Page 1

Issue 05

ips-cambodia.com

Foreign Property Ownership Take a look at the main ownership structures available to foreigners Factory Phnom Penh

FREE COPY

Cambodia’s newest hub blends working space with creative inspiration Land Valuation Map Exclusive general land market value for investors by IPS

T H E

C O M M E R C I A L

I S S U E


Welcome

NOTE

Welcome to the fifth edition of Cambodian Property Investor. In this edition, we look at the rapid rise of new Commercial properties in Cambodia. We cover Grade A offerings and take a detailed look at HongKong Land’s new Exchange Square building, setting an enviable standard at the top of the market. We introduce the innovative The Factory development which brings a new approach to delivering space solutions for Phnom Penh’s startup and emerging business sector. Our friends at B2B provide a detailed How-To guide to start your new business venture in the Kingdom and Country Manager Grant Fitzgerald has put together our definitive guide on how to own property as a Foreigner. It’s not just property though, Anna Mischke takes us on a journey through Bkk1 and provides her unique take on life as an expat. We take a snapshot of emerging AirBnB opportunities in both Siem Reap and Phnom Penh and resident photographer Ryan Fernandez opens our eyes to the wonders on our doorstep. Take a break and take in the best of the Cambodian property scene.

2 | Cambodian Property Investor

David Murphy, Managing Director

IPS-Cambodia | 3


CAMBODIAN PROPERTY INVESTOR IPS - CAMBODIA | www.ips-cambodia.com

Managing Director David Murphy Country Manager Grant Fitzgerald Branch Manager for Phnom Penh Malay Nop Branch Manager for Siem Reap David Granger Marketing & Communications Manager Jillian Oco Head of Property Management Syto Nhiev Head of Commercial Candy Lim Head of Valuations Cheavly Leang

4 | Cambodian Property Investor

IPS - CAMBODIA PREMIER PROPERTY AND REAL ESTATE COMPANY. IPS PHNOM PENH BRANCH #182 St. 63 BKK1 +855 77 959 861

Content Lead Ryan Fernandez Layout Christian Navida Cover Factory Phnom Penh Printing Sok Heng Printing

IPS SIEM REAP BRANCH #618 Wat Bo Rd. +855 17 843 423

ABOUT CPI MAGAZINE Cambodian Property Investor magazine is a product of IPS with the aim to provide up-to-date advice on real estate, targeting both expatriate and Khmer investors and provide practical information on Cambodia’s thriving property and lifestyle environment.

ABOUT IPS CAMBODIA IPS (Independent Property Services) established in 2009, IPS 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. Local experts. International team.

ADVERTISING INQUIRY marketing@ips-cambodia.com

PROPERTY INQUIRY inquiry@ips-cambodia.com

IPS-Cambodia | 5


CAMBODIAN PROPERTY INVESTOR | CONTENTS

16

8 REAL ESTATE NEWS

8 18

FOREIGN PROPERTY OWNERSHIP Take a look at the main ownership structures available to foreigners

PRAKAS NO. 761 Official commission & valuation fees explained

30 Cambodia’s newest hub blends working space FACTORY PHNOM PENH with creative inspiration

39

30

COMMERCIAL FEATURE

IPS EXCLUSIVE

14

16

PHNOM PENH’S COMMERCIAL SCENE IN 2018 Retail trends and the continuous expansion

44

SQUARE 20 EXCHANGE Introducing Phnom Penh’s Premier office and retail tower

AIRBNB IN THE KINGDOM Creating unforgettable experiences with the travel and hospitality giant

PHNOM PENH LAND VALUATION MAP Exclusive general land market value for investors by IPS

YOUR BUSINESS OFF TO A 36 GET GREAT START

THE CHARMING CITY 39 Let’s take a trip around the bustling heart of

Five key tips to make sure you survive in this competitive landscape

Phnom Penh

20 6 | Cambodian Property Investor

IPS-Cambodia | 7


FOREIGN PROPERTY OWNERSHIP IN CAMBODIA - WHICH IS BEST FOR YOU?

BY GRANT FITZGERALD

F

or a relatively small city, Phnom Penh offers a broad selection of real estate options for foreigners looking to get into the market. From brand new condominiums with a rooftop pool to French colonial style villas in need of some TLC, there is something for everyone if they know where to look and of course, the best method to legally secure the property.

rights and power. The majority shareholder needs to be a Cambodian national and is usually provided by the Law firm as part of an ongoing annual fee. There are extensive security documents which strips all the power from the majority shareholder and gives it to the minority shareholder (the foreigner) which makes it the most secure form of foreign ownership.

Let’s kick off by taking a look at the main holding structures available to foreigners:

Setting up a LHC costs between $4,000 to $12,000 depending on which lawyer you use. Another item to be taken into account with this structure is the tax obligations. Not only do you have to submit monthly/quarterly tax statements but you will also be hit with a 20% company profit tax when you sell any asset held by the company. Given the high setup cost and associated ongoing costs IPS only recommend this structure to clients looking to make a significant investment in excess of USD$1,000,000.

LAND HOLDING COMPANY (LHC)

For more information about foreign property advisory and ownership, send an email to grant@ips-cambodia.com or visit www.ips-cambodia.com.

8 | Cambodian Property Investor

The first option for foreign property ownership is the creation of Land Holding Company or LHC. A LHC is set up in such a manner whereas the minority shareholder (the foreigner, holding 49% of the company) have all the decision making and voting rights within the company and the majority shareholder (a Khmer national, holding 51% of the company) has extremely limited

NOMINEE STRUCTURE The majority of properties purchased by foreigners in Cambodia use what’s known as a “nominee structure”. At IPS Cambodia, approximately 90% of all our foreign clients choose this structure as it’s cheap, secure and fast, especially when compared to alternative options such as a LHC. Often we have clients who have a Khmer partner or colleague who they put forward as a nominee, however if they don’t, there are a range of options available to source a nominee for the property for the duration of your ownership. Having a nominee hold a property in their name on behalf of a foreigner definitely carries some risk which is why IPS highly recommend using “nominee security agreements” in order to mitigate the risk of having your property held in a third party’s name.

IPS-Cambodia | 9


These security agreements are directly between the foreign buyer and the nominee and as a general rule, there are 4 types of security agreements available: • Mortgage Agreement • Loan Agreement • Lease Agreement • Security Agreement The mortgage agreement is registered at the applicable government office and prevents any title transfer without your permission. Once these documents are in place the nominee can’t sell, transfer, move or do anything with the title without your expressed permission. When set up properly, this structure is a very strong and inexpensive form of property security for foreign owners. Another benefit of using a nominee structure is that there are no requirements for monthly/quarterly tax statements and more importantly, this structure does not attract any profit taxes. Once you have defined your property requirements and decided on your preferred foreign ownership structure, it’s time to look at some properties. Let’s go over the 3 most common property types; apartments, condos and landed property. APARTMENTS Whether it be for living or flipping, a favourite among Western/European expats has always been the renovated apartment. The Indochina dream of owning an airy, French Colonial apartment with original tiles and wooden shutters is still alive and well, although it does come with its challenges. These apartments can be picked up for as little as $35,000 for an unrenovated 1 bedroom apartment, right up to $500,000 for a 3 bedroom penthouse overlooking the river. If you are looking to renovate yourself there are boxes you need to tick before starting the project. Construction permit: this used to be a formality however, government officials are now a little more discerning with approving construction permits for renovation projects. You will also need to get written approval from neighbours as they can bring your project to an abrupt hold with a single complaint to the Village Chief. If you are planning to renovate a property, I recommend making initial inquiries about construction permits and talking to neighbours before making a purchase so there are no nasty surprises following the purchase. The entrance to the apartment is another important point to consider. An ideal entrance is a gated doorway, straight off the street which leads to a well lit (natural

