The Peak Cambodia-An oasis in Phnom Penh

1. Cambodia is the up and coming market in Southeast Asia

Since the year 2010 Cambodia government open its door to foreign investors, we have seen many foreign developers ventured into this jewel in Southeast Asia. The Chinese, Hong Kongers, and Singaporeans in particular are scouring Asia for opportunities to invest as a safe haven for their cash.

While Cambodia is definitely among the most emerging of markets here in Southeast Asia, prices are still somewhat reasonable. The land price in Cambodia has double given the strong interest from international investors. Nonetheless, given the positive outlook of the economy, Phnom Penh is poised to offer investors great capital appreciation potential.

2. Real estate investment flexibility

As an emerging market that offers promising growth, Cambodia government has an encouraging and transparent policy that attract the international investors to invest. There isn’t any capital gain tax on your property when you sell, and also there isn’t any restriction if you choose to flip you property for a profit before completion.

3. Tourism to Cambodia is growing.

Tourism in Phnom is growing, bring in millions of potential property investors every year. Many multinational companies and renowned food and beverage (F&B) brands had set up their company here, mainly in the newly open AEON mall. The land price in Phnom Penh has double comparing to 4 years back. We have seen a strong yield of 9-11% over the past 2 years, and is expected to remain strong.

4. International groups & expats are locating here.

Set aside oil companies like Chevron negotiating profit sharing deals with the government. A large number of international real estate companies, chain restaurants, and other concerns are setting up shop here.

International groups that are already here are expanding their presence. One of the largest international schools,  is moving south in the city and expanding their footprint.

Other companies are following suit. International companies, which can deploy their capital anywhere, are choosing to increase their bets on Cambodia having already seen the results.

5. The benefits of foreign real estate on steroids.

Investing in real estate in Cambodia is different from your past experiences if you live in the west. Adaptation is the most important financial survival technique when taking part in what I call the world’s “new boom markets”.

For example, the title system here is very unregulated. There is no official property data or analytics, and any you could compile would be inaccurate. The market here is quite informal, yet the real risks are rather low.

Cambodia has one of the world’s youngest populations and is well-positioned in a growing region with emerging tourism, resources, and labor opportunities. There is plenty of room to offer “value add” here and outpace any competition, be it in real estate or anything else.

We have seen examples of places like Dubai and Cancun where the place went from zero to sixty practically overnight. Cambodia has great potential to be a similar success story. At some of the prices here, anyone can get into the game, with the massive credit bubbles and zero down loans we’ve seen propping up worthless property values in far-flung California desert cities.

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