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Issue 03 | February 2017 |

Life Cycle Costing: What Does It Mean And How Can It Save Me Money As A Property Owner?

Property Management In Cambodia: Trends & Developments

Cambodia’s Changing Landscape Of Commercial Building Management

Khmer New Year: The Most Awaited Festival In The Kingdom

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Issue 03 | January 2017 |


Property Management in Cambodia: Trends & Developments BY GRANT FITZGERALD PAGE 8

Cambodia’s Changing Landscape of Commercial Building Management BY NIGEL DOUGHAN PAGE 14

Lifecycle Costing: What Does it Mean and How Can it Save Me Money as a Property Owner? BY DAVID MURPHY PAGE 2 2

NEWS & LIFESTYLE Khmer New Year: The Most Awaited Festival In The Kingdom BY VATHANAK TIM PAGE 10

Phnom Penh Featured Properties PAGE 1 8

5 Qs to Ask Before Hiring a Property Manager PAGE 2 0

Siem Reap Featured Properties PAGE 24

Staff Picks: Where to Eat in Phnom Penh PAGE 2 6

Understanding Real Estate Fees BY DAVID MURPHY PAGE 31

Chbar Ampov: The Next Growth Corridor BY SOVANNAROTH KHAN PAGE 3 2

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Happy New Year and welcome to the 3rd issue of Cambodian Property Investor! MANAGING DIRECTOR, DAVID MURPHY

As Cambodia continues its rapid development, we are often engaged to take over the completion and ongoing management of commercial and residential buildings. It’s a welcome challenge and one we have carved a strong reputation in. Through these opportunities, we are constantly reminded of the lack of planning and understanding of the ongoing needs of building and tenant maintenance. This issue is our attempt to address this knowledge imbalance. Our Country Manager, Grant Fitzgerald gives us his first-hand experience of the current property management market, Head of Commercial, Nigel Doughan explains the importance of property management in Commercial Buildings and its impact on a buildings grading. I touch on the concept of Life Cycle Costing and it’s ability to save money in the short and long term. It’s not all Property Management though, as our Marketing Manager, Jillian Oco takes us through a photographic piece detailing the favorite eating establishments of our staff. Residential Agent, Vattanak Tim gives us the lowdown on the Khmer New Year Holiday. We’ve also got articles on Valuation, a breakdown of Cambodian real estate fees, and a myriad of great properties for sale and rent in Siem Reap and Phnom Penh. Sit back, relax and be informed about the Cambodian property market and the subtle science that is Property Management.

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I P S - C A M B O D I A Independent Property Services


#182 St 63 BKK 1 +855 77 959 861 DAVID MURPHY Managing Director GRANT FITZGERALD Country Manager NIGEL DOUGHAN Head of Commercial Leasing MIKE HASELWOOD Head of Property Management JILLIAN OCO Marketing and Communications Manager SYTO NHIEV Property Consultant


#618, Wat Bo Road +855 17 843 423 ANDREAS REITERER General Manager DAKA KUN Branch Manager PARY HOUR Property Management Officer SILEN BORA Property Management Officer PHON BORA Property Management Officer

Independent Property Services ( is the leading agent in the booming Cambodian real estate market, with two offices in Phnom Penh and Siem Reap, providing premium real estate opportunities for international and local clients. For inquiries:

Want your business to be in the next issue of Cambodian Property Investor Magazine? E-mail us at or find us on


P roperty management is becoming increasingly

important for Cambodia’s fast-growing serviced apartment and condominium sector. Effective property management plays a critical role in maximizing the life, assets and the all-around aesthetics of a building. In addition, delivery of building services is now playing a significant role in attracting and retaining tenants, as complexes search for a point of difference in a market rapidly growing in supply. From commercial buildings to single properties to large serviced apartment/condominium buildings, the property management sector is currently a mix of owner-managed properties delivering minimal services on a budget, to professional companies providing “full services” with varying success. Professional property management is a relatively new concept in Cambodia,

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however, this is starting to change. Given the number of new commercial, apartment and condominium complexes being built in Cambodia, it’s a good time to analyze the property management sector.

their responsibilities. When items such as common area electricity, common area water and management fees don’t get paid, the building and its facilities can fall into disrepair quite quickly.


