Showing posts with label Phnom Penh Post. Show all posts
Showing posts with label Phnom Penh Post. Show all posts

Friday, 18 December 2015

FAQs on Investing in Cambodia





Cambodia Investment Opportunity




Why should i buy property in emerging markets like Cambodia?


Property investment in emerging markets are typically seen as investments with higher risks, yet they also come with higher potential returns.


However, investment in emerging markets has seen an increasingly safe investment environments while benefiting from more attractive capital growth rates than developed markets.


Moreover, the pricing of the investment is only seen as a fraction as compared to developed markets which yield higher return on investment.


And currently, a slowdown in economic growth in particularly visible across many developed markets, which can lead to uncertainty in capital growth and yields as compared to staggering economic growth that countries like Cambodia can achieve.





Is now a good time to start buying property in emerging markets?


Economic uncertainty has knocked confidence among investor everywhere, but it is believe that Asia remains the global growth engine and the fastest developing region in the world. Cambodia, for example has performed well in the past year. We are witnessing an increase in positive sentiment and overall confidence.





How easy is it to invest in property in Cambodia?


When it comes to high-rise condominiums and low-rise residential terrace houses, Cambodia is no longer in its infancy.


There is an indication of 12.9 million sqft of development set to enter the market by 2018 as the pace of construction is “booming”.


Projects are estimated to be able to fetch a net yield of about 5- 6 % rental yield. Some notable projects like The Peak and The Bridge by Singapore Mainboard listed developer Oxley and also The Gateway by Singapore Tiong Aik Developer, have gained strong presence and support from local and foreign buyers for their modern and trendy design, as well as located at prime area.


Ease for investing in Cambodia properties come typically easy since 2010 condominium law, for instance, allows foreigners to own condominium apartments through freehold strata title tenure, although it is restricted to 70% of the total units within an individual building from the first floor up.





What are the typical risks involved when it comes to investing in property overseas?


Additional risks come with property investments in a foreign country compared with those made locally.


These includes foreign exchange and political risks.


If the currency of the country that your property is in depreciates against the Singdollars, the gains made by your investment will be eroded even if your property value rises. However, Cambodia property investment come in US Dollars which provides investor with a safer currency.


Investments may also be affected by any political instability or policy changes in the country you purchase property in.





How much of my portfolio should be invested in emerging market properties, and why?


Investors should allocated their capital according to their risk appetite. Emerging markets real estate could be considered from an institutional investors’ point of view, not only because of global uncertainties but also because of diversification benefits.


Direct real estate investment opportunities are bulky, unique and require long holding periods. They should therefore be judged based on their own merits as an when they become available, regardless of the cycle the local property market is in.


Retail investors on the other hand, should consider both securities and direct real estate to balance their risk profile.





What do i need to do before buying into a project in an emerging market ? How can i make sure my investment is secure?


Doing your homework is the key.


Investors should have a good understanding of the location of the property they are buying, its employment and rental outlook and its regulations or restrictions on foreign ownership.


And if you are looking to buy residential property, always consider developers with a strong track record.





How easy is to get money out ? When should i make an exit?


One golden rule of investing oversea is to follow closely the correct procedures imposed by the local government, be it for bringing funds into the country or fulfilling the necessary tax requirements when selling the property.


Investor should always make plan for their exit strategy for the property investment.


If the investment is part of a diversified portfolio and will form part of your retirement fund, then usually a medium- to long- term strategy should be considered.


If the investor has some spare cash and wants to explore investing in emerging market, then short or medium hold may be more suitable.


At the same time, investors as a safeguard should always stay liquid.


You don’t want to be stuck in a situation where you need cash but you can’t get it out of an investment.





How do i get loan?


Financing options may be limited as not all banks finance overseas property purchases, particularly those in emerging markets.


Currently for property investment into Cambodia, Bank like Maybank Cambodia is able to finance most development up to 50% of loan quantum.


As the market continues to show signs of improvement, the difficulty is finding good-quality products. Sourcing for loans is easier part of the investment.






