The Cambodia Property Market has been experiencing economic booms since the early ’20s. Property prices have nearly doubled in the last 8 years as investors enter the country to spend foreign money. Real Estate Cambodia has seen a significant increase in property rates, both on land and on rent. This increase has resulted in relatively higher margins for property owners and higher capital for investors.
l Condominiums are the best investment opportunities for foreigners as it allows freehold ownership.
l The value of residential and commercial land tripled between 2000 and 2021 due to the growing domestic market and foreign direct investment.
l Between 2016 and 2018, property prices in Cambodia increased by 50%. The reason for this increase is the positive laws made by the Cambodian government regarding foreign investment.
There are many properties in Cambodia that are available to local and international buyers as Cambodia Investment Opportunities. Popular investments are properties that can be rented out, such as apartments and condominium units that can generate rapid income. Other options are commercial and residential land ready for development. Whatever the type of investment, there was a long shot increase in value.
Residential And Commercial Land
The price of residential and commercial land tripled from 2000 to 2021. Cambodia’s economy grew with the help of international aid after the chaos of the 1980s. They opened their doors to foreign investment, and this led to an increase in the sale of landed property.
Farm lots are converted into industrial uses. Factories are built on unused land to store raw materials and finished products. In urban areas, land became commercial and residential buildings. These residential properties are then redistributed and sold per unit to limited-budget investors.
Residential and commercial land can be purchased by locals with strict titles. However, foreigners can purchase this type of property using only designated or LMAP proprietary structures, and other types of property ownership.
Today, land costs $ 5,000 per square meter. And above that in Chamkarmon district, the price is 20-30% lower in other districts of the city. There has been a sharp decline in property rates for land in the provinces and on the outskirts of the city. Here you can buy land for around $ 100- $ 300.
Apartment And Condominiums
Residential properties such as condoms are the best investment opportunities for foreigners as they allow for freehold ownership. Anyone can purchase a unit with a foreign class title as long as they follow the guidelines below:
l Applies only to properties since 2010.
l The foreign ownership of the building should not exceed 70%
l The property is not within 30 km of any international land border.
l The unit cannot be underground or on the ground floor
The rate of property for apartments depends on the size per square meter. A number of rooms, furnishings, and terms of sale. Unlike real estate, class titles are not available for apartments. However, foreigners who wish to purchase this type of property will have the option to purchase it using the designated property structure.
Currently, studio apartment units cost $ 120,000 and more in downtown and $ 40,000 in suburbs and provinces. Condominium units start at $ 150,000 and up.
Villas And Townhouses
Small to large-sized businesses easily acquire available villas. They use it as a commercial space. Schools sometimes use large villas with many rooms. They have the option to lease it for a longer period or to purchase it using a designated property structure.
Townhouses and villas are located in urban areas close to offices and commercial areas. Unlike apartment units, townhouses provide more room for owners to move around. Villas and townhouses currently cost $ 500,000 and more in downtown and $ 10,000 for the city and provincial suburbs.
Factor Affecting Property Rates
According to Grant Fitzgerald, IPS-Cambodia’s country manager, there are two factors that influence the rise in property prices in the country. This is the growing Cambodian middle class and foreign direct investment.
“First of all, there has always been a strong demand from the market. It is only growing as Cambodia’s middle class grows and their incomes are higher. A large part of that income comes from land. This is especially common in sacks. Ever since these sacks started coming out, the Cambodian middle class has bought them. ”
Foreign investment and a stable government are other reasons for the rise in property prices. A stable government creates a stable business environment that allows foreign direct investment.
Between 2014 and 2016, property prices tend to rise. Real estate prices rose by 50%. The Cambodian government’s positive laws on foreign investors are a key element of this trend. Fitzgerald noted that “part of the increase in 2016-2018 is due to new regulations on condoms. There are many foreign buyers who have apparently taken advantage of the low price point.
Stabilization Of Property Rates
Fitzgerald observed that since 2016, condominium and apartment unit prices have stabilized. This upward trend is finally flat at the end of 2018 according to its current market value. The flat line is attributed to the market saturation of the target demographics for this type of real estate Cambodia Property.
Location, Locale, And Infrastructure Developments
According to Fitzgerald, it is difficult to reduce the average growth rate of property across the country. Development depends largely on the type of real estate property and developments in a particular area.
“There is a great demand for property in the local market, which has been a major threat for the last eight years. It is difficult to say for sure what the growth rate is. We have seen a 500% increase in Sihanoukville in the last two years. If a new road or bridge is being built in a particular area, the prices will rise sharply in the same way.”
Property Rates Forecast
Everything has been on the upward trend, be it land or apartment, both rent and sale prices. A good example is a Cambodian market. When the Chinese came, they increased sales and rental prices because they created demand.
Fitzgerald predicts that despite prices stabilizing, demand will remain high, leading to higher property prices. It is true that prices of most real estate properties have stabilized, but the market value of all types of property will continue to grow as demand continues.
visit the rest of the site for more articles.