The latest Phnom Penh Land Price map has been released, for Q1 2016, by the CVEA.In December last year, over 20 CVEA Executive Committee and Members holding valuation certificates came together to discuss average Phnom Penh Land Price for the First Quarter of 2016. The group discussed average Phnom Penh land prices across all Sangkats of the 4 major Khans of Phnom Penh, namely Chamkarmon, Daun Penh, 7 Makara and Toul Kork. The meeting considered the growth of Phnom Penh land price as according to their proceeding 2015 report, with all members voting on reasonable increases on these statistics for the Q1 2016 report. The follow up from this meeting will include a consultation with Bank and Micro Finance Associations in order to ensure the land price survey includes all relevant stakeholders. Now - the Phnom Penh Land Price results have been released:

Even though the sounds of construction ring across Phnom Penh, the Cambodian real estate market still needs development in terms of consistency and quality to encourage a higher rate of FDI in real estate.  Nevertheless, in the eyes of many investors, Cambodia is demonstrating the political stability and consistent economic growth necessary for confidence in new foreign investments. The director of Khmer Real Estate, Mr. Kim Heang, said that the real estate development in Cambodia is showing great potential as the Cambodian economic sector is rising by around 8 percent per year for the last 20 years. Cambodia in becoming an increasingly attractive place for investors because Cambodia today has better infrastructure, low labor prices, and 70 percent of people are under 35 years old. These factors are the most encouraging for investors, believes Heang.    ​He went on to say that the growth of the construction sector is demanding more responsibility and respect, as it is becoming a crucial industry for the nation’s growth and people's’ wealth. “Now Cambodian valuers and agents are also rising in their abilities and professionalism in order to prepare for the Asean economic community integration” he said. “Cambodia is one the leaders in economic growth within Asean, and we will step forward into the future as a strong market”.   General Director of Century 21 Mekong, Chrek Soknim, said that he is optimism about the growth of real estate in Cambodia. “This should continue to grow sustainably until 2018 because the sector faces no impediments.” He claimed that there are three factors currently supporting the growth of the real estate market sector. First of all, good political stability is important to attract more investors. Secondly, the Asean integration at the end of this year will mean more commerce and cultural exchanges between Asean states, naturally supporting demand for accommodation, investment properties and office space. Thirdly, the increase in quality and variety of available real estate will allow investors more choice when they buy real estate in Cambodia. And Forth, the royal government of Cambodia will soon be able to grant loans to its citizenry on long repayment terms of 20 years and higher, meaning more people will have credit to buy their own homes. When the majority of people are able to buy a house, then the construction and real estate sector can only grow.   “Even though new development projects face some obstacles in the coming years, if they choose the right location, and build to the right quality standards, these problems will be limited,” he added. He mentions that the economic growth rates of 7 to 7.5 percent are ideal for business growth, and will also support the real estate market development industry. Sear Chaylin, general director of CL Realty Estate, said that the property being sold has decreased a little bit in a last few months, but this is normal when the rainy season is coming. During this period, buyer transactions are usually slower. It will increase when Cambodia is ready to integrate with ASEAN at the end of this year. Many Japanese companies are now flowing into the Cambodian market, bringing new challenges and opportunities to the market. “I think that the real estate market and property sector will continue to develop because the needs of the people are rising, strong economic growth is occurring alongside relative political stability, and security in the market is better than ever,” Mr. Sear Chaylin said. “Even though we are seeing increases in construction, it will be suitably matched to the current economic growth and the needs of the people”. Senior National Economic Counselor, H.E Mey Kalyan said that “for instance, when we buy fish, vegetables, and rice today, then we can eat. But, if we buy a house and property, we cannot eat the benefits immediately. We have to keep it for a long time and it represents a big risk. If you don’t have enough money, you can borrow that money from the bank in order to invest, and hope that it will gain profit in the future. However, if the house is not sold or rented, people will not have money to pay back to the bank and, if this happens to too many people, the bank will collapse. When banks collapse the financial system and national economy is in great jeopardy.”       “Be careful if you are building for rent or sale, then you cannot rent or sell upon completion - this is a big problem. So, control your risks and always try to limit your chances of failure.” H.E Mey said. “The royal government of Cambodia can see this risk. Be careful, because any sector growing so fast has risks like this.” H.E Kalyan went on to say that the government should manage the flow of money in the right way in order to control this growth risk. But when you prevent the flow of money, the growth of the economy can suffer. Therefore, the management of money flow must play a balancing role into the future. H.E Mey Vann, General Director of Financial Industry of Ministry of Financial and Economy, said flows of money into the real estate market sector have come with few risks thus far, but the ministry is being proactive in working with investors in order to manage the data of development, demands, and specific support for preventing risk in this sector. “Data management and money flow management in this sector is very important for us if we want real estate development sustainability” H.E Mey Vann said. Realestate.com.kh is proud to support the CVEA's Property View publication. Click here to get your copy, or if you are interested to join the CVEA today.