FAQs on Investing in Cambodia

Tuesday, 8 December 2015

Cambodia Firm registry moves online

Image from Phnom Penh Post by Pha Lina

Image from Phnom Penh Post by Pha Lina


Online Business Registration come as a good news for future Cambodia firms. Local and foreign firms looking to register their business in Cambodia can now do it from any internet-connected device after the Ministry of Commerce yesterday launched its long-awaited online business registration portal.


The new, paperless system enables prospective businesses to search for a company name, upload shareholder and board of directors’ information and pay the registration fees online, as opposed to the old system where representatives had to physically go to the ministry to complete registration procedures – a time-consuming process that also created opportunities for corruption.


The online registration system was developed by Foster Moore International, the same software registry company that developed an online registry for New Zealand, which led all countries in the World Bank’s Doing Business 2016 report in terms of speed of starting a business. New Zealand companies can incorporate online in a single afternoon, the report noted.


Cambodia’s $750,000 registration system requires firms to upload a memorandum or article of association, as well as proof of address and identity cards for company directors. Once submitted, the registering company can use Acleda Bank’s online payment gateway to pay the relevant fees, though the minister said other banks were open to provide this service.


The new online business registration system will go live next month. Read Full Article at  http://www.phnompenhpost.com/business/firm-registry-moves-online


How to have a Cambodia Firm without a office space to hold your operation ? Here are a few Cambodia Phnom Penh Grade A offices for business owner to look into. This includes The Peak and The Bridge by Singapore Mainboard listed developer Oxley and also The Gateway by Singapore Tiong Aik Developer



Cambodia Firm registry moves online

Monday, 31 August 2015

Singapore investors moving into Cambodia real estate

The Peak RiverView


Singapore property investors are dipping their toes into homes in the Emerging market of Cambodia real estate, though in relatively small numbers.


In August, Singapore Mainboard-Listed developer – Oxley Holding, preview launch Tower 1 of the 55-storey The Peak in Singapore.


Only 16 levels of the 507 units Tower One was released in Singapore Preview Launch.


A number of Studio units, out of 32 units released were snapped up by investor following the launch.


According to Developer’s releases information, a Memorandum of Understanding were signed between them and Shangri-La Holding dated back to 23 October 2015 and a further agreement with Shangri-La international hotel management Limited to manage and operate hotel in Phnom Penh was released on 27 April 2015.


Following Singapore Preview Launch, it will be Taiwan and then Cambodia Preview Launched.


Construction for the development is estimated to conclude in Dec of 2020.


According to Phnom Penh Post, the developer earlier project – The Bridge which is estimated to complete in 2018, had seen 100 per cent of the development’s residential 762 apartments, penthouses and residential units been taken up and the others SOHO units about 80% sold.


Meanwhile in March, a Singapore developer – Yuen Development, launched phase one of the 17-storey La Vie Residences in the capital Phnom Penh and also Cambodian developer SGPD Corporation launched The Skyline on May 24, a mixed development in the heart of Phnom Penh’s central business district.


According to Asiaone, Yuen Development chief executive Darren Yap said 60 per cent of the 180 units (Phase One) in the Chroy Changvar precinct have been sold.


Also, Anthill Realtors, the agency managing sales, has reported that 70 per cent of the 792 residential units had already been sold since the preview in March.


Buyers of all the earlier development comprises of Investor from Singapore, Taiwanese and Cambodians with the bulk of them being Cambodian.


“As a foreign investor, you want to buy a product that local people want to buy, because it is safer for a resale market.” Said Ms Rhonda Wong CEO of Anthill Realtors.


Many buyers were entry-level investors drawn by guarantee rental yield.


Another draw is that for some others projects such as The Peak, buyers fork out only half the purchase price before completion.


Looking forward, with more and more development becoming available to Singapore’s Investor, Cambodia will become the next investment hotspot in Singapore.



Singapore investors moving into Cambodia real estate