A robust economy spurs growing interest in Cambodia's property marketOverseas Property | 20 Aug 2020
Buoyed by strong economic growth and an attractive investment environment, the Cambodia property market continues to trend upward with a surge in homebuyer interest.
The Cambodia real estate market has gained increasing favor from astute investors worldwide as the country’s economy has sustained a strong average annual growth rate of more than 7 per cent since 2010, making it one of the fastest growing economies in the world, according to the World Bank. A thriving job market as a result of the booming economy has bolstered demand for housing.
Wonder Development, a forward-looking Hong Kong developer, is seizing the opportunity provided by the boom. The firm has recently inaugurated the new residential project MESONG in Phnom Penh, Cambodia’s capital, set to be the tallest building in the bustling Southeast Asian country.
We sat down with Wonder Development’s management team, who probed into the investment potential of the Cambodia market and projection for future growth.
An emerging investment destination
“The consistently high GDP growth, coupled with a stable political climate, has brought more business investors and travelers to Cambodia,” said Gigi Chan, Founder and CEO of Wonder Capital Group and Chairman of Wonder Development.
An integral member of the ASEAN community and a major starting point of China’s Belt and Road Initiative, Cambodia has, in recent years, witnessed a massive inflow of investments, especially factories that have relocated or expanded there to capitalize on the cheap labor.
“As more businessmen and professionals move to Cambodia, it creates a surging demand against a limited supply of condominiums,” said Maverick Hui, Managing Director of Wonder Development. “In Phnom Penh, the rental yield is pushed up to 8 to 12 per cent, and assets appreciate by as much as 15 per cent a year.”
“With a low entry barrier, properties in Phnom Penh are much more affordable than other Asian capital cities, making it an ideal bet for investors seeking overseas assets to diversify their portfolios,” Hui said.
Cambodia has a large youthful population with an average age of only 28, which bodes well for its future economic growth. It adopts an open policy in welcoming foreign investment, with the FDI (Foreign Direct Investment) rising by 9.4% between 2013 and 2017. The real estate industry has been the main beneficiary of this robust capital inflow.
Jovi Wong, Executive Director of Wonder Capital Group, pointed out the use of US dollar – a safe haven currency – and tax benefits are the major attractions for foreign investors.
“The free trade policy allows for permanent ownership of properties by foreigners, and there are no foreign exchange controls,” he noted. “Buyers are driven by the high-yield returns on their property investment and many purchases are intended for buy-to-let.”
Opulent residence in the heart of Phnom Penh
Tapping into Cambodia’s solid economic advance, Wonder Development has recently unveiled its flagship project in Phnom Penh, MESONG, set to be the tallest residential building in the country. It will prop up in Phnom Penh’s most coveted location, Diamond Island.
Located at the convergence of three rivers – Mekong River, Tonle Sap River and Bassac River, MESONG is right at the doorsteps of Phnom Penh’s CBD, where embassies, five-star hotels, international schools, central park, malls, supermarkets and recreational facilities congregate. And it only takes 30 minutes to reach the Phnom Penh International Airport.
Chan underscored the significance of a prime location in property purchase. The accessibility and infrastructure of the neighborhood all translate into profitability on the investment and potential for asset growth, she said.
The project itself provides residents with an affluent lifestyle from its tastefully engineered facilities. Aside from the MESONG MALL, one can avail of the deluxe facilities of the exclusive members club MESONG GRAND located on the top floor of the development, and the fully-equipped MESONG CLUB opening to residents all year round.
Amenities including the likes of Prestigious Cigar Bar, Deluxe Mini Theatre, a 270° infinity pool and Modern-Chic Restaurant all evoke a sense of modern luxury.
Hui, who is in charge of the entire MESONG project, noted that Wonder Development has assembled a team of renowned industry experts covering the project’s architectural design and construction management to deliver uncompromised quality.
At the helm of the design team are British award-winning designer NOVO Architects, MOTT MACDONALD, a world-class structural and mechanical engineer, and Sanbase Corporation, an interior design and project manager listed on Hong Kong Stock Exchange.
For aftersales, renowned property management consultant Keystone-Savills is enlisted to provide top-tier service in property management and rental services for overseas buyers.
Providing a diverse apartment layout from 1-bedroom to duplex units, MESONG is targeted at high-end local and overseas buyers, said Hui.
“The international buyer group ranges from China, Hong Kong, Taiwan, Cambodia to Russia, with a majority of high-net-worth professionals like lawyers and accountants,” he noted. “Most of them are experienced investors with multiple foreign real estates under their ownership.”
Solid support from industry players
Wonder Development, a wholly owned subsidiary of a fund managed by Wonder Capital Group, has garnered solid local support from reputable Cambodian enterprises, including Canadia Integrated Enterprise Group, one of the largest conglomerates in Cambodia.
The recent groundbreaking ceremony and grand opening of the MESONG Gallery in Phnom Penh was attended by many dignitaries, including Neak Oknha Pung Kheav Se, Chairman of the Canadia Bank, who expressed enthusiastic support for the project.
“It’s my pleasure to meet all of you here and celebrate this remarkable moment for MESONG, the upcoming highest-rise building in Cambodia,” he said. “I’m happy to witness more and more investors coming to Cambodia, especially from the Asia-pacific region, to explore the immense opportunities in this country.”
A holder of Type 1, 4 and 9 Asset Management licenses granted by the Securities & Futures Commission of Hong Kong, Wonder Capital Group and its consortium have over $10 billion assets under management (AUM). The company is well placed to create a unique residence that will become the landmark of Phnom Penh, said Chan.
Looking ahead, Cambodia’s GDP growth is forecasted at 6 per cent in 2021, compared to an average of 5.2 per cent for South East Asia, according to the economic indicator from the Asian Development Bank. Chan pointed out that Phnom Penh will reap benefits from the opportunities brought about by the development of the Greater Bay Area.
“Phenomenal infrastructural advancement are underway, including the upcoming New Phnom Penh Airport, which will become the world’s ninth largest airport once completed, and the Morodok Techo National Sports Complex set to hold the 2023 Southeast Asian Games,” she said.
“The extensive developments will further enhance the competitiveness and attractiveness of Phnom Penh’s properties,” she concluded.
Real-time Live Online Site Visit
As a special promotion amid Covid-19, MESONG Ambassador will take you to Phnom Penh virtually to explore the surroundings of the project in real time
1-to-1 Consultation Service
Register by scanning the QR code or visiting https://bit.ly/3kBJG7j
Brand New MESONG Gallery
Visit the new MESONG Gallery in Star House to learn more about the project in a comfy environment
Address: Unit 835, 8/F Star House, 3 Salisbury Road, Tsim Sha Tsui, Hong Kong
Company website: www.mesong.com
Contact number: 2898 0866