The Cambodia and other Asean member states will integrate into the economy and cultural community on 31 December 2015. This will open the profit of the entire economy to all of the 600 million people in this region, allowing more shared benefits and improved living standards for all. Dr. Sok Siphana discusses how this opportunity will challenge and benefit Cambodia. How does Cambodia prepare for the Asean economic community integration at the end of this year? Dr. Siphana: Cambodia has already prepared for the Asean integration but now we look back in the context of the last 10 years of Cambodian economics. Particularly, in the previous decades, Cambodian Prime Minister Hun Sen pushed Cambodia to become a member of the World Trade Organization (WTO). In the context of negotiation, Cambodia opened some policies such as tariff cuts, free flow policies for investors, and some freedoms within major industries. Cambodia has improved in the last 10 years and become very friendly to foreign investment. So, Cambodia has in many ways already prepared for the Asean integration, now we face the second phase of a deeper integration.    The regional economic integration is to join markets all over the region. Our problem is to communicate with the investors effectively because Cambodia has a medium to small market, only 15 million in population, and most of these people do not have enough money to invest. Therefore, Cambodia needs to tap into the biggest markets before the Asean integration. Cambodia will succeed in its goals and become the member of a region which has more 600 million people.    Our prime targets are not places such as Indonesia, Philippines, and Brunei - which have many islands and are a long distance from Cambodia. But when we think about our position in the sub-region with Laos, Vietnam, Thailand, and Myanmar, there are more than 200 million people easy to access. So, Cambodia has more opportunities when we open our policies to welcome investors to Cambodia. The investors always expect to sell their products to Europe, America, China, and Japan before coming here. But now, the investors come to Cambodia to tap into more markets within the subregion. Why do the investors come here? What special factors does Cambodia have? Dr. Siphana: Why? Because Cambodia has free policies for investors. Before negotiating to be a member of WTO, Cambodia had already opened its market. With this point, Cambodia’s policies were opened to permit investors to own 100 percent of their Cambodian-based company. Generally, if we run a business in any country, we want to manage and control that business entirely, and in Cambodia this is possible. We have one problem in that foreigners cannot buy land, but we have prepared and corrected some laws which permit foreigners to buy above the first floor of apartments. Therefore, some problems have not yet been solved because they relate to Cambodia’s constitution, specifically foreign land ownership limitations, but we can solve these problems somewhat by allowing them investment opportunities in Cambodia. Cambodia between the big markets such as Vietnam, Thailand, and Myanmar meaning we will see a lot of cross-economy traffic. And Cambodia is one of the joint regional product producers. How do Cambodian people and entrepreneurs catch this opportunity? Dr. Siphana: In the last 10 years, Cambodian entrepreneurs and intellectuals have a chance to gain more capacity and skills because of the free market. The development of the country is not only building the bridges and roads so that it is easy to walk, but also gaining knowledge and skills. The opening of free markets gives a chance for Cambodian youth to study abroad and apply equally in the global society. Learning from other countries is fundamental to their success when competing in the region. Local producers are worried they will lose their market share when Cambodia joins ASEAN - because only 2 percent of enterprises produce products to correct quality and safety standards. What do you think? Dr. Siphana: I would like to disagree with this. What have we achieved since the civil war ended? Take a look at new enterprises we are capable of, like Khmer TV series, movies or videos, and digital marketing. If we try to survive on only 2 percent of possible products, we will die. But in the last 20 years, Cambodia did not have 50 thousand different enterprises available. Today we do. Because of this growth in opportunities, we cannot say that Cambodia has only 2 percent of our businesses able to compete with others. Therefore, the important thing is providing technology and education that will allow Cambodian youth to compete on even ground. The opening of the economy has given abilities and new skills to Cambodian people and entrepreneurs for 20 years already. They grew the businesses and studied from them. There were not many entrepreneurs before, now we have two percent of 50 thousand enterprises which are able to compete. And what the Cambodian people are best able to compete in is technology. We did not have abilities to research the technology before, but now we have human resources who are quickly able to compete when we have the right technology. For example; we can produce a modern camera and use it very well. Recently, we can buy modern technology and packing machines for our factories. So, don’t think that we are lost in this sector. In the context of fast development where technology can step us forward faster than ever. Another example is Keo Mom, now the CEO of LyLy Food Industry. She had a dream for her business that went beyond making a stamp on the industry. Before her company produced a small amount of products and worked very hard to survive, but now her company can export to the United States, Canada, and other countries with modern technology. So that means we are able to import technology, and improve our industry fast. We were dependent on ourselves for the last 20 years. However, now our young generation are knowledgeable enough to tell their parents what technological systems they need to buy to improve their business. Therefore, a Thai company that has been around for the last 20 years is not automatically better than us. If the world has modern technology available, Cambodia can buy it, Thailand can buy it, and also Vietnam can buy it. That is why I want Cambodian enterprises to use technology as the power to overcome our competitors. The foreigners are not better than us, and we are not cleverer than them. But, technology makes the company and entire enterprise smarter. Now, Cambodia can build 20 storey skyline buildings. The ground breaking is done by Cambodians using machines and technology. This is just one example, but we can follow up with many others. What if all skilled Khmer labour is absorbed after the Asean integration and we don’t have enough human resources? Dr. Siphana: I think that if we don’t have knowledge, we have to look for the knowledgeable. If we are ignorant, we have to work with intellectual people. If we don’t have any money, we have look for those that have. We don’t think about the competition, at first, we think about the cooperation. After cooperating, we have some basic knowledge to learn and grow from. It doesn’t mean we steal skills from others, but we have worked with them for a few years, and now we can run the business ourselves.   Don’t think we cannot compare ourselves to others. We have already come a long way - because our country just finished the civil war only 20 years ago and since we have seen economic growth of 7 percent every year. There aren’t many countries that have done what we have done in 20 years. However, we have to recognize that we still have negative points as well. They know better than us in some cases, and have had more experience than us. With this in mind, it doesn’t mean we are unknowledgeable. We should not feel hopeless and jump off the bridge. We have to try our best to be better than others. There are so many technologies to study. Social networking (Facebook and Twitter) is fundamental knowledge today. But you do not take pictures of your birthday cake and post it on your business page - you must research about enterprises, talk about technology etc. These things will give more benefits than posting about useless things. During 1993, I worked as a law councilor of the UN. I was worried because there was no law documented, but now the government of Cambodia was asking me about the laws. I spent only a few days researching it. We went to cafés to research, because it had internet connection. Therefore, I think technology is crucial to modernization the economy. It is used it to strengthen our fundamental capacity. Then we have ideas and look for the partners who can understand. After that, we can do it by ourselves.   It is said that Cambodia has already opened to the global economy. So, is the economic integration at the end of this year really going to change much beyond the status quo? Dr. Siphana: We haven’t integrated into the Asean economic community yet. But we have already prepared for some investors who are surveying the market. Even though it has not been opened yet, the growth of the economy is still progressing. Even if you don’t want it to, it will go forward. When the market has not been opened, Cambodia only has a 15 million population cap. This is the psychology. But when Cambodia is integrated, it will not be analyzed as a market that has 15 million. It will be analyzed as a country with 600 million. Realestate.com.kh is proud to support the CVEA's Property View publication. Click here to get your copy, or if you are interested to join the CVEA today.

The ASEAN Integration came into effect at the end of 2015. However, Cambodians seem to lack an in depth understanding about the community and its influence on people's day to day lives. Consequently, to provide more knowledge about the ASEAN community, Property View Magazine raises key information to grant a greater understanding for our readers.The ASEAN Economic Community (AEC) comprises a joint population of 622 million people and $2.6 trillion of overall GDP, which increased by 4.6 per cent in 2014, as according to a report from the Ministry of Foreign Affairs and International Cooperation. ASEAN took many measures in order to deeply integrate all member states and improve regulation, infrastructure and flow of goods, ease of trade tariff barriers and improved economic relationships generally. How do people describe the ASEAN Economic Community?AEC will make the 10 member states closer. This means that all the states will need to compromise to have one vision in the region with peace, stability, and security in perpetuity. The ASEAN Community is comprised of three pillars, namely the ASEAN Political-Security Community, ASEAN Economic Community and ASEAN Socio-Cultural Community. The ASEAN community hope to have a population of 620 million people with “One Vision, One Identity, One Community”.  This community officially came into effect in 31st December, 2015. What do we expect from the integration this year?The ASEAN evolution is still progressing, but it does not change quickly. To initiate this community, the member states implemented the three pillars vision, with the aim of becoming integrated deeply and comprehensively. More specifically, ASEAN leaders adopted the ASEAN Economic Vision 2025 which continues to integrate and strengthen their relationships over the next 10 years. How will the community influence the daily lives of people?The main goal of the ASEAN region is to promote people’s livelihood. The 2015 statement about the AEC, as issued by the ASEAN leaders on the 27th November, 2015, focused mainly on people and people’s power in the community. People continue to work together and gain benefits from ASEAN such as freedom, neutrality and seeking to find ways to strengthen solutions mechanisms. Can we travel across ASEAN by free visa or work in another country in ASEAN without any barrier?The agreement and ASEAN initiation has eased the travel restrictions throughout all the ASEAN countries and now many agreements confirming these rights are being prepared. For the working sector, an agreement that all the members acknowledge each other in ASEAN allows limited flow of labors such as engineers, nurses, architects, real estate experts, doctors, accountants, and tourism professionals. Some ASEAN countries have climaxed. How will the AEC resolve this problem? The ASEAN members have different perspectives on one particular subject and some members still have demarcation disputes. However, all the members are committed to obey the ASEAN Charter in principle and use this charter to guide them to resolve any dispute. In the ASEAN way, reconciliation and peaceful means of confrontation and solving problems, and neutralization, are implemented.  ASEAN have many agreements to promote peace, cooperation and the regional consolidation, including the 1971 statement which is about peace, consolidation, and aseanization. There are many ways to ease the free flow of goods, service, and people in the region which has highways, 47 ports, corridors, fast data, ASEAN energy supply systems, and infrastructure across the border Three transportation agreements will connect all the member states, and the three agreements also ease transportation across all the ASEAN countries and multi-transportations - which is aimed to reduce expense and boost transportation services across the borders. Lao and Vietnam, for instance, launched a checking system along Bao Danh Savanh border in 2015 in order to boost the bilateral trade in the east and west economic corridors.  The ASEAN members are easing the goods transportation across ASEAN countries’ borders and single gate mechanisms. In 2016, the single gate in ASEAN is ready to be implemented by all ASEAN members. ASEAN continues to implement a single airline and production base, and open investment inside and outside ASEAN. Many measures connect the institutions involved and ease the trade among the countries, such as the ASEAN trade data storage and national trade data storage systems. ASEAN is solving the tariff barrier to boost the trade and investment in ASEAN. Realestate.com.kh is proud to support the CVEA's Property View publication. Click here to get your copy, or if you are interested to join the CVEA today.

