South east asia’s hidden secret

A law Change could herald a new dawn for one SEA's newest emerging property market…

Nuth Nurang, Secretary of State at Cambodia's Ministry of Land Management, Urban Planning and Construction has revealed that the government is considering an amendment to Cambodia's law that would allow foreigners to buy property in the rapidly emerging market freehold.

Liam Bailey of David Stanley Redfern, explained: “Currently the best option for foreigner investors is to buy on a leasehold tenure of up to 99 years. Another option is to form a company with Cambodian partners - this carries complex tax issues and needs to be considered carefully.

”Foreigners being able to buy property freehold would blow the Cambodian property market wide open. Bouncing back from the brutality of the Khmer Rouge gives Cambodia's emergence a vibrancy and vitality all of its own.

“From the children in school upwards there is a drive and determination to put Cambodia where it should be on the global scene, and to make sure the thousands who were killed didn't die in vein.

Low cost of living

Mr Bailey continued: ”Most of Cambodia's Male population is under the age of 25, as a result of Khmer Rouge mass murders, and the aforementioned drive means every child in school is there to learn as much as they can and to be all they can be.

“I'm not sure how much of an attraction this is to the multinational companies currently flocking into Cambodia, probably not as much of an attraction as the low cost of living and potential for a low cost workforce.

”Either way it is good for the Cambodians. Multinational companies are not only setting up shop in the emerging market, but are making Cambodia their S.E. Asian operations hub.

”The Cambodian's in stable and well paid employment have money to spend on their accommodation rented or bought, spending their wages is spreading money throughout the business sector, living costs start to go up, meaning building materials start costing more, labourers and tradesmen get closer to what they should for their hard-labour - all pushing up the value of Cambodian property”.