Cambodia mulls allowing foreigners to buy property

PHNOM PENH (AFP) — The Cambodian government is considering allowing foreign ownership of property such as apartments and office buildings to boost the country's economic growth, an official said Wednesday.

Under the current rules, foreign property investments can only be made through the name of a Cambodian national, and many are unwilling to risk losing their assets to unscrupulous local partners.

Information Minister Khieu Kanharith said the government is evaluating the policy to ensure that foreigners will be allowed to own buildings and apartments but not land.

"The important thing is that foreigners cannot own land... They can buy things above the ground only," Khieu Kanharith told AFP.

He said that the plan would attract more foreign investment and more skilled foreign workers to the impoverished nation.

"This policy will boost our economic growth," Khieu Kanharith added.

The move comes after the private sector last year urged the government to allow foreign ownership of certain properties like apartments or factories, saying a liberalised real estate market would spur the economy.

Cambodia's investment law was amended in 2005 to allow foreign ownership of buildings, but the legislation has yet to be implemented and the initiative has floundered.

Despite current restrictions, billion-dollar skyscraper projects and sprawling satellite cities promising to radically alter Phnom Penh have bloomed over the past few years.

They are mainly backed by South Korean companies working through local partners.

After decades of turmoil, Cambodia has emerged as a rising economy in the region -- posting average 11 percent growth over the past three years on the back of strong tourism and garment sectors.

But officials warn that the country, which still relies on international aid for half of its annual budget, must diversify by seeking more varied foreign investments.

AFP

I think it's good. Cambodia needs as much foreign capital as possible to help rebuild herself and this is one way of doing it.

The new laws will allow foreigners to buy properties (houses) not sections (land).

http://www.rfa.org/khmer/indepth/foreigner...2008035250.html

I think it's good if they handle this properly.

Does that include free-standing houses situated on a single lot of land? That might be where the problems start to develop. Maybe just limit it to first floor apartments and above, then there's never any confusion as to what they're actually buying.

I can imagine that on scenic Cambodian countryside, elegant foreign private club house on the beautiful golf course with 99 years land lease posted the sign on the entrance gate read as follow,
NO DOGS AND CAMBODIAN MAY ENTER.

This happened in Hong Kong during the British colonization there.

I can imagine that on scenic Cambodian countryside, elegant foreign private club house on the beautiful golf course with 99 years land lease posted the sign on the entrance gate read as follow,
NO DOGS AND CAMBODIAN MAY ENTER.

This happened in Hong Kong during the British colonization there.

but thats leasing. leasing is good in that u know eventually u will take over and own whatever they develop, but in the meantime, u get nothing but the jobs that are creating. but u will get land development. renting, gives the locals a means of going into investment with foreigners within themselves by saying hey, u want to develop something here. i own the land. develop it, but u pay rent to me.

Sounds like you picture this set of rules rather unilaterally to me.

well, ofcourse i don't think that way, it benefits everyone.

but thats leasing. leasing is good in that u know eventually u will take over and own whatever they develop, but in the meantime, u get nothing but the jobs that are creating. but u will get land development. renting, gives the locals a means of going into investment with foreigners within themselves by saying hey, u want to develop something here. i own the land. develop it, but u pay rent to me. or better yet, u go into business with them also. it also gives confidence to the investor because he knows he owns it legitimately. he doesn't have to trust the person won't break out on them.

If they are allowed to 99 years land lease on fertile agricultural land, their food products will be sold and distributed to other nations.
Who will benefit most? In 10 years, the food products will be scare and very expensive like petroleum. Big multinational corporations can easily afford to buy corrupted politicians.

If they are allowed to 99 years land lease on fertile agricultural land, their food products will be sold and distributed to other nations.
Who will benefit most? In 10 years, the food products will be scare and very expensive like petroleum. Big multinational corporations can easily afford to buy corrupted politicians.

And corrupted politicians can easily kick out big multinational corporations, so I don't see your point.

And corrupted politicians can easily kick out big multinational corporations, so I don't see your point.

It really should be restricted to urban city apartments, for that reason among others.

i think this idea might be better for overall development because of the fact that it might increase foreign confidence in investment. the benefit for foreign investors is that they can open something now an sell it later for a higher price when the country develops even more. possibly to a local cambodian person who has made his way to the top. in the end, it benefits everyone.

Big multinational corporations can lobby the corrupted politicians to gradually amend the land lease law to their benefits.
They will kick the honest politicians out first.

The restrictions can eventually be eased with the lobbyists.