A new law came into force in 2010 which allowed expatriates to own apartments and condominiums in Cambodia. This helped boost the market to a threefold increase in property transactions for that year, after the country had been struggling with the negative effects of the global financial crisis.
However, foreign citizens are still not allowed to own land in Cambodia, this clause even stretches to include the ground floor of any buildings. However, a way around this is through long term and renewable leases, along with ownership through local companies of which the majority is owned by Cambodian citizens. It is also important to note that regulation dictates that foreign nationals are not permitted to buy any property within 30km of Cambodia’s borders.
Prior to the 2008 financial crisis, property prices in Cambodia enjoyed unprecedented rises, varying from 25% up to 40% annually. However, when recession hit land values plummeted around 40%.
In a post financial crisis context the market is once again recovering, mainly thanks to the reforms in property ownership laws for foreigners. It’s thought around 70% of the luxury property market comes from foreign investors. Most of these are Chinese and South Korean, however, there is also a growing European and North American presence. A change in legislation allowing foreign land ownership remains unlikely in the near future, as it goes against the Cambodian Constitution.
The construction sector also began to rise again in 2011, and whilst it still remains somewhat fragile after the global recession, it certainly appears to hold hope for the future.
The capital, Phnom Penh remains popular, and luxury resorts are increasingly popping up in many of the beautiful coastal areas that Cambodia has to offer.