Subscribe Search

Search form

Phnom Penh’s cosmopolitan condominium market dominated by foreigners

The unfinished Gold Tower 42 condo looms over Sihanouk boulevard
The unfinished Gold Tower 42 condo looms over Sihanouk boulevard. Heng Chivoan

Phnom Penh’s cosmopolitan condominium market dominated by foreigners

Foreigners bought 308 condominium units in 2014 at an average price of about $100,000, according to new data from the Ministry of Land Management, Urban Planning, and Construction.

The figures show that a total of 1,949 units were sold from 2008 to 2014.

Lao Tip Seiha, director of the construction department at the Ministry of Land Management, Urban Planning and Construction, said that many foreigners were interested in buying property in Cambodia thanks to political and economic improvements luring expats to the Kingdom.

“Many factors inspired foreigners to buy property in Cambodia due to the enhancement of the construction sector, improvements in regulation, and the rise of Cambodia as a favourable place to invest,” he said.

Many big projects are popping up in the greater Phnom Penh area, from satellite cities like Camko City to luxury high-rise condos such as De Castle Royal in BKK1.

Most of the foreigners investing in Cambodian property are from Korea, China, Singapore, Japan, England, Malaysia, Taiwan, and Thailand.

Content image - Phnom Penh Post
Construction of one of Olympia City’s towers by the Olympic Stadium. Hin Pisei

Seng Sopheak, general manager of CPL Real Estate Company, said that foreigners were very active in the condo market.

“Condo developers not only target the local market, but also the international market,” he said.

“Condo developments in Cambodia are announced overseas and those projects are exhibited in other countries such as Singapore and Malaysia.”

Ea Saraboth, managing director of MAXEM Property, said that foreign purchases have been trending for the last few years thanks to a law allowing foreigners to own residential units outright from the first floor up.

Local people are not interested in condos, said Saraboth, except for those who studied or lived outside Cambodia.

Independent real estate analyst Keuk Narin said that many foreigners have been interested in buying since the law was approved.

“Foreigners can own 100 per cent of a residential unit in a multi-ownership building from the first floor up”, said Narin.

“Cambodian people are also taking part in the condo market, however, most buyers are foreigners and they play a key role in making the condo market run smoothly.”

Recently-released research from Century 21 Cambodia said the number of condo underwent an average 20 per cent yearly increase from 2008 to 2014.

Over the next four years, the number of units in Phnom Penh is expected at a 40 per cent average yearly increase, going from 3,090 units today to about 10,000 in 2018.

RECOMMENDED STORIES

  • Thy Sovantha threatens new suit

    Social media celebrity and card-carrying CPP member Thy Sovantha yesterday said she will file a lawsuit against wildlife NGO head Suwanna Gauntlett alleging discrimination after the latter allegedly denied her access to an ecotourism program the group is launching today in Koh Kong province. The

  • Police raid Siem Reap party, arrest 10 foreigners over ‘pornographic’ images

    A group of 10 foreign tourists appeared in court today after being arrested for producing “pornographic” photos in Siem Reap town on Thursday, while dozens more were detained temporarily and let go after being lectured on their behaviour, according to authorities. A report posted to the

  • Hun Sen’s in-law removed from RCAF after cockfighting rings raided

    Thai Phany, the nephew-in-law of Prime Minister Hun Sen who is accused of running two large cockfighting rings, has been removed as a general in the Royal Cambodian Armed Forces. Phany, formerly a one-star brigadier general, was removed by royal decree on December 19, according to

  • Government approves plan to relocate Phnom Penh’s airport

    The government has signed off on a proposal to build a new airport to serve Phnom Penh and has earmarked land in Kandal province for the $1.5 billion project. A new international airport to replace the existing Phnom Penh International Airport will be constructed on partially