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Phnom Penh Property | Tips when buying a property in Phnom Penh
By property | November 21, 2008
Phnom Penh Property | Tips when buying a property in Phnom Penh
Tip one
Phnom Penh is the undisputed economic, industrial, commercial, cultural, tourist and historical centre of the fast-recovering country.
Tip two
Phnom Penh is the centre of a stunning property boom currently underway in Cambodia. The entire tourist-orientated waterfront area of Sisowath Quay is currently being redeveloped and the country’s first ever skyscraper is under construction.
Tip three
The boom has been contributed to a range of factors but comparative political stability under Hun Sen, an improving regulatory and legal framework and a lack of alternative investment options in the country seem are the main triggers.
Tip Four
Tourism has been another key driver of the Cambodian boom and this looks set to continue in the coming years with the weak US dollar, the de facto currency in Cambodia, helping to keep prices low.
Tip five
US property services firm CB Richard Ellis is set to open a Phnom Penh office in the coming months and the mooted tapping of off-shore oil and gas by 2010 is making Cambodia and Phnom Penh an extremely attractive option for investors.
Tip six
Land prices have been spiraling rapidly upwards in Phnom Penh over recent years. Figures suggest prime Phnom Penh land has risen to $US3,000 per sqm compared to less than $US500 in 2000.
Tip seven
The Bureau of Urban Affairs of Phnom Penh Municipality is aiming to expand the city and build major new infrastructures by 2020 in order to accommodate Phnom Penh’s growing economic activities and population. The Phnom Penh area will be broadened north, south, east and west, with Wat Phnom as the central point and city limits forming a radius of 30 km.
Tip eight
There are a huge range of very competitively priced apartments in the Cambodian capital. However, the high end of the market is currently dominated by the ‘Gold Tower 42′, a $US300 million South Korean apartment block which, at 42 storeys, will be three times higher than Phnom Penh’s current tallest building.
Tip nine
There are however, signs that things are beginning to overheat. Annual price inflation spiked to more than 9 per cent in the last year, almost double its level in the preceding five years.
Tip ten
The New World Group, which has seven housing complexes in Phnom Penh, reported that sales on apartments and villas this year have dropped 50 percent compared with 2007. The drop off in sales however, has not yet triggered the decline in asking prices that buyers would expect. Two-storey apartments in Phnom Penh last year sold for about US$66,800. As of July 2008 they sold for $120,000.
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