Sunday, December 30, 2007

Boeung Kak Lake will be land filled?

According to the Cambodia Daily dated on 28 December 2007, HSC Co Ltd, on behalf of Shakaku Inc, is currently constructing a pipeline between Boeung Kak and the Chroy Changva peninsula to pump sand into the lake.

But during Environment Law dicussion at National Assembly, Mr. Mok Mareth, the Senior Minister of Environment, seemed to prevent the project as the environment impact assessment has not been done and it has to be completed prior the land filled.

I think that the Minister was right to state the above issue. And the company itseft must follow the environment law and must hold a correct master plan of this real estate development and must take into account of the green space. So the development is going to done smoothly and Phnom Penh will have a nice city view.

Saturday, December 29, 2007

Two New Class and Luxury Hotels at Ocheuteal

The construction of two big hotels at Ocheuteal has been started recently.
The seven storey hotel building is owned by the owners of the Golden Sand Hotel. The construction site locates on 23 Tola Street, just hundred meters from Golden Sand Hotel. This project of hundred rooms hotel will take about 3 years.
Another hotel resort and goft court project is also being developped on Ocheuteal Beach, formerly owned by Ariston. Although, this new project is owned by Sokha Hotel Group and the completion of the hotel's construction will take 3 to 5 years.

New Small Town in Sihanoukville

A place known as Phnom 96 ( 96 Mountain) will be developped to a new small town in Sihanoukville. This large real estate investment in an area of more than 10 hectare land is made by a local company owned by Chumteav Long Sakhan. They will build many tourist residential houses.
The site is located at 05, Module 4, Mittapheap District, just a few hundred meters from Donbosco Technical School.
This is a second real estate development in Sihanoukville after the first one developping on the Hawai Beach, which is owned by a Cambodian-Japanese, Mrs. Sakura.

Tuesday, December 18, 2007

Real estate booming in Sihanoukville?


Just for the last few months, many large land area have been divided into lots of small land (usually 20mx30m). Now it counts about 11 different locations of divided lands in Sihanoukville alone. As the result real estate is booming now in Sihanoukville and many real estate investors who have available funds could purchase some lots of land easily.

Also, many foreign toursits start to visit Sihanoukville this year and specially Swedish tourists who flew from Europe directly to Phnom Penh enjoy relaxing at the beaches of Sihanoukville. The demand of 4 or 5 hotels is also coming.

Welcome to real estate developers (hotels, resorts, apartments, entertainment centers) to Sihanoukville, it is time to invest now!


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Trump : Real Estate Advice

WORK WITH PROFESSIONALS YOU TRUST

Find a real estate professional you can trust. I mean, really trust.
For many people, buying or selling a home is one of the single largest investments (and accompanying financial transaction) they'll ever make. Believe me, you do not want to hand this very important- and extremely complex- process to someone you don't trust completely, and who may not have your best interest at heart.

Good agents pledge up front to make you partners in the process and to act as your trusted adviser. They spell out for you-figuratively and in some cases literally-what they'll do for you and when they'll do it and why. And after they're done, they ask for your honest feedback. They know the ins and outs of their market-your market-including anything and everything about the neighborhood and community (types of homes, the quality of local schools, nearby parks, and so on) that will help you make not just an informed decision, but the right decision.

DEVELOP IN AN AREA WHERE GROWTH IS COMING

William J.Boykin, founder of Boykin Lodging Company said, "Always develop in an area where growth is coming. If you are a little early, or a little wrong in some way, the growth has been and growth is not continuing, when you are wrong, you are wrong ferever".

THINK LOCATION-AND HONESTY

When you are purchasing real estate, the three most rules remain: location, location, location.
Whey are selling real estate, the three most important rules are: disclose, disclose, disclose. Honestly prevails.


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Cambodia: Business opportunity

Business opportunity in Cambodia ranked 68th out of 157 for its economic freedom is easier than it sounds.