10 | Cambodian Property Investor

light or installed lights) staircase that’s clean and well maintained. I have been to many beautiful apartments that would be great to live in if you didn’t have to walk down a dark alleyway peppered with litter and the odd rat which led to a darker, rundown stairwell. The entrance has often been a deal breaker for potential buyers and renters. The good news is that most entrances can be greatly improved by simply giving the stairwells a coat of paint, installing some sensor lights and keeping common areas free of rubbish. CONDOMINIUMS The past 3 years has seen an explosion in the number of condominium developments in central and greater Phnom Penh. The catalyst for this boom was the introduction of a new law allowing for foreign ownership of “strata title” property (common ownership of a building) which has seen an influx of foreign investors entering the Cambodian property market. In Phnom Penh, prices for condominiums range from $1,000/sqm. at the low end to $4,500 at the top end of the market, with developments varying greatly in quality and services according to price. An important item that foreigners need to be aware of is that many “condominiums” at the lower end of the market only come with a soft title, not a proper strata title. The developer will issue soft titles as a cost-cutting measure or because they don’t meet the legal requirements necessary to be issued a Strata title. Buyers should always check this carefully as a soft title cannot be held in a foreigners name. Given the the amount of Condominium projects under development, there has been a lot of talk about oversupply issues in the market. This definitely has merit as the sheer number of units coming online this year begs the question of “who is going to live in them?”. So is there any value still in this market? Absolutely, you just need to do your research. It’s a cliché, but one of the keys to maximizing your condominium investment is the location of the development – the old adage of “location location location” definitely holds true. The first choice of Western and Asian Expats looking to rent and with a budget sufficient to afford the rent in a new condominium is undoubtedly BKK1. BKK1 is very centrally located, has a plethora of restaurants, bars and retail stores and is one of the more picturesque parts of the city. In simple terms, owning a condominium in BKK1 will give you the best chance of realising your rental yield. You will pay a premium for a condominium in this suburb but it’s well worth the money.

LANDED PROPERTY - VILLAS, TOWNHOUSES AND LAND Landed property is the most expensive property type in Phnom Penh, especially if you are looking at the city centre (Daun Penh down to Russian Market) with transacted prices currently sitting around $2,500 - $5,500/ sqm. However, it’s also the most flexible in terms of what you can use it for, often uses for villas/townhouses varying from family living, office space, shopfronts down to complete demolition for development purposes if the land size is sufficient. Residential villas and townhouses here are plentiful, especially in the outer areas of the city with the huge number of boreys (gated communities) under development. A lot of these brand new villas and townhouses can be picked up for a reasonable price but I can honestly say that from a Western perspective, most leave a lot to be desired in terms of quality and design. In my opinion, the biggest upside to landed property is the capital growth potential. Phnom Penh has seen huge amounts of capital growth over the past 10 years and there are still great returns available if you know where to look. As an example, if you bought a landed property in Sen Sok in 2010 and held it until now, you would have done very very well for yourself, it’s wouldn’t be unreasonable to say that land prices quadrupled during that time. There is still excellent value in areas such as Chbar Ampov which has become a growth corridor for the city. Bargains can be found in areas off the main road and prices will only increase as access (more roads are planned) and facilities improve in the coming years. As for the recommended holding structure for landed property, it really comes down to your budget. A general rule of thumb I have is, if your investment is more than $1M then it’s worth looking at setting up a land holding company, if not, use the Nominee Structure as it’s much more cost effective given the investment amount. Purchasing property here is no different to buying in any real estate market in the world, you need to do your research and clearly identify your personal reasons for buying. There is a lot of choice in the current market and it’s just a matter of finding the one that fits your buying profile. Remember to always do your research into foreign ownership structures before viewing properties, you need to be comfortable with the available structures or you might end up chasing an unattainable dream house.

As mentioned previously, foreigners can own Strata Title condominiums in their own name so there is no need for any specialised holding structure. This makes owning a condo in Cambodia a very simple and straightforward process.

IPS-Cambodia | 11


$

Apa r t m e nt for Re nt $ 650/ m o nt h

1854

Toul Kor k

Si em R e ap

Russey K e o

Svay Do n g Ko m

Apa r t m e nt for Re nt $ 1 , 0 0 0/ mo nt h

Cleaning Service Fully Furnished 2 Bathrooms 2 Bedrooms Rooftop Terrace Balcony

$

$

$ 9 00/mo nth

5 15 0

Tonle B as s ac

Wat D amn a k

P hnom P e nh Thm ey

Apa r t m e nt for Re nt $ 60 0/ m o nt h

$

A p ar t me nt fo r R e nt $ 45 0/mo nth

La n d Fo r Sa le

$

$3,000

6 004

Cleaning Service Fully Furnished 2 Bathrooms 2 Bedrooms Rooftop Terrace Balcony

Land size 5,000 m 2 Hard Title

Ware house For R e nt

62 7 6

 Unfirnished  600 sqm

$3,0 0 0 ,0 0 0 5979

Svay Do n g Ko m

10 minutes away from City Hard Title Growth Corridor Com m e rc ial S p ac e For R e nt

$

La n d Fo r Sa le

$

$20,000

$1,0 0 0 ,0 0 0

53 9 5

6123

5 440

630 9

D a un Pe n h

Sl o r K ram

S e nsok

Siem Rea p

Apa r t m e nt for S a le $170,000

Fully Furnished 2 Bathroom 2 Bedroom Balcony 24-Hours Security Garden or Yard Washing Machine

$

4 Rooms 2 Bath Rooms Warehouse size 2000 sqm Land Size 4000 sqm Secured Parking Space

A p ar t me nt fo r R e nt $ 800/mo nth

Fast Developing Area Total Size: 32,783 m 2 Located in Prasat Bakong Best for both Agricultural/ Industrial Development

Land For S ale

$

La n d Fo r Sa le

$

$130/sq m

$20 0 ,10 0

61 3 7

6162

615 0

6220

Tonle B as s ac

Svay D o n g Kom

Kand al

Slo r Kra m

Apa r t m e nt for S a le $ 1 59 , 0 0 0

$

A p ar t me nt fo r R e nt $ 9 00/mo nth

 2 Houses Hard Title Land size 28895 sqm Secured Parking

Land Size 87 m 2 Hard Title

Land For R e nt

$

$1/sq m

La n d Fo r Sa le

$

$179,520

58 2 0

6 32 1

6078

6223

B KK 2

Wat Bo

Kand al St. 172

Sa la Ko mr ek

140 sqm Fully Furnished 2 Bathrooms2 Bedrooms Mezzanine Soft Titlel Rental Price $1200/month

12 | Cambodian Property Investor 12 | Cambodian Property Investor

Warehouse Size 4000 sqm Land Size 5000 sqm 15 cars parking

A p ar t me nt fo r R e nt

Fully Furnished 2 Bathroom 2 Bedroom 49 sqm 1 Bathroom1 Bedroom Fully Furnished Garden or Yard Balcony  Secure Parking Pool Swimming Pool & Gym Modern Kitchen Strata Title

$

$360 ,0 0 0

608 7

2 Bathrooms2 Bedrooms Modern and Colonial Finish Fully Furnished Balcony Bar-Type Kitchen

$

$

$2.5/sq m

389 4

1 Bedroom 1 Bathroom 1 Parking Swimming Pool & Gym Balcony Fully Furnished

$

$

$ 800/mo nth

La n d Fo r Sa le

61 8 7

60 m 2 Fully Furnished 1 Bathroom 1 Bedroom Rooftop & Gym Elevator 24-Hour Security

$

$

Com m e rc ial S p ac e For R e nt

A p ar t me nt fo r R e nt

2 Bathroom2 Bedroom Cable TV Wi-Fi Gym and Pool Housekeeping

5km from Cambodia Beer Factory  Land Size is 2 Hectares

1632 m2 100m from the main road Hard Title

IPS-Cambodia | 13 IPS-Cambodia | 13


CAMBODIA’S COMMERCIAL INDUSTRY IN 2018 IS SET FOR CONTINUOUS EXPANSION BY SYTO NHIEV

2017

witnessed a significant raising of standards in the Phnom Penh commercial real estate sector. As the Grade A market spent the year absorbing the opening of HongKong Land’s 39,700 sqm Exchange Square development the real action was in the Grade B & C sectors where countless developments took shape and welcomed new tenants over the course of the year. Established commercial tenants from business, diplomatic and NGO sectors continued to transition from traditional forms (sprawling Villa’s) to newly built dedicated commercial spaces. Developers targeted the Grade B and C sectors and provided modern, unique spaces that the market has responded to with a huge vote of confidence - their business. Some of theseproperties include City Tower(Mao Tse Tong Blvd), Legacy (Mao Tse Tong Blvd), K1 (Mao Tse Tong Blvd), Raintree (108 Street) and Aura Office (63 Street). An exciting addition to the market was the introduction of co-working space concepts. Projects such as Office 106,

14 | Cambodian Property Investor

Office 79, Office 28, and The Factory project on National Road 2 are a clear example of how commercial office developers are innovating to meet the changing demand in the sector. Office 106 and Office 79 are renovated villas which produce a stylistic and modern coworking space with facilities including shared meeting rooms and pantry. This has been taken to a huge scale with the Factory project. The Factory is a project that is housed in a renovated garment factory and has brought the first creative concept of unified co-working areas, office spaces and production facilities into a single compound which features dozens of meeting rooms, green spaces, a dedicated café, food court, child care center and a space specific for art walks, all of which will be open to the public in 2018. Retail commercial space has undergone its own resurgence with an influx of the open strip mall and large shopping centre forms of retail shopping, providing a fresh westernized appearance. Apart from the high-end retail spaces such as

Exchange Square, Aeon and The Bridge beginning to come online, medium retail space is also in high demand and many older commercial retail sites are being upgraded such as Soriya Mall near the Central Market.

beverage retailers in the areas of BKK1, Tonle Bassac, Daun Penh and Toul Kork. These properties are not only updated in terms of design but also take advantage of the corner parking spaces able to accommodate more customers.

