Buying property in Cambodia: What is the price per square meter? Currently, the main real estate market in Cambodia is in Phnom Penh. According to data from the Cambodian real estate market, the price of properties in Phnom Penh is mostly around 8,000 to 20,000 KHR per square meter, with some individual developments exceeding 30,000 KHR per square meter, which mainly depends on the location. In addition, the rental yield for properties in Cambodia is approximately 8%, and many property projects also offer leasing services.
Buying property in Cambodia: Why are so many people purchasing real estate in Cambodia?
Currently, in the prime locations of Phnom Penh, the capital of Cambodia, property prices are high, around two to three thousand USD per square meter. Compared to three years ago, the appreciation rate is approximately 35%. In contrast to the property prices in first-tier cities in China, they are still at a relatively low point. Taking properties in Phnom Penh as an example, the rental yield is about 8%, and property prices increase by about 20% annually. As the infrastructure in Phnom Penh continues to improve, the potential for property price appreciation in Cambodia will also grow.
In the first half of 2017, the number of serviced apartments in Phnom Penh reached 4,531, representing a 6.9% increase compared to the supply in the fourth quarter of 2016. By the end of 2017, an additional 259 serviced apartment projects were put into use, totaling 1,059 units, which is a 23% increase compared to the supply in the second half of 2016.
According to Cambodian media reports, Li Ka-shing is preparing to invest 3 billion USD to build a 133-story building in Cambodia. It is evident that the Cambodian real estate market is viewed positively, so those who wish to buy property in Cambodia should seize the opportunity quickly, or they may regret it in a few years.
Buying property in Cambodia: What other taxes and fees are required besides the property price for renting and selling?
When buying & selling:
If the title deed is a hard card, the buyer & seller must pay a 4% property transaction tax based on the sale price, as well as a fee for changing the property owner's name ranging from 1,000 to 3,000 USD (depending on the size, location, and sale price of the property).
If the title deed is a soft card, the buyer & seller only need to handle the paperwork with the local authorities, with a fee of about 200 to 800 USD (depending on the size, location, and sale price of the property).
When renting:
If a foreign landlord has a fixed residence in Cambodia or stays in Cambodia for more than 182 days, they only need to pay a 10% rental income tax; otherwise, they must pay a 14% rental income tax.
In addition, Cambodian law stipulates a 4% property gift tax, but there is no inheritance tax.