With the sheer volume of condos coming onto the market in the next 24 months, it will be interesting to see who is capable of delivering property management services for condominiums. As things stand, quality property management in this sector is hard to come by.

Property Management for both small and large residential apartment complexes has traditionally been the home of “family management”. Many complex owners are currently unwilling to pay the required fees for a professional management company with experienced staff, instead settling for cheaper options, often hiring family members with limited capabilities. This underskilled labour more often than not delivers services that leave a lot to be desired. This style is slowly changing as owners begin to see the value of quality property management in retaining tenants in an increasingly competitive market. Customer service is extremely important, when an air-conditioner breaks in April it doesn’t take long for tenants to start complaining loudly if communication is not sufficient and repairs are not carried out quickly. It’s small issues which can often be the deciding factor for a tenant to extend their contract or move on.

CONDOMINIUMS Managing a condominium complex can be an enormous undertaking in any market and the property management sector for condominiums here in Cambodia is firmly in its infancy. With Condominiums come the concept of sinking funds, body corporates and monthly management fees and condominium legal ser vices. Currently, there are only a few condominium complexes online but we have already seen a number of international service providers struggle to implement & manage the required services. There are a number of challenges which need to be looked at; firstly, there are a lot of information gaps amongst the staff delivering these services. More time will need to be spent training staff on how to implement and deliver building policies and procedures. Secondly, condominium owners need to understand and follow through on

THE COMMERCIAL SECTOR In the commercial sector, more international corporations are setting up offices in Cambodia, and often, as part of their lease, require professional property management services to be delivered in their chosen office building. Large corporations will take a 5-10 year lease and fit-out costs for a large office can easily exceed USD$1M. Given the commitment and size of the investment by these companies, it’s not surprising that they are concerned about who is managing their building - it poses a legitimate risk. In the last quarter, IPS was engaged by 3 large commercial buildings to provide and implement building set up documentation including, tenant handbooks, fit-out guidelines, building rules & regulations, standard operating procedures and emergency procedures. We expect this trend to continue as owners acknowledge their tenant ’s requirements and the limitations in what they can deliver through traditional “family management”. The future of property management in Cambodia will be interesting to watch unfold. Buildings that choose to ignore the importance of property management in managing and maintaining their building, and attracting/retaining tenants will do so to their own detriment. I believe there will be a shift away from “family management” as owners will be pushed into engaging professional management services in order to meet the needs of the market and its tenants.

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New Year countdown in the Kingdom of

Wonder may not be your usual extravaganza of lights and sounds, with the local celebration coming in the form of incense, prayer rituals and generous feasts - all these in the peak of the hot season. IPS agent Vathanak Tim takes us through the celebration that is Khmer New Year. Bun Chol Chhnam Thmey, also known as the Khmer New Year is celebrated nationwide in April for three days and marks the end of the harvest season and celebrates the start of a new year. Traditionally, this is the time of the year when most Khmers count themselves a year old, making this every Cambodians birthday, in a sense. Each day has a set of activities and representation in every Cambodian household. The first day is called Sangkran, where locals bring food to the monks at the temples and receive their blessings. Sangkran is the ending of the year and the commencement of the new year. A particular custom to Sangkran is the washing of the face with holy water in the morning, chests at noon and feet in the evening. This practice bestows good luck on the person. The second day, Wanabot, is the day when families gather and present gifts to parents, grandparents, and elders. It is also the day in which families provide charity to those less fortunate than themselves. Families attend dedication ceremonies to their ancestors at monasteries. Lastly, on the third day is Leung Sak day, this marks an important traditional ceremony called “Pithi Srang Preah” which in Khmer means giving a holy bath to Buddha statues,

