Asian Property Review talks to Tom O’Sullivan, Director of Realestate.com.kh on what it entails to invest in Cambodian property.
APR: Why should investors consider Cambodia?
TO: The main selling point for investing in Cambodia is that it is virgin investment territory. This places it at a position where there is a lot of potential for growth. It’s also a dollarized economy – which makes transactions from most foreign investors much easier and stable in the longer term. On top of that, the country has had strong, sustained growth with year-on-year GDP – a 5% average for the past 5 years. It also has freehold ownership laws that are investor-friendly. It has both political stability and a strategic location. It is located between two strong economies, namely Vietnam and Thailand. Cambodia is also firmly part of China’s “One Belt, One Road” policy in Southeast Asia – and one of China’s closest political allies in the region.
APR: What are the biggest risks in investing in residential or commercial property in Cambodia?
TO: Just like in any emerging market, Cambodia is still relatively new and is still on the way to stabilizing its economy through the development of policies. And while the country has progressed in this aspect by adjusting laws for things like taxation and opening the economy up to accommodate foreign direct investment, it still has more to do. However, patient investors who understand the nature of emerging markets can still feel confident investing into Cambodian property – especially when buying from developers listed in other countries – such as Singapore, Malaysia, China, etc. There are many international developers here offering a level of care for the translation/execution of an international standard.