouring to visit Koh Kong, which used to be a sleepy town.

Accordingly, there are also many land buyers now going down to shop around and looking for the opportunities to speculate on land prices, that are currently at low level comparing to other development areas of Cambodia.

So land prices in Koh Kong will be soaring soon?

Loan restricted has stabilized land prices

2008-06-04T11:36:00.008+07:00

According the Cambodia Daily date on 04 June 2008:
"Loan Curbs, Poll Concerns Cool Land Prices"

After more than a gear of soaring growth, land prices appear to have stabilized, officials in the business community said Tuesday, citing a curb on bank loans and July’s national election among a host of likely reasons.

The slowdown began in May after the National Bank of Cambodia doubled bank reserve requirements to 16 percent. The government introduced the reserve increase-the amount of total cash deposits banks must keep a t the central banks- as a move to curb the country’s double-digit inflation by reducing credit to private sector.

But the plateau in land prices also coincides with concerns about political stability as investors await the outcome of the national election before they resume purchasing property, some businesspeople said.

Sung Bonna, president of Bonna Realty, said his company has not completed a report on property prices since April but have one planned for release in July. If things continue as they have of late, he said, that report will show prices having hit a plateau.

He added that the levelling off of what were skyrocketing prices is likely a positive thing.

The price is stable not only in Phnom Penh but also across the country, Sung Bonna said, adding land speculators, who have been driving up prices but not actually developing land, will be most affected.

The beginning of the rainy season, which makes travel in the provinces more difficult for buyers, is another reason for the levelling off, he said. But concerns about political stability and what kind of government will form after July are key, he added.

Debasish Pattnaik, director of business development, project and investment at the Royal Group, said land prices were to level off after so much growth.

Foreign investors have been responsible for some of the price increases, he said, but as many of them have become more familiar with the business landscape here, they have become more savvy about prices.

Property sales slowdown recently in Cambodia

2008-05-20T09:46:00.003+07:00

According to Phnom Penh Post's related article dated on May 16-29, 2008: "Property sales hit a bump as elections nears".

Cambodia’s red hot property market has cooled significantly as investors fretting over the outcome of July national elections curb a buying spree that has seen land prices more than quadruple in some parts of the country, realtors and lawmakers say.

“In general, businesspeople involved in real estate are waiting to see what the situation is after the national election”, Bonna told the Post, adding that without buyers, property sellers have been forced to cap prices. “Also the rainy season isn’t a good time to go out and see land”, he added.

Realtors, however, including Bonna, predict the elections would register as only a small blip on the long-term pattern of rising Cambodian property prices.

“I think real estate will remain a tool that helps the country develop”, said Cheng Kheng, owner of Cambodia Properties Limited (CPL), adding that he expected prices to resume climbing a few months after the polls, once concerns over restructuring subside.

According to Kheng, many of the bigger spenders in Cambodia’s real estate sector have political party affiliations that were demanding more of their time as the election approached.

“I think people who have a lot of money to buy are busy campaigning for the election.”

But the real estate sector slowdown has also hurt an unprecedented building boom that was a key factor behind Cambodia’s recent double-digit economic growth.

The future of Sihanoukville

2008-04-29T13:59:00.002+07:00

Every Cambodian is dreaming about the future of Sihanoukville which will be look like Singapore or Hong Kong according to its existing and future potentials: Tourism destination to the long beautiful beaches surrounded by beautiful islands, Ream National Park, International Sea Port and Air Port, Special Economic Zones, Luxury hotel and resort, the future of new city development, entertainment and park attraction centre, Sea Museum & Aquarium etc…

Although in order to make those above plans happened, Sihanoukville should have a good Master Plan for the future development as following:

• Sihanoukville Master Plan for long term project (15 years – 50 years) must be designed by local and international experts
• Water reservoir must be built
• High voltage of Electricity must be linked to city
• Existing wasted water cleaning should be covered and better be relocated a bit far from the sea
• Planting the tree along side walk of the main roads
• All public beaches must be reorganized (Pave way along the beaches, sewage tank for public and private WC, drainage system for wasted water) to make sure that the environment is clean for the local and foreign tourists.
• If possible, some old government officials should be replaced by young officials who have the energy, skills and the capacity to participate in the development of Sihanoukville
• Real estate development must be controlled by the governments

PM Hun Sen expressed concerns on inflation and high property price in Cambodia

2008-04-24T13:35:00.004+07:00

Speaking at the biannual Government-Private Sector Forum on Wednesday 23 April 2008, Prime Minister Hun Sen announced a series of taxes and banking restrictions to help curb inflation and address other economic concerns.