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monks, grandparents, parents, and elders in order to apologize for any mistakes made during the last year. By washing the people are able to wash their bad deeds away and it is also thought to bring happiness and prosperity in life. For Cambodians, it’s not just the New Year celebration, but it’s an opportunity for families to reconnect after the annual rice harvest which the completion of coincides with the New Year. It is a very joyous time for Cambodian’s where families play games and feast on traditional foods, in particular, ‘Kralan’ which is a cake made from steamed rice, beans, grated coconut and coconut milk roasted in a bamboo stick and roasted. It’s delicious! If you happen to be in Siem Reap, this is a good time to join the local celebrations within Angkor Wat, Bayon temple, and the Elephant Terrace. Prepare for a lot of dancing, trade fairs, and traditional games. In Phnom Penh, expect side road parties and fireworks. Flanking Sothearos Boulevard, Wat Botum Park would be the place for traditional games and activities. Khmer New Year is a good time to go and check out the countryside, or join the local celebration almost anywhere in the city! Susaday Chhnam Thmei!

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C ambodia’s thriving economy, the relative

ease of conducting business in the Kingdom and it ’s extremely convenient location for doing business in ASEAN makes P hnom Penh an attractive option for opening a new office. The new office space decision has many influencing factors, not least of which is who or what company will be providing the guidance and management for the building on an ongoing basis. Historically, office buildings in Phnom Penh were owned by individuals or families and were run by the owners’ sister, a cousin, the uncle and sometimes the family pet. W hilst this was accepted as the norm, it was never really embraced by multinationals and cor por ations, par ticular l y those seasoned operators from other markets that had vastly different expectations of commercial building management. Recently, however, several serious building oper ators have seen the value in hir ing a professional property management company. Phnom Penh Tower, Canadia Tower, PiPay Tower and Vattanac Tower have all engaged professional b u i l d i n g m a n a ge m e n t c om p a n i e s a n d t h e occupancy rates illustrate the effectiveness of having the right management team on board. Commercial building property management is probably the most varied and all inc lusive ser vice offered in the real estate industr y. Commercial management includes such things as advising on leases, both content and detail,

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ser vice charge allocation and collection, rent payment collection, budgeting for running costs, debt recover y, staffing for reception and other ser vices, account management, repairs and maintenance, credit control, accounting, sourcing, procurement, compliance, asset management and health and safety. Other critical factors such as emergenc y response procedures, evacuation procedures, and fire systems maintenance, whilst hopefully not required, can have a tremendous impact on the safety of all building occupants. W ith such a diverse range of ser vices to be delivered, it is no wonder recognizable and capable management is a key component when calculating the quality grading for commercial buildings. International building grading systems state that in order for a building to reach an A grade standard, that they should use a “Professional property management company with not less than 5 buildings under management (of not less t h a n 5 , 0 0 0 s q m e a c h ) , o r w i t h re l e v a n t international experience.” Even to be classified as a B grade building, “well- organized property management ” is a base requirement. Professional property management companies are essential in the changing office landscape in Cambodia. Gone are the days when companies just accept the status quo, multinational tenants now demand the highest levels of ser vice when it comes to office building management.

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PHNOM PENH FEATURED PROPERTIES IPS-CAMBODIA OFFERS FREE real estate services whether you’re finding the ideal rental property or looking to take advantage of Phnom Penh’s real estate investment opportunities.


Luxurious 2Bedroom Condo Near the Riverside 2

USD 440,000


THIS AMAZING DUPLEX CONDO is now available for the first time in Condo 240, Phnom Penh. Featuring two large double bedrooms, both with built-in robes and ensuites, a study room with built in desk and extra storage space. With perfect views of Phnom Penh’s skyline, this is a rare opportunity to purchase a luxurious apartment in one of the city’s most sought after developments. (Property ID: 4798)


Modern Serviced Apartment in BKK3 2



This two bedroom property is a perfect fit for anyone looking for a modern, spacious and comfortable home right at the heart of Phnom Penh. The open plan layout consists of a modern kitchen, dining and living room furnished to a high spec and flooded with natural light. (Property ID: 4830

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PHNOM PENH FEATURED PROPERTIES LOCATED CLOSE TO THE Royal Palace, National Museum, Riverside, and entertainment area, this well-established business is suited to both tourists and business stays. The hotel features 23 wellsized rooms, with standard, deluxe and family suites to choose from. Facilities include a restaurant area, bar, pool and lounge area.


