If an expatriate moved to Cambodia just over a decade ago, condominiums were not much of an option.
Today the condominium market is moving at lightning speed in areas such as Phnom Penh, Siem Reap (lower-rise), Sihanoukville, and Kampot, to name a few.
With Cambodia allowing foreign businesses to thrive more than their neighbours, the Kingdom is gaining a reputation as the go to country in South East Asia for living, working, opening a business, and raising a family. Cambodia’s condominium boom is one of the entire region’s most exciting in recent memory.
With an increasing expat workforce arriving and more international companies making branch offices or Phnom Penh their headquarters, the demand to buy and rent condominiums has never been higher. And there is no sign of new condominium approvals slowing down.
At the end of 2nd Quarter 2021, an additional five condominium projects came onto the market, adding 1,273 additional units to Phnom Penh’s quota, leaving the market with 90 developments and over 27,000 units in the city.
The COVID-19 pandemic has affected the market and brought prices down, but this is to everyone’s advantage.
The market is seen as having 3-tiers:
The higher end of the market is the dominant force with an estimated market share of over 60%.
The value between Jan and June 2021 was just upwards of UD$2800 per sqm. The mid-tier condo segment accounts for upwards of 30% of the market, with its valuation being just over US$2,100 per sqm and the affordable condo market just under US$1,500 per sqm.
The market is evolving and has seen the rise of what are referred to as ‘No-Frills’ condominiums. These consist of basic units under US$100,000. They were primarily aimed at a growing middle-class of Khmers but have attracted much attention in rentals, sales, and investment opportunities for foreigners.
This example applies to developers in every city and town we represent all over the country; this is not specific to Phnom Penh.
With multiple developers now offering GRR to the buyer, the market has been transformed.
If you are unfamiliar with how GRR works, let us explain.
Once payments are concluded and the unit has been transferred over, the developer is guaranteed to repay a specified percentage of the original purchase value over a set time, thus acting essentially as a rental income.
At Lux, we can assure you this has proved very popular with foreign investors and buyers. Foreigners can own through a ‘Strata Title’ anything up to, but not exceeding 70% of the units in one building. However, only units above the ground are available to procure.
Before we list any development for the sales/investment market, we conduct thorough due diligence and research on the developers.
Working closely with our affiliates within the Kingdom’s market, we ensure that all opportunities we present to our clients are fully licensed and eligible to issue every unit applicable with a ‘Strata Title’, therefore ensuring registration to our clients.
For the buyer’s market, there are many apartments throughout the country available. These tend to be in older buildings in the bigger cities, such as shophouses but do not offer a ‘Strata Title’ and can only be purchased using a Cambodian as a nominee.
We have many modernised apartments in locations throughout the Kingdom that offer great locations, designs and furnishings on the rental market.
The main difference between apartment rental and condominium rental is amenities. The condominium wave that has swept through Cambodia now offers many of the most luxurious gymnasiums, roof-top bars, swimming pools and spas, whereby many of the older apartment buildings do not, but there is naturally a price difference.
In this market, you can be sure to find what you are looking for with or without amenities. Contact your Lux expert today to inform them of what demographic you are looking for, and we will find you plenty of options today.
Foreigners can buy and invest in property and land in Cambodia.
There are four classifications of ownership in the Kingdom.
Hard Title – Soft Title – LMAP (Land Management and Administration Project) Title and Strata Title.
Lux have an innovative Land Investment Service that is unique to Cambodia. If you are a foreign investor, you need to fully understand the legalities and benefits of the different ownership options. So be sure to speak to your Lux expert to get fully informed.
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