Why Real Estate in Cambodia is Asia’s Best Value Play – InvestAsian

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A chart showing Cambodia’s GDP per capita over a multidecade timespan. The nation has largely avoided global economic turmoil while sustaining annual growth above 6%.

Obviously, there isn’t such thing as a “recession-proof economy”. Each country has its own problems and each investment has its risks.

Buy/sell, rent/lease residential &
commercials real estate properties.

That said, Cambodia is about as close as one gets. The Kingdom remains less correlated with global markets than a majority of countries.

Lack of reliance on global markets, in addition to its strong demographic dividend, work in Cambodia’s favor.

The nation’s capital city of Phnom Penh is at the core of its ongoing boom phase. Large numbers of workers are moving from the countryside into Phnom Penh, as Cambodia’s population rapidly urbanizes.

And since Cambodia’s average age is only 25 years old, this trend is primed to continue for several more decades.

This will naturally support demand for real estate in Phnom Penh over the long-term, where an established middle class is just beginning to form.

Cambodia Property Prices: The Best Value in Asia?

There aren’t many capital cities left in the world where you can purchase prime property at a low price.

Centrally-located property in Bangkok is worth over $5,000 per square meter on average. Meanwhile, a leasehold apartment in less-developed Hanoi, Vietnam will even cost you more than $3,000 per square meter.

However, Phnom Penh stands out as one of few the only Asian capital cities where you can buy real estate in the middle of the CBD for below $1,000 per square meter.

Do note though: we aren’t talking about Cambodia’s newly-built condos in Phnom Penh which have started popping up over the past few years.

Condo buildings in Cambodia are often large, impressive, and a testament to the nation’s development in the real estate industry.

Yet they’re usually way too expensive, selling at prices approaching the range found in Bangkok.

Instead, look toward Phnom Penh’s older shophouse flats. Such colonial apartments don’t have a pool or a gym, but they’re about 25% the value of a new condo in Cambodia and in good structural condition overall.

Either that, or if you have a few million dollars to invest, you can set up a land holding company or buy commercial property in Cambodia though a trust.

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