Real Estate market news in Cambodia

Top 10 fastest economic growth Countries
Top 10 fastest economic growth Countries

Property Real Estate market news in Cambodia in 2020

Cambodia continues to be in the Top 10 Fastest Growing Countries in the World, driven by real estate, garment exports and tourism. Cambodia’s economy has sustained an average growth rate of 8% between 1998 and 2019.Rental yield in Phnom Penh is the third highest in Asia and Cambodia real estate property prices is among the lowest in Southeast Asian countries. Combined income increase of Cambodians and the stable economic environment for foreign investors paves the way for a strong 2020.

Cambodia’s ties with China, japan will continue to attract investor for investments in hotels, casinos, condominiums and residential properties. Two new airports in Sihanoukville and Siem Reap completed already so the real estate demand has been boosted for the good communication. Experts believe that residential investments are very promising and “safe bet” to say the least.
The most noticeable development in Sihanoukville real estate is predicted to continue unabated throughout 2020.

Cambodia real estate development has been continued to develop with commercial buildings, Hotel, condominium, apartment complexes being built in all population centers around the country. The high growth in the Cambodian property sector has been noticeable short of phenomenal, with city skylines now transformed by high rise apartment and commercial buildings.

Cambodia annual GDP growth
Cambodia annual GDP growth

Comparative economic forecasts for Southeast Asian countries (World Bank Report)

Cambodia has been selected as a frontier market. Frontier markets is known as pre-emerging markets, are countries that are more developed than the least developed countries but still less developed than the emerging markets. In contrast to many established countries, frontier markets have a young, growing population that contributes to a developing workforce and additional domestic consumption.

Frontier markets is the great opportunity for interesting investment opportunities for long-term investors and offers potential for major growth and development in a few years’ time. With 50% people of the Cambodian estimated to be below the 30’s age bracket, the country is seen as a young nation moving towards rapid growth, and as such, is a significant area for long term investment opportunities.

Cambodia’s Sustained Economic Development.Real Estate market news in Cambodia

Cambodia has already experienced two decades of very strong economic growth, averaging 7.6% Gross Domestic Product (GDP) from 1994 to 2015 and 7.6% from 2018 onward. This ranks Cambodia as the second fastest growing economy in the sought Asia country during the past 21 years. This phenomenal growth transformed Cambodia from one of the world’s poorest countries to a lower middle-income country by 2016.

Cambodia annual GDP growth  2019
Cambodia annual GDP growth 2019

Asian Development Bank Asian Development Outlook 2018 (ADB)

The Asian Development Bank (ADB) reported growth to be 7.6% from 2017 – 2018 and a forecasted 7.6% by 2019. The World Bank projected 6.7% by 2020. In the ASEAN countries, Cambodia ranks second – coming very close to Myanmar, in terms of GDP growth rate, while still retaining the 6th spot for the fastest growing economy in the world.

Strong Real Estate and Property Market Opportunities

Among all the frontier and emerging real estate markets, Cambodia has been considered one of the best potential countries for investment and real estate opportunities. This emerging country at the heart of Asia has leapt upwards in terms of economic growth in the 21st century and is only moving forward ever since.

Historically, Cambodia did not depend too much on foreign investment considering that foreign investments only started into the country in the late 2000’s. International F&B stores and retail brands were not in existence in the past decade. The lack of dependence on foreign markets like the US and European Union worked in their favor. It remained unaffected despite the Asian Financial Crisis of the 90’s, unfazed by the tech-bubble of the early 20’s, and unfiltered by the Financial Crisis of 2008. It is one of the few countries in the world that has not experienced a recession in the last 20 years primarily because there were no foreign investments during that time and Cambodia was only relying on organic income.

Top 10 fastest economic growth Countries
Top 10 fastest economic growth Countries

World’s Fastest Growing Countries by GDP Rate (ADB)

If you want to see some compression to many ASEAN countries, you can purchase properties in the country only for $1,000 per sq.m. or less. Real estate in Phnom Penh can help you to find as little as $150 per sq.m in the lesser known areas to as high as $9,000/sq.m in the city center. You can convert the property into residential spaces that has an attainable 6-8% rental yield and 1% – 5% capital growth.

Latest figures reported by Global Property Guide sets rental profit in Phnom Penh at approximately 5.33% yearly (third highest in Asia) and rentals averaging at $2,913 near the city center in phnom penh, which is second to the lowest amongst Southeast Asian countries.

Foreign investment has grown almost 800% this decade, and it’s only getting started. Realizing the potential investment in this country, investors started to flood in this country to invest in different sector. The boost in the residential, commercial, industrial and tourism sector led to the increased demand in residential and commercial spaces and without the risks, you know event early foreign investors significantly have been benefited from this boom.

To start ROI investing in Cambodia, you should know general aspects that need to understand in order to make an informed decision. You may get help from FURI Corporation, because research should be done on the ROI timeframe, property tax laws and corresponding laws affecting foreigners, and the types of property ownership.

Understanding Rental Yield and Capital Growth

I think you have better idea about capital growth and rental yield are almost different aspects but you know both are directly related to income-producing real estate investments. Properties increase in value when the net operating income of the property improves through rent and/or development in the location of the property.

Rental Yield Trends in Asia
Rental Yield Trends in Asia

Rental Yield Trends in Asia (Furi Corporation Property Guide)

What is Rental yield? Rental yield is the rate of income return over the cost of purchasing a property with the income coming in the form of rent. Capital growth, on the other hand, refers to the appreciation in the value of an asset over a period of time.

You better to know that once you purchase land in Cambodia – you need to start development right away or else have to pay tax for unused property without earning anything from it.

Foreign Property Ownership in Cambodia get information from Property Real Estate market news in Cambodia

You must find lots of opportunity to in vent in real estate in Cambodia real estate market. So here you will find the real methods how an investor can legally own property in the country.

Nominee Structure – Local people can hold a nominee on behalf of a foreigner. you know it is very secure, fast and cheap option to buy property and luckily max almost 90% foreign like to purchase this way.

To lessen the risks, there are 4 security agreements used.

• Mortgage Agreement
• Loan Agreement
• Lease Agreement
• Security Agreement

Mortgage Agreement is the very common way to the setup. In this way nominee cannot sell, transfer, move or do anything without the foreign owner clearing the mortgage first. (the mortgage can only be cleared in person.) this way you don’t need monthly/quarterly tax statements and does not attract any profit taxes.

Types of Property Titles

Once you have decided to buy property then you next step to decide what types of property title you would like to use. You know there are four main types of property titles in Cambodia.

• Soft Title
• Hard Title
• LMAP Title
• Co-Ownership Title

Soft Title is very common and easy way to buy and you know 85% of property in Cambodia are sold by this way. You can process and transfer your property in Sangkat and Khan within 10 business days at a cheaper cost.

Hard Title is the strongest form of property ownership in Cambodia in this way property are registered at National level. It will take 12 weeks to complete the process and transfer the property.

LMAP Title stands for Land Management and Administration Project. You know this way property are registered and is basically a hard title with GEO-tagged points. DPS Coordinates. Processing and Transfer of Ownership takes 12 weeks and a transfer cost of 4% of the property value is imposed.

Co-ownership Title can help you to process property foreigner by allowing for co ownership by Khmer national and foreigner. It will take 12 weeks and cost almost 4% of the property value is imposed.To get more news of Property Real Estate market news in Cambodia in 2020 better to visit another page



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