The Cambodian economy is growing steadily at the average of 8% since 1999 - 2014. The economic performance is expected to continue to grow above 7% in 2015 and 2016 (source: Asian Development Bank). The strong economic growth offers a big opportunity in the Cambodia property market. Few main sectors that contributes to the strong GDP are agriculture, textile, tourism, retail, construction/real estate sector.
Cambodia property market has started showing positive sign in recent years. As result, land prices in Phnom Penh most premium area, Chamkarmon has risen 100% within few years. While many of South East Asia and Asia countries are experiencing the economic turbulence, in fact, Cambodia is expanding fast. Some countries like Singapore, Malaysia, Japan, Hong Kong, and many others have seen the potential and already started to expand into Cambodia.
Can foreigner own property in Cambodia
If you are a foreigner and plan to invest into Cambodia property, your first question will be, can foreigner buy or own property in Cambodia. On May 2010, the law on the provision of ownership rights over co-owned buildings to foreigners was implemented. Under the law, foreigners may acquire condominium, office space above the ground floor up to maximum 70% of all the units in any of co-owned building. Co-ownership is a reference to ownership of shared lots with common ownership similar to the common law reference to Strata Title.
Ever since the law is implemented, investment from foreign investor into Cambodia property market has growing strong and fast. Accompanied with the local buyers from the rich and growing middle class has turned Cambodia property market into the next hot frontier market in South East Asia.
Economic sector - The drive of strong economy and Cambodia property market
As mentioned earlier, the few main sectors that contribute to economy mainly are:
1. Agriculture sector
Agriculture is the vital economic driver in Cambodia currently. More than 70% of Cambodians depend on agriculture for their livelihood. The number has dropped as other industry sector and service expand.
2. Textile sector
The garment and textile sector industry in Cambodia is the upcoming economic driver. This sector has grown tremendously over the past 20 years. Garment production accounts for 16 percent of Cambodia's total gross domestic product (GDP) and employs 45 percent of its manufacturing workers, according to the South East Asia Textile Business Review 2009.
3. Tourism sector
Tourism is the third largest sector of the economy after agriculture and textile. The tourism in Cambodia is playing an increasingly important role in shaping the country's political and economic development.
4. Retail market sector
Cambodia retail market is undergoing a gradual transition from traditional markets into international quality standard. Consumer confidence and spending has continued to grow. Japan AEON mall has started its operation with many anchor tenants like Coffee Bean, Swensen's, Adidas, Mango, and many more.
5. Construction and real estate sector
Construction and real estate sector has been growing steadily since 2008 due the pickup in the local demand and by allowing foreigner to purchase property in Cambodia, it add fuels to the Cambodia property market to rise further.
This is another catalyst which makes property investment in Cambodia is so interesting. According to the census conducted in 2010.
0 - 14 years old
15 - 64 years old (Productive age)
Above 65 years old
As you can see, the majority age of the population is on the productive age and the next is going to be productive in years to come. With the growing economy, foreign direct investment, and growing middle class, the Cambodia property market looks promising to invest.
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