How about real estate in Phnom Penh, Cambodia?

The future development of Cambodian real estate can be described as a rising trend. In fact, in recent years, Cambodia has really earned face for Southeast Asia! The economic growth rate has maintained at about 7% per year, more than twice the global average economic growth level.

It is no wonder that the Asian Development Bank believes in the "Annual Economic Outlook Report" that Cambodia is currently the most promising emerging country in Asia!

Not only that, Cambodia also has multiple investment advantages, no foreign exchange control, real estate dollar denomination, demographic dividend, etc., and it has become a new rich place for investors to lock in real estate investment!

In Phnom Penh, the capital of Cambodia, real estate investment opportunities are particularly obvious - you know, Phnom Penh has a permanent population of up to 3 million, of which the average age of this part of the population is only 27 years old, which is the best age for marriage and childbirth, and the future real estate rigid demand market is huge.

Phnom Penh's condominium market is just getting started, and the capital is now full of residential and office towers under construction. Some would say it's a sign of oversupply, but you're wrong! It is precisely because of the surging property market at the moment that the land resources in the core area of Phnom Penh are scarce in the future, and a house is worth a thousand dollars.

As the core region of Southeast Asia, Cambodia is currently undergoing rapid development, and the Phnom Penh real estate market is still in a value depression to attract the attention of global investors.

Because the salesman said it was good there.

Many people choose Cambodian real estate for investment. In recent years, Cambodia's economic development has been relatively fast, real estate investment is also relatively hot, and Cambodia's relationship with China is relatively good, and the political risk is relatively small, so many people choose Cambodian real estate for investment.

Because Cambodia has a low investment threshold and a high rate of return.

Advantages of investing in Cambodian Phnom Penh real estate.

First, the capital Phnom Penh originally built mostly old bungalows, after the opening of foreign private real estate, high-end residential began to flourish, to July 2014, Phnom Penh long-term residence of foreigners as high as 47,000, and ABC rental apartments only 3,500, so that the rent is rising, the rental yield can reach more than 10%.

Second, the capital Phnom Penh has a trend of rent, from 200 to 400 US dollars per month to 1,000 to 2,000 US dollars per month, and many foreign workers in oil, gas, finance and other growth industries have rental needs.

Third, the rapid growth of the housing industry has also made Phnom Penh's land **sustained**, Phnom Penh's population is rapidly concentrated, with a current population of 2 million people (17 million people in the country), and will reach 3 million people by 2020.

Fourth, the tourism industry continues to heat up, and the short-term rental market is profitable.

Fifth, the Cambodian people are getting richer and will begin to seek the comfort of the West.

6. International institutions have entered many international real estate companies, chain restaurants, and banks have entered Cambodia, from large enterprises such as Chevron, to small companies, such as Dairy Queen, Ya Kun, and Bread Talk, are expanding.

7. One of the youngest countries in the world with the youngest population structure, with rapid population growth, thriving tourism, abundant natural resources and low labor costs.

There is no risk in buying a small property of 1 million, and it is easy to make a small profit. But buying land with 2 million and using 1 million to communicate ** is a channel to become a wealth of 100 million yuan.

Phnom Penh, Westport, Poipet, Kampot and so on are the most popular cities at present. Land** in the capital Phnom Penh ranges from US$150 to US$10,000 per square metre, depending on whether the land is located in a remote area or in the city centre, and these lands can be converted into residential spaces.

In terms of real estate, compared with Thailand, Singapore, Kuala Lumpur and other first-tier cities in the core area of more than 6,000 US dollars per square meter**, the Cambodian market is still in a relative value depression, and the price of apartments per square meter is about 2,000-3,500 US dollars.

The property ** is low, but the rate of return is very high. At present, the rental yield of houses in Cambodia can reach 6-8, the monthly rent of apartments in Phnom Penh basically starts at 300 US dollars, some areas can be rented for 1500 US dollars, and the western port is even higher, and some three- or four-bedroom houses can rent as much as 4000 US dollars per month.

The return on investing in Cambodian property does not include the increase in value over time, when the property environment improves, the value of the property also increases. From three years ago, the property has now doubled.

