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Cambodia Property | Freehold property in Cambodia
By property | November 21, 2008
Cambodia Property | Freehold property in Cambodia
Foreigners could be allowed to buy property freehold in Cambodia by the end of 2008 under an amendment to the property laws being considered by the Government.
Nuth Nurang, Secretary of State at Cambodia’s Ministry of Land Management, Urban Planning and Construction said growing demand has fueled the decision.
Currently the best option for foreigner investors is to buy on a leasehold tenure of up to 99 years. Another option is to form a company with Cambodian partners but this carries complex tax issues and needs to be considered carefully.
The announcement from the Government means that even those buying now won’t miss out. It is possible to draw up a contract that includes an option to buy freehold when the new law comes in.
That is exactly what David Stanley Redfern is doing. Their French Colonial Apartments in the capital Phnom Penh are on a 99 year leasehold tenure. The contract includes the option to buy the properties freehold if and when the law is amended. They expect that foreigners will be buying freehold in Cambodia before the end of the year, if not sooner.
The change in ownership law is likely to blow the Cambodian property market wide open. It comes at a time when multinational companies are not only setting up shop in the emerging market, but are making Cambodia their South East Asian operations hub.
This is likely to have a big effect on the economy. The big banks, for example, often have to pay more to get the best out of their workforce, and they are also giving perks like health insurance and dental plans. Staff are getting promoted and getting pay-rises to keep them in the company.
It means that Cambodian’s in stable and well paid employment have money to spend on their accommodation, rented or bought. Talk of some of the big car companies opening operations in Cambodia can only add to a higher standard of living and a positive effect on property prices.
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