The prime minister then proposed a series of measures to deal with inflation, high property prices and food security- measures he said would also improve the government's budget.

Hun Sen said the government would better implement taxation policies regarding land sales, which are supposed to be taxed by the goverment, and the oft-ignored tax on unused land.

Hun Sen also said the NBC must restrict commercial banks from loaning money to real estate market from "overtheating". [quoted from the Cambodia Daily dated on 24 April 2008]

Do you think there is a property price bubble in Cambodia?

2008-04-24T13:28:00.003+07:00

The interview between US lawyer Bretton Sciaroni and the Cambodia Daily's Tim Sturrock:

Q [Tim Sturrock]:Do you think there is a property price bubble in Cambodia?
A [Bretton Sciaroni]: Not in a sense that a lot of people talk about a bubble because… usually a bubble occurs when there’s so much involved.

A bubble happens when everyone is borrowing to buy the land or finance it and all of a sudden the whole thing collapses. It implodes because they can’t make their payments, and so on and so forth. But here I have the impression that so much of acquisitions are 100 percent equity. It’s cash transactions.

I keep on thinking about what happened after Untac. When the UN came in here, they needed housing. Everyone needed housing. And they were willing to pay top dollar, and there was nothing there. This was really a different city in 1993, 1992.

And so all kinds of people were getting unbelievable amounts of money for their property and the UN left. And all money, all the millions and millions of dollars left too. And what happened? Did people lower their prices? In many cases, no. They figured, “No, we’ll let it go empty. Sooner or later someone is going to pay that price the UN was paying.”… So, let’s say people stop buying. They say, “OK, I’m not going to put any more money into land.” Are [owners] then going to put a fire sale on their property and slash the price and take a loss? Or are they going say, “I’ll sit on it, and sooner or later someone is going to come along and pay me what I paid or pay more than what I paid”.

With the image of a bubble- I’m not sure it’s applicable here.

Real estate development in Cambodia

2008-04-22T16:25:00.005+07:00

DE CASTLE ROYAL in Phnom Penh - Korean Developer NURI D&C and RUNS&WALKS

Golden Tower 42 in Phnom Penh - Korean Developer Yonwoo - Project Financing DaeHan Real Estate Investment Trust

Grand Phnom Penh developed by Ciputra Group Indonesia and YLP Group Cambodia

Residential, Shop-house, Restaurant developed by CPN Property in Sihanoukville

BS HOLIDAY VILLA in Sihnoukville

Sovanna Shopping Center, largest mall opened in Phnom Penh

2008-04-10T11:24:00.003+07:00

Sovanna Shopping Center, Cambodia's newest and largest shopping mall, which opened its doors last month in Phnom Penh's Tuol Kok district.

Standing five floors and spanning about 50,000 square meters, Sovanna, located a short walk from the Khmer-Soviet Friendship Hospital, is 20 percent larger then Canadia Group's first mall, the Shopping Center Sorya, which opened in December 2002.

Cambodia: lending restricted for real estate speculators

2008-04-08T10:10:00.003+07:00

Due to recent credit crisis in US and to the unusual increasing in value of properties in Cambodia, National Bank of Cambodia (NBC) prepares to instruct to all banks operating in Cambodia to restrict the lending to all real estate speculators, which is considered to be driver of possible credit crisis in near future.

All banks in Cambodia should lend to the business people/investors in the following sectors: tourism, manufacturing, retail trade etc... that are more productive businesses and also could create more jobs for young Cambodian people.

Speculation in real estate will kill the Cambodian people as a whole?

2008-03-20T17:03:00.005+07:00

The word " Speculation in real estate " means hoping to make profit from buying and selling lands or house property etc... but risking loss.

In Cambodia, the value of real estate has just been appreciated very fast for recent years while its economy and insfractures are being developped gradually.
Now just for the few weeks, due to increasing in oil's price and depreciated of US dollars currency plus especially the current speculation in real estate, many Cambodian people have faced the difficulty with the increasing in price of all consumer goods that are mostly imported from neighbord countries or overseas.