Cambodia is ranked higher than Vietnam, Thailand or Malaysia for economic freedom. This November a business round table help in Phnom Penh attracted about 600 business people from the oil and gas, tourism and finance who attended the last conference in 2005. They heard speakers talk about how the country's economy has grown by almost 10% each year since 1999, how per capita GDP has more than doubled since 1994 and how land prices in some parts of Phnom Penh are approaching those of Hong Kong.

International investors are moving into Cambodia banking, insurance, consumer and retail marketing, construction, energy, hotels and tourism, mining, cememt production, plantations and manufacturing, as well as industrial estates, ports, telecommunications and transport services.


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Legal environment : Investing in Cambodia

Investors can set up 100% foreign-owned projects and repatriate funds freely. There is contractual freedom and investors are afforded protection against nationalisation. The Law on Commercial Enterprise (2005) offers a range of enterprise structures, all for a duration of 99 years. The Law on Public Enterprise (1996) provides for mergers and acquisitions, including of State-owned entities. There is no limitation on the nationality of the shareholders or on the proportion of shares held by each partner, with the exception of real property where foreign holders are limited to a 49% stake. (This may change shortly in repect to foreign purchase of condominiums). Licencses are required for investment in insurance, minerals (including oil and gas), tourism, and telecommunications. Incentives are available to foreign investors under the Law on Investment (1994, amended 2003). Benefits can include, inter alia, waivers on import and export duties and tax holidays. Special Economic Zones were legislated in 2005. Foreign investors are expected to comply with regulations and laws concerning taxation, labor, and licensing. Cambodia is a member of WIPO and intellectual property rights are protected. The legal system is still developing and contracts normally contain provision for foreign arbitration of commercial disputes.


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Monday, December 17, 2007

Cambodia: Real Estate bubble risks

The real estate boom in Cambodia presents some risks for short-term economic growth, and macroeconomic stability. It may strongly affect the nascent banking sector if no preventive measure is taken. About 37 percent of apartments sold in Phnom Penh are for speculation purpose, according to a recent EIC survey.
Like in Cambodia, real estate activities in Vietnam are booming and mostly speculative. But the Vietnamese government will impose progressive taxes on housing speculation to help deflate an impending bubble in the real estate market.
The more real estate a person possesses, the more tax will be paid. New regulations will also require all housing project developers to publicize sufficient information for customers to avoid being duped by speculators engaging in arbitrage, i.e.,taking advantage of consumers'lack of information on expected price changes.
The key factor motivating speculationn in Vietnam remains quick profits caused by lax government regulations, according to a recent report of Vietnam's Ministry of Construction. Will the Cambodian government do the same as Vietnam? Obviously not in 2008, if we refer to the draft budget law for 2008.


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How Special Economic Zones help to boost economics in Cambodia?

The Royal Government has beefed up its economic development policy to attract foreign investment in order to increase exports and accelerate the country's economic growth. One economic development strategy initiated by the Government is the Special Economic Zone (SEZ).
One investor is a Japanese company called Zephyr Co.,Ltd, a rapidly growing Japanese real estate develper. A Japanese-designed project, Phnom Penh Special Economic Zone (PP-SEZ), covers in total 360 hectares.
The total cost of the project is estimated to be US$85 million and is expected to create 100,000 more jobs to Cambodian people over the next five years. PPSEZ is a co-investment from two private companies; Attwood Investment Group (AIG), and Zephyr Co., Ltd, a Japanese based company.
The administration of the SEZ provides "One Stop Service"for investors to easily access to government service. Furthermore, SEZ benefits a number of fiscal incentives, including benefits under Income Tax, Customs, and VAT.


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Friday, December 14, 2007

Home Loans Service

The banking and financial sector in Cambodia has boomed within the last two years, and several banks in Cambodia have started to offer loan service. The National Bank of Cambodia started allowing banks to provide loans for purchase of land and construction of houses. So far millions of dollars were lent for the purpose because a great majority of people still can not afford to build their own house due to the lack of capital. Others can afford their own house construction but within a constraint of financial needs.

