Experts note that the influx of foreign business in the country is a primary factor
The growing presence of foreign businesses and expat workers in Cambodia’s top locations, including the capital Phnom Penh, Siem Reap and even Sihanoukville province, has fuelled the local real estate scene, where international buyers has an 80 percent national market share in the new residential condominium segment, based on the latest data provided by the local arm of real estate firm Century 21 to the Middle East North Africa Financial Network (MENAFN).
Industry experts note that the influx of foreign business in the country is a primary factor why the local real estate scene is flourishing, and the Minister of Commerce Sun Chantol agrees, saying in a recent interview with CNBC that Cambodia is a much better investment destination than other emerging markets in the ASEAN region.
According to the MENAFN report, inbound investments in Cambodia are being augmented by the expenditures by the rising middle class, who can now afford deferred payments of newly built apartments in prime areas, thanks in part to their increasing salaries.
In the capital alone, the take-up rate for new-build apartments in 13 condominium projects, comprising some 3,000 units, averages at 70 percent, per Century 21, which commented that “supply is hardly keeping up with demand.”
As foreign entities are allowed to own 100 percent of their operations in Cambodia, per the Minister of Commerce, residential developers from affluent Asian countries, including Singapore, Hong Kong, Japan, Taiwan and Mainland China have several projects in the pipeline, adding some 10,000 condo units within three years, MENAFN reported.
Properties under development include the 17-storey La Vie Residences from a Singaporean developer. Another anticipated project is The Skyline, a 39-storey, mixed-use development comprising 792 units and three levels of shopping spaces, from Cambodia-registered S.G.P.D. Development Co. Ltd., with partners from Singapore, Cambodia and Taiwan.
Non-resident buyers come from Singapore and Taiwan, according to a report this week by AsiaOne Business, but many locals also snapped up majority of the units, signalling the growing confidence from domestic investors.
In three years, analysts predict that the local buyers’ market share will further increase, whilst the overall growth rate for condo supply will grow by 40 percent between 2015 and 2018, twice than the recorded growth rate of 20 percent from 2008 to 2014.
Meanwhile, Cambodia is set to receive the region’s real estate industry seal of approval when it becomes the latest country to be included in the coveted, decade-old Asia Property Awards series.
The Cambodia Property Awards 2015, due to be held 25 September, will recognise and reward the achievements of the country’s most successful, dynamic and innovative developers and developments across the residential and commercial sectors, as well as introducing the market to a wider regional audience of affluent investors and major industry players.
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