Perfectly Located Hotel Business USD 150,000




Fully Furnished Two Bedroom Apartment in Toul Tum Poung USD 750 / MONTH



LOCATED ON THE 6TH FLOOR of a brand new apartment complex in Toul Toum Poung, this two bedroom apartment is available now for rent. The property is fully furnished and includes modern kitchen, large living area connected to an expansive balcony. The rental price includes cable TV, wifi, cleaning, security, parking and access to gym facilities. (Property ID: 4057)

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5 QUESTIONS TO ASK BEFORE HIRING A PROPERTY MANAGER Owning a property in the Kingdom, whether a commercial building or a single apartment is a multi-tasked job—

building maintenance, financial management, dealing with tenants and dealing with authorities are just a handful of issues that you must learn to juggle. So why not hire a property manager? Consider your answers to the five questions below to see if a Property Manager could work for you.

HOW FAR DO YOU LIVE FROM YOUR RENTAL PROPERTY? Proximity matters. Living a stone’s throw away from your rental property will not make regular visits an inconvenience, and it will easily allow you to keep an eye on things like minor inspections, collections, and maintenance. However, if you live in Kampot province and your rental property is in BKK1 Phnom Penh, the travel can be a costly inconvenience. Some investors don’t mind traveling and favor the more practical monthly visits, but one must keep in mind that instances like emergencies requiring the immediate presence of the owner will occur. It is important to determine if a long-distance setup is reasonable; if not, hiring a property management firm is the best way to go.

HOW WELL DO YOU DEAL WITH STRESS? Tolerance to stress is a big factor owners must consider. You might think you can handle stress well enough in a hands-on management setup, but you can never really tell how long you can sustain your composure and patience in the wonderfully unpredictable Kingdom of Cambodia. When dealing with local authorities you can’t afford to lose your cool, there are processes that must be followed and a certain way of doing things that is unique to Cambodia, appointing a property manager to liaise with the authorities can be a genuine stress saver.

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HOW MUCH EXPERIENCE DO YOU HAVE WITH MAINTENANCE AND REPAIRS? Building maintenance should not take the back seat and always needs to be part of a long-term plan. A property owner does not necessarily need to know how to deliver the maintenance and repair tasks, but they must be able to engage and manage those who can. The cheapest repair is nearly always the most costly solution over time in Cambodia. Only engage reputable, capable contractors who provide work guarantees. If you’re not well-versed in this area, don’t hesitate to hire the expertise of a property management firm.

ARE YOU WILLING TO BE ON CALL 24/7 ALL YEAR ROUND? Emergencies, no matter how small, are inescapable in the property game. When your tenant has an issue whether it be water related from Cambodia’s inescapable flooding or electricity issues due to rolling brown-outs in the hot season, your tenant is going to call you and it is always on a Sunday, probably Sunday night. Most of the time the issue can’t be fixed because it is out of your control, but you must attend the property, investigate, make safe and do all you can to repair. There are better ways to spend your time. Property management companies, on the other hand crave this attention and seek these opportunities. Hire one.

FINANCIALLY SPEAKING, IS MANAGING YOUR PROPERTY THE BEST USE OF YOUR TIME? How you choose to spend your time may be the most important factor to consider when deciding to engage a property management company. What is the opportunity cost of the time spent managing the property and the tenant within? What else could you be doing? Working where the financial return is greater than the property management task at hand? or spending quality time with family and friends. Full-service Property Management in Cambodia costs an average of 10% of the rental fee, given the scope of services and the 24/7 coverage provided Property Management just may be a very good value proposition.