Many farmers have sold their agricultural land properties and most of them got the money to purchase the consumming products that are for the unproductive investment due to lack of ideas/knowledge.

With land prices rapidly increasing, are you worried about the creation of a bubble in the market?

2008-03-20T17:00:00.000+07:00

Sung Bonna at one time was homeless and poor, working at a fast food restaurant. Now he owns one of the largest real estate agencies in Cambodia.

Orphaned by the Khmer Rouge, the entrepreneur said he slept in garages and at friends’ homes in the early 1990s while he worked at Lucky Burger as a cook and was later promoted to supervisor. In 1997, a friend encouraged him to become a real estate agent, telling him all he needed was a mobile phone and a motorbike. In 1999, he started Bonna Realty, setting up an office with an unconnected landline phone for show on his desk and about $250 in his pocket. Sung Bonna recently spoke with The Cambodia Daily’s Kay Kimsong and Tim Sturrock about property value bubbles, local development and the future of real estate in Cambodia.

Q: How will the national election in July affect the real estate market?
A: it looks OK. During this time, it’s not like it was before. Everyone feels, even my feelings and some investors also feel, that it’s no problem.

Before with elections, for almost six months or eight months it was already quiet in the property sector. This month, there’s still actively because everybody feels that nothing will happen-they don’t feel worried or anything. There are one or two out of 10 people who have some feeling, but the other eight says it’s OK.

Q: With land prices rapidly increasing, are you worried about the creation of a bubble in the market?
A: This one of the worries-not just for me-but for some other people also. We are worried but so much worried for the whole country. The thing that we’re worried about is the outskirt properties, outside like in the provinces.

But the in-town properties are not a worry, even if it’s jumping too high. Why are we not so worried? Because we’re thinking the development is still continuing…

Also the economy has demand. The demand, what we are talking about demand is, for example, Cambodian people still need a lot of nice houses, still need a lot of offices. We don’t have a good office supply yet for example, like some businessmen or restaurants want to get a good [commercial space] to occupy or find a nice restaurant to eat. We don’t have such good things like that yet. Now people need it but don’t have it yet. So the commercial property is still needed.

And like the hotels. The tourism number is increasing and increasing but the number of hotels is not enough…

There are old houses and number of people that say in one building with a lot of familys-like one shop house with three stories but it has like 10 families. These people, they are planning to move to independent homes. Because Cambodian culture before, one family, like the grand father, they own one property-the son, the grandson, everyone stays together. Like 20 or 15 people stay together.

But now people are trying to move, to separate, to live independently when they become couples. They want to have an independent house, so it’s not like before.

Q: Do you think Cambodia and Phnom Penh have a clear plan for developing real estate?
A: Actually, the planning and ideas it has, but the practicing and the doing it depends… for example, the plan is to begin construction on one road in the next six months and complete it in the next 12 months, but it may delay. It may change. This kind of thing is what we think is affecting the property market.

And also, planning is not 100 percent under the government control. It depends on the investor. The private sector has some control. If the private sector can move and change it does not depend on the government 100 percent. So that’s why we are not 100 percent sure that government’s planning and city’s planning will 100 percent follow that they are planning.

Q: What more does the government need to do?
A: The government needs to protect from the bubble breaking. They have to control so the plan is clear. They have to control construction and the developments and developers…The government has to control that, to have clear plans, clear money…Do not just let one company come and they say they will build this and build this, when actually their financial background is not really good.

Q: So, the government needs to provide more oversight?
A: Yeah, so we need our country to have more control. It has to have something that is more secure to Cambodian people. People say, “Oh, I’m doing a development”… But nothing happens. Later on it’s just empty land for the next two or three years. It’s just empty land. They did not do anything. So they just speculated and this kind of thing is not good. [source: the Cambodia Daily on 20 March 2008]

Sihanouk Ville: Two more islands have been leased recently

2008-02-29T18:50:00.002+07:00

The government awarded developpers 99 year leases for two islands off the coast of Sihanouk Ville on Thursday, bringing the total number of leased islands to 11 officials said.

In two seperate deals, Koh Russey Resort Co., Ltd will develop 78 of 137 hectares on Koh Russey island, while Royal Group will develop a resort on the 7,826 hectare Koh Rong island, company officials said.

