Takhmau Cambodia Real Estate
Cambodia's real estate boom continues like a pandemic, and with the murderous regime's departure from the country, Cambodia is now a frontier market that does not feel quite like it. Phnom Penh may be slowly filling up with backpackers, but it is also a new boom market, in which people are willing to pay much higher rents for properties they buy - and on favorable terms. In Cambodia, a property can be rented for $100, $200 or even $400 a month, so your property is a good investment. The trend is to rent out properties to expats working in the growing tourism industry, such as hotel and restaurant construction.
For the same money, you could buy a boat trip to an island where rich Russians spend money and sell a million dollars of private villas.
However, investing in real estate in Cambodia is different from my past experiences because I live in the West. I outlined my piece last year when I talked about buying a property overseas, simply by renting on Airbnb and then continuing from there. However, if you are interested in buying or investing in emerging markets in general, you only need to contact me to get started. You buy the property, you set up the place, you do a bit of repair - and then in a few weeks you can do everything all over again.
In recent years, the route from cities such as Singapore and Kuala Lumpur to Phnom Penh has been stepped up. Just hand over the keys to a cheap apartment to foreign tourists and you earn a nice return.
Chinese enquiries for Cambodian property rose a whopping 463.6 per cent between July and August this year, data from Juwai show. Chinese investors looking to buy property abroad have jumped from 17th place in 2018 to 12th place in 2019, according to JuWai's data. The country's low cost of living and relatively high property prices have attracted the attention of housing investors.
Developers recognize that savvy buyers will always bet on Cambodia's unprecedented economic growth, which has benefited since the dissolution of the Khmer Rouge more than 20 years ago, but those who enter early could be rewarded in the future. Chinese developers are particularly active in Cambodia's condominium sector, and the company also expects to be able to resume activities hampered by a pandemic in the past 12 months. The Cambodian Chamber of Commerce says more foreign direct investment is pouring into the sector and that overall growth in real estate construction is also picking up. If you take the right steps, it can be very good to make good money in the short term, "he said.
It's about adding value - and outperforming the competition, whether it's real estate or anything else, "he said. Prices range from $1.5 million to $2 million for a two-bedroom apartment and are attractive to buyers looking to increase their investment.
Cambodia's population is younger than average, with an average age of 25, and the population is expected to increase by 20% by 2030. As the number of workers grows to keep pace with economic growth, urbanized cities will have more housing to house workers. This, in turn, will create a thriving labor market that will boost demand in the housing market. For developers, this will lead to an appreciation of property assets as owners, and probably an increase in foreign homebuyers intending to buy at rental yields and domestic workers. Developers who focus on medium and affordable projects with more local investors are also likely to be seen as more attractive to foreign property buyers and foreign investors.
More and more tourists are coming to Cambodia and the net effect will be positive for the property market. As Cambodian tastes become more Western and middle-class Cambodians look for Western luxury, they will look for renovated properties.
Of course, there is a tendency to say that house prices are a bubble, but I don't support the idea that house prices are rising, no matter how bullish you are. We see a real free market for real estate, rather than an over-regulated state-private interference.
Chinese, Hong Kong, and Singaporeans in particular are looking for opportunities to invest in real estate, particularly condominiums and luxury apartments. Unfortunately, the same business - the friendly "Asian culture" we love so much - is also a big fan of real estate investment. Developers are also diverging on alternative secondary areas, which would allow them to get better prices, allowing more foreign and local buyers to enter the market. As for developers of higher-priced condos, they recognize that there is a unique investment opportunity in condos, and they see that wealthy locals are now buying as well as foreign investors, such as investors from China, India, Japan, and South Korea.
If you have ever worried that the government could resort to offshore bank accounts whenever it wanted, consider how much more difficult it would be for it to negotiate with the courts in Cambodia to force the confiscation of money that they do not even know about. Hardworking people save money here, but they don't necessarily trust other savings strategies that could allow governments to get their hands on it. If you are already following the law and are worried about future expropriations of assets, real estate in Cambodia is an attractive and cheap offer. Why should no one get involved, especially given that we see loans in far-flung California desert cities propping up worthless real estate values?