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B efore moving to Cambodia and founding IPS, my previous life involved pouring

over detailed financial models to determine the most cost-effective outcome for Public Infrastructure projects - Hospitals, Schools, Universities, Defense Facilities etc. When these public assets are broken down to a micro level, and the service components removed, you are effectively left with a Building Asset with many moving parts. A significant part of my role was to ensure these buildings and those items within it operated at optimum efficiency and maintained full durability at the lowest possible cost. Lifecycle Costing, also known as Whole of Life Costing ( WOL) is about assessing the total cost of building ownership. It takes into account all costs of acquiring, owning and disposing of a building. Why Cambodian property owners need to consider Lifecycle Costing (LC) is very simple – it’s a great way to minimize cost and maximize income from your property investment. Given the relative level of sophistication of LC, I can understand single property owners dismissing the need for it, however, the principles apply whether the property

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is a 30sqm studio or a 20,000+ sqm commercial building. The key to understanding and implementing an LC model is to create an Asset Lifecycle Plan. An Asset Lifecycle Plan is a simple list of all assets within a structure and their detailed tasks and frequencies for maintenance, refurbishment, and replacement. To create an Asset Lifecycle Plan start by listing all assets within your building including floor coverings, wall claddings, sanitary plumbing, electrical systems, cooling systems etc. For a smaller property it’s relatively simple, the items would be floor tiles, internal and external painting, bathroom fixtures and equipment, kitchen fixtures and equipment and airconditioning units. Let’s look at one of these items to get a feel for the process; internal and external painting. From experience, we know that most properties in Cambodia need to be repainted every three years. Instead of just repainting ever y three years, let ’s implement a preventative maintenance program that requires the internal and external cladding to be washed down every 12 months. The easiest way is a bucket of sugar soap and some elbow grease. An average home should take 1 person less than a day to clean. By cleaning the walls every 12 months you remove the buildup of dirt and effectively increase the longevity

of the paint, by the third and fourth years you might need to do some spot painting to refurbish high use areas i.e. around doorknobs and light switches. Assuming normal wear and tear and the annual cleaning of the walls, the requirement to do a full repaint of the property should be increased from 3 years to every 5 years. Assuming an economic life of the building of 30 years (in the West we normally calculate this to be 25 years, in Indochina the reality is closer to 40). Under the old regime, we repainted every 3 years and therefore we repainted 10 times during the economic life of the building. Adhering to our Asset Lifecycle Plan we cleaned ever y year and only repainted 6 times over the journey, a saving of 4 full paint jobs over the life of the structure. The cost of the cleaning is negligible – a couple of dollars on detergent and a day a year in man hours. We’re not just saving paint, we’re also ensuring that income derived from the building is maximized by reducing the downtime – painting is a disruptive task and almost always requires the property to be untenanted at that time. The example above is a simple one but it highlights the opportunity for building owners to minimize their cost and maximize their income by adhering to the principles of Life Cycle Costing for their property.

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SIEM REAP FEATURED PROPERTIES FROM MODERN APARTMENTS to French colonial villas, Siem Reap offers a diverse choice of beautiful homes in thriving suburbs, rich with quality entertainment, restaurants, markets and schools.


Modern Condominium For Sale USD 850,000 7

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THIS NEWLY BUILT, expertly designed block of condominium units is located close to Leu Market and National Road 6. Featuring seven, fully appointed and equipped units, with modern decorations and interior finish. Safe and secured parking and 24-hour security available. A communal outdoor swimming pool offers the perfect spot for entertainment and relaxation. Total land size of 588 sqm. and building size of 286 sqm. (Property ID: 4725)



Centrally Located Luxury Penthouse USD 320,000



This top class property is located in a prime residential development, only five minutes walk away from Pub Street and Old market. The property is fully furnished in plush contemporary furniture, high-end appliances, complemented by a stylish, designer interior finish. A communal swimming pool is featured on the rooftop terrace together with a refreshing view of the city, a definite highlight of this upscale residence. (Property ID: 4850)


