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Cambodia Property | Phnom Penh property beginning of a growth era
By property | November 21, 2008
Cambodia Property | Phnom Penh property beginning of a growth era
Cambodia is experiencing a property boom as private equity funds, backed by brand-name investors, bring millions of pounds of foreign investment into the country.
It is a sign, according to one analyst, that Cambodia is now ripe for growth and is poised to be one of the next top spots for property investors.
It is also a sign that it has, at last, shaken off the legacy of the Khmer Rouge and the outdated perception that it is a risky place to invest.
‘A decade ago the capital Phnom Penh didn’t even have one traffic light, now high-rise condos and offices are springing up as investors rake in the profits,’ said a spokesman for David Stanley Redfern.
Research by the firm has found that at least four new private equity funds are aiming to bring $475 million of foreign investment into Cambodia. China, South Korea and Malaysia have also been pouring money into the country and in 2006 foreign direct investment totalled $2.6 billion, up from just ÂŁ240 million in 2004.
‘The government will continue to encourage this investment with market-oriented reforms, and both the ruling Cambodian People’s Party and the main-opposition Sam Rainsy Party are committed to the same pro-business, pro-growth policy platform,’ the spokesman said.
‘Cambodia’s economy has been expanding rapidly as a result, up by 9.6 percent in 2007, and by more than 10 percent per year during the previous three. Tourism arrivals have also grown, to 2 million in 2006, and by a further 20 percent in 2007,’ he added.
Real estate agents predict that Phnom Penh is at the beginning of a growth era, like Bangkok 20 years ago or Ho Chi Minh City 10 years ago. Property prices are cheap but they are increasing. A traditional house along the river that sold in 2006 for $300,000 is now going for $600,000 to $700,000.
Cheaper property can still be found. Apartments in the chic riverside quarter of Phnom Penh start from as little as ÂŁ49,000. Popular French colonial apartments are being refurbished and modernised and are expected to appreciate by 15 to 20% per year.
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