Prime Minister Hun Sen has called on the Ministry of Land Management to speed up drafting of property legislation. (Photo by: Tracey Shelton)PM pushes for property law to boost foreign investment
Monday, 22 June 2009
Written by Kay Kimsong
The Phnom Penh Post
Hun Sen says that draft legislation allowing foreigners to own apartments will – once completed – give momentum to other sectors of the economy
PRIME Minister Hun Sen on Friday urged the Ministry of Land Management, Urban Planning and Construction to expedite the drafting of new rules that would permit foreign ownership of property in Cambodia.
In a press release issued by the Council of Ministers, Hun Sen said implementation of the rules would lead to an influx of foreign capital investment in the real estate and other sectors.
"The law will make foreigners feel confident in investing in other sectors in Cambodia," he said.
In an interview Sunday, Sung Bonna, CEO of Bonna Realty Group and president of the National Valuers Association of Cambodia, said he welcomed the premier's comments, calling them "a highly valued answer to help the real estate industry survive".
He added, "Samdech [Hun Sen] made a good decision with this law. This law is a positive law that will benefit the country's economy."
The NVA is to meet today with a working group of government officials and private sector representatives to give input on the new rules.
Sung Bonna said all 15 members of the NVA fully supported the changes, though he said they would put forth two recommendations during the meeting today.
First, he said foreigners should only be able to buy property that costs $50,000 or more so that cheaper apartments would be available to Cambodians.
Second, there should be some limit as to how much property any one foreigner can purchase.
Senior Cambodian People's Party lawmaker Cheam Yeap also called for some limits to the law, noting in particular the government's view that foreigners should not be able to buy land located near the border so as to prevent foreign ownership of property in disputed areas.
Cheap Yeap said he did not know when the draft would be completed or when it would be sent to the National Assembly.
Im Chamrong, director general of the construction department at the Ministry of Land Management, Urban Planning and Construction, said the rules were still being drafted and would be the subject of debate at an inter-ministerial meeting to be held "soon". He said it was not sure when the draft would be sent to the Council of Ministers.
Sung Bonna dismissed concerns that foreign ownership would lead to undue increases in property prices, saying it would instead provide a much-needed jolt to a sector that has been battered by the economic crisis.
He said he believed the rules would prompt foreigners to consider purchasing second homes in the Kingdom.
"Our country is the best place for second homes where foreigners can relax and stay when they retire," he said. "Our country is a destination with intact natural resources and good weather, and this is the right time to absorb capital flow into Cambodia."
PRIME Minister Hun Sen on Friday urged the Ministry of Land Management, Urban Planning and Construction to expedite the drafting of new rules that would permit foreign ownership of property in Cambodia.
In a press release issued by the Council of Ministers, Hun Sen said implementation of the rules would lead to an influx of foreign capital investment in the real estate and other sectors.
"The law will make foreigners feel confident in investing in other sectors in Cambodia," he said.
In an interview Sunday, Sung Bonna, CEO of Bonna Realty Group and president of the National Valuers Association of Cambodia, said he welcomed the premier's comments, calling them "a highly valued answer to help the real estate industry survive".
He added, "Samdech [Hun Sen] made a good decision with this law. This law is a positive law that will benefit the country's economy."
The NVA is to meet today with a working group of government officials and private sector representatives to give input on the new rules.
The law will make foreigners feel confident in investing in other sectors in Cambodia.Existing rules prohibit foreigners from owning property, which supporters say prevents speculation and price volatility. The proposed changes would allow for foreign ownership of houses, apartments and condominiums above the ground floor. Foreigners would also be able to inherit property.
Sung Bonna said all 15 members of the NVA fully supported the changes, though he said they would put forth two recommendations during the meeting today.
First, he said foreigners should only be able to buy property that costs $50,000 or more so that cheaper apartments would be available to Cambodians.
Second, there should be some limit as to how much property any one foreigner can purchase.
Senior Cambodian People's Party lawmaker Cheam Yeap also called for some limits to the law, noting in particular the government's view that foreigners should not be able to buy land located near the border so as to prevent foreign ownership of property in disputed areas.
Cheap Yeap said he did not know when the draft would be completed or when it would be sent to the National Assembly.
Im Chamrong, director general of the construction department at the Ministry of Land Management, Urban Planning and Construction, said the rules were still being drafted and would be the subject of debate at an inter-ministerial meeting to be held "soon". He said it was not sure when the draft would be sent to the Council of Ministers.
Sung Bonna dismissed concerns that foreign ownership would lead to undue increases in property prices, saying it would instead provide a much-needed jolt to a sector that has been battered by the economic crisis.
He said he believed the rules would prompt foreigners to consider purchasing second homes in the Kingdom.
"Our country is the best place for second homes where foreigners can relax and stay when they retire," he said. "Our country is a destination with intact natural resources and good weather, and this is the right time to absorb capital flow into Cambodia."