Jet Container Night Market in the Tonle Bassac area, Art Container Market and Eden Garden in Phnom Penh city are a few examples. New developments on the land that was Boeung Kok Lake also reveal a more sophisticated new look in retail commercial space geared to the high-density demand of the growing urban population.

The outlook of 2018 will see a continuing expansion of commercial space in Phnom Penh. Retail space such as Parkson Mall, Parkson Lion City Mall, Aeon , Downtown 93, 2 and Midtown Community Mall are all due to begin services to the shopping public of Phnom Penh. Purpose built commercial offices will expand with additional supply from buildings such as Keystone Office, Oval Office Tower, Factory and TK Royal One.

Another continuing retail trend is the endless renovations of street corner properties. Specifically targeted by food and

IPS-Cambodia | 15


Check out our handpicked spaces for your next Cambodian trip: 2 Bedroom Siem Reap apartment with modern kitchen | $50 per night www.airbnb.com/rooms/21928347 Located along the main boulevard heading from the magnificent Angkor Wat and a short drive from Siem Reap city center,this apartment offers a luxury vacation space for the whole family. Large 2 bedroom apartment with swimming pool | $40 per night www.airbnb.com rooms/21817665 This stylish serviced apartment with 2 big bedrooms is a comfortable light-filled apartment that’s only a 10-minute tuk-tuk ride to Pub Street and Old Market with a free personal concierge service.

THE RISE OF AIRBNB IN THE KINGDOM

IPS guides their guests from securing the booking through the entire check-in and out process, ensuring the highest level AirBnB experience is delivered.

2 Bedroom Apartment With Pool Near Pub Street | $75 per night www.airbnbcom/rooms/22440256 Convenient for families or group of 4 people. Including free WiFi, Airport or bus pickup, and only a short walk away from where the famous central Siem Reap nightlife is known for.

60 MILLION AIRBNB GUESTS GLOBALLY ACCORDING TO THEIR WEBSITE IN 2017.

A

irbnb is a unique platform to showcase your home and monetize the extra space you have. In this day and age where everybody seems to be on the go, we can’t deny the tendency to desire a piece of cozy and homey space wherever our destination in the world may be, and that’s exactly why people are booking their temporary lodging through Airbnb. With over 2 Million listed spaces from 150 countries, Airbnb has made an independent community of homeowners willing to open their house to travelers for a small fee. Upon listing, homeowners get to set up their house rules, available amenities, confirm the sleeping arrangements and how many guests they can accommodate. This short-term accommodation varies from a private home, hotel, villa, single apartment and many more options giving both tourists and business travelers the luxury to choose their level of comfort according to their budget, required facilities and even services.

www.airbnb.com/rooms/21853923

Not only is it practical, but it also gives the guests the opportunity to get a feel of the local neighborhood as most of these homes are privately owned, a good way to feel connected to the country they are traveling in. Airbnb has successfully created security standards to help keep both guests and homeowners safe. Identification can be uploaded upon sign up, social profiles can be connected, reviews for hosts and guests are also readily available and payments are secured online. In Cambodia, there are already over 300 homes listed on Airbnb available for booking ranging from $20 to $100 per night. Whether you are on a business trip looking to stay around the Central Business District that is BKK1, touring with your family to see the great Angkor Wat, traveling solo or with friends to party at the hip Pub Street, start your AirBnB search with IPS.

New to Airbnb? Or know someone traveling to Phnom Penh or Siem Reap? IPS - Cambodia’s premier real estate company is giving away a $25 in travel credit when they sign up. Use these codes IPSC3 or davidm52669 during the Airbnb booking or simply visit www.airbnb.com/c/ipsc3 or www.airbnb.com/c davidm52669 to claim the free $25 travel credit.

16 | Cambodian Property Investor

Modern, Luxury Apartment in downtown Siem Reap | $30 per night

Relax in the rooftop pool, enjoy a glass of wine as you take in the sights of downtown Siem Reap from the balcony of this huge studio apartment ideal for traveling couples and singles. 3 Bedroom Apartment by the Riverside | $50 per night www.airbnb.com/rooms/22071379 Situated in the heart of the Riverside district, enjoy the classic wooden floorboards, double glazed windows, enjoy this beautiful three bedroom penthouse apartment located in downtown Phnom Penh. Two Bedrooms Apartment near Russian Market | $40 per night www.airbnb.com/rooms/22071700 Located on the 6th floor of a brand new apartment complex in Toul Toum Poung (Russian Market), this two bedroom apartment comes fully furnished with a modern and equipped kitchen.

IPS-Cambodia | 17


HERE’S WHAT YOU SHOULD KNOW ABOUT PRAKAS NO. 761 BY DAVID MURPHY

Real Estate Valuation is the heart of professional services at IPS Cambodia. Our Valuation and Advisory services include Valuation Review, Arbitration and Consulting, Feasibility Studies, Lease and Cost Analysis, and Single Asset Valuation. For more information, call +855 77 959 861 or visit www.ips-cambodia.com

P

rakas No. 761 was released by the Ministry of Economy and Finance on the 7th of September 2017 to confirm ‘service and commission fees for valuation and real estate services’. For those new to a Prakas, a Prakas is essentially a change in law or regulation ratified by the relevant Ministry. In Cambodia, Real Estate activities are governed by the Ministry of Economy and Finance. The purpose of Prakas No. 761 is as follows:

• Property with value between $1,000,001 and $5,000,000 will be charged to you at 0.050% or a minimum of $2,000 for the valuation report;

• Ensure the efficiency of management and check of charging commission fee and professional commission fee for offering valuation and real estate service.

As a business that carries out valuations for both private and bank clients the above fee structure is very encouraging. The issue with the Prakas in regard to the above fees is that they are not being enforced in the market and certainly have not been adopted by the banks. As it currently stands, adopting the new fee structure would effectively price any valuation firm out of the market.

• Ensure the equity and balance of interest between real estate firm and customers using valuation services. • Maintain order in the real estate market through promoting competition with equality, transparency and fairness in real estate market. • Set the basic fee of charging commission fees and professional commission fee for valuation and real estate services. Standard fees were re-confirmed in the Prakas; 3% commission on sales. On both residential and Commercial rentals 1-month commission where rent is 1 year and an extra 25% for any additional years. What makes this Prakas so interesting is the detailed fee structure for Valuation services: • For a property that is valued below $100,000, you need to pay a valuation fee of 0.17% or a minimum of $170; • Property valued between $100,001 and $1,000,000 will be charged to you at 0.10% or a minimum of $900;

18 | Cambodian Property Investor 18 | Cambodian Property Investor

• Property with a value between $5,000,001 and $10,000,000 will be charged to you at 0.030% or a minimum of $1,500; • And if the property has a value above $10,000,000, you will be charged at 0.025% of property’s value.

In fact, several banks have stopped outsourcing valuations and are building internal teams to provide valuation services for their clients. The banks are doing this under the pretence of ensuring quality however the objectivity of an in-house valuation is circumspect, given the valuation of the asset is one of the key determinants when a bank decides on the value of the loan. With banks already bringing valuation services in-house and Prakas No. 761 bringing into law a very significant price rise one has to determine the actual inherent value of the move and the underlying reason. The Ministry of Economy and Finance have championed the Real Estate sector for quite some time, this Prakas however will see banks further take valuation services in house, squeezing the valuation sector and diminishing the competitiveness of it.