Bokor mountain: new hotel complex at the summit

2008-02-18T12:56:00.007+07:00

The Bokor project, announced late last month, will see the refurbishment of mountain's casino, hotel and other infrastructure, as well as the development of a new hotel complex at the summit. The development project is tipped to cost Sokimex Group, parent company of Sokha Hotel Co., $1 billion over 15 years.
" Our mission is to develop Bokor into a first class hotel," said Sok Kong, Sokimex founder and chairman of Sokha Hotel Group.[source: Phnom Penh Post]

Queenco Leisure buys land in Cambodia for 10 mln usd to build beachfront resort

2008-02-18T12:56:00.004+07:00

Queenco Leisure International Ltd said it has purchased 9 hectares of land in Sihanouk Ville, a coastal area in the south-west of Cambodia, for 10 mln usd, which it plans to develop as a destination beachfront resort and casino, including hotels and conference centres.

The casino developer and operator said as part of the acquisition, it has also acquired exclusive rights from the Cambodian government for the stretch of beach immediately in front of the site.

'Along with the expansion of Sihanouk Ville's airport, the area is being transformed as a tourist destination, with a growing local economy, as both foreign and domestic investors recognise the future potential of the area,' chief executive Dror Mizeretz said.

Today's announcement follows the company's acquisition of 48 hectares of land in Sihanouk Ville in February 2007, Queenco added. [source: LONDON (Thomson Financial) ]

International Real Estate Consultant Sees Room for Upward Growth

2008-02-18T12:56:00.003+07:00

According to the Cambodia Daily dated on 7 Feb 2008 that Edward Hopkins fell in love with Southeast Asia while backpacking in the region in the early 1990s. He returned to Britain and earned a degree in Southeast Asian Studies and Languages. Hopkins has returned to Phnom Penh to head up the Cambodia office of real estate consulting firm CB Richard Ellis. The Los Angeles-based company, with about 24,000 employees worldwide, is hoping to tap into Cambodia's booming real estate market by facilitating investments and consulting with developers. He spoke with Stephen Kurczy recently about the potential of Cambodia's property market.
Q. Plans have been announced for three skyscrapers in Phnom Penh-a 30-story, a 42- story and 52-story. But there are doubts that they'll even go up.
A. There are always doubts. I have my concerns. First of all: Is there a need to build things that high here, especially with the difficulty of construction on this type of land? You can't go 50 stories up without hitting bedrock...and the construction costs of that will be very, very expensive. My feeling is that you probably don't need to go any higher than 20 stories here.
Q. So do you wonder if these skyscrapers will ever be built?
A. I think something will go up. I know the companies you're talking about-they're serious people. We ve done a lot of work with these guys already. They do their homework. They do build things. Something certainly will go up. There's a desperate need for office. The other thing is that people like to be in buildings with the companies they do business with. It's very easy when you're on the 10th floor to press the elevator button to the eighth floor to go and see your insurance broker, or go down to the ground floor to see your banker, or see your lawyer, because you end up with lots of different services in the same building. For example a huge multinational moves in, now I'm not going to quote any names, but let's say a huge American company, an oil company, decides to move in, they're going to 2,000 square meters, everybody who is going to provide service to that company will move into the same building...If I were a developer, I would be looking to get a 20-story office building up within 18 months.

Cambodian goverment has leased 3 other islands to private companies

2008-01-22T16:33:00.000+07:00

The goverment of Cambodia has leased 3 more islands in Sihanoukville to private companies.

The Council Development of Cambodia (CDC) has approved the investment projects for 3 private companies: Angela Real Estate, RPB Investment and Twin Golden to lease Preus Island (562,800 sqm), Krabei Island(122,330 sqm)and Tres Island respectively.

The total investment from those companies is estimated around USD 43 millions.

This is a good news for Sihanoukville where is going to be developped very soon.

Phnom Penh: New Skyscraper building of 53 floors in 4 years

2008-01-10T17:26:00.000+07:00

International financial center of 53 floors will be built in the mid of year 2008 on the 6 hectares land at Tole Basac District, Phnom Penh. The construction's cost is estimated at about $1,100 Mio and the construction works will take 4 years. (source: Reaksmey Kampuchea).

