Tuesday, December 8, 2009

Foreigners will have ownership on properties in Cambodia

Cambodian ministers have recently approved a draft law allowing foreign ownership of buildings such as apartments and office buildings.

The draft law was aimed at attracting investors, facilitating the growth of real estate market, and pushing the development. Foreigners will be permitted to own only buildings and apartments, not the land beneath them.

The draft law is expected to be approved by Cambodia's parliament and senate, and then will be promulgated by King Norodom Sihamoni.

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Tuesday, November 10, 2009

Posco Star River (Continue)

According to Phnom Penh Post dated on 10 November 2009, the US$300 million, 237,500-square-metre riverfront complex, located in Chamkarmon district's Tonle Bassac commune, will consist of 1,000 apartments in three apartment blocks - one 45 storeys tall and the other two 42 storeys each and it will begin selling units in its three-tower Star River apartment complex development following Khmer New Year in advance of a planned completion date of October 2013.

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Wednesday, October 21, 2009

Posco Star River

The world's leading construction company Posco E&C will realize new dreams in Cambodia.
POSCO E&C is an affiliated company of POSCO which is the world leading steel maker that has the world largest iron works.

The arriving of this giant group to Cambodia will help to restore and build a strong confidence on the real estate investment made by South Korean.

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Unusual high price of property in Cambodia

It should be not usual that property prices in Phnom Penh increased in some cases by as much as 1,000 percent from 2005 to July 2008-when the market crashed-with the most expensive and on the capital's riverfront rising about $5,000 per square meter, a more than 900 percent increase from $550 per square meter in 2005, according to statistics from Bonna Realty.

Why is it happened? The simple answer is that many sellers/buyers, banks and real estate agents just want to make quick cash gained from this dangerous business. And since many transactions have been made, it ends up with high price of property; cash is tied up in lands and no more buyers…

Still there are many lands or houses asking for sale but no buyers. Many estate agents in Phnom Penh have published their nice report for sale properties but not a fair one, sometimes, just normal villa house worth more than $1 million etc…How they measure those value of properties, is it real? Phnom Penh is still far behind New York, Paris, Bangkok or Singapore in term of infrastructure development.

Wednesday, September 16, 2009

Tall Building Structures in Phnom Penh

Canadia Tower or OCIC Tower

Canadia Tower or OCIC Tower will be now the tallest occupied structure in Phnom Penh City. The building has 29 storeys (Height: 111.75 M).
Even though with a little delay, the grand opening ceremony is expected before 2010.

De Castle Diamond

The 18-storey De Castle Diamond is finished, expected around the end of this year or beginning of next, it will be the largest condominium complex in the capital, with 178 units set on 2,500 square meters of land.

Monday, August 3, 2009

What Cambodia should learn from Singapore?

During the 1960s Phnom Penh with its many buildings in the style of New Khmer Architecture , was called the 'Pearl of the East'. During a visit to the city in the 60s, Lee Kuan Yew , Prime Minister of the Republic of Singapore from 1959 to 1990, was so impressed he expressed his desire for Singapore to develop along similar lines. Many of those buildings were designed by a famous Cambodian Architect,Vann Molyvann.

Although, Cambodia today is now far behind from the modern Singapore today in the past 50 years because Cambodia was falling into civil wars for many decades, which have demolished almost completely all Cambodian's infrastructures built during the Golden Age Period 60s so called Sangkum Reas Niyum under the ruling of King Father, Norodom Sihanouk .

Peace has just been restored recently in Cambodia and the country needs to speed up to develop its infrastructures in order to follow the modern world. Many housing constructions and real estate development have also been booming in Phnom Penh City and its outskirts and in major provinces such Siem Reap and Preah Sihanouk Provinces.

Thursday, July 9, 2009

Property Development in Sihanoukville

Even facing this global financial crisis and local slowdown of Cambodian property market, many property development projects in Sihanoukville have been continuing gradually according to their plans.

“The first phase of 72 units house and 140 units house of BS Holiday Villa project are subject to be finished by end of July 2009 and by end of May 2010 respectively” said Mr. Danh Sophal, Site Project Manager. He continued that more than 90% of the 2 phases has been sold since the project started in end of 2007 and the current prices of house vary from $86,000 to $250,000.

