The first article about real estate in Cambodia appeared on HomesOverseas.ru back in 2008. Even then, the young emerging market of the country, which had recently recovered from a brutal political regime, seemed like a golden bottom.
However, Cambodia did not become a mainstream destination for Russian-speaking buyers of foreign real estate. Rather, it was an exotic destination that only a rare investor related to this region paid attention to.
Real live interest in Cambodiaarose in Russia and the CIS as a whole not so long ago, about 1-2 years ago, thanks to the activity of real estate agencies that began to popularize the state with the fastest growing economy in Southeast Asia.
Co-owner of Cambodia's largest developer today, Time Square Vladimir Palanchika knows more about this country and its housing market than anyone else from the post-Soviet space.
Vladimir, how is it that the head of the largest development company in Cambodia speaks Russian? You are originally from Moldova. How did you end up in Cambodia?
Yes, I was born in Moldova, a beautiful and kind country, but since childhood I dreamed of traveling and new mysterious countries, as it seemed to me then. My dreams led me into the travel business. First, I opened a travel company in Thailand, on the island of Phuket. I visited Cambodia once, and I liked the country right away - the climate, the people, the religion, the food, the simplicity of doing business. The decision was made quickly - I moved to Cambodia. And I've never regretted it!You have been living in Cambodia for a long time. What do you like about this country?
I have been living and developing my businesses in Cambodia for 12 years now. I like everything here, and everything is native to me here. The most valuable thing is, of course, people who are kind, smiling, sincere, and sometimes even naive. I love the warm climate in Cambodia, summer is all year round. The local nature is amazing: mountains, rivers, waterfalls, sea, beaches, islands! The cultural heritage is rich: the Angkor temple complex (one of the wonders of the world), colonial buildings - the legacy of the French Empire, Buddhist pagodas.
Cambodians treat all people and nations well. They are Buddhists, and they do not have any conflicts based on religion or nationality. By the way, the residents of the country have a particularly kind attitude towards Russian speakers. At one time, the USSR helped them a lot, and they remember it. Many studied in the Soviet Union, and there are those who speak Russian, especially among the elite.
And what are the advantages regarding business?
It is very easy to do business in Cambodia. A foreigner can freely formalize a company entirely for himself, open a bank account, obtain a residence permit and an annual visa for only $ 300, and buy or sell real estate.
Importantly, taxes are very small or non-existent.
What are the "gingerbread" in Cambodia for a real estate investor?
There are many more advantages for investors than there are disadvantages.
Those who have invested in our completed projects already have from 7-8% per annum in foreign currency for rent. Plus, capitalization growth - apartments are rapidly becoming more expensive. The entry threshold for new projects is still small - from $50,000 per studio.
Cambodia is a dollar-denominated country, and all transactions are conducted in US dollars, which is convenient. It's very easy to set up a company and open a bank account. Local banks don't ask many questions when receiving money or transferring it somewhere. Taxes are minimal.
The country as a whole is impressive with its results. GDP has been growing at 7% per year for 10 years now. Cambodians are the youngest nation in the world, with an average age of 25 years. This means that the demand for housing is guaranteed, and investors will always be able to sell or lease their apartments and houses.
Cambodia is well located geographically, and it is convenient to conduct business with all of Asia, as well as Australia. It has access to the sea and an international seaport in Sihanoukville.
Does the country really have a lot of advantages? And what are the disadvantages? What haven't you been able to get used to over the years?
I don't even know what to say about the cons... The only problem I've faced in 12 years was covid, but then the whole world suffered.
At the beginning, I couldn't get used to the lack of traditional food products for us, people from the CIS. The diet lacked sour cream, kefir, and black bread, but now it's all available in stores and restaurants. Thank you to our compatriots!
Tell us about your company. Which projects are you particularly proud of?
Now Time Square is the largest developer in Cambodia. We already have 8 projects available, and this year we are launching 2 more large projects: Time Square 9 for 500 apartments in the BKK1 business center in Phnom Penh, the capital of Cambodia, and Time Square 10 for 1000 apartments by the sea on the first line of the Otres beach in Sihanoukville. I am very proud of the Sihanoukville project, because it will be our first multi-storey house by the sea. The building is designed so that all apartments will have balconies with sea views. I am sure our dear customers will really like it!
Who are your main customers? Are there many foreigners, and where do they come from? Is there a demand from Russians, Ukrainians, and people from other post-Soviet countries?
