7 Tips for Owning a Property in Cambodia

So You are Moving to Cambodia and you want to invest in a property, either to run a business or simply just to reside
or retire (like others did, and many of them are Westerners). If you are new to the Kingdom of Wonder, then there
are a lot of things you need to know. If you are coming from a developed country, you will have to understand that
absolutely everything here is different to where you come from. The cost of living may be high compared to other
South East Asian countries, but the average wage is very low at about $25 USD per week.

As a property consultant, it is my job to know the ins and outs of this business and through this article, I was hoping
that I can give some good guidance on how to buy a property within Cambodia. Here are the frequently asked
questions related to property investment in Cambodia, especially in Siem Reap.

1. Considerations when buying a Property or Business in Cambodia

With the improvement on rules and regulations set by the Government Administration, any foreigner can buy a
business within the kingdom. Here are the major expenses to consider;

● The purchase Price of the business

 ● The Property Rental Price per Month, and

● An understanding of the “Security Deposit” that covers any damages to the rented property

● Please take note that setting up a company costs you from about $900 - $1500, plus Attorney’s fees not
lower than $500.00

2. Interested in High-Rise Condominium or in Gated Communities?

During my last visit to Phnom Penh, I have counted at least 15 new high-rise buildings under construction while
on the rooftop of my hotel having breakfast. My thoughts were simple, “Wow! Who is going to be able to afford
to live in these buildings?” Siem Reap is a bit different. There is no high-rise building boom here other than all the
semi detached houses that are in the newly built gated community villages, also known as Borei in Khmer
language (allow me to correct myself, because here too there may be an over-supply of units). If you are
seriously considering investing in High Rise Condos, here are the following considerations:

● Bank Loan Repayments

● Body Corporate Fees

● Apartment Contents Insurance

● Financial Return on Investment via a tenant or a buyer for your apartment

3. Who can Buy and Who is not allowed to Buy?

It’s a
Golden Question that I normally hear from my customer “Who can buy a piece of land at ground level in
Cambodia?” In some countries, Foreigners are allowed to invest in property, but here in Cambodia there are rules
to follow.

If your citizenship is not included in the list below, then you will need more advice.

● Cambodians

● Chinese

● Vietnamese

● Other foreigners can only buy land or any building that is at ground level via NOMINEE system.

● Cambodian Government has a list of Foreign Nationals who are not allowed to buy property as per
decree.

4. How to secure property ownership?

This is a hot topic and often, my supposed to be short
presentation tends to become rather lengthy due to many
footnotes or anecdotes. In short, my clients prefer to have
more information to help them make the right decisions.

● You can buy a property through a nominee

structure in which you buy the property in a Cambodian
person’s name with provisions written into the agreement that
gives you full control over the property.

● You can buy a property through a local company (again with a written agreement).
 ● You can buy a property by being Married to a Cambodian, in which case both the foreigner and the
Cambodian’s names will be on the title.

● You can buy a property after becoming a citizen of Cambodia after Paying about $320k to the Cambodian
Government.

● You can buy a property after becoming a citizen of Cambodia and by doing some great work for the
Country or for the Cambodian Government.

5. Property Titles

Here are the types of property titles that they can issue to you as a buyer;

● Hard title - firm property boundaries established and set after agreements with neighbors and road
making and town planning authorities

● Soft title - The property has preliminary property boundaries not yet agreed to by the neighbors and road
making and town planning authorities. You may lose some land when the final property boundaries are
decided for the Hard title.

● Private Ownership via Strata Title in Co-Owned Buildings

Remember to check if you will also own a car parking space under the Strata title.

6. Zoning Rules in Siem Reap

Again, this is a hot topic and I need to put more effort on

explaining this clearly to my customers. The Apsara authority was
established to protect the Angkorian Temple heritage sites and to
also act as the counseling body responsible for deciding zoning
laws; residential, residential and combined with light commercial,
commercial, and heavy industrial, parkland, government owned
land, national heritage, etc.

● Tip 1: If you are going to, or planning to buy a property,

you’d better check first that your intended location it isn’t in an
Apsara zone. If it is in an Apsara zone, the Apsara authority can
legally take it away from you. It might sound absurd, but that is a
fact!

● Tip 2: Make sure you have an exact property location

marked out on a map and take it with you for approval.
 ● Tip 3: After it has been approved, you would want to have it in writing and signed by the authority that it is
OKAY for you to do what you plan to do on this property (there are some rules here though).

As for my personal experience, my wife and I consider ourselves lucky, because we are planning to own a property
that we really loved, but we just didn’t have enough money. When we told the story to a friend of ours who had
been a real estate agent for in Siem Reap for many years, he said we were fortunate that we didn’t buy it because the
Apsara Authority can take it away from us any time they wish and we would have lost a big amount of cash. It goes
without saying that this is a property that we at Temple City Real Estate will not be selling. Sometimes, the Apsara
authority changes their zoning borders, in some cases to accommodate certain projects. Example, the 772
Room-Sokha Hotel on Road 60 which is now, not within the Apsara Zone.

