7/6/2017-8

Cambodia property market in short supply for three years price increases into two overseas investors increasing real estate attention

Last week, Hong Kong held an overseas property investment Expo SmartExpo, property sales from different countries, admission to pay more attention to Cambodia and Thailand and other Southeast Asian properties, including Cambodia Phnom Penh rare new sale, sales are also ideal. Cambodia is a member of the China-ASEAN Free Trade Area (CAFTA), driven by strong growth in garment exports, construction and tourism, with GDP growth of 7%, according to the Hong Kong Trade Development Council (TDC). The country’s geo-political risk is relatively small relative to neighboring areas, and the population is young, attracting foreign investment and stimulating real estate demand.

Ming Pao reporter Long Caixia

In recent years, the cumulative foreign direct investment (FDI) flowing into Cambodia has been rising, mainly in the fields of finance, manufacturing, real estate, agriculture, tourism, energy, transportation and telecommunications. The service sector is Cambodia’s largest economy, accounting for 44% of GDP. However, emerging markets are more sensitive to external factors, including the appreciation of the dollar, the weak European economic growth, the United Kingdom out of Europe and other factors, as well as China’s economic slowdown brought about the chain effect.

Travel industry boom to promote the floating population

In fact, Cambodia’s real estate is the focus of the local tourism industry is booming, 2016 tourism accounted for nearly 20% of Cambodia’s GDP, the number of visitors increased by 5%, 5 million passengers, passenger spending amounted to 3.2 billion US dollars. The tourism industry is booming and the floating population and hotel and real estate demand are on the rise.

At the same time, Cambodia and China are friendly, Cambodia is also in recent years with low air tickets, and the local can use the RMB and other policies to attract, is expected to 2020 each year to attract 2 million mainland Chinese tourists to Cambodia tourism. According to the Cambodian Ministry of Tourism data show that in 2015 Cambodia received 4.8 million foreign tourists trips, creating revenue of up to 3 billion US dollars. Among them, the Chinese tourists 800,000 people, ranked second. China’s recent Cambodian routes are also increasing, the local consumer and real estate investment demand, which agents local residential projects, said the company also said that many mainlanders also like to invest in Cambodia real estate, and rental is also easy.

According to local media reports, Cambodia has allowed Chinese tourists to use the yuan directly, without having to exchange dollars or Cambodia. Cambodia encourages domestic companies engaged in tourism to directly accept Chinese tourists to use RMB, it is estimated that this new policy will help attract more Chinese tourists to Cambodia.

Foreign investment data show that the first four months of this year, Cambodia’s construction industry investment reached 40 billion US dollars, surging 43% over the same period last year. In addition, from April 2000 to April 2017, the Cambodian construction industry attracted a total of 18 countries, a total of 304 investment projects, the data is sufficient to prove that foreign investment is willing to invest in Cambodia.

70% of the population is under the age of 30 favorable economy

According to statistics, Cambodia’s population in 2015 is about 15.65 million, with an average age of 27 years, with young people under the age of 30 accounting for 70% of the total population, according to the Cambodian capital Phnom Penh residential sales industry, said Cambodia’s population is the source of economic power. Like India, the higher the young population contributes to the improvement of labor and spending power. According to “China Daily” reported that the younger population on the Cambodian real estate industry has obvious help. So far, Cambodia’s property prices have been rising for several consecutive quarters, is one of the longest rising countries, is still continue to maintain the rally, the average price of property over the past three years rose more than 20%.

Property prices have lower potential for appreciation than neighboring countries

Moreover, with foreign investment, more and more foreigners to Cambodia business and tourism, modern property to become their investment objectives. However, the data show that as of 2018, the number of Phnom Penh apartments only 10,000 units, the agency that in short supply, which also helped to rise in property prices.

In addition to passengers, many industries such as the textile industry, manufacturing, factories in Cambodia, labor costs is one-fourth of China’s mainland, Cambodia and the EU, the United States signed a tax-free agreement, export zero tariffs, respectively, and Singapore and China Signed to avoid double taxation agreements, coupled with the government’s massive construction of public buildings, the introduction of foreign employees such as engineers, they need to rent or purchase housing to increase housing demand. Cambodia has no foreign exchange control, coupled with the relatively low prices of property in neighboring ASEAN countries, creating a boom in Phnom Penh buying.

Cambodia home buyers note