According to a statement from the Council of Ministers, Cambodia’s prime minister Hun Sen asked the Ministry of Land and Management and Justices to speed up the completion of a draft law on foreign ownership of property who would allow them to buy their own property above the ground floor.
“Hun Sen has recommended that the Ministry of Land Management cooperate with the Ministry of Justice to speed up work on the draft law on foreign ownership of property to be finished soon, because this law enables foreigners to have rights to buy houses that are not on the ground floor,” reported the Cambodia Daily.
In a statement, he said that the implementation of the rules would lead to an influx of foreign capital investment in the real estate and other sectors. He added that the law will make foreigners feel confident in investing in other sectors in Cambodia.
Sung Bonna, CEO of Bonna Realty Group and president of the National Valuers Association of Cambodia, was quoted by the Phnom Penh Post as saying that “he welcomed the premier’s comments, calling them a highly valued answers to help the real estate industry survive.”
David Colman, an adviser at Cambodia Angkor Real Estate, quoted by the Cambodia Daily as saying that he has seen a marked decline in foreign investment in Cambodia real estate in the past year and a half, which he attributed to a combination of the global financial crisis, political troubles in neighboring Thailand and the conflict over Preah Vihear.
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, reported the Post.
Im Chamrong, director general of the construction department at the Ministry of Land Management, Urban Planning and Construction, said the rules were still being drafted and would be the subject of debate at an inter-ministerial meeting to be held “soon”. He said it was not sure when the draft would be sent to the Council of Ministers, reported the Post
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