7. Prices. Prices. Prices.

● Simple Apartments: Western Style 1 bedroom-apartment (Semi or Fully Furnished) may range around $350
to $450 per month

● Luxury Apartments: Semi or Fully Furnished Western Style 1 bedroom-apartment is about $650 and more
monthly.

● Siem Reap Houses: Well-designed house (Semi or Fully Furnished) to suit Foreigners can be rented about
$500 per month.

● Siem Reap Private Villas: 3 to 4 bedrooms with swimming pool ranges from at least $1,200 per month while a
Large Villa with 5 or 6 bedrooms and a swimming pool will cost you about $2,500 monthly.

● Tip: If you are on a small budget, then why don’t you head outside of town. The prices of housing in rural
areas are lower in comparison to houses downtown, in or near the city center.

Overview of Siem Reap Property Market

Back in 2014, there were 450 Hotels and 50 under construction, 132 guest houses and numerous apartment blocks.
Now over the last three years, more hotels have been built as well as ‘too many to count’ apartment blocks have
been thrown up at a relentless pace.

It seems that there is no planning authority to regulate how many hotels and apartment blocks may be constructed.
There are now so many that it has pushed rental prices down by some 20% to 30%, and if the apartments are not
designed to meet western design and comfort levels, it will take much longer to find tenants.

Advice for Apartment Owners (and for Customers too)

1. The Right Proportions and Correct Floor Plan

 If you are planning to rent out your place, you need to study your location,
your building and your surroundings. In my personal experience, the
apartment blocks that bring a good financial return are the ones that have
been designed and built by Khmer refugees who have lived for 15 years in
some advanced countries such as America, Australia or in European
countries. They know how foreigners live and what their housing
requirements are, such as a suitable floor plan with the correct proportions
for bedrooms, living room, kitchen, bathroom, etc.,

2. Basic Housing Needs

Foreigners, especially Westerners, are much taller than Asians. The Furniture must be designed to be
ergonomically correct. Backrests must be high enough, and the seat squabs must also be designed so that
one’s back rests against the backrest when seated and feet comfortably resting on the floor.

a. Mattresses should not be as hard as rock.

b. Sofas must be soft (at least fit some upholstered cushions). If you want to improve the standards of
your housing and attract customers faster, change your wooden sofa set! Just a piece of advice,
Westerners spend at least 4 hours on a sofa just to lounge on weekdays, and 6 hours or more per day
during weekends.

c. Air-conditioning - For people who cannot stand the heat, Air-Conditioning is a must especially in a
house with poor ventilation. At least one in the living room and one in per bedroom. No westerner
wants to sit in their living room when it feels more like an American Indian sweat lodge. Believe me,
 ceiling fans just won’t do the work because they cannot remove humidity from the air. During
summer, the average temperature outside of your house is around 38 to 40 degrees Celsius. If you
are not new to Cambodia, then maybe it’s Okay. However, if not, then you will be needing it,
especially for Westerners who grew up in cold countries.

d. Additional Perks

Must Have: Hot water, Refrigerator, Cooker, Dining Table

The Wants: Washing Machine, TV with Cable connection, WIFI connection

Conclusion

One of the most important things to look for in a property is one in which you can have some peace and quiet and
most of all, it provides you with the same comforts as back home. For newcomers, just avoid renting or buying a
place near to Wats or Pagodas, as you may wake up by the sound of monks chanting at sunrise. If you like the
countryside and have no issues being greeted by roosters at dawn, then there are plenty of houses for you to choose
from. Avoid living near to where there is an open outdoor beer garden with live entertainment or a restaurant with
live music or DJ’s playing music, because in here, the appropriate volume control regulations do not exist. Siem Reap
is beautiful and peaceful (depending on the location). People are warm, friendly and hospitable (the majority).

If you are searching for your dream property here in Siem Reap, and are unsure where to start, please visit our office
here at Temple City Real Estate. Let’s sit down together and talk in order to establish your needs. With our level of
organization and the fact that we show you our properties on our very large TV on which you then choose the
properties you wish to see, we know straight away to which properties to take you to for an inspection. We can
assess together your targeted location and explain the four types of road surfaces to you and why they matter.
Because of the dry season and the muddy, wet season, the road surfaces are a critical consideration for your mode of
transport, walking, tuk-tuk, bicycle, motorcycle, car or four-wheel drive vehicle. We are sure that there is a right place
for you here, depending of course on your personal taste, preference and budget.

We created this article to provide you some of the necessary needed insights into the world of real estate (here in
Siem Reap). We hope that you liked it and find it useful on your quest of finding a space of your own.