Approximately 50% of apartment buyers in our projects are local, and the remaining 50% are foreigners from all over the world: Koreans, Japanese, Chinese, Singaporeans, Australians, Europeans, Americans and, of course, people from the former USSR. Moreover, not only those who live in the countries of the former Soviet Union buy from us, but also those who previously immigrated to Europe, Dubai, and the USA.
They mostly buy for investment - for the purpose of resale or rental.It is convenient to invest in dollars, getting a stable income.
Our company is engaged in the sale of real estate, resale and rental.
Transactions can also be carried out from a distance, this is already a legal practice after the pandemic. But if clients want to fly in and see everything on site, we will definitely meet them at the airport and help them check into a hotel or apartment.
We also provide full legal support for transactions, help with opening a bank account, obtaining a residence permit and an annual visa. By the way, the process of obtaining an annual visa and residence permit is probably the easiest in the world: you only need a passport, a photo and 300 dollars.
What projects are you currently offering to the buyer? What can I buy from you and at what price?
Of our eight projects, apartments available for sale are only in Time Square 8, and even that 50% is already sold out. Soon we will launch Time Square 9 and Time Square 10, which I have already mentioned. We plan to launch sales in March. Apartments are sold quickly. There are clients who buy several floors at the initial stage of construction with the expectation of resale upon completion of construction.
How easy is it to make a deal in Cambodia? What will be needed for this? Are there any special conditions, installments? Can I get a loan?
It is very easy to conclude a real estate purchase and sale deal in Cambodia. All contracts are prepared by our legal department. We accompany the client from the beginning of the transaction to the end. Foreigners have the right to buy, sell and register real estate entirely in their own name, in their family members, and to pass it on by inheritance. The only type of real estate that a foreign citizen cannot buy is land. But, if there is such a desire andIf necessary, you can buy a plot through a trust company. Or another option is to acquire Cambodian citizenship first. Our company can help you with all these issues.Company Time Square offers favorable payment schedules. The client can make the first payment in the amount of 10-20%, and for the remaining amount we can give an interest-free installment plan, dividing it by 50 months. We also provide loans for a period of 10 years, without any income certificates. Very convenient, you must agree!
You mentioned Sihanoukville. What do you think about his prospects? Is there any hope that the region, which has suffered due to the mass withdrawal of Chinese investors, will come back to life and really become a large, developed resort?
I can talk about Sihanoukville for hours, as it is my favorite city in Cambodia! I started doing business in this country from there. The cleanest beaches, paradisiacal islands, a comfortable climate, cheap and always fresh seafood, sea breeze... All this and much more makes the city a desirable place to live.
You can call it a city now, but when I first came, it was a small, quiet seaside village where electricity was provided by the hour, and restaurants lit candles on every table for customers in the evening...
Today, Sihanoukville is the second largest city in Cambodia, the country's largest and only international port, and a free economic zone. There is an airport, an expressway is open that connects Sihanoukville with the capital (the road takes only 2 hours).
Sihanoukville is also called the Asian Las Vegas. It is precisely the gambling business that has failed Chinese investors. In 2019, Cambodia banned online gambling, that is, on the Internet, at the request of an official representative of China. After that, many Chinese left Sihanoukville, leaving unfinished construction projects and businesses. Of course, they caused great economic damage to the city. Then covid came along and made the situation even worse.
But that was all in the past, and now the government is taking steps to resolve the issue of unfinished construction projects and improve infrastructure. Only new roads in the city were built at a cost of 500 million dollars. The sea and air ports are being expanded, and measures are being introduced to develop tourism. Companies that invest in Sihanoukville are exempt from taxes.
The future of the country depends on this city, so there is only one choice - the rapid and high-quality development of Sihanoukville. About the mass withdrawal of the Chinese from the online casino industry... In my opinion, it became quieter and calmer without them.
Vladimir, let's summarize. Who do you recommend buying property in Cambodia today? And why?
I recommend buying a property in the Kingdom of Cambodia to absolutely everyone who is looking for investment options! The prices are not very high yet, and you can earn almost twice as much as what you have invested. The profit from renting an apartment is 7-8% per annum in foreign currency.
Buying real estate from a company Time Square, you can get installments as well as a loan. Our company is engaged in the sale and resale, renovation and furnishing of apartments. And if you want to move to Cambodia, we will also help. I invite everyone to the Kingdom of Cambodia!
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The article was prepared with the information support of the company Time Square
For more information, please contact us directly.
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