Phnom Penh is the capital and largest city in Cambodia. You can find most real estate investment opportunities here, no matter if you seek to buy condo units or commercial property.
While the real estate market slowed down during the pandemic, some believe that the market has much growth potentials in the coming decade.
In this article, we review the most important topics on how you can buy real estate in Phnom Penh as a foreigner.
Topics covered:
- Property Ownership Regulations in Cambodia
- Best Districts to Buy Condominium Units in Phnom Penh
- Phnom Penh Real Estate Agents
- Phnom Penh Real Estate Developers
Property Ownership Regulations in Cambodia
Foreigners can only buy strata-titled real estate on a freehold basis. Strata-titled properties can typically be found in branded condominium projects, and sometimes as commercial shophouses.
The same as for most other Southeast Asian countries, you cannot buy land here as a foreigner.
Worth mentioning is also that foreign ownership quotas apply for purchases in condominium projects. Up to 70% of units can be owned by foreigners, while the remaining 30% must be owned by local citizens.
There are different ways to bypass local strict ownership regulations. One of the most common ones is to set up a local company, owning real estate through that entity.
Best Districts to Buy Condominium Units in Phnom Penh
Phnom Penh is a comparatively small city by Asian standards and with a population of around 2.3 million. There are 12 administrative districts in Phnom Penh, each with its distinct features.
Below you can find some of the most interesting districts for overseas property buyers.
Daun Penh
Daun Penh is a commercial center and located in the central parts of Phnom Penh.
You’ll find famous buildings such as the Central Market, Raffles Hotel, and the Royal Palace. Many condominium projects are also located here, making it a popular place to live for foreigners.
Prices are in the higher range here and 1-2 bedroom units usually start at around USD 200,000.
Chamkarmon
Chamkarmon is located in the Southern parts of Phnom Penh. It’s more relaxed compared to Doun Penh and you won’t see as many tourists in this area. Having said that, there are many condominium projects located here.
Both the Phnom Penh Post and the Russian market are situated in this area.
1-2 bedroom units in a condo usually start at USD 70,000 – 80,000, which is considerably cheaper compared to Daun Penh.
7 Makara
7 Makara is a suitable district for long-term investors, thanks to its growth potentials. Compared to BKK1 and Daun Penh, 7 Makara is located further away from the river and not as developed.
The district gets increasingly more attention from local developers and foreign brands have been seen opening shops here.
Thanks to its low real estate prices but high growth potential, 7 Makara should definitely be at the top of your list.
BKK1
BKK1 is a high-end residential district, located in the Chamkar Mon district.
The area has plenty of restaurants, hotels, and premium buildings, making it one of the most desirable areas to live in.
BKK1 is also renowned for its large amount of expats. Besides, many international schools, embassies, and multinationals have offices here.
Compared to other districts, BKK1 has some of the most expensive real estate prices in the city.
Real estate agents
Before engaging in the local property market, you must find a find a reliable and English speaking real estate agent.
There are many pitfalls you can encounter as a foreigner if you aren’t careful. Some of the most popular real estate agents and listing websites in Phnom Penh are:
- IPS Cambodia
- Realestate.com.kh
- Century21 Cambodia
- Lucky Realty
- HomeConnect Cambodia
Contact a handful of estate agents and see how they can help you.
Cambodia Real Estate Developers
If you plan to buy a newly built unit in a condominium project, you must do a sufficient background search about the developer.
The developer should have a good track record and preferably completed at least a handful of projects.
In Cambodia, the following developers are considered the most reputable ones:
- Borey Peng Huoth Group
- Creed Asia (Cambodia)
- Triple Gem Assets
- Shukaku Inc.
- Habitat
- Urbanland Asia
- Star5 Developers
Conclusion
Cambodia, and especially Phnom Penh, are very interesting at the moment and have many foreigners’ attention.
Corporations continue to enter, but the country still has more to show. For the early and experienced investor, Cambodia can provide great yields though.
The condo market is saturated and some analysts believe that the prices will fall significantly in the coming years. But others still believe that the market will continue to perform well.
I’d say that you should do thorough research, before investing in Cambodia.
And don’t only look at the capital, Phnom Penh, but also at other promising places, like Siem Reap and Sihanoukville.
Sihanoukville is a beautiful place located along the Western shoreline, property is very cheap here compared to Phnom Penh.
In case the local market won’t be able to maintain a healthy economy, Sihanoukville will at least attract many foreign buyers, like retirees and travelers.
Siem Reap is located just next to Angkor Vat, which speaks for itself. The city is not only getting more and more popular among foreigners but also among locals.
AsiapropertyHQ.com is not licensed to deal with any property situated in Hong Kong. We are not an estate agent or salesperson.
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