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 2014 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.