On the Hawaii Beach, the construction of the private resident and the shop house is almost completed. This project is developed by EMARIO Shonan Marine Corporation Ltd

Hilton Park Villa and Borey CPN (Cambodia Property Network) have also started to build the twin houses, the villa houses and the flat houses accordingly since the first quarter of 2009.

Friday, June 26, 2009

Property Law – New Rules permitting Foreign Ownership

Prime Minister Hun Sen said that the implementation of the new rules allowing foreign ownership would lead to an influx of foreign capital investment in the real estate and other sectors.

According these rules, foreigners who wish to purchase new and second homes in the kingdom of Cambodia, will be allowed to have ownership of homes, apartments and condominiums above the ground floor.

Even though, having the full support from the 15 members of National Valuation Association on this rule, the related government officials must study strongly on the pros and cons of the new rule and to make sure that the Nation would benefit from it in general. Or if possible, the government should form a special group to monitor or regulate closely on the property market, where some those foreigners could participate easily in the property speculation. As the result, it could lead to the unusual high price of property, which many local Cambodians still could not afford.

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Friday, May 29, 2009

Expropriation law is being drafted

According to the Cambodia Daily's article today, "the Cambodia is drafting an expropriation law that would allow authorities to confiscate private property if it is deemed to be in the public interest".

This is the good news for the Country since many public infrastructures have been planned and will be developped although the Government should make sure that the confiscation of the properties must be properly conducted with the fair compensation to the evicted properties'owners.

The draft states that the expropriation involves building large roads, railways, electricity systems or gas pipelines.

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Thursday, April 30, 2009

Confidence's concerns on Korean Real Estate Developers?

In just recent years, it has seen many numbers of Korean Real Estate Developers flowing to Cambodia. Large and tall building construction projects have been announced and with projects'names such as Camko City, De Castle Royal, Golden Tower 42, International Financial Center (IFC) and recently Phnom Penh Tower etc...

Although, due to the financial crisis started last year and as Korean government wanted to secure its economic growth remaining strong with financial stability, it has forced to call back Korean investors, who are doing business overseas to return back home. As result, this situation has translated into the delay or the slowdown of many real estate projects in Cambodia. Many buyers who bought and deposited already some money have been worried about this issue and there have been some concerns on confidence on those Korean investors - should they trust or not on them in any other projects made by Korean?

But as confirmed by Im Chhun Lim, Senior Minister of Land Management, Urban Planning and Construction during the ground breaking ceremony of Pearl City in Sihanoukville yesterday, some construction projects made by Korean Developers will continue as usual and just some have been delayed, he mentioned Camko City, which is developing a satellite city in the outskirt of Phnom Penh, has almost completed its first phase of the construction. He continued that the situation will be back to normal or it will attract more Korean real estate investors after signing the MOU in June 2009 by Prime Minister, Hun Sen and Korean President in South Korea.

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Wednesday, April 29, 2009

Pearl City in Sihanoukville

Today, Thai Boon Roong , one of local giant Cambodian Company inaugurated its first ambitious real estate development project called “ Pearl City” in Sihanoukville and the ceremony was held under the present of Mr. Excellency Im Chhun Lim, Senior Minister of Land Management and Cadastral Ministry.

According to the Company staff, even amidst the global financial crisis, the Company still decided to start this development project after 4 years of plan studied and it is also considered as the biggest city in Sihanoukville including residential village houses, market, school, hotels, hospital, entertainment and cultural centre, condominium and apartment houses etc…The investment project for its 3 phases during 10 years of the construction development was estimated approximately $600 millions.

This project will contribute to the economic growth, the infrastructure development of Sihanoukville and will help to attract more investments into the area, which has a great potential in the future for both industry investment attraction and tourism destination (with its deeper Sea Port, International Air Port, SEZs, Oil Exploration & Extraction, long beautiful beaches and its Islands…).

During his speech of the inauguration, Mr. Senior Minister has positively confirmed that the construction projects in Cambodia as a whole has dropped only about 2%, which is against the figures of 40% made by the international institution. He said that even some big projects are slowing down during this crisis but numbers of small households or small construction projects are still going on and increasing.