This is a new giant real estate development by Korean construction company "GS".

New bridge from the mainland of Sihanoukville to Snake Island

2008-01-02T11:42:00.000+07:00

The first new bridge will be built soon, connecting from the mainland of Sihanoukville to Snake island (Kos Puos Island). The construction of the bridge will be done by a Korean firm.

The island was taken by Kos Puos Investment Group, owned by a Russian tycoon who got the lease from the Cambodian government for 99 years.

This is a multimillion dollars project on the island where there will be a real estate development of 5 star hotel&resort, bungalows, new town etc...

Boeung Kak Lake will be land filled?

2007-12-30T16:30:00.000+07:00

According to the Cambodia Daily dated on 28 December 2007, HSC Co Ltd, on behalf of Shakaku Inc, is currently constructing a pipeline between Boeung Kak and the Chroy Changva peninsula to pump sand into the lake.

But during Environment Law dicussion at National Assembly, Mr. Mok Mareth, the Senior Minister of Environment, seemed to prevent the project as the environment impact assessment has not been done and it has to be completed prior the land filled.

I think that the Minister was right to state the above issue. And the company itseft must follow the environment law and must hold a correct master plan of this real estate development and must take into account of the green space. So the development is going to done smoothly and Phnom Penh will have a nice city view.

Two New Class and Luxury Hotels at Ocheuteal

2007-12-29T10:22:00.000+07:00

The construction of two big hotels at Ocheuteal has been started recently.
The seven storey hotel building is owned by the owners of the Golden Sand Hotel. The construction site locates on 23 Tola Street, just hundred meters from Golden Sand Hotel. This project of hundred rooms hotel will take about 3 years.
Another hotel resort and goft court project is also being developped on Ocheuteal Beach, formerly owned by Ariston. Although, this new project is owned by Sokha Hotel Group and the completion of the hotel's construction will take 3 to 5 years.

New Small Town in Sihanoukville

2007-12-29T09:52:00.000+07:00

A place known as Phnom 96 ( 96 Mountain) will be developped to a new small town in Sihanoukville. This large real estate investment in an area of more than 10 hectare land is made by a local company owned by Chumteav Long Sakhan. They will build many tourist residential houses.
The site is located at 05, Module 4, Mittapheap District, just a few hundred meters from Donbosco Technical School.
This is a second real estate development in Sihanoukville after the first one developping on the Hawai Beach, which is owned by a Cambodian-Japanese, Mrs. Sakura.

Real estate booming in Sihanoukville?

2007-12-18T10:33:00.000+07:00

Just for the last few months, many large land area have been divided into lots of small land (usually 20mx30m). Now it counts about 11 different locations of divided lands in Sihanoukville alone. As the result real estate is booming now in Sihanoukville and many real estate investors who have available funds could purchase some lots of land easily.

Also, many foreign toursits start to visit Sihanoukville this year and specially Swedish tourists who flew from Europe directly to Phnom Penh enjoy relaxing at the beaches of Sihanoukville. The demand of 4 or 5 hotels is also coming.

Welcome to real estate developers (hotels, resorts, apartments, entertainment centers) to Sihanoukville, it is time to invest now!

Trump : Real Estate Advice

2007-12-18T10:06:00.000+07:00

WORK WITH PROFESSIONALS YOU TRUST

Find a real estate professional you can trust. I mean, really trust.
For many people, buying or selling a home is one of the single largest investments (and accompanying financial transaction) they'll ever make. Believe me, you do not want to hand this very important- and extremely complex- process to someone you don't trust completely, and who may not have your best interest at heart.

Good agents pledge up front to make you partners in the process and to act as your trusted adviser. They spell out for you-figuratively and in some cases literally-what they'll do for you and when they'll do it and why. And after they're done, they ask for your honest feedback. They know the ins and outs of their market-your market-including anything and everything about the neighborhood and community (types of homes, the quality of local schools, nearby parks, and so on) that will help you make not just an informed decision, but the right decision.

DEVELOP IN AN AREA WHERE GROWTH IS COMING

William J.Boykin, founder of Boykin Lodging Company said, "Always develop in an area where growth is coming. If you are a little early, or a little wrong in some way, the growth has been and growth is not continuing, when you are wrong, you are wrong ferever".