People talk about a new angle of doing business which has both challenges and success phase, for it is the right time now to grab a chance to diversify business to be successful. With a new concept of doing business in the kingdom, Mr. Ly Senleap, director of FURI Real Estate, said that CONDO-TEL is mixed between condo and hotel which is a new business concept. “We turn condo into hotel with 5 stars and we will provide services for customers like their home as the customers can cook, live privately, have living room, dining room and workplace, and they can have a porch to see the outside view.” “The target customers that we focus on are business travelers who need privacy of living”  Besides the service we provide variety of services for customers such as swimming pool, gym, restaurant, and food order for 24 hours. Although some people think that condo market will get stuck, but Mr. Senleap is optimistic about this market that will not cause any problem because of the political stability and economic growth which boost the demand. The start of CONDO-TEL service will be run for the first times in June. The location of the service is in SILVER TOWN Condo which is along the street #63 and situated in BKK 1 commune, Chamkar Mon district, Phnom Penh and the next project is in Siem Reap at the end of this year and after that is Sihanoukville. The director said, “No one here has been interested in the new angle of the business, but it is very popular in the developed countries such as Australia and America because hotel is a place which stay in short time and no privacy. The difference is that businesspeople need quiet place.” “We think that we will have some difficulties for local customers because now there are many boutique hotel and hotels which target tourists, but we focus on businesspeople who want to do business here. We target this kind of guests, while it can face challenges, but it is the newest opportunity that no one takes and if we can do it, it will be strongly successful in the market as we have exports from America to lead the work,” Mr. Senleap said. “I strong believe that I will be able to do it because our price is 20 to 30 percent lower than hotel’s, but we will not make our customers disappointed with our service,” Mr. Senleap said, “The location is in the middle of Phnom Penh, commercial area, near embassy and government building which provide easiness for customers.”The hotel market focuses on 70 percent for online advertisement, so our market will concentrate on the perfect service advertisement and online, cooperate with businesspeople, NGOs, embassies, and both local and international investors.  Mr. Senleap, said, “Our strong point is that we lead the business professionally and have exports from American who have many experiences in meeting the customers’ demand perfectly.” “The business is risk, but we can do it, since we intend to solve the challenge or risk and turn impossible to possible and if we are successful, our business will be unique,” he added.   Realestate.com.kh is proud to support the CVEA's Property View publication. Click here to get your copy, or if you are interested to join the CVEA today.

Flowing credit from banks in Cambodia have been increasing the rise of buildings and property in the last decades. The chief of purchasing and marketing of Borey Vimean Phnom Penh, Mrs. Chhay Sina, said banks have important roles to support construction and property in Cambodia. 90 percent of building buyers need lending money from the banks with the low interest around 8 percent a year. She added some buyers pay for building step by step and some need lending money with home loans from the banks. Most of young building buyers need lending money from the banks, especially, new couples but old building buyers don’t need home loans from the banks. They use cash to buy it for their self or for the children. Executive director of credit of ACLEDA, In Siphan, said home loans are not the first step of ACLEDA because its credit for property is only 7 percent and credit for repairing building is only 1 percent but buildings or property in Cambodia are increasing every year with 7000 credits from the banks with around 160 million dollars. He said the credit of the bank is important for new couples to buy a house or flat so buildings are increasing every year. After economic crisis 2008, the bank of Cambodia allow all banks in Cambodia give only 15 percent of its total money to the lenders to buy property on home loans. But after that the bank of Cambodia allow all banks to gives lenders buying property over 15 percent. In Siphan added that to be avoid of losing money or crisis, the bank is always careful for customers but sometimes the bank is wrong also for giving money to the home loans customers. So family and characteristic of customers are important. Consultant of national economic council, Dr. Mey Kalyan said if we buy food, we can eat immediately, but if we buy house or property, we can keep it for a long time and it isn’t easy to buy it and spend so much to buy it also. But we can sell and rent to get money easily. Dr. Mey Kalyan added that the banks should be careful with customers but credit of the banks are important to increase building or property. The buildings or property projects always need money from the banks so banks are important for this field. Director of finance industrial department of economic and finance ministry , Excellency Mey Vann said until now, he’s never seen crisis of buildings or property field but ministry is watching data project or planning of building or property to be avoid crisis. Excellency Mey Van added that it’s very important to control data, project or planning of building or property of the banks or companies in Cambodia. Realestate.com.kh is proud to support the CVEA's Property View publication. Click here to get your copy, or if you are interested to join the CVEA today.

Most people dream of living in a house near the clean, blue ocean, surrounded by mountain ranges, with only fresh, clean air to breathe. With this dream in mind, increasingly foreign investors are coming to Cambodia to build the first condos on the seaside.After Phnom Penh city, Sihanoukville is the latest destination to attract attention from international condo developers. Currently, there two Sihanoukville condo projects underway by Singaporean investment companies, namely Sunshine Bay and D’Seaview. The lush views of the seaside in Sihanoukville are attracting Khmers and foreigners alike for vacations and leisure, hence developers of resorts and apartments are coming too. The director of Khmer Real Estate and CVEA president, Kim Heang, is happy to see growing investment in Sihanoukville and said that although condo projects are coming too soon for market demand, eventually people will want to live there. At present, he said some people don’t know how to live in condos and there are only a few people buying or selling property there. He continued to say that whether the two projects currently under construction are successful or not, will depend on the ability of the companies to persuade customers to buy, to build to high quality standards, and their ability to allow customers to pay step by step. This is because some companies have announced they will sell buildings prior to construction - but Heang worries these companies will never build the buildings. They appear to be waiting for money from buyers in order to pay for construction costs. He said some investors who invest in Sihanoukville condos may be successful because they will be pioneers, and partnering with well known Singaporean companies. Kim Heang believes that currently, investing in Sihanoukville hotels and guesthouses is increasingly popular and successful and maybe a better option than condos. Sunshine Bay invested 100 million dollars to buy 10,800 square meters of land on the Sihanoukville coast. It will build 3 condo towers, totaling over 700 units. Construction should end by 2019. Two 25 story towers will be condos, and one 35 story tower will house a hotel. The D’seaview project of Camhomes company will have 735 units over two towers. The HLH Group has invested around 50 million dollars in the project. Construction will be completed at the same time as Sunshine Bay - in 2019 as well. Having opened a new office in Sihanoukville, director of Town City, Vorn Chanthorn, said condos are a new market concept for Sihanoukville people. Condos may be well-suited to some wealthy families who can afford a holiday home that they can use intermittently for vacations, or otherwise rent. He says selling condos is easy in Sihanoukville, but that success depends on the price per unit and the honour of the company developing. Investors often visit the coast for leisure, especially the Chinese, therefore it will naturally attract more investors in future. Director of Lucky Real Estate, Dit Channa, said the Sihanoukville condo market in Sihanoukville will be very good after people's lifestyles change to a point where living in condos is understood as good and acceptable. Condos are modern and comfortable and these new projects will bring great variety and modernity to the Sihanoukville market in the near future. He added that Sihanoukville condo projects will be successful - but it will take a long time to come to fruition. The vision of the government is to develop industry through 2015-2025, and Sihanoukville is set to be the hub of this industrial development. It has great potential as it has direct access to the nation’s largest shipping port and an international airport. In December 2015, the government announced that Koh Rong island will become a city and a special economic area of Sihanoukville for national and international tourists increasing every year. Sihanoukville airport now welcomes more and more flights from China, Korea and Siem Reap province. Realestate.com.kh is proud to support the CVEA's Property View publication. Click here to get your copy, or if you are interested to join the CVEA today.

