Healthy sales to overseas buyers and investors were seen at the inaugural launch of a Cambodian development in Singapore earlier this month, and this weekend will offer another chance for local buyers to discover the benefits of investing in Phnom Penh.
Axis Residences, a prime residential Cambodian condominium project, according to real estate firm CBRE distinguishes itself through quality facilities and amenities at highly competitive prices in the fast growing city of Phnom Penh.
More than 100 visitors attended the project’s first sales exhibition in Singapore earlier in April, sold to a diverse range of investors of both local and foreigners.
Cambodian developer Spring CJW’s General Manager Edwin Low said: “We are pleased with the positive response from investors and the good take-up. This affirms we are on the right track with our philosophy of designing and delivering well-built projects in good locations with quality finishing, and our buyers have demonstrated they share an affinity for our development philosophy.
“Savvy investors are highly discerning and know a quality project when they see one. Axis Residences’ first class full condominium facilities, amenities and quality layout resonate with local Cambodian, Singaporean and foreign investors”.
He added that the fact that more than 60 percent of the project was pre-booked before the public launch, and the good take up in our inaugural exhibition in Singapore is testament of the maturing local market and growing demand for Grade ‘A’ condominium projects.
The 566-unit condominium development project comprises eight 10-storey towers, with a suite of more than 20 sports and leisure amenities, including a Jacuzzi, indoor and outdoor gymnasium, tennis court and half basketball court, indoor and outdoor children’s playground, as well as swimming pools and abundant parking.
Cambodian Economy Growing
Data demonstrates that Cambodia has achieved an average GDP growth in excess of 7.5 percent over the last 10 years from 2005 to 2014, with the World Bank projecting Cambodia’s economic growth to continue at 6.9 percent for 2015 and 2016.
CBRE Cambodia Research has tracked the emergence of multinational corporate occupiers from a wide range of industries setting up in Phnom Penh, confident of Cambodia’s growth story. The sectors represented include financial services, high-value electrical, mechanical automobile and the garment and textile trades.
Noticeably, Phnom Penh’s Special Economic Zone (PPSEZ) is the leading economic zone in the Kingdom. After eight years of operations, PPSEZ with its 77 international and domestic investors/manufacturers, is missioned to actively contribute to and promote Cambodia’s development as a destination for larger and global foreign direct investments (FDI). PPSEZ is located some 6 kilometers from Phnom Penh International airport.
With healthy economic growth, the local condominium scene is also heating up. In
2009, CBRE Cambodia recorded a total of 178 condominium units in Phnom Penh. However, this grew to 2,095 condominium units by 2014 with many investors recording capital gains in excess of 5 percent per annum and in excess of 6 percent per annum on rental returns.
Simon Griffiths, Associate Director of CBRE Cambodia, said: “International investors and developers continue to do extremely well in Cambodia, supported by favourable foreign ownership laws, and benefiting from Cambodia’s continued and strong growth”.
Since the implementation of the “Law on the Provision of Ownership Rights over co-owned Buildings to Foreigners” in Cambodia in May 24, 2010, foreigners may acquire apartments above the ground floor up to a maximum of 70 percent of all the units in any one co-owned building. Co-ownership is a reference to ownership of shared lots with common ownership similar to the common law reference to Strata Title. Foreigners are entitled to own units above the ground floor in co-owned buildings.
Axis Residences is designed to attract foreign ownership in that apartments are located above the ground floor.
Leong Boon Hoe, Managing Director of CBRE Realty Associates is confident Axis Residences will be well-received by investors in Singapore, as the quality of the project is comparable with the standard of good class condominium projects in Singapore.
He said: “AXIS Residences represents great value. Its location within an enclave for high-end landed living and proximity to good international schools and the Phnom Penh Special Economic Zone will serve to boost the rent-ability of the units.
“This, coupled with the potential for capital growth, will draw many investors to this city. Phnom Penh condominiums have recorded a five to seven per cent growth on rental returns, while investors have achieved between 5 to 7.5 percent capital growth on condominium investments per annum.
“These figures are backed by a strong support infrastructure and culture which support foreign investment, business and real estate ownership.
“The strong turnout at the seminars showed savvy Singaporean and foreign investors are turning their attention to this new emerging market. The good take up reflects the level of confidence investors have on the long term growth of Cambodia, and their willingness to take early positions”.
Prices for Axis Residences start from US$1,236 per sqm (equivalent to S$1,680 per sqm), based on the current exchange rate.
Singapore overseas property buyers and investors will get another chance to learn about AXIS Residences this weekend, with a sales exhibition in the Lengkuas Room, at the Singapore Marriott Tang Plaza Hotel, on Friday, May 1, through to Sunday, May 3.