IPS-Cambodia | 19


PHNOM PENH’S PREMIER OFFICE AND RETAIL TOWER IS NOW OPEN BY CANDY LIM

O

ver the past three years, the retail market in Cambodia has grown continuously as the increasing number of international brands and major retail developments entered the country. This expansion has contributed to the continued rise of Cambodia’s economy which now boasts a thriving middle-income class - one that now has both the purchasing power and the desire to experience international brands. Enter Hongkong Land’s signature Cambodian development - Exchange Square. Exchange Square is a Grade-A rated commercial tower composed of 16 levels of office space with a four-level 20 | Cambodian Property Investor 20 | Cambodian Property Investor

retail podium providing some 13,000 square meters of retail space split across 50 designated retail units. Soft-launched in June 2017, the building has attracted high profile International anchor tenants as well as highend Cambodian Brands. Of particular note is the popular Hard Rock Cafe which recently opened its doors on the ground floor and has had an immediate impact on Phnom Penh’s social calendar. Other Food & Beverage tenants including Starbucks who continued their Cambodian expansion, Bonchon, the hugely successful South Korean restaurant, Japanese chain Sushi Tei, Thailand’s Cafe Amazon and Cambodian institution, Lucky Burger.

Luxury international jewelers have taken residence on the ground floor, in particular, Bering and Pandora. International cosmetic brands including Yves Rocher, Aroma and Escentric Garden have opened stores. While retailers including Samsung, Samsonite, Swatch, Levi’s, Owndays, Combi, MDS, Timecity, Powerplay, Sneakers, and Crocs round out the offerings on the ground and first floors. With new retailers opening throughout 2018, Exchange Square promises to deliver as Cambodia’s destination shopping experience. Located in Phnom Penh’s expanding business district, Exchange Square provides shoppers and commuters with a convenient access to Phnom Penh’s administrative, business, leisure and tourist destinations. The retail tenant mix and positioning of the mall bills it as a one-stop

shopping center which attracts high-income groups including Asian/Western expatriates, tourists, and local professionals. Exchange Square has embraced sustainable building practices with a focus on reducing energy and water consumption. The building has achieved a Green Mark Gold Building status certified by the Building and Construction Authority of Singapore Government, the first building of it’s kind in Cambodia to do so. Sustainable features include passive design to minimize sun exposure and lessen cooling needs; a smaller and more efficient ductless ventilation system; and a sophisticated lift system to ensure maximum energy efficiency. Exchange Square sets the new standard in Office and Retail space in Cambodia.

IPS-Cambodia | 21


Com m e r c i al S pa ce Fo r R e nt

$

$ 1 5/s qm

$

Dau n P e n h

Wat Bo

Siem Rea p

Fully Furnished Ground Floor and Mezzanine

Co mmer i al Sp ac e Fo r R e nt

$ 5, 0 0 0/ m o nt h

$

$ 1 7/s q m

5 Minutes to Old Market Fully Furnished 7 Apartment Prime Location in Tourist District 140-Seat Restaurant Units Swimming Pool 24-Hours Security 2 Fully Equipped Kitchen Bar and Wine Storge

Villa For R e nt

$

$2,700/m onth

$

B u sin ess Fo r Sa le $35,0 0 0

61 7 6

6 31 9

6273

1761

D a un Pe n h

BK K 1

Kork Chork

Old Ma r k et

O f f ice S p ac e For Re nt $ 1 2 /s qm

Commercial Office Space Secured Parking Fully Airconditioned

$

R es t au rant Bu s i n es s Fo r Sal e $ 39 , 000

24 Rooms and 27 Bathrooms 10 Minutes to City Center Swimming Pool

Established Fine Dining Restaurant Experienced Staff Fully Kitted to European Standards Rated #2 Restaurant in Siem Reap on Trip Advisor

Villa For R e nt

$

$2,000/m onth

$

Resta u ra nt B u sin ess Fo r Sa le $60 ,0 0 0

60 56

6 31 6

6270

4696

D a un Pe n h

To n l e Bas s a c

S ie m R e ap

Siem Rea p

Com m e r c i al S pa ce Fo r R ent $ 1 2 /s qm

30 Seating Capacity Motor Parking Air Conditioning Size 6m x 13m

$

Bar Bu s i n ess Fo r Sal e $ 80, 000

9 Bedrooms and 10 Bathrooms 10 Minutes to City Center 3 Floors Fully Furnished Parking Space Available for Long Term Contract

$

$700,000

5 75 5

6249

Tum nup T e k

R i ver s i d e

S lor K ram

Size 5m x 20m 3 Floors Ground Floor Restaurant

$ 60 , 0 0 0

13 Bedrooms 13 Bathrooms 4 Floors Fully Furnished 9 Apartment Units Land Size 269 m 2 Hard Title

R es t au rant Fo r R e nt

$

$ 1 , 2 00/month

Top Pizza Brand in Cambodia Turn-Key Business Near Old Market

Ap artm e nt For S ale

59 63

B us ine s s Fo r S a le

22 | Cambodian Property Investor 22 | Cambodian Property Investor

$20 0 ,0 0 0

Toul Kor k

4 Bathrooms 2nd to 10th Floor Size 350 sqm Ground Floor Parking Elevator

Fully Furnished

$

1653

5 Floors  400 sqm per Floor Ground Floor Parking Elevator

$

$24,000 6215

9 Bedrooms 6 Bathrooms Unfirnished  2 Floors Elevator Balcony Generator Land Size 579 m2

$

$

Resta u ra nt B u sin ess Fo r Sa le

6117

V illa For R e nt

$

$ 35 , 000

Busine ss For S ale

560 3

24 Hour Security Elevator Air Conditioning Secured Parking

$

R es t au rant Bu s i n es s Fo r Sal e

$

$29,000

$60 ,0 0 0 6160 Sa la Ko mr eu k

1200 m2 of Total Area Fully Set Swimming Pool and Garden Area

Busine ss For S ale

$

Resta u ra nt B u sin ess Fo r Sa le

$

Resta u ra nt B u sin ess Fo r Sa le $75,0 0 0

563 1

6 36 4

618 2

6229

Tonle B as s ac

Ru s s i an M arket

Svay D ong Kom

Siem Rea p

2 Bathrooms 165 sqm Suitable for Office Air Conditioning Fully Equipped

Swimming Pool Gymnasium Sauna and Spa Only 5 Minutes to Pub Street

Rent is $3,500/month 100-Seat Restaurant

IPS-Cambodia | 23 IPS-Cambodia | 23


Phnom Penh. 26-27

Modern Apartments.

French Colonial Villas.

24 | Cambodian Property Investor

Siem Reap. 28-29

IPS Exclusive Properties.

IPS-Cambodia | 25


Office Space

Apartment

O f f ice S pa ce

$

$ 4 , 0 0 0/ m ont h

Ap artm e nt

$

61 47

635 4

D a un Pe nh

Tonle Bassac

1 Bathroom 1 Parking

This boutique office space is on the first floor of a wellbuilt commercial building situated at the heart of the city. It has a quick access to the city’s main roads and active residential and business communities. Approximately at 300 sqm. including the reception area, with top-class facilities and amenities such as meeting rooms, modern bathrooms, smoking areas and onsite parking space. This high-end working space is an excellent solution for a creative, and highly-efficient workspace for your business.

Apartment

2 Bedroom 2 Bathroom

Adapting a spacious and modern approach, this brand new serviced apartment is now available in the rental market of Phnom Penh. Featuring two large bedrooms with en-suites, an expansive living area that shares an open-plan floor space with a modern kitchen, and a private balcony. Pool and gym are located on the rooftop terrace, with other services provided including cleaning, lift access, vehicle parking and 24-hour security.

Apartment

Apa r t m e nt

$

$1300/m onth

$ 1 , 2 50/ m ont h

Ap artm e nt

$

$1,000/m onth

3 553

628 2

Riv e r s ide

BK K 1

3 Bedrooms 2 Bathrooms

This renovated 3 bedroom penthouse is now available for rent in Daun Penh. Located at the Riverside district, this truly unique property is in a class of its own.The property boasts a Western style featuring wooden floor boards, double glazed windows, marble benches and a fully equipped kitchen with oven. With a large living area that looks directly out onto the balcony, this penthouse is a quiet oasis in the heart of the bustling city.