It is no accident when foreign investors enter Cambodia and spend millions on highrise condo projects. Why do foreign investors invest in Cambodian condos? The answer relates to political stability, strong economic growth, and the free use of the US dollar.The Cambodian economy has increased so fast since the civil war’s end, and relative stability has been achieved in only two decades. Cambodia maintained a 7.8 percentage GDP increase every year since, which makes it the sixth fastest growing economy in the world.CEO of Eastland HK Development, Sam Yang, who has been building Cambodian condos and high office buildings in Phnom Penh, said that his latest project, East Commercial Center (ECC), will finish at the end of 2017. This building is 38 floors on Norodom Boulevard - with small, adjustable office spaces for sale and rent, with reason prices and a good location.​ He went on to say, “I think that 2018 will be ok. There isn’t any market which is unaffected by politics. You have to remember that Myanmar and Thailand will also have elections, and it will be the same type of situation we predict in Cambodia”. He added that there three main points in this market which make it very attractive. Firstly, we are sure that the next major international economic boom will occur in an Asean country. Secondly, Cambodia is the third country in Asean to have achieved relative political stability. Thirdly, investors can rely of the US dollar in Cambodia, and this is very attractive.” Yang also sees Chinese investment continuing to increase in the next few years, citing plans for a regional Chinese railway in the coming years.He added that thus far the Cambodian real estate market has only attracted relatively small investment pools, in comparison to international standards of major investments. Generally, new real estate investments in Cambodia are valued at around 5 to 10 million dollars only. The larger real estate investment funds of 200 to 600 million dollars have not yet come to Cambodia - but they will soon.  “The Cambodian condos market will continue to improve and Chinese investors plan to construct more roads and railway lines in 2018 to link the Asian markets together.” Mr. Sam Yang asserted “Even though the investment in Cambodia is growing fast, we should still think about the correct supply while this country is developing. This is why ECC is focusing on affordable office space.” The director of JS Land Limited, Koy Lesan, said that even though there are many condo projects being built recently, some of condos don’t respond to needs of customers and are too expensive. Prices per unit of around 80 to 100 thousand hundred dollars do not reflect Cambodian incomes. He went on to say that the needs for more housing for locals and foreigners is increasing, but most condo projects are still overpriced. This understanding has inspired JS Land’s new project. The Cambodian condos project is 19 storeys high and has 212 units. Each unit is priced at just $38,000. The important thing is that it will be easy for the customers to cooperate with Maybank, who has offered financing for the project. They can install payments on long terms from 20 to 25 years, allowing buyers to manage their investment alongside a low average income across the population. KH NIRON Investment’s executive director, Ms Lok Sovanna, invests in many condominium projects in order to resell the units. She said  “there is some risk but we observe that Cambodian people and foreigners demanding more and more condos and apartments and understanding the benefits of investment. She went on that KH NIRON INVESTMENT has spent a hundred million dollars investing in big projects. For example; units in Bodaiju Residences, DI Riviera, The Peak, The Bridge, and East One.    General Director of Century 21, Kevin Goos, said that the Kingdom is the most attractive market among Asean countries. The biggest real estate markets of Singapore, Hong Kong, and Taiwan are decreasing in investment by around thirty percent. Hence, we can expect increased investment in Cambodia in the next 2 years.    He went on to say that the real estate market in Phnom Penh has affordable prices, if we compare to other countries in Asean. Cambodia is still growing fast across economic sectors, as it has been since 2001. If we compare the real estate market in Cambodia, it is the same as other countries such as Singapore, Taipei and Hong Kong during decades of the 1980s and 90s. Phnom Penh is growing fast and we also seeing some successful construction projects, such as the North Park Condominium project, which sold around 40 percent in the first phase of its inauguration last week. ​He went on to say that Cambodia granted a good opportunity for business expansion and the stand of the government on Foreign Direct Investment (FDI) is very attractive if we compare to other Asean member state policies. He added that the creation of the new construction law, and development in the country generally, will open the door for investors to invest more heavily in real estate,  and aid foreigners buying condos with greater transparency and consistency. Realestate.com.kh is proud to support the CVEA's Property View publication. Click here to get your copy, or if you are interested to join the CVEA today.

The construction sector has become the most dynamic engine of growth, partly due to the return of political stability and a revival in consumption, according to a recent report by the World Bank. Economic growth here is still led by construction, garment exports and tourism, the World Bank said in its report “World Bank East Asia and Pacific Economic Update – Staying the Course.” Construction investment increased nearly 3 billion US Dollar in the first 11 months 2015 if compared with the same period last year, according to the data from the Ministry of Land Management, Urban Planning, and Construction.According to Im Chhunlim, senior minister of the Ministry of Land Management, Urban Planning, and Construction, said construction investment capital reached about 2.9 billion US Dollars in the first 11 months in 2015 if compared with the same period last year, increased 27 per cent. A group of local real estate expert said the construction sector helps invigorate the economy as well as GDP growth. Kim Heang, CEO of Khmer Real Estate and president of Cambodian Valuers and Estate Agents Association (CVEA), said the construction sector took the biggest part in Cambodia’s GDP because most wealthy people gain benefit from the land and construction. He warned, “We don’t have to concentrate only on the construction sector because the prices can increase or decline depending on the situation as there are many sectors we have to focus on such as tourism, agriculture, as well as garment.” “People’s income does not meet the current residential, and number of tenants saw an increase, so the government must take action to make middle income people to be able to afford housing,” he said. In order to become a developed country with strong GDP, we have to depend on human resource. It is a long-term investment and the education system has to be improved,” Mr. Heang said. Chrek Soknim, CEO of Century21 Mekong, stressed the vital role of the construction sector in the Cambodian economy. “The economy talks about money. Currently as we can see, construction sector in Cambodia injected a lot of money into the economy. That’s the reason the construction sector took a big part in the GDP growth,” Mr. Soknim said. However, he said, “even though the Cambodia property sector is younger if compared with other countries, the Kingdom gains advantages from the sector.” “With people’s stable income bank sector in Cambodia also plays a vital role in boosting the property sector, and cash flow can help the economy,” he added. “To make the construction sector consistency, the government has to take care of investors by issuing laws to projects both investors and buyers,” Mr. Soknim said. In Sitha, vice-president of World Trust Estate, said currently there have been many construction sites popping up in Phnom Penh, and this creates many jobs for people as well as experts in the sector: “It means workers and experts in the construction sector earn more income from the construction, and many constructions boost the GDP growth and according to the current data from the Ministry of Land Management, Urban Planning and Construction, the construction saw an increase, and this means it took a part in the GDP as well,” Mr. Sitha said. “Bank sector plays an important role in providing loan for people to have enough ability to afford home as many middle-income people use the loan to buy their own home,” he added. Return On Investment of condo investment in Cambodia is around 7.5 per year if compared to the same Asian markets, Cambodia’s investment provide more benefit as Thailand and Japan at 6.3 and 5.5 per cent respectively, China and Hong Kong are offering rent yields of only 2.7 and 3.3 per cent respectively, and Philippine at 7.1 per cent annually, according to a recent study of Century 21 Mekong. According to a report of real estate agency Century21 condominium development increased by 20 per cent annually from 2008 to 2014 with 13 projects successfully completed, which translates to 3,090 available units as of today. With another 17 projects currently underway, the report predicted that by 2018, when many of the current projects are slated for completion, the number will have more than tripled to over 10,000 available units across Phnom Penh. Cambodia’s per capita GDP is forecast to reach $1,220 this year, up from $1,123 last year, according to official data. This places the country near lower-middle income status. Its new forecast comes just a few weeks after the Asian Development Bank revised its March forecast for economic growth this year from 7.3 per cent to 7 percent. The construction sector has become the most dynamic engine of growth, partly due to the return of political stability and a revival in consumption; however, the tourism sector is underperforming, despite the initial recovery in tourist arrivals to Thailand. Tourist arrivals during the first six months grew by only 4.6 percent (reaching 2.3 million visitors), compared to 6.9 percent during the same period last year, the report from the World Bank said. Realestate.com.kh is proud to support the CVEA's Property View publication. Click here to get your copy, or if you are interested to join the CVEA today.