The total assets of Cambodia's banking system as of August 2004 were approximately 4,106 billion Riel (US$1,030 million). Loans account for only about one third of the banking system's assets, and it is impossible to estimate the percentage of loans, which are non-performing, according to the US state department.

ACLEDA Bank offers this home loan service in November 2006.
ACLEDA's client can borrow up to 75% of the total house costs with fixed interest rate for 10 years. After that, home mortgage loan carries a floating interest rate at average 11.52% per annum.

ANZ Royal Bank started its lending service in August 2007, offering a 15 year installments schedule. The requirements state that customers can borrow up to 60% of home purchase price and make monthly repayments.Borrowers can use the money for acquiring a residence, home equity or investment. Residential home loan is set at a variable annual rate of 8.5%, while both home equity and home investment loans are granted at a floating rate of 9.9% per year. Borrowers must be employed for several years with sufficient income for a period of two years and must show that he/she is going to have the means to pay back the bank.


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Tuesday, November 27, 2007

A man involving in illegal land deal arrested in Siem Reap

According to CTN report this morning, a man was arrested and charged with fake signatures on the land documents in Siem Reap Province. He used the signatures of Prime Minister Hun Sen, Senate President Heng Samrin and Vice-Minister Sok An in order to get approval on the 10500 sqm to a private company.

This is the new warning to all land investors to be very and very careful before purchasing any properties. If possible, it has to check in details and make sure that it has the right information.

And must stop immediately for anyone who always commits the illegal action on the land deals. As the above shown example, finally he and his friends lost the face and will be charged against the laws.


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Friday, November 23, 2007

Foreigners can own properties in Cambodia by legal ways

Even though, in Cambodia, there is no laws to allow foreigners to own properties, they still can have an ownership on the properties through some following legal ways:

1- Foreigners can get married with Cambodian women. By then, they can purchase any property which will be owned by their Cambodian wives.
2- Foreigners can have a Cambodian ID card through the donation with sum of about $40,000. With the Cambodian ID card, they can easy own any property under their names.
3- Foreigners can have any trusted Cambodian friends who will help them to purchase the properties on their behalf. Thereafter, Foreigners will lease the property from their Cambodian friends and hold the title deed.
4- Foreigners can incorporate a company with a Cambodian partner (Cambodian partner 51% and Foreigners 49%). They could purchase any property by using the company's name. Then, Foreigners can simply own the property by asking their partner to issue a power of attorney letter that he/she will give all right of power in decision making to Foreigners partner.

One more tip,before purchasing any property, make sure that the title deed is ok and due diligence must be completed. And finally,their partner must be honest.


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Sunday, November 18, 2007

Flat houses being flourished like Mushroom in Phnom Penh

Just for recent years, there are numbers of flat houses being built in Phnom Penh and its suburds. Some of them are built with quality that is good and I would like to appreciate to the builders. Although, there are also many houses being built illegally without any construction permit or maybe without any quality. Maybe the builders just think about the quantity and make the profit as soon as possible and don't have any vision for the future (ex. the collaspe of the building, if this case happen, who will be responsible?). I would like to suggest and recommend to the builders that they should cooperate with the authority and make up the master plan of the real estate development. For the nice view of the city. Look at Paris or Singapore! and Think about the future for long vision. The country is being developped and all of us will benefit from the development if we do the correct works and have a good plan.


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Why the government don't stop the illegal builders?

From the morning news of TV3, "the City Hall have accounced the warning to any real estate buyers that today there are many illegal builders who develop the house or flat house (Borei...) without construction permit from the Cadastral or the City Hall". This make me supprise when hearing that story! How and why the government still let them continue or don't stop them? Should the government check them one by one?


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Thursday, November 8, 2007

Will Phnom Penh Look be changed for the next 5 years?

A message from CEO Sang Ho LEE that " World City Co., Ltd. is now developing the Phnom Penh New Town located in the Pong Peay Lake Development Zone in Phnom Penh, Kingdom of Cambodia. Phnom Penh New Town is the first modern urban development project in Kingdom of Cambodia. This project is planned and invested by Korean investors. Miracle of the Mekong River , Phnom Penh New Town will offer successful international business opportunities with the global standard of the city, as well as will present an ideal urban planning to guide future urban development in Cambodia. We believe that it will improve the quality of life and change the Cambodian life style. We hope that you will discover the miracle coming true in CambodiaWe will do our best to satisfy all of your needs by introducing the most advanced facilities, convenient services and good amenity to you."

