Cambodia - a country of enormous opportunitiesOverseas Property | 14 Mar 2019
According to the International Monetary Fund (IMF), Cambodia has been one of the fastest growing countries in the last two decades. Cecilia Wong, Director of Business Development at Penta Global Limited, emphasizes this is why savvy investors must not overlook this lesser-known, but very promising, investment option.
Cambodia - an overview
"For the last seven consecutive years, Cambodia has recorded a stellar economic growth of approximately 7% per annum," Wong explains. "This phenomenal achievement is supported by its young and dynamic demographics with an average age of 24.1."
The country has benefitted from its friendly relations with China. Under the Belt and Road Initiative, the construction of Pan-Asia Railway Network has encouraged the free mobility of population, goods, and capital in the region, as well as attracting Chinese capital.
Another incentive for property buyers, Wong suggests, is that there is no foreign exchange control in Cambodia. "The US dollar is commonly used in this country, especially for larger transactions, obviating any risks with currency exchange," she adds.
Many Hongkongers are under the wrong impression that Cambodia is politically unstable due to its chequered history, but Wong points out that the belief is far from the truth. "The Cambodian People's Party has been in power for 35 years, contributing to the country's stability. During the 2018 election, the party even won all the seats in the National Assembly."
Soleil 88 - a home for locals and expats
In Phnom Penh, Cambodia's capital city, the property market is growing with a strong momentum. "According to the Sweetome Hurun Global House Price Index 2018, this city is ranked the highest with a 16.7% growth in 2018," Wong explains. "At the city center, the land price has almost doubled that in 2016."
Wong recommends an outstanding property in Soleil 88, a mixed-use townhouse project in the Phnom Penh Special Economic Zone (PPSEZ). Just 9 minutes' drive from the International Airport, the development is in the vicinity of a growing number of international firms, such as Coca Cola, Honda, and Yamaha. Together with two industrial parks nearby, namely Vattanac and Canadian, there is a strong demand for residential accommodation for workers, both expat and locals.
Standing out from other old-style residential buildings nearby, Soleil 88 is endowed with a refreshingly contemporary design. "Many traditional buildings nearby pay little attention to the residents' actual needs, but this resident-oriented project will offer something different," says Wong.
The neighborhood is well-served by shopping malls and markets, as well as an established international schools network that addresses the needs of families with children, especially for expats.
In Cambodia, mixed-use buildings are definitely one of the most coveted unit types, especially among new start-ups. While the ground floor could be assigned as the office, the upstairs provides sufficient living space for the employer and staff. "As Soleil 88 offers up to 6 en-suites per townhouse, residents' privacy is ensured," adds Wong.
"It is impossible to find such a capacious abode in Hong Kong, let alone at such affordable pricing," Wong notes. "For Hong Kong buyers who want to be free from all the hassles, we also provide a rental management scheme. With an expected rental yield of 7% per annum, a 5-year investment plan will provide a cumulative return of 35%."
Penta Global (Cambodia) Co Ltd
Hotline: (852) 2816 2266