Urbanland is firmly setting themselves above the competition when it comes to Phnom Penh inner city design and residential development.  Their hugely successful Embassy Residences project, set for completion by the end of 2016, has sold 90% of all its available units. This year also heralds the upcoming launch of their second condominium project, Embassy Central. Mostly through word of mouth and exclusive networking and open house events, Embassy Central has steadily seen increased buzz and interests from buyers and investors. Hok Kang, the founder of Hok Kang Architects and Urbanland, is also the principal architect behind the leading locally owned cafe chain, Brown Coffee. Launching its first Brown’s branch on the capital’s Street 214 in 2009, the chain now has 11 unique locations each with its own architectural flare thanks to Hok and his team of architects & designers. While each Brown Cafe in Phnom Penh reflects consistent architectural and interior design themes, all embrace their own individual spin; a franchise style that the Phnom Penh cafe culture seems to have wholly accepted. Urbanland consistently separate themselves from rival projects with their attention to detail and sleek, usable design, and this is clearly demonstrated at the highly popular outlets of Brown Coffee, each humming morning and night with coffee-sipping Phnom Penhers. Meanwhile, both of Urbanland’s condo developments have heralded popular success too, for many of the same reasons. Both Embassy Residences and Embassy Central were not only shortlisted for the Cambodia Property Awards 2016 on 25 February but in fact both were awarded top in their entered categories. Embassy Residences was awarded the “Best Condo Development in Central Phnom Penh” award at this year Cambodian Property Awards series, and both Embassy Residences and Embassy Central were awarded the “Best High Rise Residential Architectural Design” prize. Upon winning the awards, Victor Huot, Urbanland's Marketing Manager said: "Being a new developer, we feel that we can separate ourselves by focusing on creating great quality spaces that we know this market needs and being awarded the top prize for both our projects gives us the confidence to keep heading in that direction." Urbanland enters all of their projects with a clear and uncompromising vision, and this confidence and demand for quality is impressing buyers.Embassy Central, an 119 unit, 25 storey condo, holds a prime location in Boeung Keng Kang 1 (BKK1), Cambodia’s classiest suburb and home to some of the city's best shopping, eating and entertainment venues. Residents can enjoy the swimming pool, multi-function room with courtyard, fitness center, sauna, outdoor dining area, and - unique to this development - residents will find some reprieve from the buzz and the heat of the inner city with the help of four idyllic sky-gardens. The project nearest completion, Embassy Residences, an 85 unit, 18 storey complex located to the south of Norodom Boulevard, shall feel the beating heart of Phnom Penh’s CBD. Facilities include guard house, underground car park, swimming pool and sundeck, children’s play center, fitness centre and lush sky garden. All condo units within Embassy Residences are furnished to the very highest standard and decorated in modern taste. "As a young local team, our mission is to help shape the landscape of Phnom Penh by creating buildings and spaces that inspire people and through this, we hope that people will start to demand quality designs and products like Embassy Central," said Victor Huot, Marketing Manager at Urbanland. Want to find out more about Urbanland’s projects currently for sale on Realestate.com.kh?Check out the full listing for Embassy Residences; and the exciting new project: Embassy Central.

Century 21 Cambodia through its Global Strategic Business Development Team seeks to strengthen the Real Estate Investment Opportunities with Century 21 Taiwan. As the Cambodian market continues to grow both in demand, developers and investors are seeking to diversify their options and target options that offer lucrative long-term success. This week, Century 21 Cambodia, along with Local Franchise Office Century 21- Dream Property, is scheduled to travel to Taiwan to meet with their Franchise counterparts to discuss ways of networking clients from both countries to increase investment and sales through the Global Sales Structure Century 21 franchises has to offer, both in Cambodia as well as Taiwan.Taiwan’s interest in this region has been noted with purchases into projects such as Bali, Suncity Bassac, and others continue to extend its desire for investment returns that are not so easily presented in a traditional real estate investment market.As the real estate industry in Taiwan remains at a fixed level of real estate investment returns, the need to find new and better return on investment for clients has become a part of their office’s interest to reach out and find investments around Cambodia. According to China Post, offices in Taiwan continue to be set up in search Condominium investment growth in Cambodia.This trip for Century 21 Cambodia will be another one of several recent visits to neighboring countries. These visits add to this year’s goal of finding ways to create opportunities for Century 21 franchises to cater to clients buying or selling around Cambodia. With the rare opportunity of Phnom Penh growing at its current rate, Century 21 Cambodia seeks to support its franchise offices, by networking with Century 21 global offices and fill the need to find clients for these development units.

4 March 2016, Singapore – Knight Frank, the independent global property consultancy, today releases the Prime Asia Development Land Index for H2 2015. The index derives the price of prime residential (apartment or condominium) and commercial (office) development land in 13 major cities across Asia.Knight Frank Prime Asia Development Land Index shows prices of residential sites in the region appreciating 3.0% in H2 2015, up from the 1.2% seen in the previous six months. On the other hand, the price growth of office land slowed to 1.5% from 3.6%Report highlights:H2 2015 witnessed development land investment volumes in Asia rise by 14.1% year-on-year.Cross-border volumes increased by 55.3%, driven by intra-Asian investment flows.China bought almost two times more land in the rest of Asia.While the average price of a piece of development land has been climbing steadily since mid-2012, the average land size has been shrinking. In Indonesia, the government’s efforts to tackle tax evasion is discouraging big-ticket purchases.Mr Nicholas Holt, Head of Research for Asia Pacific, says, “The confluence of easing construction costs and rising residential prices and office rents propelled Phnom Penh’s prime land prices upwards. Although the growth rates in H2 2015 moderated slightly from the previous six months, they nonetheless were among the fastest in the region.“Tokyo’s prime residential land index recorded the fastest growth among the cities tracked in H2 2015 – it is also the only market that outperformed Phnom Penh. With Japan joining the negative interest rate club, there could be more yield compression and price appreciation.”Download the full report!

Jum reap sour! And welcome to another weekly Real Estate News Report brought to you by RealEstate.com.kh. The leader in real estate news in the Kingdom and the best place to find your new home. Missed Part 1 or Part 2?On this week’s show, we’re going to be speaking with Mr. In Sitha, Director of Business Development at VTrust Appraisal, about where to buy development land in Phnom Penh. Sitha has over 20 years experience in the real estate business in Cambodia and he now specializes in property development consultancy and real estate business development. He's also a renowned real estate teacher in real estate law and real estate practice. In this 6 Part series, we're going to get some tips for property developers and real estate businesses seeking to gain an edge when entering the Cambodian real estate market.PART 3: WHAT ARE BEST AREAS TO BUY DEVELOPMENT LAND IN PHNOM PENH?Realestate.com.kh: What districts are the best to buy in in Phnom Penh for developers?  Say if you got a new developer client seeking consultation, which areas would you recommend buying land in now for a new development project?In Sitha: I think right now Chamkarmon District is one of the four districts of Phnom Penh that I would consider as the good place to invest at the moment and into the future. I think that's where to buy development land in Phnom Penh. Realestate.com.kh: Land's expensive right?In Sitha: Yeah, the land is little bit expensive but it's still good to invest. As you see, Chamkarmon District is the place with the most expats, restaurants and the prime hotel area of approximately 1,073.72 hectares. In this district, I consider two communes, BKK1 and Tonle Bassac, to be best to invest in.Realestate.com.kh: Which ones?In Sitha: Number one is Boeung Keng Kang 1 and number two is Tonle Bassac. You see, they are in the central area, so the southeast of Independent monument, and this district has a lot of wealthy residents, NGO, corporates, etc. And the landscape is very nice, very beautiful and wide, leafy streets. Realestate.com.kh: Will developers who choose to build in BKK1 increase their chance of higher rental returns?In Sitha: That's correct.Realestate.com.kh: Because of all the expats and lots of money in this area?In Sitha: In Boeung Keng Kang 1 and Tonle Bassac, there are many rich people. One unit of a serviced apartment with two bedrooms can be priced from 800 US to over 1800. Yet, ultimately, it is based on the quality and the design of the construction.Realestate.com.kh: Much, much higher than the rest of the country?In Sitha: Yeah, it makes it a good investment opportunity if for a one bedroom unit you can get almost 1000 to 1500 in rental returns. These areas offer easy access to all sorts of entertainment and food venues, and also the government institutions, hospitals, international schools and universities. This is a centralized area. Market price increases yearly so this is a very good place to invest in these two sangkats/communes.Loving it? Then you should watch part 4 now:WHY PHNOM PENH BOREYS ARE PROVING SUCH A POPULAR MARKET FOR DEVELOPERS AND HOMEBUYERS coming soon

