Cambodia has experience a good 7% GDP growth over the past few years. Moving forward, especially with the ASEAN Free Trade agreement this year, Cambodia’s GDP Growth will most likely continued to be as high as past years. Under current Prime Minister Hun Sen leadership, Cambodia also has enjoy peace and prosperity for almost 2 decades. With the strong GDP growth and a stable political environment, these has lure many Thailand Businesses back into Cambodia Market.
According to “Bangkok Post”, many Thailand companies like Siam Cement, CP Group, Bangkok Dusit Medical Services and Samart Corp has already established their presence in Cambodia. With the cost of operations in Thailand getting higher, more and more companies will be joining them in Cambodia.
The moving in of the Thailand companies are further encouraged with Cambodia Real estate Market opening up. Since the passing of legislation in April 2010, the foreign ownership property law allows foreigners to own property in Cambodia. Foreigners may acquire apartments above the ground floor to a maximum of 70% of any one apartment building, provided that the building has applied for and obtained ‘strata title’, which generally only applies to new construction. Hence, foreigners are 100% eligible to own a freehold condominium in Cambodia.
Some of the attractive luxury developments currently on sold in Cambodia Phnom Penh includes The Peakand The Bridge by Singapore Mainboard listed developer Oxley. These development will most likely attract those Thailand Businesses’ Owner to place their investment in.
If you have been
reading the property news there have been a lot of news about foreign countries
such as china, Malaysia and hongkong entering into the Cambodia market. Here's a video on 5 Reasons why investors are flocking to Cambodia
5 Reasons why investors are flocking to
Cambodia
1.
In 2015 Cambodia will be integrated as part of the ASEAN organization which
aims to accelerate economic growth, cultural
development and promote stability in the region
2. Due to it’s
high interest rates in Cambodia, Phnom Penh has the highest rental yield in
Asia at an average of 10.8%
3. Housing in
Cambodia is mainly low-rise. In 2009, there were hardly any high rise
condominiums. So foreign developers saw the opportunity and started developing
condominiums. Investors who have bought then have already seen a capital gain
of up to 30%.
4. Land prices
at 4 capitals have increased such as Chamkarmon land, where The Bridge is
located, prices have doubled
5. In January
this year, there was a news article that 3850 news firms opened in Cambodia
last year. Therefore increase of new companies = higher demand in offices.
The Bridge is the
only project till dated selling SOHO units and 85% have already been sold. It
comes with a high ceiling of 3.6m yet psf prices are same as the residential.
If you like to know more information, click The Bridge.
The movement of money from Asia to Western markets in Europe and the United States will likely still be a major influence on global real estate this year, according to the Global Emerging Trends in Real Estate 2015 report jointly published by PwC and the Urban Land Institute (ULI).
The report, based on the views of senior global property investors, found that 84 percent of Asia-Pacific respondents expect cross-border capital into Europe to increase significantly.
Local money coming out of China and South Korea will continue moving into international markets, and will be supplemented in the coming years by pension fund capital from Japan.
The so-called ‘flight to safety’ effect was cited as another reason leading many investors to move capital to perceived safe havens.
Meanwhile, money flows into major assets in the UK and US is likely to shift towards less high-profile cities in Germany, France and the US, noted the report.
Simon Hardwick, PwC Legal partner and one of the report’s authors, said: “There is still a wall of capital targeting real estate opportunities in many markets across the globe. The search for better yields has taken some investors into development and secondary markets, moving them up the risk curve. But investors must strike a balance between the need to deploy capital and the ability to achieve good returns, at a time when there is such a difference in the economic conditions across the globe.
“Real estate investors have a wide range of issues to consider when making investment decisions. What is clear is that they may have to approach those decisions in a completely different way in the future. Capital allocations may need to be made to a wider range of asset types than ever before, ranging from retirement and student housing to data centres and self-storage.”
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
The large number of residential properties in Iskandar Malaysia can be absorbed by the market claim Chinese developers, as they bring with them fresh demand from China’s growing middle class.
“We have one million owners in China, and it’s like a fan club. Wherever we go, there are just buyers that buy without any questions,” said Nicholas Hum, Sales and Marketing General Manager at Country Garden Holdings.
The Hong Kong-listed firm has been criticised for its enormous Forest City project, which is being built on reclaimed land close to the Tuas Second Link.
At a separate development in Danga Bay, across the sea from Singapore’s Sungei Buloh Wetland Reserve, the developer is building a condominium which it hopes will be as successful as its other housing projects in China.
In 2013, this project surprised the market when 6,000 of its 9,400 units were reserved within a month of its launch. Although some unqualified buyers were subsequently filtered out via the loan application process, the figure of 6,000 has remained due to later sales, Hum said.
This year, 200 units have so far been taken up at the project, and Country Garden is optimistic that more buyers from China will back this development.
In fact, the Chinese have become the largest buyers of this project, accounting for 35 percent of the units. The second largest group are Malaysians who have bought 30 percent of the units, followed by Singaporeans (25 percent).
In addition, some Chinese buyers have applied for the long-stay visa scheme under the Malaysia My Second Home programme, noted Hum.
“They’re trying to come here more frequently and without restrictions. So it’s not just a summer home, it’s a second option.”
Chinese buyers are also being lured by world-class learning institutions at the nearby EduCity and the prestigious British boarding school Marlborough College.
“A lot of them are concerned about their kids. They plan quite far ahead,” he explained.
Image: Artist’s impression of Forest City by Country Garden.
Farah Wahida, Editor at PropertyGuru Malaysia, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