Siem Reap Luxury Estate For Sale 3


USD 1,000,000

This fabulous home is located in Slor Gram, a private, luxurious haven, sheltered from the hustle and bustle of the city. Fully furnished and equipped with a stylish combination of classic wood furniture and modern appliances. Featuring three deluxe bedrooms, four bathrooms, living room. a western style kitchen and a huge balcony, overlooking a refreshing view of the tree-lined surroundings. The massive outdoor space is filled with luscious landscaped gardens, creating a pleasant atmosphere throughout the property. (Property ID: 5036)

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STAFF PICKS: WHERE TO EAT IN PHNOM PENH Phnom Penh is inarguably one of Asia’s fastest-developing city, and with that, the culinary scene is also changing just as quickly. “Local Experts. International Team.” is more than just an IPS tagline as we show you our go-to places for eating and drinking from both Khmer and Expat perspective. Foodie in the Penh? We got you covered!


With more than a dozen outlets all over Phnom Penh, Brown Coffee, with its bustling crowd of early risers and young’un caffeine dependents, is definitely hard to miss. Prices vary from $2.50 - $3.85 for a wide selection of brewed coffee to espresso-based drinks, and delicious iced coffees to frappes.


Sweetened condensed milk, crushed iced, and some parts dark coffee - you can easily spot this famous iced coffee in plastic cups hanging on Khmers motos early in the morning. For roughly a dollar, you can wash your sleepiness away and replace it with a sweetened coffee high. Don’t forget to say “skar tech” if you don’t want your coffee too sweet.

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Bai sach chrouk, or barbecued pork over rice is probably the most common breakfast in the Kingdom. As if the smoky and caramelized taste is not enough, it is also best served with fried egg, a few slices of cucumbers and gingery sauce on the side. Ranging from $1.50 - $4 depending establishment, the selection is good value compared to western breakfast outlets.

Mi Cha is stir-fried rice noodles or a thin packaged instant ramen noodles, mixed with soy sauce, fish sauce, fried egg, leafy greens and bean sprouts. You can flag mobile vendors and they can prepare it for you in less than 5 minutes for half a dollar. You can add sweet and spicy sauce or chili paste or both.


Famous for their wide selection of fresh and tasty sandwiches, Banh Mi also serves soups such as Beef Stew and Chicken Curry and you can either pair it with bread or rice. Their Caramelized Pork Belly sandwich and Croque Monsieur is also a must try.


Made with delicious pork broth and yellow egg noodles, this dish is available all throughout the day in almost every local sidewalk shops. The meat toppings can vary according to your preference, it can have beef, pork, chunks of boiled chicken or meatballs. Squeeze a bit of lime and you’re good to go!

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Sovanna at street 21 is a consensus choice of the group since it offers something for everyone. For $2 - $6 per plate and a great array for a menu, Khmer families and expats finds this restaurant a great place to enjoy local cuisines.


For authentic Indian, Pakistani and Nepalese food, Mount Everest probably has the best selection in all Phnom Penh. Located at #63, Street No. 294, go for buttered chicken, curries with special Indian herbs, and beef kebab. Prices vary from $5-$7. Don’t forget to try Mango Lassi for dessert!

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There are many bars in the capital but the Cambodian after-work crowd usually head to beer gardens for draft pitchers that come with peanuts or mixed fruit and vegetables topped with ice. Some beer gardens also offer karaoke services and menus of the tastiest choices of Khmer BBQ.


Rock n’ roll ambiance with a weekender vibe, El Capitán is a great place for $1 draught beer, live music, and billiards. The friendly local staff also serve tasty and affordable eats from homemade fries to spring rolls, fish & chips to spare ribs, and more. El Capitán is located at #20, Street 174, between Norodom Blvd. and Street 51. Happy hour starts at 5pm!

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For Commercial buildings the rates above apply with the addition of a 2nd months rent for contracts 5 years and greater.


A ppointing

a Management company to look after one of your biggest assets is an important decision. Price should not be the determining factor when choosing a property management company, instead, the decision should be based on the firm's capability, their track record, the resources they can rally around your property and the scope and quality of services provided. That said real estate is a price conscious industry and one where an owner can often be swayed by a percentage point or two in their favor. Let's put these fees under the microscope. I n C a m b o d i a , Pro p e r t y Management fees are broken down into three distinct categories, management fees, placement fees and marketing fees.