26 | Cambodian Property Investor

1 Bedroom 1 Bathroom

This sophisticated 1 bedroom apartment located centrally in BKK1 district is now available for rent. Plenty of natural light with large glass windows, open-plan living room and kitchen area, one en-suite bedroom and a private balcony. The building is elevator serviced for added convenience, together with access to a communal outdoor pool and equipped gymnasium.

IPS-Cambodia | 27


Villa

Villa V illa For S a le

$

$2,000,000

Villa For R e nt

$

63 50

5 5 06

Svay D ong Kom

S ala K rom re uk

17 Bedrooms 13 Bathrooms

This huge Property contains 4 pieces of land with western-built villas, garden bungalows and landscaped gardens. A perfect getaway with its natural water features, paths and walkway, outdoor gazebos, a salt water swimming pool, and vegetative growth that has grown and developed for 17 years. With its size, it will give you a generous space to entertain guests without losing its natural and peaceful atmosphere.

12 Bedrooms 8 Bathrooms

Perfectly located and only a short ride to the centre of town, this luxury residence is ideal for holidays with large groups of family or friends, or for special events such as weddings. The villa comes with 6 guest rooms that can sleep up to 17 people. It also includes a cinema, gym, wine cellar, garden, infinity pool, 2 fully-equipped kitchens, restaurant/dining area, and spa/massage area. The building is constructed with high quality materials and it is influenced by Western architecture. This commercial villa sets the new standard of luxury living in Siem Reap.

Villa

Hotel Hot e l

$

P ric e Up on R e q ue st

$ 8 , 50 0/ m ont h

Villa For S ale

$

$490,000

62 69

6313

S lor Kra m

S e am R e ap

21 Bedrooms 22 Bathrooms 1 Parking

This brand new 21-bedroom boutique hotel is now available for rent in Siem Reap. Composed of an outdoor swimming pool and an in-house restaurant on the 4th floor of the hotel building, don’t miss out on this ideal property investment. This boutique hotel is located just within a 10 minute drive from Pub street, offering easy and quick access in and out of the main city.

28 | Cambodian Property Investor

6 Bedroom 7 Bathroom

Offering a prestigious residence in Chreav Village, insulated from the city noise yet with accessibility into and out of downtown Siem Reap, this property has a total land area of 2100 sq. Comes with a hard title and everything included on the sale. The two-storey house has six available bedrooms, together with seven bathrooms, and so much more.

IPS-Cambodia | 29


IPS SUPPORTS FACTORY PP - CAMBODIA’S NEWEST CREATIVE HUB FOR EMERGING BUSINESSES

BUSINESSES WILL HAVE ACCESS TO THE FOLLOWING UNIQUE AREAS: INSPIRATION LIBRARY

W

A selection of design and technical books and periodicals, available in shared areas or for check out.

hether you’re a small company looking for an affordable office, or you’re in need of a 3-man desk, creative spaces such as Factory Phnom Penh gives businesses a modern proper office to get their stuff done. Factory Phnom Penh, a mixed use of office space for emerging businesses and studios for creative artists has appointed IPS Cambodia to provide property management consulting services. The engagement includes the provision & implementation of critical building documentation and training & mobilization of key staff necessary for the safe and efficient development of the 3.4 hectare property and over 3,000 square meters of office space featuring 17 different structures. “The Factory is something that is unique to Cambodia. It will feature a number of different working spaces that are geared for start-up businesses and engage young entrepreneurs. With the Factory offering contemporary office and production/studio space, it is envisioned that the campus will promote innovation for new business ideas and inspire the next generation of Cambodian artists,” said Callum McCulloch, IPS Special Projects Consultant for Factory Phnom Penh. 30 | Cambodian Property Investor

ADDITIONAL CONFERENCE ROOMS Small and large, all bookable online. COMMUNAL KITCHEN A full kitchen set up to restaurant standards with oven, fridges, stoves, microwave and a few other tools. RECREATION ROOM Starting in January, the 3,000 square meters of office space will be configured with art-filled alleyways, green spaces, a constant supply of coffee and dozens of meeting rooms all within a 4-minute walk. “Coffee shops in Phnom Penh are essentially being utilized as a co-working space - having AC, Wi-Fi and a table - with any purchases labeled as the “rent,” said McCulloch. “Students and young start-up entrepreneurs meet in these cafes to collaborate on their ideas. Essentially the factory is trying to emulate that in a more targeted commercial sense.”

With a pool table, ping pong table, foosball table and other fun activities. RELAX ROOM Recharge quickly in a sound controlled environment with futons for short naps. “This development pushes the boundaries of traditional office space, providing some really refreshing concepts which I think the commercial sector and clients will

“IT’S A UNIQUE PRODUCT IN THE CURRENT MARKET,” SAID GRANT FITZGERALD, COUNTRY MANAGER OF IPS CAMBODIA. welcome. The project has a real community focus and it aims to create a hub for small businesses, F&B, and production based companies alike.” Being at the forefront of Cambodia’s commercial scene, IPS and Factory PP will provide options to startups and organizations embracing technology and innovation a creative solution to express their image through the contemporary office designs mixed with recreation and entertainment. “Cambodian’s are very entrepreneurial by nature and a development such as this will provide an affordable, creative space for startups to kick off and grow,” said Fitzgerald. “I’m hoping the success of this project will make the market take note and start providing some more creative alternatives to this often ignored component of the commercial sector.” Spaces that can be used for purposes ranging from art studios to a modernized office space starts at $12 per square meter and is located 4.2 kilometers from Independence Monument, at 1159 National Road 2.

IPS-Cambodia | 31


V illa For Sal e

$

$ 3 3 5, 0 0 0

Vi l l a Fo r Sa le

$

Pr e a e k P ra

To n l e Bas s a c

S ala Kom re uk

Svay Do n g Ko m

6 Bedrooms 5 Bathrooms Plenty of Outdoor Space Parking Space Balcony Pool Land Size 630 sqm

Land Size 2,350 m 2 Outdoor Living Gazebo 1 Twin Bedroom 3 Single Bedrooms Fully Equipped Western Style Hard Title

$

$ 3, 700/month

4 Bedrooms 3 Bathrooms Secured Parking 64-amp Electricity Connection 6000-Liter Water Tank with Automatic Pump

V illa Fo r Sa le

Villa For S ale

Vi l l a Fo r R ent

$

$35 0,000

$

$255,0 0 0

57 54

6 086

5 5 01

6210

B KK 1

To n l e Bas s a c

S ie m R e ap

Svay Do n g Ko m

Land Size 2,610 m 2 3 Bedrooms 2 Bathrooms Hard Title 60x50 Meters Tiled Pathway

3 Bedrooms 3 Bathrooms 2 Storey Villa Swimming Pool Modern Kitchen Electrically Operated Motorised Gate

4 Bedrooms 5 Bathrooms Terrace Fully Furnished Balcony Pool

$ 6, 50 0/ m o nt h

$

$ 1 , 800/mo nth

V illa Fo r Rent

Villa For S ale

Vi l l a Fo r R ent

V illa For R ent

$

$1,15 0,000

$

$1,70 0/ mo nth

54 63

6157

5 765

6267

B KK 1

7 M akara

Wat Bo

Siem Rea p

5 Bedrooms 2 Floors Balcony Size 18m x 40m Garden Secure Parking

6 Bedrooms 4 Bathrooms 3 Car Park Balcony Land Size 12m x 25m

$ 1 , 0 0 0 , 0 00

Traditional Khmer Designed Fully Furnished 2 Wooden House 2 Ponds

$

$ 4, 5 00/month

8 Bedrooms 8 Bathrooms 2 Floors Semi Furnished Balcony Secured Parking

V illa Fo r Sa le

Villa For R e nt

Vi l l a Fo r R ent

V illa For Sal e

$

$1,300/m onth

$

$165,0 0 0

63 1 5

6 1 81

635 3

6232

Rus s ia n Ma r k et

BK K 1

S ie m R e ap

Svay Do n g Ko m

6 Bedrooms 6 Bathrooms Western Style Size 20m x 50m Hard title Furniture sets included

12 Bedrooms 10 Bathrooms 3 Floors Balcony Land Size 510 sqm Rooftop Terrace Secure Parking

$ 4 , 50 0/ m o nt h

3 Bedrooms 4 Bathrooms 1 Parking Solar Supply Balcony Fully furnished

$

$ 4, 000/month

Land Size 176 m 2 4 Bedrooms 10 minutes from City Center Secured Parking Hard Title