Thanks to World City that come and help to promote Cambodian life through its billion dollars real estate investement for the new satellite city of Phnom Penh, Cambodia.

Will the real estate development on those islands of Sihanoukville become reality?

According to Phnom Penh Post's article in title" Islands in the stream of cash", a massive wave of proposed investment is prompting a sea change off the coast of Sihanoukville Municipality. Billions of dollars worth of development projects are being promised to the Royal Government in the hope of luring 99-year lease agreements for Cambodia's pristine tropical islands. The proposal price tags range from a modest $20 million to 2.5 billions, with economists and observers wondering what these figures mean in real terms, and at what cost to the government?

How many Real Estate Agents or Brokers have the real estate license in Cambodia?

Prakas on Professional Certificate and License on Appraisal Service on Real Estate and Real Estate Service (No 142 MoEF PRK dated 13 February 2007)

The MoEF will issue certificates and licenses to individuals and companies operating in real estate and or/providing valuation services in Cambodia. Individuals and companies who wish to operate or who are currently operating real estate business and/or providing consultancy services on real estate can apply for the professional cerfificate and license with the Department of the Department of Financial Industry of the MoEF.
The certificate holders are legally permitted to be a representative of the real estate or valuation company. There are different type of certificates and license depending on the services to be provided. The Prakas also outlines the conditions to obtain a license or certificates from the MoEF.

Wednesday, November 7, 2007

Property's value going up in Cambodia without any control?

With stable polical situation in Cambodia recently, its economy is also going well as there are foreign direct investments from South Korea, Japan, Thailand, Malaysia, Singpore and China etc...come doing business in Cambodia. The real estate business is also improved. Many properties'value appriciated noticeably in almost everywhere now in the kingdom of Cambodia! Why without any control???


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Should foreign ownership laws in Cambodia pass?

Cambodia’s private sector has urged the government to allow foreign ownership this week saying an open-minded real estate market would promote economic growth. The Cambodian investment law was amended back in 2005 to allow foreign ownership of permanent fixtures, but as yet has not been enforced. The non-implementation of the act has in fact rendered the amendments as a forgotten law, and as such has now become out dated. In the current legal understanding, the old law will only allow a property investment in the name of a Cambodian national but with the pressure from the private sector to increase wealth, urgent action will be required.

Chris Green, Head of Research at Obelisk International says ‘The key improvements to the property investment law would open up a whole new economic world to the country of Cambodia. These measures would not only further develop Cambodia’s property investment market, but the new interest from those investors who want to take advantage early, will not only create a boom putting Cambodia on the map, but will also make the country more competitive with its neighbours.’

American lawyer and chairman of the International Business Club, Bretton Sciaron comments on the property investment news ‘There are several reasons for urgent action, this is already a sector of the economy that is dynamic, but foreign ownership of apartments, condominiums and other such structures on the land will help spur further economic growth. Such a regulatory development will provide a dramatic indication that Cambodia has an investor-friendly environment.’

Vast new building projects have increased over the past few years, including a great number of satellite cities worth billions of dollars that when completed will fundamentally alter the appearance of the capital. After years of disorder within Cambodia, the country is now turning things around as a growing economy posting a steady 11% growth over the last three years, fuelled by a strong tourism industry and clothing manufactures.

Cambodian Commerce Minister, Cham Prasidh said that Cambodia still relies on international aid for half of its annual budget, but must now diversify by seeking more varied foreign investments. ‘There are other sectors we are trying to encourage, but we have to find out what are the sectors where we can be competitive. If we try to produce the same thing as Thailand or Malaysia, it will be very difficult’.

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Real Estate Development in Cambodia

Cambodia: New Investment Destination in Southeast Asia