Cambodia Real Estate Remains Attractive for Foreign Investors

Posted by Staff Reporter ( on Feb 16, 2016 05:46 AM EST
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Chinese Firm Pulls Out Of Major Phnom Penh Development Plansmore big
PHNOM PENH, CAMBODIA - JULY 17: Children play on the sand which the companies in charge of the development of the former Boeung Kak Lake have used to fill in the lake in on July 17, 2014 in Phnom Penh, Cambodia. Erdos Hongjun Investment Corporation has pulled out of a controversial USD2.17 billion development project on Phnom Penh's Boeung Kak Lake. In 2011, Erdos and the Cambodian-owned Shukaku company, which had formed the Shukaku Erdos Hongjun Property Development Co, were approved by the Cambodian government to develop the area with hotels, luxury apartments and office buildings. So far the only work undertaken has been to fill the lake with sand, (which previously had served as an important drainage site for the city) and to build a road through the middle, a project which has evicted approximately 3,000 families in the process, many of whom are still fighting for adequate compensation. (Photo : Omar Havana/Getty Images)

Foreign real estate investors have been flooding the Cambodia market in recent years, a trend that looks set to continue.

The increase in number of foreign investors in the country's real estate market has been observed since the passing of Foreign Ownership Property Law in 2010, Property Guru reported. The legislation enables foreigner to own a property in Cambodia, albeit the restriction that they can only acquire upper floor units.

More real estate projects have been started in the country with the overseas buyers as the target clients. One of which is the Axis Residences in Phnom Pehn, a 566-unit property launched in March 2015, and the D'Seaview from Singaporean company HLH Group that was launched just this January.

"The strong response to our D'Seaview project underscores the rising demand for good quality and affordable homes among Cambodians in the country's key cities," HLH Group CEO and Deputy Chairman Dato Johnny Ong said, "The majority of the buyers are young professionals and businessmen who see good value in owning these homes while the foreign buyers are keen to invest in real estate now in view of Cambodia's rapidly growing economy."

Cambodia likewise becomes a more attractive destination for Japanese retirees, as per The Phnom Pehn Post. The Japanese Embassy in the country has noted a 30 percent increase in the number of Japanese aged 60 years and above in Cambodia. The slow but steady rise in Japanese nationals choosing to move in Cambodia has influenced the property development in the country, with more Japanese-styled condominiums being constructed.

The construction of new properties in Cambodia also remains business as usual despite the ongoing economic turmoil particularly in China. According to The Phnom Pehn Post, the impact of the Chinese market slowdown in local property market will be minimal, as long as things will not get worse China. For now, ongoing Chinese projects in Cambodia are unaffected.

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