It would be a small thing to say that this city and this country are no strangers to change. Thirty-seven years after a murderous government left the country with an agricultural utopia plan, Real Estate Cambodia is a frontier market that does not feel like a full-fledged frontier market.
The old money that was on the sidelines is now coming to play in the form of new shops, villa-style hotels, clone coffee shops, and Western restaurants.
However, this simple mindset of money can be found anywhere. When you start scratching the surface, there are some very interesting Investment Opportunities in Cambodia.
This guide will give you five reasons to Invest in Cambodia real estate.
IT’S ONE OF THE FEW SANE INVESTMENT MARKETS IN SOUTH ASIA
You see, historically, Asian governments have been oppressive. Economic freedom has not seen its bright days in Asia. The hard-working people here have saved their money and do not necessarily have to rely on banks or other savings strategies that can allow the government to get their hands on the money. Enter real estate investment.
Chinese, Hong Kong, and Singaporeans are looking for investment opportunities in Asia as a safe haven for their cash. Although Cambodia is certainly one of the most emerging markets in Southeast Asia, prices are still reasonable. Of course, anywhere, the sky’s the limit. But for $ 30-50,000, you can buy a standard-sized, 600-square-foot apartment in a decent area of Phnom Penh.
For the same amount, you can buy an apartment near the beach in Sihanoukville, just a small boat ride from the islands where rich Russians are spending money and selling $ 1 million in private villas.
REAL ESTATE RENOVATION AND FLIPPING ARE STILL POSSIBLE
However, as a frontier market, Cambodia Real Estate still has a lot of properties that need to be renovated.
Sure, these properties can be rented for $ 100, $ 200, or even $ 400 a month, but the trend is to hire foreigners working in the oil and gas, finance, and other growing industries for 1. , 000 and even increasing to 2,000.
Phnom Penh may be a popular stop for back bakers who are slowly getting out of the crowd but it also doubles as a new boom market where people rely too much on properties in ready-made conditions. Furthermore, as Cambodian tastes become more Western and new middle-class Cambodians seek Western luxury, they will look at the features of these renovations.
TOURISM IN CAMBODIA IS GROWING
Again, as a cash flow investor, I would love to see some money back before the sale. I don’t subscribe to the mantra that “real estate never goes down” no matter how passionate I am about an area.
In cities like Manila, Bangkok, and Ho Chi Minh City, you can earn good profits by handing over the keys to your cheap apartment to foreign tourists. For now, Phnom Penh has enough shops to accommodate tourists.
This means that Airbnb Play will not be implemented yet. However, direct flights will start from Tokyo and even Istanbul. In recent years, routes to cities such as Singapore and Kuala Lumpur have been extended to Phnom Penh.
More and more tourists are coming to Cambodia and the net effect will be positive for real estate.
INTERNATIONAL GROUPS ARE LOCATED HERE
Aside from oil companies like Chevron that negotiate profit-sharing deals with the government, a large number of international real estate companies, Chinese restaurants, and other companies are setting up shops here.
Part of that is meeting the local market, where the middle-class licks ice cream at Dairy Queen on Sundays. Part of this is Vietnamese gamblers who cross the border for cheap action. And part of that is the growing number of well-paid people, going back to the days when people working in NGOs were just white people you would see.
Other companies are following suit. International companies, which can deploy their capital anywhere, are choosing to increase their stake in Cambodia and have already seen the results.
FOREIGN REAL ESTATE BENEFITS ON STEROIDS
Cambodia is so far removed from the Western world that it offers interesting benefits that are worth considering. If you have ever wondered if your government can help put money into an offshore bank account at any time, consider how difficult it would be for them to talk to a Cambodian court about the property. Forcing sales that they don’t. Even know about it.
For those who are already following the law, but are worried about confiscating future wealth, real estate in Cambodia is an attractive and affordable proposition.
Of course, there are those who claim that there is a bubble in property prices.
For example, the title system here is very unorganized. There is no government property data or analytics, and anything you can compile would be inaccurate. The market here is quite informal, yet the real risks are few.
You can argue against Cambodian real estate for technical reasons, but numbers are hard to avoid. Real Estate Cambodia is one of the world’s youngest populations and is well-positioned in a growing region with emerging tourism and employment opportunities.
There is plenty of room to offer “value-added” and be ahead of any competition, be it real estate or anything else. We’ve seen examples of places like Dubai and Cancun where that place went from zero to sixty overnight. Cambodia has great potential for a similar success story.
At some of the prices here, anyone can get into the game, especially considering the big credit bubbles and zero-down loans we’ve seen rising property prices in remote California desert cities.
The chances of making good money in the short term are great if you follow the right steps.
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