V illa Fo r Sa le

Villa For S ale

Vi l l a Fo r R ent

V illa For R ent

$

$690,000

$

$250 ,0 0 0

574 2

6 2 08

6139

60 0 7

Toul Kor k

D au n P en h

Svay D ong Kom

Siem Rea p

5 Bedrooms 6 Bathrooms Fully Furnished Balcony Swimming Pool

32 | Cambodian Property Investor 32 | Cambodian Property Investor

$250 ,0 0 0 5135

6 Bedrooms 6 Bathrooms 1 Parking Unfirnished House Size 15m x 14m Land Size 570 sqm

$

$

1703

$ 4 , 50 0 , 000

$

$8 00,000

6 085

V illa For Sal e

$

$

V illa Fo r Rent

4435

5 Bedrooms Western Style 4 Bedrooms Townhouse Swimming Pool 2 Car Garages Plus an additional 625 sqm of Vacant Land

$

$ 2 , 000, 000

Villa For S ale

7 Bedrooms 5 Bathrooms 4 Cars Parking Space Rooftop Terrace Unfurnished Size 452 m 2

French Architectural Design Construction to Western Standards Imported Fixtures and Fittings

800 sqm of Land Size 3 Bedrooms 2 Bathroom Located in King’s Road Hard Title

IPS-Cambodia | 33 IPS-CAMBODIA | 33


IPS ANNOUNCES NEW MANAGER FOR ITS SIEM REAP BRANCH

S

iem Reap, January 2018 -- IPS Cambodia, the country’s Premier Property and Real Estate Agency, is proud to announce the appointment of David Granger as Branch Manager in Siem Reap. David joins IPS after six years as General Manager at Veal Sre Kasekor Aphivath Co., Ltd. With over a decade of experience in management and sales for organizations in Southeast Asia and Australia, David holds an Advanced Certification of Commerce from Albury College and several Certifications in Business Communication in Australia. David will direct all operational aspects of the branch and will be responsible for the training and development of the IPS Siem Reap team. He will serve as the main representative and foreign advisor for Siem Reap’s clientele, and will represent IPS in all of its business capacities. “ The aspect of the job that I look forward to the most are the people and their stories. Listening to their ideas and vision fascinates me and each client brings something new - a vision that you get to be a part of through the regular tasks we do at IPS. Every day brings a different formula, new people, new vision, new properties, and new challenges to get past. In short, no two days are ever the same.,” said David Granger when asked about which aspect of his new role does he look forward to the most.

David Granger officially joined IPS on September 1st of 2017. David will continue providing premium real estate opportunities for both international and local clients including assistance in residential and commercial rentals and sales, land sales, foreign property ownership advisory, property management, and valuations. As Cambodia’s foremost real estate company, IPS has grown quickly in its eight years of operation and now has two strategically placed offices in Cambodia’s key business districts of Phnom Penh and Siem Reap. Find out why IPS is a force in the Cambodia real estate market. Drop by IPS Siem Reap branch located in #618, Wat Bo Road (cnr St 26) or contact David Granger today at +855 17 843 423 or inquiry@ips-cambodia.com for a free consultation.

34 | Cambodian Property Investor

IPS-Cambodia | 35


CONDUCT ON-THE-GROUND RESEARCH

5 TIPS TO GET YOUR BUSINESS OFF TO A GREAT START Recommended by

It’s worth spending time in Cambodia before making any major investment decisions so you can become acclimatised, and get a feel for the pace of life, the people, and the culture. Be sure to carry out feasibility and market entry studies ahead of setting up in the Kingdom. Despite the country having joined the ranks of lower-middle income countries in 2016, keep in mind that it remains an emerging market and may operate differently to more established markets in which you might have worked previously. Forums such as the one found on B2B Cambodia* (www.b2b-cambodia.com/forums) are one way to make new connections, find information, and get opinions on aspects of both life and business here. There are also numerous business chambers and professional organisations holding regular networking events, where valuable personal connections can be made. BUILD GOOD BUSINESS RELATIONSHIPS Take time to build relationships with all your business contacts (suppliers, distributors, partners, officials etc), based on trust and mutual understanding, before undertaking any substantive business start-up in Cambodia. B2B Cambodia’s business directory (www.b2b-cambodia.com/ cambodia-business-directory) has been compiled using recommended

and verified product and service providers, so it’s a great place to start searching. Recognise those who seek long-term business prospects rather than a “quick buck”, and conduct background checks and get qualified references from other companies they have worked with. Find potential connections with appropriate industry experience. Once you do, be sure they share your future vision, so that you are working with people dedicated to the same goals. SEEK HELP FROM LOCAL EXPERTS Like all markets, Cambodia has numerous pitfalls unfamiliar to many new investors. Make sure you understand these issues by signing up to and following comprehensive business guides such as www.b2b-cambodia.com. Consider hiring a professional business advisory firm to help you navigate the various paths and obstacles, whether an independent firm or a local subsidiary of a larger organisation. Using local assistance can also help overcome the language barrier when dealing with officials and other local businesses, ensuring transactions run smoothly and you can secure the best prices and quality of service. A local “fixer” can help you to acquire the necessary permits and licences required to legally establish your business. CHART YOUR COURSE Not all business ventures will succeed in Cambodia. Indeed many go bust

almost as soon as they’ve spread their welcome mats. The main reason? A lack of market research, feasibility studies, and a clear business plan. Be sure to conduct due diligence such as Porter’s Five Forces and a SWOT analysis when considering your plan, so that you have a clear understanding of your strengths (both yours and those of your product or service), shortcomings, competitors, and market conditions, just to name a few. Have a clear cash flow forecast and be sure to have access to sufficient funding, as this can be difficult and expensive to arrange locally. Most banks and financial institutions require loans to be secured against hard-title property or immovable equipment. FOCUS ON VALUE Don’t come into Cambodia hoping to make a fast fortune and then leave. The Kingdom is in need of on-going foreign investment as part of a process to grow its economy and improve living standards for its people. Foreign businesses that can demonstrate the long-term benefits they can bring to the country will be welcomed and recognised by the government as Qualified Investment Projects (QIP). Your commitment to the country – such as bringing employment opportunities for locals or implementing CSR programmes – will be well received and make it easier for you to move forward and achieve your business goals in the Kingdom.

A

large and relatively inexpensive labour force, low taxes, and the permission of 100% foreign ownership combine to make Cambodia an attractive place to start a business. It’s no surprise then that new start-ups continue to flourish, with the field wide open to both local and foreign ventures. New entrants are not just gunning for spots in the food and beverage, tourism, or hospitality industries, but stretching into niche areas such as I.T. and communications. Similarly many are seeking to build multiple outlets through franchising regional and international brands. Whatever form your business takes, however, one guideline remains: To survive in this competitive landscape, make sure you get off on the right foot. To help you on your way, B2B Cambodia has compiled a list of five key tips to get you started.