The Cambodia Constructors Association (CCA) will host its 5th CCA Summit and Cambodia Construction Industry Expo on December, 1-3, 2015 at Diamond Island Exhibition and Convention Center where hundreds of local and international exhibiting companies and visitors will attend. CCA is now also a member of ASEAN Constructors Federation, China-ASEAN Building Materials Committee, and International Federation of Asian & Western Pacific Contractors ‘Association (IFAWPCA). This will bring huge benefits to the Cambodia Construction Summit & Expo 2016.Unlike previous time, this time at the Cambodia Construction Summit & Expo 2016 there will be many exhibitors from the three above international associations as well. Besides, we will have some excited events like CCA networking party with exhibitors at the second day of the event (evening) with free foods and drink where you and possibly your members can network with our potential CCA members and other exhibitors to match your business with them. Once there was 250 booths last year, we aims for 300 booths a this year's Cambodia Construction Summit & Expo 2016.CCA is a private-run constructors group that was established in 2012. Currently, we have over 100 member companies that are companies related to construction and property sectors. For more info about CCA, please kindly go to www.cca.org.kh

After receiving complaints from commuters regarding toll fees along Veng Sreng Road, the prime minister cancelled the road investment contract in late December 2015 and placed it under state management and abolished the collection of fees from commuters. “I am giving the Veng Sreng road back to the people to use free of charge as a New Year present. I am grateful to our citizens who brought this news on Facebook about their problems regarding the Veng Sreng road to my attention,” the Prime Minister Hun Sen said.Chinese firm BOTT WAYS invested in the Veng Sreng - Chom Chao road which runs for 6.5km and is 22 metres wide. Built with 20-cm concrete, the road is divided by 2.5-metre wide garden. When contract was cancelled, the road has almost been completed. The remaining works have subsequently been transferred to the capital department of public works and transport.   As with Veng Sreng Road, Prime Minister Samdech Hun Sen also decided to cease charges for commuters on National Road 4 from 13 January after receiving complaints from people via Facebook. The decision was made just a few days after he removed toll fees for people who own vehicles and reside along National Road 4 that have to pay daily. The 230-km National Road 4 has been operated and maintained by AZ Group under a 34-year concession since 2000. This main artery to the coast is currently being expanded from 2 lanes to 4 lanes with an unspecified completion date.   This article was submitted by: Tim Vutha, Construction and Property Magazine [caption id="attachment_81252" align="aligncenter" width="229"] Download Issue 20 of the Construction & Property Magazine today![/caption] http://realestate.com.kh/news/remoc2016-is-here http://realestate.com.kh/news/phnom-penh-infrastructure-rising

2018 will see Ta Khmao city transformed into a real estate development hub thanks to the construction of the first large-scale residential and commercial development project called Center City Ta Khmao.SEE THE FULL LISTINGLocated just south of Phnom Penh along the Tonle Bassac riverfront, the Center City Ta Khmao complex is to be built on a 15,463 square metre plot with 10,668 square metres of beautiful landscaped surroundings and will feature a range of luxury freehold-based property units. Two 27-storey condominium towers totalling 484 units will be surrounded by 60 commercial shophouses, 8 commercial buildings, a 2-storey shopping mall, and 3-storey car park. One floor of the building will be dedicated to leisure amenities including a health and fitness centre, swimming pools, jogging paths and a children’s playground.The complex is being developed by Tang Kung Group under the brand The River Premium Developments via a joint venture between local conglomerate Tang Kung Group and a Malaysian investor also owner of Australia-based Riverside Group. Tang Kung Group has almost 20 years of experience in the real estate industry. Thanks to the extensive background of the developer, The River Premium Developments prides itself on premium quality mixed-use developments, incorporating residential, commercial and leisure amenities. To ensure premium quality, it integrates modern design and architecture into all of its prime location projects to cater to the Cambodian market. First-class quality is key to the culture and commitment of the company and is guaranteed by using only branded construction materials to maintain international standards. “Situated in the heart of Ta Khmao overlooking the grand Tonle Bassac, Center City Ta Khmao will be the finest in world-class living,” said Okhna Tang Kung, Chairman/CEO of The River. He added that Center City differentiates itself from other developments by being located, “In a tranquil and picturesque setting in front of the majestic Tonle Bassac and offering unparalleled convenience. It offers customers the choice of owning spacious shophouses perfect for any business, thanks to its proximity to premium condominium units and a luxurious shopping mall that offers world-class amenities within the same complex.” The target market for the developer is both local and foreign high-end buyers. According to Okhna Tang Kung, his firm has a different strategic view on the future property hub, saying that Ta Khmao will be the next landmark in the kingdom.SEE THE FULL LISTING“As predicted by Cambodia’s most-celebrated architect and urban planner, H.E. Vann Molyvann, Phnom Penh city will continue to grow toward Ta Khmao as this area is highly flood resistant, and will remain so for the future. The developer behind Center City Ta Khmao thus views Ta Khmao as the most sustainable region for residential development, with H.E. Vann Molyvann’s expert understanding in mind,” he stressed. Construction on the development kicked off last year and will ensue in 3 phases. Phase 1 will be the shophouses and is now in the pre-selling stage. Unit prices for the mall and all condominium units are expected to be revealed during phase 2 and 3 in the coming months.

