Friday, 4 July 2008

Cambodia's Phnom Penh a real estate boom

24-7PressRelease/ - NOTTINGHAM, UK, July 04, 2008 - After spending the last three decades struggling to recover from the legacy of the Khmer Rouge's genocidal rule, Cambodia now finds itself in the midst of a real estate boom. A decade ago the capital Phnom Penh didn't even have one traffic light, now high-rise condos and offices are springing up as investors rake in the profits.

Many people still have an outdated perception of Cambodia, but private-equity investors - so often the bellwether for the hot investments of the future - are moving into the country at apace. At least four new private equity funds, backed by brand-name investors, are aiming to bring $475 million of foreign investment into Cambodia.

China, South Korea and Malaysia have also been pouring money into the country and in 2006 foreign direct investment totalled $2.6 billion, up from just 240 million in 2004. And according to Cambodia Investment, more than $6 billion may be invested in the country in the next three years.

The government will continue to encourage this investment with market-oriented reforms, and both the ruling Cambodian People's Party and the main-opposition Sam Rainsy Party are committed to the same pro-business, pro-growth policy platform. Cambodia's economy has been expanding rapidly as a result; by 9.6 percent in 2007, and by more than 10 percent per year during the previous three. Tourism arrivals have also grown, to 2 million in 2006, and by a further 20 percent in 2007.

Cambodians are getting richer too. And this increased wealth in the capital; the growing number of investors; and the increasing number of tourists are all helping to boost Phnom Penh's real estate market.

Yet Phnom Penh is still at the beginning of a growth era, like Bangkok 20 years ago or Ho Chi Minh City 10 years ago. Property prices are cheap but they are moving fast - a traditional shop house along the river that sold in 2006 for $300,000 is now going for $600,000 to $700,000.

Cheaper property can still be found. Overseas specialists David Stanley Redfern Ltd are currently selling apartments in the chic riverside French quarter of Phnom Penh from as little as 49,000. Their authentic French colonial period buildings have been completely refurbished and modernised and are expected to appreciate by 15-20 percent per year. Due to demand, the developer is even offering a rental guarantee of 9 percent net for the first two years, making this a safe investment in an aggressively growing market.

Find out more about Cambodian property

About David Stanley Redfern

David Stanley Redfern Ltd is one of the U.K.'s leading overseas property investment specialists. The reasons for this are an incomparable range of international properties spanning 40 destinations worldwide, and unrivalled customer care, which lasts long after the purchase has been completed. Experienced, professional staff and membership to the overseas property market's regulatory body: the Association for International Property Professionals, as well as their stringent due diligence procedures gives buyers the confidence that any purchase with David Stanley Redfern is a safe one.

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