36 | Cambodian Property Investor

For more information about starting and running a business in the Kingdom, IPS-Cambodia | 37 please visit www.b2b-cambodia.com


QUALITY MEETS DESIGN BKK1: You’ve Got What I Need

SERVICES Design & Build M.E.P. Furniture/Cabinetry Supply Project Management

BY ANNA MISHKE

W

CONTACT +8 5 5 1 6 84 4 72 2 decor.specialized@gmail.com ONGOING PROJECTS 38 | Cambodian Property Investor

THE CHARMING CITY

hen traipsing The Charming City, countless although continue to fall much below neighboring counside streets beckon visitors and peekaboo tries. haunts delight the casual passerby. On foot, via tuk tuk, atop motorbike, cycling, or in taxi – the Many individuals making their first move as expats find streets offer a tableau of busy splendor and kaleidoscop- BKK1 to be a welcoming haven. The comforts of home ic urban landscape. With all of the growth and city’s paired with rich culture give residents the best of both evolvement- one district continues to reign supreme worlds. Residents can find a range from low-cost living when it comes to consistent growth and constant attrac- for monthly rates around $150 or house themselves in tions: Boeung Keng Kang (BKK) 1. the crème de la crème in units priced above $1 million, fully furnished with unparalleled amenities. Also known as The Independence Monument area in the Chamkarmon District, the suburb hosts a strong As technology blesses us with convenience, booking apps blend of small business and corporate retail alongside like PassApp, UGo711, and Uber makes navigating the NGOs, expats, and locals: BKK1 is a bustling and highly city a breeze. These apps and the ease of accessing funds attractive hub. As the country flourishes from the tourism make traipsing around simple, with numerous ATMs industry and global attention, Phnom Penh continues and trusted banks such as Hong Leong Bank, ANZ, and to grow and with that, the land prices are at a peak, CamPu Bank it’s impossible to find yourself without IPS-Cambodia | 39


According to the 2018 released general land market study by IPS Cambodia, despite BKK1 being the hotspot for modern expatriate lifestyle, land market price in the area remained stable costing around $1,200 to $2,000 per square meter. While renting a fully furnished apartment range from $400 for a studio unit up to $4,000 for a three-bedroom serviced apartment.

necessary cash and customer service when most needed. Some of the most popular attractions in the area are renowned coffee shops like BROWN, Gloria Jean’s, and Costa while other corners offer comforting fast food, and a host of cafes serve delicious global offerings from sushi to house-made pasta. When the dining has caught up to one’s waistline, gyms and fitness centers are abundant like popular, swanky gym “The Place” and tried and true Paddy’s Fight Club for calorie-kicking boxing bouts. Boasting several of Phnom Penh’s International schools like Brighton International School and The International School of Phnom Penh make BKK1 an ideal area for children, not to mention kid-friendly go-to spots like Monument Books and Kid’s City (where you’ll find worthwhile alternatives to iPad fuelled activities). The district houses some of the country’s top medical centers such as Raffles Medical Group, The International SOS Clinic, The Khema Clinic, and The Naga Clinic while offering internationally sought after dental hygiene and care. As one settles into daily life when shopping at the plentiful local grocery stores and street markets, there are times for extravagance when popping into 40 | Cambodian Property Investor

international retailers such as Mango or Adidas and on trend local boutiques like the popular ESQ, Zando, and Gallery 57. Interested in a tailored suit, made just for you? There are plenty of options for quality bespoke pieces around the BKK1 area. When you’re keen on showing off said suit, what better way than spending a night on the town? It’s safe to say that BKK1 offers some of the cities’ highlights when it comes to dining and nightlife. BKK1 is home to popular tourist attractions such as the iconic Independence Monument, the historic Royal Palace, and the bustling Buddhist pagoda, Wat Langka and the hippest bars and restaurants along the Riverside, and streets 51 and 63.

Dotted along Sihanouk, Norodom, Mao Tse Toung, and Monivong Boulevards, the buzzing BKK1 district is one of Phnom Penh’s prime real estate destination where IPS Phnom Penh Branch is also situated. Watch out for the IPS tuk-tuk roaming around the city!

Bassac Lane is the peak of expat friendly nightlife with favorites like the city-wide beloved micro-bars Cicada, Hangar 44, and The Library mixed in with world-class tipples poured by expert hands at Elbow Room and Le Boutier. Divine eats include slurp-worthy noodles at Masamune, perfect pizza from Piccola Italia, and Mama Wong’s drool inducing dumplings among a host of other options make the area a one-stop haven for all things foodie. Spend the next morning either nursing yourself back to full vigor or treating yourself to wellness treatments and massage, available at first class spas that vary in pricing or spend the day at home, basking in the sun next to your pool or underneath the blessed cool air from your air conditioner. No matter what your cup of tea, life is good in The Kingdom of Wonder.

Ready to search for your dream home in BKK1? IPS would love the opportunity to assist. Call +855 77 959 861 or email inquiry@ips-cambodia.com today!

IPS-Cambodia | 41


IPS-Cambodia is the first choice for businesses, finding ideal locations at competitive prices.

IPS STAFF

SPOTLIGHT

2017

has been a great year of development in the Cambodian real estate sector and IPS is delighted to introduce in this interview the two significant addition to its expanding international team of local experts. David Granger, Branch Manager for Siem Reap brings with him decades of local and international experience in management and sales. David is focused on growing the residential and land sales, property management, and business development side of things. Candy Lim’s exceptional knowledge of the commercial market, fluency in Mandarin, coupled with her experiences in Business Development makes her a valuable new resource to the IPS team as Commercial Manager. In her role, Candy will be introducing commercial leasing spaces and businesses for sale all over Phnom Penh to the growing local and international business community. Get to know the team players who lead IPS’ Siem Reap Branch and Commercial sector day in and day out.

WHY IS YOUR ROLE IMPORTANT? Candy Lim: As a Commercial Manager, I am responsible in maintaining the highest degree of professionalism with property and business owners, and service providers. This role involves a lot of business development and providing investment opportunities, particularly with the growing Chinese speaking market. David Granger: My role as a Branch Manager of Siem Reap is critical in ensuring that I and my team manage the relationships between IPS and its customers, bringing together both satisfied sellers and buyers, and ensuring that IPS remains the biggest and most professional agency in the industry. WHAT DREW YOU TO IPS? CL: I was looking for a bigger challenge and to grow my career, and realized this opportunity was at IPS. Everyone’s given the chance to implement their own strategy giving each team members an exceptional drive to give their 100% and fulfill their work responsibilities. 42 | Cambodian Property Investor

WAREHOUSES AND FACTORIES WHICH ASPECT OF YOUR ROLE DO YOU LOOK FORWARD TO THE MOST? DG: The aspect of the job that I look forward to the most are the people and their stories. Listening to their ideas and vision fascinates me and each client brings something new - a vision that you get to be a part of through the regular tasks we do at IPS. Every day brings a different formula, new people, new vision, new properties, and new challenges to get past. In short, no two days are ever the same.

RETAIL AND BUSINESS SPACE HOTELS AND GUESTHOUSES COMMERCIAL BUILDINGS COMMERCIAL VILLAS

WHAT ARE YOUR BIGGEST INDUSTRY CHALLENGES?

OFFICE SPACES

CL: There are 3 biggest challenges in Cambodia Real Estate industry that I am seeing so far. The first one would be the limited pool of skilled talent despite real estate being one of the growing industry in Cambodia. Secondly, is the adaptiveness and openness of property owners to market trends are still a bit shut. Lastly and most importantly, is the lack of mindfulness in property management. First impressions last in this business, and space if not well-kept, will easily be disregarded by investors and it’s value drops.

LANDS

DG: The biggest challenge we face starts with convincing property owners to accept a realistic market price for their home or land. Property owners looking to sell their land or homes can easily be influenced to overprice their homes by following the example of neighboring property owners who have overpriced their own land or home. This creates an artificial market value where no one is buying and properties stick on the market, unsold. The best thing that IPS can do in this situation is to provide sellers a variety of data and statistics to help them determine the true market value of their property. WHAT ADVICE DO YOU HAVE FOR PROSPECTIVE IPS CANDIDATES?

Browse through our extensive listings of premier commercial real estate properties in Phnom Penh, Siem Reap, and throughout Cambodia at:

WWW.IPS-CAMBODIA.COM

CL: The key to success in this industry is responsiveness and patience. Be fast. Time is more valuable than money and procrastinating will lead you to lost opportunities. Be patient in defining any situation and the solution will present itself. DG: Foster good relationships with everyone you meet. Work smart. Always be honest and truthful with your clients.

inquiry@ips-cambodia.com | +855 77 959 861 IPS-Cambodia | 43


KHAN PREAEK PNOV

KHAN RUSSEY KEO

KHAN CHROY CHANGVAR

KHAN SEN SOK

KHAN DAUN PENH KHAN TOUL KORK

KHAN 7 MAKARA

KHAN POU SENCHEY KHAN CHAMKARMORN

KHAN MEAN CHEY KHAN CHBAR AMPOV

This map is only a visual representation of the land market value per area. For the average price per land area as of Q4, please refer to the table on the next page. 44 | Cambodian Property Investor

