Foreign ownership rises slightly in Phnom Penh

Foreign ownership rises slightly in Phnom Penh

3 camko city

About 100 foreigners bought houses in Cambodia in the first three months of 2013, increasing the number of houses owned by foreigners in Cambodia to 997 units at the end of 2012 to 1,100 units now, according to real estate experts.

The number of foreigners buying houses increased 5 to 10 per cent in the first quarter compared with the same period last year and the increase could reach from 10 to 20 per cent in the next quarter, Nuon Rith, general manager at Bonna Reality Group said. “The small increase in foreigners buying houses in the first three months in 2013 is because they are waiting to see the election situation in July 2013,” he said.

The foreigners buying houses in Cambodia are mostly Asian investors from Malaysia, Singapore, China, Japan, as well as the United Kingdom.

According to a report from the Bonna Reality Group which looked at five districts in Phnom Penh at the end of 2012, they found that as of the end of 2012 there were 997 condo units owned by foreigners.

The study also noted that the price of suburban condos is from $600 to $1,000 per square metre, and in the city centre from $1,000 to $2,500.

In 2013, a number of condos will be completed, such as Vimean Keo Choronay, Sen Sok and De Castle Royal condos.

Dith Channa of VMC Real Estate Cambodia said the number of foreigners buying houses in Cambodia would not increase by more than five per cent in the first quarter of this year because foreigners living in Cambodia like renting apartments rather than buying.

“However, I am still optimistic for 2015 because at that time Cambodia will be integrated economically in ASEAN and the need for condos will increase. When ASEAN is integrated, there will be people more mobile in the region, and some work in Cambodia and some other can run their business in Cambodia so the need for staying here will increase as well,” he said.

The number of foreigners buying condos has increased since Cambodia had a new law on co-ownership that allows foreigners the right to buy houses in Cambodia, Kuy Vat, President and CEO of Vtrust said, adding that, the law makes the real estate market better.

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