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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Real Estate Development in Cambodia

Cambodia: New Investment Destination in Southeast Asia