Investment Property in Phnom Penh

Investment Real Estate in Phnom Penh

Investment Property in Phnom Penh
Investment Property in Phnom Penh

Phnom Penh property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Phnom Penh.

Search Map of Phnom Penh Investment Real Estate

Phnom Penh (; Khmer: ភ្នំពេញ, Phnum Pénh [pʰnomˈpɨɲ]) is the capital and most populous city of Cambodia. It has been the national capital since the French protectorate of Cambodia and has grown to become the nation’s primate city and its economic, industrial, and cultural centre.

Phnom Penh succeeded Angkor Thom as the capital of the Khmer nation but was abandoned several times before being reestablished in 1865 by King Norodom. The city formerly functioned as a processing center, with textiles, pharmaceuticals, machine manufacturing, and rice milling. Its chief assets, however, were cultural. Institutions of higher learning included the Royal University of Phnom Penh (established in 1960 as Royal Khmer University), with schools of engineering, fine arts, technology, and agricultural sciences, the latter at Chamkar Daung, a suburb. Also located in Phnom Penh were the Royal University of Agronomic Sciences and the Agricultural School of Prek Leap.

The city was nicknamed the “Pearl of Asia” for its early 20th century colonial French architecture, which included Art Deco works. Phnom Penh, along with Siem Reap and Sihanoukville, are significant global and domestic tourist destinations for Cambodia. Founded in 1372, the city is noted for its historical architecture and attractions. It became the national capital in 1434 following the fall of Angkor, and remained so until 1497. It regained its capital status during the French colonial era in 1865. There are a number of surviving colonial-era buildings scattered along the grand boulevards.

On the banks of the Tonlé Sap, Mekong, and Bassac Rivers, Phnom Penh is home to more than 2 million people, approximately 14% of the Cambodian population. The Greater Phnom Penh area includes the nearby Ta Khmau city and some districts of Kandal province.

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The financial stability of Phnom Penh has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Phnom Penh

 

Renting out your Phnom Penh buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Phnom Penhare – preparation is key:

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Phnom Penh and be prepared to change your initial outlook.
  • Thoroughly research the Phnom Penh location with a special emphasis on fringe areas outside the main Phnom Penh metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Phnom Penh.
  • Ensure that your target investment property in Phnom Penh appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

Flipping Investment Property in Phnom Penh

Flipping property in Phnom Penh

 

Flipping property is when we advise clients to buy a Phnom Penh property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Phnom Penh market has a time to react to the renovation.

 

The Flipping Strategy in Phnom Penh

 

Investment property flipping in Phnom Penh is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Phnom Penh real estate investments are sometimes referred to by professionals as ‘distressed’ Phnom Penh real estate.

 

What is distressed Phnom Penh property:

 

  • Phnom Penh property in need of renovation
  • Phnom Penh real estate with a change of puropose and use
  • Oversold Phnom Penh property
  • Bank repossessions in Phnom Penh

 

Put simply, long term investors in Phnom Penh purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Phnom Penh investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Phnom Penh property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Phnom Penh use a minimum profit value of 22% when looking at potential Phnom Penh projects. The reason for this is because there are lots that can go wrong in Phnom Penh property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Property Secured Investments is a Private Equity fund that invests in Phnom Penh and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

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