THINK LOCATION-AND HONESTY

When you are purchasing real estate, the three most rules remain: location, location, location.
Whey are selling real estate, the three most important rules are: disclose, disclose, disclose. Honestly prevails.

Cambodia: Business opportunity

2007-12-18T09:16:00.000+07:00

Business opportunity in Cambodia ranked 68th out of 157 for its economic freedom is easier than it sounds.

Cambodia is ranked higher than Vietnam, Thailand or Malaysia for economic freedom. This November a business round table help in Phnom Penh attracted about 600 business people from the oil and gas, tourism and finance who attended the last conference in 2005. They heard speakers talk about how the country's economy has grown by almost 10% each year since 1999, how per capita GDP has more than doubled since 1994 and how land prices in some parts of Phnom Penh are approaching those of Hong Kong.

International investors are moving into Cambodia banking, insurance, consumer and retail marketing, construction, energy, hotels and tourism, mining, cememt production, plantations and manufacturing, as well as industrial estates, ports, telecommunications and transport services.

Legal environment : Investing in Cambodia

2007-12-18T09:06:00.000+07:00

Investors can set up 100% foreign-owned projects and repatriate funds freely. There is contractual freedom and investors are afforded protection against nationalisation. The Law on Commercial Enterprise (2005) offers a range of enterprise structures, all for a duration of 99 years. The Law on Public Enterprise (1996) provides for mergers and acquisitions, including of State-owned entities. There is no limitation on the nationality of the shareholders or on the proportion of shares held by each partner, with the exception of real property where foreign holders are limited to a 49% stake. (This may change shortly in repect to foreign purchase of condominiums). Licencses are required for investment in insurance, minerals (including oil and gas), tourism, and telecommunications. Incentives are available to foreign investors under the Law on Investment (1994, amended 2003). Benefits can include, inter alia, waivers on import and export duties and tax holidays. Special Economic Zones were legislated in 2005. Foreign investors are expected to comply with regulations and laws concerning taxation, labor, and licensing. Cambodia is a member of WIPO and intellectual property rights are protected. The legal system is still developing and contracts normally contain provision for foreign arbitration of commercial disputes.

Cambodia: Real Estate bubble risks

2007-12-17T13:37:00.000+07:00

The real estate boom in Cambodia presents some risks for short-term economic growth, and macroeconomic stability. It may strongly affect the nascent banking sector if no preventive measure is taken. About 37 percent of apartments sold in Phnom Penh are for speculation purpose, according to a recent EIC survey.
Like in Cambodia, real estate activities in Vietnam are booming and mostly speculative. But the Vietnamese government will impose progressive taxes on housing speculation to help deflate an impending bubble in the real estate market.
The more real estate a person possesses, the more tax will be paid. New regulations will also require all housing project developers to publicize sufficient information for customers to avoid being duped by speculators engaging in arbitrage, i.e.,taking advantage of consumers'lack of information on expected price changes.
The key factor motivating speculationn in Vietnam remains quick profits caused by lax government regulations, according to a recent report of Vietnam's Ministry of Construction. Will the Cambodian government do the same as Vietnam? Obviously not in 2008, if we refer to the draft budget law for 2008.

How Special Economic Zones help to boost economics in Cambodia?

2007-12-17T13:27:00.000+07:00

The Royal Government has beefed up its economic development policy to attract foreign investment in order to increase exports and accelerate the country's economic growth. One economic development strategy initiated by the Government is the Special Economic Zone (SEZ).
One investor is a Japanese company called Zephyr Co.,Ltd, a rapidly growing Japanese real estate develper. A Japanese-designed project, Phnom Penh Special Economic Zone (PP-SEZ), covers in total 360 hectares.
The total cost of the project is estimated to be US$85 million and is expected to create 100,000 more jobs to Cambodian people over the next five years. PPSEZ is a co-investment from two private companies; Attwood Investment Group (AIG), and Zephyr Co., Ltd, a Japanese based company.
The administration of the SEZ provides "One Stop Service"for investors to easily access to government service. Furthermore, SEZ benefits a number of fiscal incentives, including benefits under Income Tax, Customs, and VAT.