China is now the second largest economy in the world, after Japan, and continues to grow steadily at about 10 percent per year. Thus, all eyes are frequently on China these days. What they do now has global implications. If they rise, we all rise. If they fall, they take a lot of people down with them.Although China is not just a major player in the region -- it is a major player in the world -- as is always the case, proximity matters. What China chooses to do has a particularly strong impact on countries near to hand. Cambodia is one of the countries near to hand that is particularly strongly impacted by any ripples in the Chinese economy.Many countries in Southeast Asia have been struggling with internal market uncertainties. In contrast, China's continued generally strong economic growth has fueled a trend in increased international investment. In 2015, China doubled their international investment compared to the year before. In aggregate, it totaled just under US$30 billion.Naturally, there are a number of factors impacting the investment decisions of Chinese investors. The recent instability of the Chinese stock market is one important factor driving Chinese investors to diversify their portfolio by looking outside of the country for capital safe havens and opportunities.Additionally, their ongoing devaluation of their currency is being done to intentionally give them trade benefits. This is also driving investors to from within China to move money outside of China, exactly as it is intended to do. The explicit policy objective of their ongoing currency manipulation is to enhance their ability to export goods and services. This may be why predictions suggesting they would retrench their outbound capital failed to be realized. Instead, their overseas investments in real estate continued a strong upward trend throughout 2015. Although the lion's share of this outbound capital continues to be invested in big markets, such as US commercial real estate, the UK and Australia, a certain market segment is gradually turning more attention towards regional centers closer to China's own backyard, such as the ASEAN nations. These areas are beginning to have a bit more appeal for small- to mid-cap investors who desire higher yields. The traditional centers of Chinese investment interest -- places like London and major cities in the United States -- are in no danger of being ignored. In spite of the high cost of entry into markets in well developed countries, they have a long track record of being solid investment opportunities. Thus, they are worth are worth it. But the "Belt and Road" policy is beginning to encourage more Chinese institutional investors to look at opportunities much closer to home. The main places expected to benefit from this trend include India, Hong Kong and all ASEAN countries. Since Cambodia is an ASEAN country, it is included in this list. There is also reason to believe that Japan will continue to draw substantial investment interest from China. Thanks to the aforementioned policy changes and the ongoing RMB devaluation within China, the odds look good that China will continue to invest heavily overseas. While the bulk of that money will certainly go to traditional gateway markets, regional hubs in Southeast Asia are likely to start seeing more than just a splash or two from the fire hose of Chinese outbound capital. Even if their forward momentum slows down, as some people are predicting, the fact that they have one of the largest populations in the world, a huge mass of land, and have established and sustained consistent economic growth for some years now strongly suggests that they will continue to be a force majeure on the global economic scene. The policy changes and trends in motion make it highly likely that the drips and drops of regional investment we have already seen will grow to a steadier stream. We are looking forward to helping Cambodia tap into that stream. Given the drama that occurred when China's stock market took a noticeable dip recently, some people are understandably concerned about the near and mid term outlook for Chinese outbound capital and its impact on international markets. As is often the case in stock markets, the dip -- down 6 per cent in the Shanghai Composite index, and down more than 7 per cent in the Shenzhen Composite -- caused panic selling, thus deepening the problem. Predictably, some folks fear that the impact on Cambodia's real estate may be negative, not positive. One cause for this concern is that, because Cambodia is a Least Developed Country, it benefits enormously from its ability to export to some of the more developed countries, such as the US. Additionally, the Cambodian riel is pegged to the US dollar. These facts make the country especially sensitive to international economic drama involving the US. Understandably, people held their breath when the Chinese stock market dip caused fallout in the American markets. Fortunately, the situation was short lived and did not turn into a long term slide. The US and other important markets quickly rallied. This is in spite of the fact that China's RMB devaluation is an ongoing policy specifically intended to manipulate the American market for China's benefit. In spite of how China's population dwarfs that of the US, the American markets are surprisingly robust -- or, perhaps, not so surprisingly since the US is one of the more developed countries in the world. In spite of a 40 percent drop in the Shanghai exchange and predictions that this may have a long term negative impact on Cambodian real estate, there was no serious distress in the short term. Nonetheless, Chinese investment plays an important role in infrastructure development, agriculture, hydropower, and industry for Cambodia. Chinese investors are a major force in some areas of industrial development in Sihanoukville, one of the three most important cities in the Cambodian market, if only because it has the only deep sea port in the country. Because global events hit Cambodia hard in 2008, this most recent incident was met with a proactive government response. They promptly set out to run the necessary analyses and put protections in place to avoid another serious recession. The country's capital, Phnom Penh, is the single most important city in Cambodia. A high percentage of its new residential development is being snapped up by foreign buyers. Prices have been heating up, causing talk of a possible bubble in this market. We believe this to be unlikely because Cambodia lacks the essential ingredients for creating such a situation. Among other things, bubbles require excessively high rates of leverage. The conservative banking system in Cambodia has been a strong safeguard against that situation developing. Thus, Cambodia simply does not have that particular problem and it is unlikely to develop a bubble, only to see it burst catastrophically. The rate at which China is moving manufacturing out to other parts of Southeast Asia is astonishing. This region may well displace China as the seat of global manufacturing. The trope "Made in China" may be replaced by "Made in Southeast Asia." Of course, China's economic slowdown has been felt in the region. This may have a silver lining in the form of taking some of the wind out of the sales of speculative buying in Phnom Penh. Prices might come down a bit to more reasonable, sustainable levels. Some people would not be happy, but it might be best for the market overall. China is an economic giant locally and globally. With Cambodia resting midway between it and India, we are bound to be hit by any turbulence from either one, yet also buffered to some degree by the existence of the other. Adding more stability is Cambodia's membership in ASEAN and links to other markets, such as Australia. Nothing can completely shield Cambodia from the ups and downs of China's economy, but the recent drama proved to be more disconcerting than actually dislocating. Whether it is a bull market or a bear market, there are always some winners and some losers. As long as things keep humming along in the right direction overall, Cambodia should fair okay. The fundamentals here are pretty solid and many people are working hard to keep things going along in the right direction. We are cautiously optimistic about the foreseeable future.Want to learn more about investing in Cambodia?

Official Property Portal Sponsor, Realestate.com.kh, in association with Entrepreneur Consulting, brings you REMOC2016: Real Estate Market & Outlook Conference 2016.At REMOC2016 - join this informative event to discover real estate market and property outlooks for 2016 and the years to come from a host of industry leaders... Speakers such as Mr. Kuy Vat, Chairman of CVEA and Century 21 Cambodia, Dr. Sopon Pornchokchai, Ph.D., D.FIABCI, CRS, MRICS, President of AREA, Bangkok, Mr. James Padden, Commercial Agency Manager at CBRE Cambodia & many, many more real estate experts discuss where the Cambodian market is heading, and how investors can find success in this fast growing marketplace.REGISTER TODAY - SPONSORSHIP OPPORTUNITIES STILL AVAILABLEREMOC2016 Agenda: Friday 1 April, 2016Morning Sessions: 8:30am to 12:00pm8:00am - 8:30am Arrivals of speakers, special guests, distinguished participants, and the invited media 8:30am - 8:40am Welcoming Speech, addressing opportunities and challenges for real estate industry for 2016 and the years to come Mr. Kuy Vat, Chairman of CVEA and Century 21 Cambodia8:40am - 9:00am Commentary Speech, addressing current situation of real estate market and suggestions for future improvement Mr. Kim Heang, president of CVEA, and General Director of Khmer Real Estate9:00am - 10:00am ASEAN Housing Market 2015 and Trends, Including Phnom Penh, Ho Chi Minh, Bangkok, Manila, and Jakarta Dr. Sopon Pornchokchai, Ph.D., D.FIABCI, CRS, MRICS, President of AREA, Bangkok, Thailand10:00am - 10:30am Coffee Break 10:30am - 11:15am Phnom Penh's Commercial Estate Market, with Most Stresses on Key Market Performances and Outlooks for Retail Sector and Office Space James Padden, Commercial Agency Manager at CBRE Cambodia11:15am - 12:00pm Phnom Penh Land Market, with Most Highlights on Market Prices, Zoning and Development Trends Mr. Sorn Seap, C.E.O., Key Real Estate Co., Ltd.12:00pm - 1:00pm Lunch Break - Buffet Afternoon Sessions: 1:00pm to 5:05pm1:00pm - 1:45pm Phnom Penh's Condominium Market and Trends, with Most Insights into Primary Market, Supply, Demand, and Key Successful Factors for Developers Mr. Chrek Soknim, C.E.O, Century 21 Mekong1:45pm - 2:30pm Industrial Estate Market, with Most Highlights on Supply, Demand, Market Performance, Zoning, and Future Trends, and Opportunities Mr. Hin Socheat, Research Director, Bonna Realty Group2:30pm - 3:15pm Phnom Penh's Serviced Apartment Market, Most Highlighting on Key Market Performance Indicators, Key Challenges as Condominiums Emerge, and Outlooks for the Sector To be confirmed... 3:15pm - 3:30pm Coffee Break 3:30pm - 4:15pm Situation of Valuation Industry in Cambodia, with Most Insights into Current Practices and Valuation in Risk Management for Banking Sector Mr. Sim Hoy Chhoung, C.E.O., VTrust Appraisal Co., Ltd.4:15pm - 5:00pm Macro Perspectives: Cambodia's Real Estate Industry 2015, with Most Highlights on Demographics, FDIs, Industry Performance, and Outlooks for 2016-2017 Mr. Hoem Seiha, Director of Research, VTrust Appraisal Co., Ltd.5:00pm - 5:05pm Group Photos & End of Program REGISTER TODAY - SPONSORSHIP OPPORTUNITIES STILL AVAILABLE