MANAGEMENT FEES There is a significant difference between commercial vs. residential

management fees but the average management fee ranges between 5-15% of the monthly rent. For a single residential dwelling, the standard rate is 10%, this figure can be discounted based on the number of properties you need to be managed, the number of apartments within a particular building and most importantly what services are included in the fee. Larger buildings will often have a hybrid pricing structure – a fixed component and additional % rate based on the total building monthly rent.

Marketing fees generally only apply to new buildings – both commercial and residential and are fees for the marketing of the building to attract new tenants. In Cambodia, these fees are quite limited and are almost exclusively spent on building opening parties – a unique practice where building owners invite friends, family, associates, media and real estate professionals to an all inclusive party at the property. The event is an effective publicity event however we are seeing first hand in the Condominium market that grand opening parties rarely equate to a solid sales pipeline. Fees related to Property Management activities in Cambodia are relatively straightforward and universal in their application. It’s important that all fees are discussed and agreed in writing with both the Property Manager and the Owner before any activities take place.

PLACEMENT FEES Placement fees are the commissions paid to the managing agent for placing tenants in the building. In Cambodia, the standard fee is 1-month rent (8.33% of the annual leasing fee) for those contracts 1 year or greater, ½ month rent for 6-month contracts and a flat 10% on the total leasing income for short-term contracts.

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At IPS, development trends, including zoning

projects, is one of the many things we keep our eyes on. Phnom Penh city has grown exponentially in the last five years, particularly in the north-western portion of the city where boreys, condominiums, offices, commercial centers, as well as government institutions have been developed.

So what’s been driving this growth and where is the next growth corridor? The continued urbanization of Cambodia has driven the growth of Borey style housing in Phnom Penh. We see first hand that newly married Khmer couples prefer the safety and comfort of a new Borey building to an inner city apartment. The growth of these developments is being driven by young professionals working in relatively new sectors to Cambodia such as banking, telecommunications, and

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service industries including hotels, restaurants, and retail. Wages in these industries are significantly higher than the national average and enable those working within these sectors to loan monies at reasonable rates from reputable banks. This has fuelled the dramatic rise in Boreys which now dominate the fringes of the city and are responsible for the rapid expansion of the city limits. Historically, Borey’s have been attracted to the North and West of the City as this is where accessible, undeveloped land was located, however, these development opportunities are decreasing and we now see developers turning their gaze across the Bassac River towards Chbar Ampov. Chbar Ampov is beginning to reap the benefits of some impressive infrastructure projects, most notably the construction of Preah Monivong bridge that connects Phnom Penh City to Chbar Ampov and ultimately connects the capital to Vietnam through the much

improved National Road 1. Works continue on the exit road of the bridge to Kdey Takoy Pagoda, a 4km stretch that when completed in March 2017 will provide Chbar Ampov residents with dual road access direct to Preah Monivong Bridge. These infrastructure projects have given rise to residential developments including Borey Peng Houth, Borey Hi-Tech Luxury, Borey Lim Chheang Hak and several individual-owned housing projects. We believe these Borey’s are the first of many which will see construction in the Chbar Ampov area spike in the coming years. This increased interest by developers coupled with soon to be completed road infrastructure projects and planned projects including the much touted Kbal Thnal skybridge project will see property prices continue to rise in the Chbar Ampov region. An exclusive Chbar Ampov map including an indicative current land market price for the last quarter of 2016 is available on the next page.

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IPS's property management service is carefully designed to make the process of being a landlord as stress free as possible. Give us a call today at +855 77 959 861 IPS-Cambodia | 35

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IPS Cambodian Property Investor Issue 03  

Cambodian Property Investor magazine is a product of IPS with the aim to provide an up-to-date information and advice on real estate, target...

IPS Cambodian Property Investor Issue 03  

Cambodian Property Investor magazine is a product of IPS with the aim to provide an up-to-date information and advice on real estate, target...