Home Loans Service

2007-12-14T11:40:00.000+07:00

The banking and financial sector in Cambodia has boomed within the last two years, and several banks in Cambodia have started to offer loan service. The National Bank of Cambodia started allowing banks to provide loans for purchase of land and construction of houses. So far millions of dollars were lent for the purpose because a great majority of people still can not afford to build their own house due to the lack of capital. Others can afford their own house construction but within a constraint of financial needs.

The total assets of Cambodia's banking system as of August 2004 were approximately 4,106 billion Riel (US$1,030 million). Loans account for only about one third of the banking system's assets, and it is impossible to estimate the percentage of loans, which are non-performing, according to the US state department.

ACLEDA Bank offers this home loan service in November 2006.
ACLEDA's client can borrow up to 75% of the total house costs with fixed interest rate for 10 years. After that, home mortgage loan carries a floating interest rate at average 11.52% per annum.

ANZ Royal Bank started its lending service in August 2007, offering a 15 year installments schedule. The requirements state that customers can borrow up to 60% of home purchase price and make monthly repayments.Borrowers can use the money for acquiring a residence, home equity or investment. Residential home loan is set at a variable annual rate of 8.5%, while both home equity and home investment loans are granted at a floating rate of 9.9% per year. Borrowers must be employed for several years with sufficient income for a period of two years and must show that he/she is going to have the means to pay back the bank.

A man involving in illegal land deal arrested in Siem Reap

2007-11-27T10:23:00.000+07:00

According to CTN report this morning, a man was arrested and charged with fake signatures on the land documents in Siem Reap Province. He used the signatures of Prime Minister Hun Sen, Senate President Heng Samrin and Vice-Minister Sok An in order to get approval on the 10500 sqm to a private company.

This is the new warning to all land investors to be very and very careful before purchasing any properties. If possible, it has to check in details and make sure that it has the right information.

And must stop immediately for anyone who always commits the illegal action on the land deals. As the above shown example, finally he and his friends lost the face and will be charged against the laws.

Foreigners can own properties in Cambodia by legal ways

2007-11-23T13:37:00.000+07:00

Even though, in Cambodia, there is no laws to allow foreigners to own properties, they still can have an ownership on the properties through some following legal ways:

1- Foreigners can get married with Cambodian women. By then, they can purchase any property which will be owned by their Cambodian wives.
2- Foreigners can have a Cambodian ID card through the donation with sum of about $40,000. With the Cambodian ID card, they can easy own any property under their names.
3- Foreigners can have any trusted Cambodian friends who will help them to purchase the properties on their behalf. Thereafter, Foreigners will lease the property from their Cambodian friends and hold the title deed.
4- Foreigners can incorporate a company with a Cambodian partner (Cambodian partner 51% and Foreigners 49%). They could purchase any property by using the company's name. Then, Foreigners can simply own the property by asking their partner to issue a power of attorney letter that he/she will give all right of power in decision making to Foreigners partner.

One more tip,before purchasing any property, make sure that the title deed is ok and due diligence must be completed. And finally,their partner must be honest.

Flat houses being flourished like Mushroom in Phnom Penh

2007-11-18T15:32:00.000+07:00

Just for recent years, there are numbers of flat houses being built in Phnom Penh and its suburds. Some of them are built with quality that is good and I would like to appreciate to the builders. Although, there are also many houses being built illegally without any construction permit or maybe without any quality. Maybe the builders just think about the quantity and make the profit as soon as possible and don't have any vision for the future (ex. the collaspe of the building, if this case happen, who will be responsible?). I would like to suggest and recommend to the builders that they should cooperate with the authority and make up the master plan of the real estate development. For the nice view of the city. Look at Paris or Singapore! and Think about the future for long vision. The country is being developped and all of us will benefit from the development if we do the correct works and have a good plan.

Why the government don't stop the illegal builders?

2007-11-18T15:24:00.000+07:00

From the morning news of TV3, "the City Hall have accounced the warning to any real estate buyers that today there are many illegal builders who develop the house or flat house (Borei...) without construction permit from the Cadastral or the City Hall". This make me supprise when hearing that story! How and why the government still let them continue or don't stop them? Should the government check them one by one?

Will Phnom Penh Look be changed for the next 5 years?