The benefits are obvious, but in the investment process, it is important to understand the market, policies and regulations in detail to make a more informed choice.

In the past two years, housing prices and land prices in Phnom Penh, the capital of Cambodia, have skyrocketed. According to the 2013 Global Property Guide, Cambodia's Phnom Penh house prices increased by an average of 15%, while the rental yield was conservatively estimated at 8%-10%, and Cambodia was rated as the "most worthy country to invest in". During the same period, the highest rental yield in Beijing, Shanghai, Guangzhou and Shenzhen in China did not exceed 3%.

In the first four months of 2016, Cambodia's construction industry grew significantly, with total investment exceeding US$5.76 billion, an increase of 787% compared with the same period last year, according to the State Secretary of the Ministry of Land Planning and Construction, Peng Suphan said in May.

At present, the development of the property market in Phnom Penh is more similar to that of Shenzhen in the early days, urban planning has just begun, and many infrastructure projects are also being implemented. The more complete the infrastructure of a city is, the more room for the appreciation of housing prices will also increase.

In the property market, the most noteworthy product is apartments, and the potential demand market is very considerable. This is because the current demand for apartments is not for local Cambodians, but mainly for foreign employees of multinational companies.

Phnom Penh is a very international city, with many multinational companies and a high concentration of foreign workers, all of whom live in rented houses. Compared to the terraced houses where locals live, modern apartments with air conditioning, swimming pools, and gyms are more suitable for foreigners.

As of June 2014, excluding other countries, there were 80,000 Chinese holding Cambodian business visas alone. The number of apartments in Phnom Penh in 2014 was only more than 3,000 units, although there are many high-rise apartment construction sites in Phnom Penh currently under intense construction, in a three-year period, by 2018, the number of apartments completed in Phnom Penh area is about 13,000-15,000 units, which is still unable to meet the market demand.

South Asian real estate has attracted wide attention in China in the past two years, especially Cambodian real estate, in 2018, the real estate consultation submitted by Chinese buyers compared with the same period in 2017 increased by 300%, far more than other countries in Southeast Asia.

Why Cambodian property is popular.

Cambodia's real estate market is considered to be the fastest growing emerging market in Southeast Asia, and Cambodia has not yet been able to attract more stable investment interest from buyers from surrounding markets, but the continued growth of GFP, low barriers to entry and growing international visibility will continue to create a favorable environment for domestic investment.

Cambodia is currently the country with rental returns* in Southeast Asia, with average estimated gross yields for major property types. In the first eight months of 2016, there was an unprecedented increase in development projects, with a total value of $7.2 billion in state-licensed projects, compared to $3.3 billion in 2015. ”

Cambodia has friendly relations with China, and investment cooperation between the two countries is also very close. In 2016, the amount between China and Cambodia increased compared with last year. The U.S. dollar is also an important attraction for Chinese property investors, as it is more preserved than the renminbi.

For overseas investment, economic development is a country's main gold absorption advantage, and Cambodia's economic development is very fast, with an average annual GDP growth rate of 7%. Over the past 10 years, Cambodia has implemented an open economy and experienced countless new opportunities and challenges. In order to enhance its international competitiveness, it actively promotes export freedom and conducts tax reforms with a view to attracting investors.

Cambodia's economic growth, which is among the highest in the world, will continue for several more years.

Although Southeast Asia is not a target for China* to invest in overseas real estate, the region has become one of the world's fastest-growing developing markets and has more investment potential than many developed markets.

While the tertiary sector markets in Europe and the United States remain strong for Chinese investors, a significant portion of foreign direct investment has shifted to developing economies such as Southeast Asia in recent years. This is precisely because these developing airports have a higher return on investment than developed markets and are also less risky.

Things to look out for when buying a Cambodian property.

Choose the property that suits you - buy a house and do what you can; Understand the background and qualifications of the developer, and whether the relevant documents of the construction project are complete and have legal effect; The basic information of the house, including the agreement on the suite, building, shared area, height, etc.; the general environment and supporting facilities around the community; internal planning of the community and the deployment of buildings; The "five differences" of the actual purchase of the house (environmental layout, furniture, decoration materials, workmanship thickness, design details).