Jum reap sour! And welcome to another weekly Real Estate News Report brought to you by RealEstate.com.kh. The leader in real estate news in the Kingdom and the best place to find your new home.On this week’s show, we’re going to be speaking with Mr. In Sitha, Director of Business Development at VTrust Appraisal. Sitha has over 20 years experience in the real estate business in Cambodia and he now specializes in property development consultancy and real estate business development. He's also a renowned real estate teacher in real estate law and real estate practice. In this 6 Part series, we're going to get some tips for property developers and real estate businesses seeking to gain an edge when entering the Cambodian real estate market.PART 2: THE PROCESS TO START ANY DEVELOPMENT PROJECT IN CAMBODIA, FOR DEVELOPERS Missed part 1? View it here!Realestate.com.kh: For developers, when you meet the developer that's considering launching a project in Cambodia, can you briefly explain the process for starting a new development project in Cambodia? What do they need to do?In Sitha: Thank you, this is a good question as well. Most developers have to understand a few things when they decide to enter the Cambodian market. To start a new development project in Cambodia, number one, the developer must get the business license from the Ministry of CommerceRealestate.com.kh: Number one, business license. This takes how long?In Sitha: I'd say a few weeks, usually from one week to two weeks. Now everything's online so the developer can go to the website of the Ministry of Commerce and apply to get the business license.Realestate.com.kh: This process is much faster now?In Sitha: Yes, it is faster now. This is a new system for the Cambodian government so everything's online now.  Second, the developer needs to get permission from the General Department of Taxation. They have to apply to get VAT number and tax patent. You can also apply for tax patent online. The developers then apply to get the construction license from the Ministry of Land Management Urban Planning and Construction.Realestate.com.kh: The construction license, that's general - or you take a different license for different type of projects?In Sitha: Actually, it will be specific in regards to the size and type of the development. And we have specific periods. Realestate.com.kh: And if they don't complete the comstruction in a certain time?In Sitha: They can extend. At the same time the developers are applying to get the construction license, they need permission for their project from the Ministry of Economy and Finance as well. The same registration applies for a developer as applies to a real estate agency. In the real estate business, first we have to apply to get the business license from the Ministry of Commerce and then get the Tax Patent. Then we have to apply to get our license and certificate from the Ministry of Economy and Finance for the specific professional field as a developer, agent and property manager in some cases. The developer is no different, and needs to get licensed for any type of business it undertakes.Realestate.com.kh: So the developer, they need to apply for a license to sell their property also? They need to apply for a real estate license?In Sitha: Yes they do.Number five in the process is that  the developers have to prepare the master plan for the development project, and submit this to the Ministry of Land Management Urban Planning and Construction and wait for the approval. After the approval, the Ministry of Land Management provide construction permission. Developers then can start the development project at the site that they propose. Realestate.com.kh: Roughly how long does it take to receive these permissions to begin? How fast could they do that?In Sitha: It takes a few months. It depends on how busy the government is. Some Months they are busy, like for the official meetings or something, so it takes a longer. Broadly, it's between one month and three months start to finish.Realestate.com.kh: When they submit the project plan to the government, how specific, how detailed does the plan need to be at this stage?In Sitha: They should include the floor plans as part of the master plan, in order for a professional architect from the land management ministry to check. Which means that before construction starts, developers have to prepare the master plan, the complete of construction prediction, and submit all information to the Ministry of Land Management.  The Ministry of Land Management will then check and verify whether it shall proceed.Realestate.com.kh: You must have a registered construction company in this plan?In Sitha: Yeah, yeah. It shall be under one company who can also be registered for construction, or in partnership with a separate registered construction company. Number six, in the process for a developer to start in Cambodia, the marketing and selling strategy is also important. How to do the marketing and how to sell your type of development in Cambodia. Many developer don’t pay enough attention to this. It's all about the marketing. I say developers need to do the market research and see whether the project could be a healthy seller in this market. And don’t wait until after the construction to do this! Can customers buy or not? And research the right price or something like that. The developer needs to understand the market price, and likely changes, which means the price that could be affordable to the customer compared to the neighboring development projects. My company, VTrust Appraisal, are specialists in research and market study. We are an independent organization that can bring a lot of useful knowledge to those considering development projects. [caption id="attachment_81203" align="alignleft" width="300"] The Ministry of Land Management Construction and Urban Planning, Phnom Penh.[/caption] Realestate.com.kh: The developer can sell 70% of a condo project to foreigners right?In Sitha: Of course, developers can sell 70% to the foreigner owners.Number eight, in the process for a new developer, is to select the right type of customer to sell your units to. Not all customers are the same, and not all will suit your development. It depends on how much is the unit price for each condo. And this depends on the area, and whether you want to target local or  international customers. It is a very good time, and a good opportunity for the developer to join in the condo development in this country. Number nine, in the start-up process for any developer is finding referral agents.Realestate.com.kh: When you say referral agents, you mean the developer has one agency working exclusively for them and then referral agents, all those other agencies who can co-sell and refer clients.In Sitha: Yes, you see, the CVEA (the Cambodian Valuers and Estate Agent Association) can be extremely useful for this because they are the mother of the real estate companies within Cambodia, the big umbrella of the industry - and the CVEA has a lot of real estate members.Realestate.com.kh: They're very interested to meet new developments?In Sitha: The real estate agents in the CVEA are professional, and they are well known, so the developer can get them to help out in selling the project as referral agents. They will share information among all members. Ten, the last point, cooperate for home loan options from the banking sector. To invest in the property I believe that we cannot have 100 percent of the money to own the properties. Now the banking sector in Cambodia generally provide home loans to the real estate developer up to 70%. To invest in property in this community, we use 70% of our own investment and the other, 70% or more from home loans. Everything they have to set part with the bank. Could be the reliable bank for the coverage in terms of loan financing. Loving it? Then you should watch part 3 now:WHAT ARE BEST AREAS TO BUY DEVELOPMENT LAND IN PHNOM PENH

Jum reap sour! And welcome to another weekly Real Estate News Report brought to you by RealEstate.com.kh. The leader in real estate news in the Kingdom and the best place to find your new home.On this week’s show, we’re going to be speaking with Mr. In Sitha, Director of Business Development at VTrust Appraisal. Sitha has over 20 years experience in the real estate business in Cambodia and he now specializes in property development consultancy and real estate business development. He's also a renowned real estate teacher in real estate law and real estate practice. In this 6 Part series, we're going to get some tips for property developers and real estate businesses seeking to gain an edge when entering the Cambodian real estate market.PART 1: WHY PROPERTY DEVELOPERS AND INVESTORS ARE INCREASINGLY LOOKING TO CAMBODIARealestate.com.kh: Mr. Sitha, I understand you have a lot of experience in advising property developers in Cambodia. What do you believe is driving the current high levels of property develop in the country now, in Phnom Penh in particular? Why do people want to invest in Cambodia?In Sitha: Well, thank you for your excellent question. In Cambodia now, the business opportunity is good compared to the late 90s. You see when the country and the world had the economic crisis. After 2009, the market is better and better. More foreign investors are looking to this market. Most from China, Hong Kong, Malaysia, Japan, America and local developers. All these people are looking to invest in Cambodia.Come to the questions. What drives the property development in the country currently? I think the investors themselves firstly have to have unlimited/sufficient investment capital for the investments in Cambodia, meaning they can’t enter without foresight. Number two, the investment projects licensing fees must be taken into consideration. Number three, investors must choose the right locations given their target market and budget, so location is also the most important to set up the development project. I think the central city is the best location at present, and also in the peninsula areas, or the other side of the river, if you're talking by areas.Realestate.com.kh: Why's that?In Sitha: Actually in Chroy Changvar the environment is good. The heart of the land between the Rivers is very beautiful, ideal to build a hotel or condo development. Realestate.com.kh: The infrastructure's really improving that side of the river now? [caption id="attachment_81189" align="alignleft" width="278"] Mr. In Sitha, Director of Business Development at VTrust Appraisal.[/caption] In Sitha: Yeah. A developer could build high rise buildings without limitations in this location as there are still no restrictions in the Chroy Changvar  area, which means we could build high as long as they maintain construction qualities. Construction qualities that I just mentioned are also an important consideration for the investor. Quality construction ensures a project will have a long lifetime in the market. Number four, company brand name and reputation is also very important to this industry. Any new developer in the Cambodian market must build its brand reputation also. So how to build our brand name? My recommendation is to make a joint venture agreement with a good quality construction company and an experienced development company - preferably with experience in multiple international markets. Number six, you need to understand what is the competitive price in the market for a project like you are looking at. This means understanding the market price. It should in line with demand in the locality as well as considering what is reasonable for the foreign investor coming to our market as well.Number seven. You must consider the marketing tools you will use to expose your development project. I think RealEstate.com.kh is the one of the best digital marketing options for them to choose.Loving it? Then you should watch part 2 now: THE PROCESS TO START ANY DEVELOPMENT PROJECT IN CAMBODIA, FOR DEVELOPERS