2007-11-08T08:29:00.000+07:00

A message from CEO Sang Ho LEE that " World City Co., Ltd. is now developing the Phnom Penh New Town located in the Pong Peay Lake Development Zone in Phnom Penh, Kingdom of Cambodia. Phnom Penh New Town is the first modern urban development project in Kingdom of Cambodia. This project is planned and invested by Korean investors. Miracle of the Mekong River , Phnom Penh New Town will offer successful international business opportunities with the global standard of the city, as well as will present an ideal urban planning to guide future urban development in Cambodia. We believe that it will improve the quality of life and change the Cambodian life style. We hope that you will discover the miracle coming true in CambodiaWe will do our best to satisfy all of your needs by introducing the most advanced facilities, convenient services and good amenity to you."

Thanks to World City that come and help to promote Cambodian life through its billion dollars real estate investement for the new satellite city of Phnom Penh, Cambodia.

Will the real estate development on those islands of Sihanoukville become reality?

2007-11-08T08:21:00.000+07:00

According to Phnom Penh Post's article in title" Islands in the stream of cash", a massive wave of proposed investment is prompting a sea change off the coast of Sihanoukville Municipality. Billions of dollars worth of development projects are being promised to the Royal Government in the hope of luring 99-year lease agreements for Cambodia's pristine tropical islands. The proposal price tags range from a modest $20 million to 2.5 billions, with economists and observers wondering what these figures mean in real terms, and at what cost to the government?

How many Real Estate Agents or Brokers have the real estate license in Cambodia?

2007-11-08T08:12:00.001+07:00

Prakas on Professional Certificate and License on Appraisal Service on Real Estate and Real Estate Service (No 142 MoEF PRK dated 13 February 2007)

The MoEF will issue certificates and licenses to individuals and companies operating in real estate and or/providing valuation services in Cambodia. Individuals and companies who wish to operate or who are currently operating real estate business and/or providing consultancy services on real estate can apply for the professional cerfificate and license with the Department of the Department of Financial Industry of the MoEF.
The certificate holders are legally permitted to be a representative of the real estate or valuation company. There are different type of certificates and license depending on the services to be provided. The Prakas also outlines the conditions to obtain a license or certificates from the MoEF.

Property's value going up in Cambodia without any control?

2007-11-07T18:09:00.000+07:00

With stable polical situation in Cambodia recently, its economy is also going well as there are foreign direct investments from South Korea, Japan, Thailand, Malaysia, Singpore and China etc...come doing business in Cambodia. The real estate business is also improved. Many properties'value appriciated noticeably in almost everywhere now in the kingdom of Cambodia! Why without any control???

Should foreign ownership laws in Cambodia pass?

2007-11-07T18:06:00.000+07:00

Cambodia’s private sector has urged the government to allow foreign ownership this week saying an open-minded real estate market would promote economic growth. The Cambodian investment law was amended back in 2005 to allow foreign ownership of permanent fixtures, but as yet has not been enforced. The non-implementation of the act has in fact rendered the amendments as a forgotten law, and as such has now become out dated. In the current legal understanding, the old law will only allow a property investment in the name of a Cambodian national but with the pressure from the private sector to increase wealth, urgent action will be required.

Chris Green, Head of Research at Obelisk International says ‘The key improvements to the property investment law would open up a whole new economic world to the country of Cambodia. These measures would not only further develop Cambodia’s property investment market, but the new interest from those investors who want to take advantage early, will not only create a boom putting Cambodia on the map, but will also make the country more competitive with its neighbours.’

American lawyer and chairman of the International Business Club, Bretton Sciaron comments on the property investment news ‘There are several reasons for urgent action, this is already a sector of the economy that is dynamic, but foreign ownership of apartments, condominiums and other such structures on the land will help spur further economic growth. Such a regulatory development will provide a dramatic indication that Cambodia has an investor-friendly environment.’

Vast new building projects have increased over the past few years, including a great number of satellite cities worth billions of dollars that when completed will fundamentally alter the appearance of the capital. After years of disorder within Cambodia, the country is now turning things around as a growing economy posting a steady 11% growth over the last three years, fuelled by a strong tourism industry and clothing manufactures.

Cambodian Commerce Minister, Cham Prasidh said that Cambodia still relies on international aid for half of its annual budget, but must now diversify by seeking more varied foreign investments. ‘There are other sectors we are trying to encourage, but we have to find out what are the sectors where we can be competitive. If we try to produce the same thing as Thailand or Malaysia, it will be very difficult’.