KHAN DANGKOR IPS-Cambodia | 45


Location

Market Price

Market Price

On Main Streets

On Sub Streets

Prek Phnov

$750

$115

6.2

Phonhear Pon

$200

$75

6.3

Samroang

$200

$75

6.4

O’Russey IV

$275

$115

$2,500

6.5

Kork Rokar

$150

$50

$8,500

$3,000

7.1

Chroy Changva

$2,000

$950

Toul Svay Prey I

$4,500

$2,500

7.2

Prek Leap

$1,500

$650

1.8

Toul Svay Prey II

$5,500

$2,500

7.3

Bak Kheng

$500

$200

1.9

Toul Tompong I

$4,500

$2,250

7.4

Koh Dach

$200

$100

1.10

Toul Tompong II

$4,500

$2,250

7.5

Prek Ta Sek

$400

$250

1.11

Phsar Doem Tkov

$2,750

$2,000

8.1

Phnom Penh Thmey

$1,450

$550

1.12

Tumnob Toek

$4,500

$2,250

8.2

Teuk Thla

$2,100

$650

2.1

Chaktomuk

$7,250

$2,500

8.3

Khmounh

$650

$250

2.2

Chey Chumnas

$5,000

$2,500

9.1

Stueng Meanchey

$2,000

$800

2.3

Phsar Thmey I

$9,000

$2,500

9.2

Boeng Tompon

$2,500

$600

2.4

Phsar Thmey II

$5,000

$2,500

9.3

Chark Angre Leu

$2,000

$650

2.5

Phsar Thmey III

$5,000

$3,000

9.4

Chark Angre Kraom

$1,250

$650

2.6

Boeng Raing

$5,750

$3,250

10.1

Chbar Ampov I

2.7

Phsar Kandal I

$2,000

$650

$6,000

$3,000

10.2 Chbar Ampov II

2.8

Phsar Kandal I

$2,000

$550

$3,500

$3,000

10.3 Niroth

2.9

Phsar Chas

$750

$450

$5,000

$2,750

10.4 Prek Pra

2.10 Srah Chok

$750

$350

$4,000

$2,500

10.5 Veal Sbov

$650

$150

3.1

O’Russey I

$6,000

$3,000

10.6 Prek Eng

$450

$150

3.2

O’ Russey II

$5,000

$2,500

10.7 Khbal Koh

$450

$125

3.3

O’Russey III

$5,000

$2,500

10.8 Prek Thmey

$250

$150

3.4

O’Russey IV

$5,000

$2,500

11.1

Dangkor

$1,150

$350

3.5

Monorom

$6,000

$2,500

3.6

Mittapheap

11.2

Pong Toek

$175

$100

$4,000

$2,500

3.7

Veal Vong

$4,000

$2,500

11.3

Prey Veng

$200

$100

3.8

Boeng Prolit

$5,000

$2,500

11.4

Prey Sar

$275

$100

11.5

Krang Pongro

$225

$60

11.6

Prar Tas Lang

$200

$60

$2,250

1.2

Boeng Keng Kang I

$6,500

$4,000

1.3

Boeng Keng Kang II

$5,500

$2,750

1.4

Boeng Keng Kang III $5,250

$2,750

1.5

Boeng Trabak

$4,750

1.6

Olympic

1.7

Khan Chbar Ampov

$5,000

Khan Dangkor

Tonle Basak

Khan Prek Phnov

6.1

Khan Chroy Changva

No.

Khan Sen Sok

Market Price On Sub Streets

1.1

4.1

Phsar Depo I

$5,500

$2,250

4.2

Phsar Depo II

$4,000

$2,000

4.3

Phsar Depo III

$4,000

$2,000

11.7

Choueng Aek

$400

$100

4.4

Toek Laak I

$3,750

$1,750

12.1

Trapaing Krasaing

$550

$100

4.5

Toek Laak II

$3,750

$2,000

12.2

Phloeng Chhes Rotes $250

$100

4.6

Toek Laak III

$4,250

$1,750

12.3

Choam Choa

$750

$300

4.7

Boeng Kak I

$2,750

$1,750

12.4

Kakab

$1,250

$450

4.8

Boeng Kak II

$4,250

$1,750

12.5

Boeng Thom

$250

$100

4.9

Phsar Doem Kor

$4,000

$2,250

12.6

Kambol

$450

$115

$3,000

$1,250

12.7

Kantouk

$450

$115

12.8 Kraing Tnoung

$450

$200

4.10 Boeng Salang

Khan Russey Keo

Market Price On Main Streets

Khan Mean Chey

Location

5.1

Toul Sangke

$2,000

$1,050

5.2

Svay Pak

$750

$300

5.3

Kilomet Lek Pram I

$1,000

$500

5.4

Russey Keo

$1,300

$500

5.5

Chraing Chamres I

$750

$450

5.6

Chraing Chamres II

$900

$300

46 | Cambodian Property Investor

Khan Pou Senchey

Khan Toul Kork

Khan 7 Makara

Khan Daun Penh

Khan Chamkarmorn

No.

IPS wish to highlight that all figures above are average and bare land market value per square meter as of Q4 of 2017 and is not for any particular property. No responsibilities accepted in the event that any price applied without understanding the facts of any particular property. We will be able to provide indicative value after enough and correct information obtained so that the value will be analyzed to be a fair market value.

REAL ESTATE VALUATION IS THE HEART OF PROFESSIONAL SERVICES AT IPS-CAMBODIA AT IPS-CAMBODIA, WE BELIEVE THAT VALUATION CAN BE A STRATEGIC ASSET FOR INVESTORS AND OWNERS ALIKE.

O u r Va l u at i o n & A d v i s o ry S e r v i c e s I n c l u d e : Valuation Review / Management Single Asset Valuation Portfolio Valuation Investment Analysis Insurance Valuation Lease and Cost Analysis Arbitration and Consulting Feasibility Studies

C O N TA C T U S :

WWW.IPS-CAMBODIA.COM

valuations@ips-cambodia.com Phnom Penh | +855 77 959 861 Siem Reap | +855 17 843 423 IPS-Cambodia | 47

FIND US ON:


KINGDOM OF WONDER PHOTO HIGHLIGHTS

Presenting the Cambodian culture, lifestyle and stories from IPS’ community submissions. We love to receive your photographs! Send us one at marketing@ips-cambodia.com Photo by Jillian Oco Photo by Sopheak Chheng Photo by Your Cambodia

Photo by Vuthy Ratha

Photo by Your Cambodia

Photo by Vuthy Ratha

Photo by Sopheak Chheng

48 | Cambodian Property Investor

Photo by Ryan Francis Fernandez

IPS-CAMBODIA IPS-Cambodia||49 49


IPS CAMBODIA

REVIEWS Visit our website, check the reviews, and see for yourself how our clients rate the IPS-Cambodia experience. Amazing service, David of ips brought my partner and I exactly what he promised and went beyond by personally showing us how to achieve far better results then we envisioned. A great thank you! - Fax Rome

Notre interlocuteur a été professionnel et reactif. Mr Syto a pris en compte notre besoin et nos demandes, ce qui fait gagner du temps par rapport à d’autres agences.Nous avons pu trouver ce que nous recherchions en peu de temps, avec un suivi jusqu’à la signature du contrat.Très appreciable, je recommande les services de cette agence! - ysaline

Truly excellent service It’s rare these days that you receive truly excellent service. I really lucked out working with Sreyroth Ny to find an apartment in Phnom Penh. I’ve worked with other real estate individuals and companies in the city, so I’ve been around and know what’s going on. She was energetic, diplomatic, clarified the details for me, translated when necessary, and succinctly answered my many questions. All in all, she helped me get the place that meets all my needs. A hearty thank you to Sreyroth Ny and IPS. - John Eastwold

I highly recommend Me and my colleague went to IPS office for a meeting and met the very professional Thearin. She was so service minded and and found the perfect place and location for us. The meeting was only for one person but we showed up two of us and she manage to find two apartments in the same house at the same day with all the necessary facilities we requested. Thearin also make sure that everything is in order after moving in and have a very good follow up with you and dialog with the landlord in the native language if needed. I highly recommend to use IPS and look for Thearin if you are moving to Phnom Penh! - Johan Wennberg

50 | Cambodian Property Investor

Have something to add to this story? E-mail us at marketing@ips-cambodia.com or visit www.ips-cambodia.com/customer-reviews

IPS-Cambodia | 51


52 | Cambodian Property Investor

IPS Cambodian Property Investor Issue 05  

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

IPS Cambodian Property Investor Issue 05  

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

Advertisement