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High Times in Phnom Penh

The Kingdom of Cambodia is a rapidly changing society that still gets insufficient notice from investors, but actually presents many opportunities given the existing investment laws, that provide very generous incentives for investors. All economic sectors are open to foreign investment allowing 100 percent ownership of businesses and straight-forward rules on entering into joint ventures. This is still a developing market whose business-friendly government has seen overseas investors flocking to Cambodia to bet on the country’s relatively strong economic growth, which the Asian Development Bank (ADB) predicted to be 7.3 percent in 2015 and 7.5 in 2016.

Of the 15.67 million people in Cambodia, over 2 million people or 14 percent of the country’s total population live in and around in Phnom Penh. The population in Phnom Penh grows at a faster rate than in the country overall, with an estimated 8 percent per annum growth, made of a 3 percent in-migration rate and a 5 percent natural increase.

Real estate

Attractive real estate rules within Cambodia have seen it steadily attract investors and developers from around the region. Since 2010, foreign investors can acquire 100 percent ownership of apartments and condominiums, but this does not currently apply to land purchases. There are also no restrictions on the flow of currency into or out of the country and currently there isn’t a capital gains tax.

Although in the past decades the country witnessed political turmoil, in recent years the ASEAN member’s socio-political outlook has made a 180-degree turn-around, and it enjoys a relatively peaceful era under Prime Minister Hun Sen. The Kingdom has a young, dynamic, and hard-working work force with a nation-wide average age of 24.1 years, which means its existing labour force offers another 30 years of productivity. Hence the reason so many multi-nationals have set up in the capital with it's steadily burgeoning middle class.

Retail is a good indication of growth

According to a survey published in September 2015 by CBRE, Phnom Penh’s retail market continues to benefit from new international retail entrants, with food and beverage, fashion, accessories and cosmetics retailers driving demand for both shopping centre and high-street retail space. Q2, 2015 saw Aeon Mall, the country’s first international shopping centre, mark one year of operation.

The report adds that demand for prominent high-street retail space on Phnom Penh’s key boulevards continues to expand, driven by both international retailers and more established domestic groups, tapping into a workforce with an increasingly disposable income. Sihanouk Boulevard, as of Q2, 2015, enjoys minimal vacancy, typically commanding rents of between US$20-30 per square metre.

Residential

Condominium developments with full facilities are fairly recent additions to the capital’s skyline and location, as always is a determining factor when looking at investment returns. A rising expatriate community, fuelled by a growing economy that is attracting multinational corporations, is fast creating a high demand for rental properties in the city centre. Early investors in centrally located condominium developments have enjoyed strong capital gains of up to 30% from early off-plan purchases. The typical traffic congestion associated with a developing city, means that city centre residences are in high demand with their close proximity to business districts and high-end retail being a major benefit.

SunCity Bassac

A new architectural landmark is set to redefine exclusive living in the Kingdom’s capital. The 21-storey, SunCity Bassac houses 112 stylish units offering 1, 2 and 3 bedroom configurations, as well as a selection of penthouses. Overlooking the centre of Phnom Penh, SunCity Bassac is a modern tower of steel and glass, clad with lush plants and with a design that embraces natural light and allows magnificent views across Phnom Penh. SunCity already has a waiting list of prospective rental tenants.

A breathtaking infinity edged pool on the roof offers total immersion in the magnificent views of the city. There is an adjacent rooftop bar and sky gym that compliment the many great facilities on offer to residents and their guests. SunCity Bassac encapsulates all that city living has to offer, including easy access to shopping, transport, fine dining, business and professional services.

For a limited time only, ALFA Investors are offering a discount on the list price or combination of discount and free furniture package on the superb city centre apartments developed by Cambodia’s leading urban developer SunCity.

SunCity Bassac has 62.5-square metre, 1-bedroom apartments with balcony that start from US$186,250; 84-square metre, 2-bedroom apartments with balcony from US$250,320; and, 123 square metre, 3-bedroom apartments with 2 balcony terraces starting at US$366,540. These spacious accommodations offer excellent value for money in one of the most sought-after districts in this thriving capital.

If you would like to arrange a one-on-one meeting to talk to us or the developer about investing in SunCity Bassac or our other Resort and Villa properties please call +(852) 2110 8712 or email Tony Smyth, Head of Marketing at tony@alfainvestors.com.