Thai Boon Roong is currently under direct control of Oknha Khov Samath, son of Okhna. Theng Bun Ma. The Company owns Intercontinental Hotel, Mekong Bank, Factories and other real estate lands.

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Wednesday, April 1, 2009

Property price is going down

Recently, there has seen numbers of sellers who are now trying to sell out their properties - asking the price which said be to down from 30% or 50% from the previous offer during last year 2008 - although, it is still remaining high for some places like in Sihanoukville.

On and near the beach front land, the asking price varies from the low one at $139 to high one about $1,042 per sqm from Otres, Ocheuteal to Independent Beaches.

Some local real estate agents said that the price or value of properties in Cambodia is based on the mouth of the sellers who asked what they preferred - and sometimes not really consistent with the infrastructure development or the real market values. Simply talking there is no real system yet to calculate that property price.

Buyers are just waiting for the property price going down - and its number presents very low.

Some experts said that the time to buy should wait in 6 months or in 1 year more in Phnom Penh, Siem Reap or in Sihanoukville, when there will be more debtors starting for foreclosure - and the price will be much more low.

For now, the future looks uncertain - that is now depending on the world economic driver- US reassuring the recovery - the financial stability - and the good governance of banking system etc...

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Tuesday, March 3, 2009

Loan tighten continued on the construction industry

Despite recent lifting off the restriction from National Bank of Cambodia in order to restore back the good climate condition of construction sector, many larger commercial banks in Cambodia still apply the policy to restrict the requested loan for the purpose of construction, property investment etc...This will drive for many real estate developers to be struggle in funding their current construction projects.

Everything is now depending on the recovery in the world economy especially in US and in Europe etc..., which will bring the situation back as normal.

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Friday, February 20, 2009

Foreigners could own properties in Cambodia?

The law being drafted by the goverment will allow foreigners to have ownerships on house apartment, condo etc.. But it is limitted off to own land properties.

If it comes to reality, it will be a good news for some foreigners who are interesting and searching in buying the properties in Cambodia. This also ease to push the growing of real estate sector development.

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Thursday, February 19, 2009

Understanding the Foreclosure?

Recent IMF/World Bank reports on the financial banking sector in Cambodia reflected that some local commercial banks may face the increasing on the non-performing loans (NPL) during this economic slowdown amid the global financial crisis. The banks with large exposure to real estate sector, tourism sector and garment are now on the alert.
Only international standard banks are currently improving their risk management and are ready to prepare for any foreseeable events of writing off the bad debt, which drives to the foreclosure of borrowers’ collateral assets such as land, house building and other fixed assets etc…

According to National Bank of Cambodia (NBC)’s rules, any late loan repayment of more than 90 days is considered as NPL. More than 180 days, the loan will be written off.

The foreclosure often heard in the banking sector is occurred when the borrowers could not repay or has no more financial capacity to service the bank’s debt on time and the bank will use all its right to get it money back and sale the borrower’s collateral assets after obtaining the decision from the Court or the borrowers agree to sale it by themselves. Actually, the banks do not want it happened since it is complicated such as consuming lots of times with lawyers or the Court and high costs/fees on the borrowers’ side etc...

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Wednesday, January 28, 2009

NBC lifting off its restriction to ease the Real Estate sector

National Bank of Cambodia has recently announced to lift off its restriction of 15 pc putting on all commercial banks in Cambodia to restrict on the real estate speculation.

Many real estate agents, developers and investors are now happy about this good news and they hope to have fresh cash to start or to replay their game again, which has been sleeping for several months.


Thursday, January 8, 2009

New Real Estate Association in Cambodia

According to Phnom Penh Post's article dated on 7th Jan 2009, "the Real Estate Development Association of Cambodia (REDAC) was formed December 19 to represent the interests of real estate development firms in Cambodia. Its members include around 30local and foreign companies, including members from Korea, France, Hong Kong and the US".

It is a good sign for the real estate development in Cambodia in the future as with this creation, it should not just protect the interests of real estate enterprises but it must also take into account on the housing consumers, the environment and the nature in general.


Real Estate Development in Cambodia

Cambodia: New Investment Destination in Southeast Asia