New Sub-Decree: Foreigners Can Own 70% of Condominiums

New Sub-Decree: Foreigners Can Own 70% of Condominiums

The Mirror, Vol. 14, No. 674

“Construction development companies have received some information about a new sub-decree that allows foreigners to own about 70% of condominium buildings, in order to promote the real estate and the construction sectors in Cambodia.

“The sub-decree adopted by the Council of Ministers states that foreigners in Cambodia can have about 70% of ownership rights of houses.

“This figure is lower than that which had been proposed in the draft of the Ministry of Land Management, Urban Planning, and Construction which had determined that foreigners can own 80%. Nevertheless, this percentage is still higher than that had been proposed in the first draft about foreign ownership in 2009 which was only 49%.

“The spokesperson of the Ministry of Land Management, Urban Planning, and Construction, Ms. Nun Pheany, said on Sunday, ‘Such a decision is to allow Cambodians to own more real estate in order to prevent too much ownership by foreigners.’

“Though the percentage for the control of real estate by foreigners is now lower, the sub-decree is still a starting point to encourage foreign investors to help develop the real estate market in Cambodia.

“Ms. Pheany believes that to develop that field cannot rely only on local buyers.

“Analysts agreed that the adoption by the government about the ownership rights of foreigners can help to boost the Cambodian economy that is being seriously affected by the global financial crisis.

“Prices of land and houses in Cambodia declined by 40% to 60% compared to 2008 when prices went sky-rocketing.

“A senior partner of the Sciaroni & Associates Company and a legal adviser to the government, Mr. Bretton G. Sciaroni, said on Sunday that the sub-decree will provide a new opportunity for the Cambodian economy. He said, ‘It can help Cambodia in many ways. It helps create not only long term operations, but also attracts new foreign investors. He thinks that the sub-decree will turn Cambodia to be a country with some attraction in the region, as the decree is not too strict compared to neighboring countries.

“He said, ‘We are more open and have a better atmosphere than Thailand.’ In Thailand, foreigners can own houses merely up to 49%.

“Companies constructing satellite cities in the Phnom Penh area welcomed the decision of the government and hope that this will assist the development of the real estate market in Cambodia and increase the selling of houses, when investors can purchase more real estate property.

“The director of the construction project on Koh Pich island, Mr. Touch Samnang, said, ‘This sub-decree is good for the development of the real estate market in Cambodia. We expect that through the provision of ownership rights, more foreign investors will consider investing in Cambodia.’

“His company is constructing 168 houses and villas at Koh Pich island, and this has been achieved already by 40%.

“The executive director of the Bunna Realty Group, Mr. Sung Bunna, thinks that this sub-decree will make Cambodia become an attractive place for foreign investors. But he warned that this sub-decree alone is not sufficient to attract investors to come to Cambodia, adding, ‘Cambodia needs to have other incentives.’” Phnom Penh Post [Khmer Edition], Vol.1, #217, 19.7.2010

This article was first published by The Mirror, [3] Vol. 14, No. 674 - Monday, 19.7.2010
Have a look at the last editorial - you can access it directly from the main page of The Mirror. [3]

Norbert Klein is the Editor of The Mirror [4] – The Mirror is a daily comprehensive summary and translation of the major Khmer language press - More about The Mirror [5]

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