15 comments:
The stupid monkey face should be tortured by Duch at S-21 and smashed the head up at Beong Cheng Aik during the Khmer Rough time.
I think Samdech Hun Sen has made the right decision to allow foreigners the right to own proterty in Cambodia. Cambodia has surplus of land which can be turned into a commodity in real estate investment for those foreigners. In addition, we need all the help we can get from these new founders as their retirement is approaching. I applaud your decision Samdech Hun Sen.
Thank You Sir.
ST
To12:23
I know you own land and you want to sell to make profit. Don't forget that with that law, one day Khmer people end up has no land on their own country. Foreigner like VN will be the new owner of Cambodia. It's a quite long process, but it's a sure way to give up the name of a country.
Will Khmers ever going to find common ground to work toward? Has any official in Cambodia stopped abusing power?
I am waiting to see a person that really working for the interest of the people and the country.
Will we (Khmers) ever to experience freedom anytime soon. "The Declaration of Independence...[is the] declaratory charter of our rights, and of the rights of man." Jefferson, Thomas. Has any man, woman, child, young, old, and feeble one ever has rights to freedom of expression in Cambodia?
"The basis of our political systems is the right of the people to make and to alter their constitutions of Government. But the Constitution which at any time exists, 'till changed by an explicit and authentic act of the whole People is sacredly obligatory upon all." GW
12:32 AM
I Agreed with you, Thevada Hun Sen has vision to develops Cambodia to become a pearl country and make Cambodian living in prosperous.
Don't listen to any khmer at overseas said. Cambodia has singed many contracts to Foreigner like our Vietnam and Korea for 99 years land lease.
I'm so proud with decision of Thevada Hun Sen Varman who was Hun Tein rebirth. Thevada Hun Sen Varman is "Neak mean bun Khmer".
A sq. meter cost 500-2000 USD in Cambodia. Then, pay 10000 or more for signing the Deed. Again, pay the local village chief to make sure property is intact.
Tuk Trey Sre, death wrong....
This is Cambodia not Thomas Jefferson.
We have our culture and full rights to exercise ours.
Viva Hun Sen make the land price go up!!!!!
Do I have land to sale like Hun Xen childrens????????????????
Where I'm gona to live??????????
Do ma ah Hun Xen! May lightning strike his whole family!!!!
Kroan ter meul mouk ah Xen deung tha ah nis sa-oy moat! Ngorb teuv ah Xen!
Hun Sen learns this trick through his adpoted father Ex king. Flip and Flop all the way through.
I wandered if One day he is going to tell those investors that he changes his mind again.
He has unlimited power right now his words are final. He can do and change any time.
The investors also won;t be stupid as long as the laws of mortgage and properties and especially corruption laws are not transparents. Except the Chinese and Korean who used to play this game. They don't mind about his flip flop in the future.
that is why there is no large scale properties investor from the West ready to do buisness in Cambodia.
the key word is " drafting of the property legislation."
This is a good move for Cambodia's development in every sector especially in real estate. The law has already been practised in many developed and developing countries in the world. And it delivers good results for those countries.
So I congratulate PM Hun Sen's initiative to push the law's implementation. The faster, the better... I do hope Cambodia will be prosperous in the near future.
Being good and neutral persons, we should not be so critic. What is good, we have to say it's good. What's bad, we have to it's bad. We all have to stand together to help develop the country. If we love our country/nation, we have to say good about our our country and people.
We have to open mind, open to the world...
Bravo Cambodia!!!
May I wish Cambodia and Cambodians the best.
I strongly welcome PM Hun Sen's initiative to push the property law implementation. It will help to develop Cambodia by opening the poor country to more foreign investment.
Bravo Cambodia!!!
Ah Mouy Niss Murl Muk Via Chit Duoch Kmauch, look his face gonna b vampirev soon, suck khmer's blood toooo much...soon ,Ah Youn hoc lon di will bring him go to hell
I am negative with the Hun Sen propose,this propose is not a nationalism, the propose just short term money making not for long run.
Hun Sen should let the department of commercial deal with this.
#1 the Viet the China put all their money to buy all the Provinces border on the Viet Nam side ,the Thai invest with the real estate along Preah Vihear territories in ten to fifteen more years ,how huge the problems that we face? And where is the Cambodian find the face to live?
2# In Thailand the foreigners has no right to own the properties period,if you wanted to own the property you must go through your spouse name with the Thai citizen
so while think happen the Thai will get all the benefit hahahhahahah Thai people stupid?
The Chinese said BIG FISH EATING SMALL FISH AND SMALL FISH EATING ANT,Cambodian people will eat nothing when Hun Sen proposes has succeed just think and look at the United States by allowing the Illegal people plundering to the country a lot now the States facing the world bankruptcy how about Cambodia ? Disappear with allowing the foreigners own the land .
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