Chroy Changvar emerging as Phnom Penh property investment hotspot

Chroy Changvar emerging as Phnom Penh property investment hotspot

Thu, 26 December 2013 Sum Manet Interest in Chroy Changvar is rebounding after a lull in buying and selling following this autumn’s election, local real estate experts said. This interest is being kindled by the soon-to-be-completed bridge being built by China Road and Bridge Corporation next to the Japanese Friendship Bridge, as well as the widening of National Road No 6. Khmer Real Estate president Kim Heang said there was a noticeable decline in property transactions in Chroy Changvar in the second half of this year, which disrupted a two-year trend of steady market activity, especially along National Road No 6. “Property transactions in Chroy Changvar area did not increase in the last four or five months, but that hasn’t translated into lower land prices,” Kim said. Land prices along the first 500 metres of National Road No 6 heading away from the Chroy Changvar Bridge are currently running between $1,200 and $1,500 per square metre, the next 500 metres are averaging $1,000 to $1,200 and the following 500 metres are priced between $700 and $900, Kim said. Demand and land prices are both likely to increase after the completion of the new bridge, he said. Key Real Estate general manager Sorn Seap said that concerns about the kingdom’s political stability had depressed investor sentiment, leading to a slowdown in property deals across the Tonle Sap. The current bridge and road work, combined with the unique advantages offered by Chroy Changvar should drive future interest in the area, Sorn said. “After expanding the road and the completion of the new Chroy Changvar bridge, which will be finished in mid-2014,...
YellowTree blossoming in Phnom Penh

YellowTree blossoming in Phnom Penh

Thu, 26 December 2013 Post Staff The head of local design and fit-out company YellowTree Interior thinks Phnom Penh is poised to see a boom in office rentals, as more and more international companies open up operations in the capital. Bernie Durkin, YellowTree’s General Manager, said he’s optimistic about Phnom Penh’s office market, despite the recent increase in competition. “It seems now that every other shop on Street 163 is a decoration shop, but in reality we know that there are probably about four or five other players in Phnom Penh that work at the top level, and they are our real competitors,” Durkin said. YellowTree’s clients include FTB Bank, PricewaterhouseCoopers, Vattanac Properties, Qatar Airways, Coca-Cola, KPMG and Marks & Spencer. Durkin said he and his team specialise mostly in corporate work. “We do offices mainly, also banks, some retail and we’ve dabbled in F&B,” he said. “We don’t do domestic – as ordinarily the scale isn’t big enough.” Although there is quite a bit of office space coming online in the coming year, Durkin said he thinks demand for office space will remain steady into the future, especially for mid-sized organisations. “Before, people were quite happy to be working out of villas and townhouses. At the moment, people say ‘oh, you can go to Vattanac Capital, Phnom Penh Tower, Canadia Tower, and very soon Aeon Mall’, however, not everyone can afford those rentals.” Demand from bigger players for high-end interior design is poised to increase in the short-term, Durkin said. “Vattanac Capital and Aeon Mall in particular, and also Hongkong Land, are going to be bringing in some...
Report: The time is now to invest in Phnom Penh’s condo market

Report: The time is now to invest in Phnom Penh’s condo market

Thu, 26 December 2013 Chris Horton A new report by financial services company SBI Royal Securities is taking a bullish view on the investment potential of Phnom Penh condominiums for high net-worth locals and residents or investors from overseas. In the report, the Japan-based company’s Cambodian subsidiary examines the kingdom’s relatively low barriers to entry and substantial yields when compared with other Asian markets such as Hong Kong, China, India and Malaysia. It also projects that nearly complete development De Castle Royal will be the city’s star performer in terms of return on investment. In terms of cost, prime real estate in major cities in Cambodia was at the more affordable end of the spectrum, averaging $3,200 per square metre, the same as Indonesia, and just slightly more expensive than Malaysia at $2,800 per square metre. Unsurprisingly, prime real estate in Hong Kong is the most expensive in the region at $21,200 per square metre, nearly seven times as expensive as comparable property in Cambodia. When looking at the gross rental yields for these same Asian markets, Cambodia’s investment advantage becomes clear. It currently offers yields of 5.3 per cent, slightly behind Indonesia and the Philippines at 7.1 percent and 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, the report noted. Such low costs and strong yields have driven increasing interest and investment in Cambodian residential property, especially condominiums. But this is still a relatively new phenomenon. SBI Royal Securities senior associate Leng Vandy said that a few recent but crucial market...
Interest growing in Phnom Penh Thmey

Interest growing in Phnom Penh Thmey

Thu, 19 December 2013 Siv Meng Decades after it was designated a development zone by Lon Nol’s Khmer Republic government, the commune of Phnom Penh Thmey is attracting growing interest while prices push upward. This commune in the city’s western Sen Sok district is viewed by many real estate experts in the capital as an up-and-coming part of town. Asia Real Estate Cambodia managing director Po Eavkong said that good location and good infrastructure make Phnom Penh Thmey attractive to investors. Its original Khmer Republic development plan interrupted by war, the commune is now receiving much attention from municipal authorities, who are relocating offices there and putting in wide roads to access the large plots of land in the area. “Recently the city administration has relocated to Phnom Penh Thmey and if the state authority moves its offices to an area, that means they will build infrastructure in that area,” he said. “If you compare Phnom Penh Thmey commune with other suburbs on the outskirts of the city, Phnom Penh Thmey’s development is moving faster than the others,” he added. “The Phnom Penh Thmey area has many new residential areas popping up.” One of these new developments will be built by New World Group and will be home to 5,000 apartments as well as a shopping mall and entertainment complex. Bonna Realty Group general manager Noun Rithy said more urban development and improved infrastructure will attract more people to live in Phnom Penh Thmey. He noted that banks and international schools would add to the area’s appeal. Currently, land prices on main roads run from $400 to $1,200 per...
Phnom Penh’s property market: opportunity, risk and what to expect in the short term

Phnom Penh’s property market: opportunity, risk and what to expect in the short term

Thu, 19 December 2013 Chris Horton Phnom Penh’s property sector is experiencing unprecedented growth, offering both opportunities and challenges to foreign investors. Navigating the market intelligently and avoiding potential risks is crucial to making a sound investment in this exciting environment. The Post sat down with Independent Property Services sales director Bobby Peoples to learn more about how to mitigate risks and where the market is headed. What are the biggest misconceptions about purchasing Phnom Penh property as a foreigner? Bobby Peoples: The biggest misconception is that people believe they can own any apartment in their own name. Its is true that if you buy a modern condominium that has a strata title you can own that in your own name, but for virtually all the other apartments, anything above the second floor, you still need to have, as a foreigner, 49 per cent ownership and 51 per cent under a Cambodian national’s name. That can be set up through using a nominee structure, or using a landholding company but it is important to seek independent legal advice through the likes of DFDL or Sciaroni & Associates. They’ll let you know that in order to thumbprint a vente definitive [transfer document] you need to be a Cambodian national. Currently that law isn’t really being enforced, this is the reason why you’ll meet people that have properties in their own name. Real estate agents will still tell you that you can. Transactions happen on a daily basis with foreigners selling to other foreigners, but in the future, should the Cambodian government begin to enforce that law, those people will be...