The new law permitting foreigners to own up to 70% of a Condominium complex has helped increase investment in Cambodia’s property market. In the residential market, developers have experienced a boost in condo and villa sales from investors expecting an attractive rental yield. Furthermore, since the sub-decree was passed, a number of Korean investors have obtained licences to build villas, apartments and condos to increase the housing supply within the next 3-5 years.
The law compares favourably with other countries in Asia such as Thailand where foreigners are only allowed up to 49% of a condominium block and in Vietnam where only a long leasehold title is available. Farther afield, the Hong Kong government announced plans to remove the long-established right of foreigners right to residency if they purchase property.
Deregulation forms part of the government’s overall strategy to encourage more overseas investment into the Cambodia property market to complement its already flourishing tourism and export sectors.