An Expert’s Buying Tips for a Condo in Phnom Penh: The Ultimate Guide

Cambodia is one of the growing zones of foreign investment in Asia. Numerous people tend to think of it as a small area that is somehow behind its neighboring countries in terms of development, wealth, and population.

Phnom Penh is situated at the core of this growth, grabbing the attention of foreign businesses. The city is also eye-catching for expatriates thanks to its famous temples, spectacular French architecture, and vibrant street markets.

Usually, people buy two types of properties in Phnom Penh, namely, condominiums (condos) and shophouse apartments. The latter are commonly resold, rented, or renovated while the former can be quickly owned and maintained.

Know about property ownership in Phnom Penh

Purchasing real estate can be quite tricky, and this may depend on what you are looking for in a property. If you are a foreigner in Phnom Penh, for instance, try buying strata titles for condominium units. Usually, expatriates can purchase condominiums through a Cambodian land holding citizen or company.

If you want to invest in Phnom Penh, you should consider a standard condominium, though some condos are expensive. They do not often have the best returns, but they can be owned and managed conveniently.

Determine the cost of a condominium unit

If you want to invest in a condo in Phnom Penh, mid-range units cost about $2,600 per square meter, while luxury condominiums average around $3,250 per square meter.

Prices may vary for each location. Some areas have condominium units that cost $200,000.00 or more. Condos on the outskirts of the Phnom Penh, on the other hand, are priced at $100,000.00.

If you are looking for cost-efficiency, it is best to purchase a condo in Phnom Penh. It may not be the best investment. But if you are planning to buy one, you can opt for a luxury unit in an area that is up-and-coming for more significant returns on investment.

Familiarize yourself with the neighborhoods of Phnom Penh

Phnom Penh, being a busy city, appears to be modern, while some areas are almost untouched. To help you familiarize yourself with the neighborhoods in this city, purchase your condominium unit in a developed community that has excellent potential for growth.

It is highly recommended to buy a unit in the three neighborhoods of Phnom Penh, namely, BKK1, Daun Penh, and 7 Makara. These communities provide an excellent possibility for expansion along with the facilities and amenities suitable for expatriates.

7 Makara, for instance, is a less-developed community which is located near the riverside. Condominium costs in this area are relatively lower compared to that in the city, and new developments are emerging from time to time. Look for an exceptional yet affordable condo in this particular neighborhood.

Daun Penh, on the other hand, is situated in the center of the city, and it is where the central business district is found. Nevertheless, it is also where the most expensive real estate properties in Cambodia are located, especially those found along the riverside. If you have plans of buying a condo in this neighborhood, prepare at least $50,000 for a good one or two-bedroom unit with prices that increase as you go nearer the river.

BKK1 is regarded as an upscale residential community situated within the Chamkar Mon district of Phnom Penh. Through its upscale hotels, restaurants, and residences, it is undeniably one of the most preferred neighborhoods in the city. Units in this area are priced at $200,000 and above, and if you are seeking a place where you can settle down, BKK1 is one of the best options.

Research on property fees and corresponding taxes

Being an investor-friendly country, the taxes in Cambodia are relatively low. It will help if you research the annual property tax, which is around 0.1% of the market value of the property and goes beyond 100,000,000 Khmer riel or $25,000.

Thus, rental income is only at 14% for non-residents and 10% for residents. Expect that multiple deductions may apply, which results in a further reduction of the amount.

Look for a reliable property agent or developer

If you are not a resident of Phnom Penh, you are required to look for a legitimate real estate agent. This is because realtors will mediate with the local government for you. This will not be very easy if you are not knowledgeable of Khmer (the official language of Cambodia) or its local traditions and customs.

If you are looking to hire a competent real estate agent, you need to research on the developer of the condominium that you are planning to purchase. Buy only from a developer or agent with a good track record of excellent and professional work.

IPS was established in 2009. Browse through Phnom Penh real estate and Siem Reap property investment opportunities, especially handpicked for you. Find a place to live in our large collection of apartments for rent in Phnom Penh and Siem Reap.