Strong GDP Growth
Cambodia’s thriving tourism & textile industry has played a pivotal role in boosting the country’s GDP. Since 2011, Cambodia’s economy has been consistently achieving an average of 7% GDP growth, one of the highest among the region.
Rising Land Prices
Cambodia property market has been booming ever since the passing of legislation on foreign property ownership in April 2010. Land and Cambodia property price in Phnom Penh has been growing steadily, turning the Kingdom’s emerging economy into one of investor’s most preferred investment country in the Asia.
Freehold Foreign Property Ownership
Foreigners can 100% own a freehold stratum titled property in Cambodia.
However, with certain restrictions such as: foreigners are not allowed to buy any property on the ground level. Foreigners can only own the 2nd level or or higher to a maximum of 70% of any one apartment building, provided that the building has obtained a ‘strata title’, which generally applies to new condominiums buildings.
US Dollar Economy
Even though Cambodian Riel (USD $1: Riel 4000) is the official currency of Cambodia, the US dollars are commonly used on all the major day to day transactions such as business dealings, investments and even when selling or buying properties in Cambodia.
Although in the past decades the country witnessed war and civil unrest, in recent years the ASEAN’s socio political has turned 180 degrees, and it has enjoyed a relatively peaceful era ever since Prime Minister Hun Sen’s took over the leadership in the 1980s.
Cambodia is strategically sandwiched between two strong economies in ASEAN, Thailand and Vietnam; and situated midway between the 2 world’s largest and fastest growing economies, China and India; and located between Australia and Asia, with trade agreements connecting it to both countries.
Last Frontier Market
Owning property is still very affordable in Cambodia. An average Cambodia property price of a high end condominium in the city center of Phnom Penh are transacted at around US$ 3,250 per square meter, versus a property in Singapore city center which commands at an average of US$21,528 per square meter.
Even though Cambodia property price have gone up in the last few years, these figures are still very low when compared to the global average.
The Cambodian property market is bullish, and it is unlikely that it will take any dissimilar route in the years to come.