PHNOM PENH, March 25 - Cambodia's parliament is to debate a law next month that would allow foreigners to own property directly, one of the aims being to attract more investors to the Southeast Asian country.
Until now, foreigners wanting to buy property have had to do it through a Cambodian representative.
"This is a really good thing, because all these modern apartments, the Cambodians don't have money to buy them," said Nun Pheany, spokeswoman at the Land Management Ministry. "For condominiums, this is an encouragement to investors."
Neighbouring countries including Vietnam had passed similar laws, so it was time Cambodia did, she said. "We want to have contact with big investors, to make them feel warm in Cambodia."
The National Assembly will begin debating the legislation on April 1. It would allow foreigners to own apartments above the ground floor in buildings 30 km (19 miles) from the country's borders. Foreigners will only be able to buy a maximum 49 percent of any building.
"This law has been sought by the private sector. We've wanted it for quite some time," said Sung Bonna, chief executive of Bonna Realty Group and president of the National Valuers Association.
"This will encourage foreigners, investors to help the recovery. The real estate and construction sectors have been weak," Sung Bonna said.
Heng Sakara, a manager at All Plan International, developer of the $55 million River Palace 31 in Phnom Penh, said the law could attract huge numbers of foreigners to the country.
"Diplomats and investors, most of them want to buy units, apartments for their personal property. Cambodians couldn't afford to buy all of them," Heng Sakara said, adding it was good news for his 31-storey project, suspended due to the economic slump.
Cambodia's economy enjoyed several years of double-digit growth before tourism and the garment sector took a hit from the global economic crisis. The economy probably shrank in 2009.
Sung Bonna said Cambodia's real estate and construction sectors were hit hard in 2008 and 2009 and forecast that this year would be only a little better.
Output in the construction sector slumped 42 percent in 2009 to $1.7 billion, ministry spokeswoman Nun Pheany said. She did not yet have have data for 2010.
Until now, foreigners wanting to buy property have had to do it through a Cambodian representative.
"This is a really good thing, because all these modern apartments, the Cambodians don't have money to buy them," said Nun Pheany, spokeswoman at the Land Management Ministry. "For condominiums, this is an encouragement to investors."
Neighbouring countries including Vietnam had passed similar laws, so it was time Cambodia did, she said. "We want to have contact with big investors, to make them feel warm in Cambodia."
The National Assembly will begin debating the legislation on April 1. It would allow foreigners to own apartments above the ground floor in buildings 30 km (19 miles) from the country's borders. Foreigners will only be able to buy a maximum 49 percent of any building.
"This law has been sought by the private sector. We've wanted it for quite some time," said Sung Bonna, chief executive of Bonna Realty Group and president of the National Valuers Association.
"This will encourage foreigners, investors to help the recovery. The real estate and construction sectors have been weak," Sung Bonna said.
Heng Sakara, a manager at All Plan International, developer of the $55 million River Palace 31 in Phnom Penh, said the law could attract huge numbers of foreigners to the country.
"Diplomats and investors, most of them want to buy units, apartments for their personal property. Cambodians couldn't afford to buy all of them," Heng Sakara said, adding it was good news for his 31-storey project, suspended due to the economic slump.
Cambodia's economy enjoyed several years of double-digit growth before tourism and the garment sector took a hit from the global economic crisis. The economy probably shrank in 2009.
Sung Bonna said Cambodia's real estate and construction sectors were hit hard in 2008 and 2009 and forecast that this year would be only a little better.
Output in the construction sector slumped 42 percent in 2009 to $1.7 billion, ministry spokeswoman Nun Pheany said. She did not yet have have data for 2010.
8 comments:
OMG! Currently, I don't have money to buy a flat which is more expensive than the US. If this law is approved, the younger generation do not have shelter forever. I don't know why this country never think of their own people?
In US if you don't have money you'll own shit too!
i think it's a sign that cambodia is fianlly catching up with the rest of the world. when you have a city of cosmopolitan people living there, it is more developed and more fun. i know foreigners who own condo in hong kong, bangcock, manila, etc... so cambodia can do the same with real estate law that other southeast asia country have used. it's not like saling saling the lands, it's only for real estate ownership. people who are paranoia is no ignorant and don't really understand the law for them to say that cambodia will have no more land in the future. not true like that; it's their extreme view, to say the least. of course, gov't is mindful protecting and maintain cambodia, but real estate have law to protect owners as well, you know! would it help to know that other regional country is doing just that! cambodia is just one of the late comers to the scene, that's all.
wITH THAT CORRUPTION AND LAWLESS ONLY THE VIET EVILS WILL BUY PROPRETY IN AH KWACK LAND!
wITH THAT CORRUPTION AND LAWLESS ONLY THE VIET EVILS WILL BUY PROPRETY IN AH KWACK LAND!
i want beach front proper and property high on the mountain so i can view the sunset, the ocean, the scene below, etc... oh, i prefer nice seabreeze too. hey, my life is full of choices, you know! nothing wrong with that, really!
This is am important law because it encourages foreign companies to invest by building on a plot of land and being able to arrange for financing. Without ownership of the land a factory or project is located on, it is difficult if not impossible to obtain financing.
I think Cambodian government should be very cleared about letting foreigners have the right to own the properties (make sure they can not own the land) in Cambodia.
Post a Comment