Cambodia consider new laws for foreign property investors

For those who managed to avoid losing their shirt in the Spanish property market, or investing in Dubai’s real estate bubble, another possibility seems to be floating on the horizon – maybe. Cambodian Prime Minister Hun Sen on Friday urged the Ministry of Land Management, Urban Planning and Construction to expedite the drafting of new rules that would permit foreign ownership of property in Cambodia.

In a press release issued by the Council of Ministers, Hun Sen said implementation of the rules would lead to an influx of foreign capital investment in the real estate and other sectors.

“The law will make foreigners feel confident in investing in other sectors in Cambodia,” he said.

In an interview Sunday, Sung Bonna, CEO of Bonna Realty Group and president of the National Valuers Association of Cambodia, said he welcomed the premier’s comments, calling them “a highly valued answer to help the real estate industry survive”.

He added, “Samdech [Hun Sen] made a good decision with this law. This law is a positive law that will benefit the country’s economy.”

The NVA is to meet today with a working group of government officials and private sector representatives to give input on the new rules. Existing rules prohibit foreigners from owning property, which supporters say prevents speculation and price volatility. The proposed changes would allow for foreign ownership of houses, apartments and condominiums above the ground floor. Foreigners would also be able to inherit property. This would be a substantial turn around and I suspect the impact of the global economic crisis is spurring this suggestion.

Either way – a potential new market looks about to open up for those interested in investing in property overseas .