Highrise apartments under construction in Phnom Penh.PHNOM PENH, Cambodia (AP) - Foreigners will be able to buy real estate in Cambodia — as long as it's above the ground floor — under a proposed law that cleared the lower house of parliament Monday.
Cambodia's National Assembly approved the long-awaited Foreign Ownership Property Law after a three-day debate by a vote of 85 to 11. It needs to pass the Senate and King Norodom Sihamoni before becoming law, both of which are considered technicalities.
Until now, foreigners could not own land or property in the impoverished Southeast Asian country, though many skirted the law by teaming up with Cambodian buyers.
The proposed law gives foreigners the right to buy real estate at least one floor above the land, in keeping with the ban on foreign land ownership.
The law also states that foreigners would not be able to buy property within 20 miles (30 kilometers) of Cambodian borders, a constraint intended to protect national sovereignty.
Im Chhun Lim, Minister of Land Management, told lawmakers that the adoption of the law would help attract foreign buyers and strengthen Cambodia's economy.
"This law will promote the investment sector by encouraging the construction of luxury, high-rises," he said.
Cambodia's economy relies mainly on the agriculture and tourism sectors, but foreign investors have helped the economy's rapid growth.
China is a leading foreign investor in Cambodia, with some 349 Chinese companies invested in Cambodia mainly in agriculture projects, construction and dams, according to the Chinese Embassy.
-----------------------------------------
Foreigners allowed to buy Cambodian property as parliament OK's law
Phnom Penh (DPA)- Cambodia's depressed property market received a boost Monday after parliament passed a much-anticipated law permitting foreigners to buy property.
The law, which developers had long pushed for, allows foreign nationals to buy property above the ground floor, but not the land on which the property stands.
Sok Chenda, the secretary-general of the Council for the Development of Cambodia, the government's investment body, said the law ought to help the struggling real estate market.
"Gradually other countries have opened up the possibility of ownership, and Cambodia is no exception," he told the German Press Agency dpa. "We were very strict, and now we still have some restrictions, but we try to open it up."
Asked whether the country might one day permit foreigners to own land as well, Sok Chenda said the government needed first to assess the effect of Monday's law on the local market.
"Everything has to be done gradually - we have made the first move so now let's see how the market reacts," he said.
In recent years Phnom Penh's skyline and surroundings have been transformed by developers erecting apartment blocks and high-end developments.
However, the global slump and lack of a substantial Cambodian middle-class meant many projects stalled or were pared back.
Under existing rules, foreign nationals who wanted to own property needed to find a trustworthy local partner to co-own the asset, adding to the investment risk.
The law will enter into force after it is passed by the Senate and signed by the king.
Cambodia's National Assembly approved the long-awaited Foreign Ownership Property Law after a three-day debate by a vote of 85 to 11. It needs to pass the Senate and King Norodom Sihamoni before becoming law, both of which are considered technicalities.
Until now, foreigners could not own land or property in the impoverished Southeast Asian country, though many skirted the law by teaming up with Cambodian buyers.
The proposed law gives foreigners the right to buy real estate at least one floor above the land, in keeping with the ban on foreign land ownership.
The law also states that foreigners would not be able to buy property within 20 miles (30 kilometers) of Cambodian borders, a constraint intended to protect national sovereignty.
Im Chhun Lim, Minister of Land Management, told lawmakers that the adoption of the law would help attract foreign buyers and strengthen Cambodia's economy.
"This law will promote the investment sector by encouraging the construction of luxury, high-rises," he said.
Cambodia's economy relies mainly on the agriculture and tourism sectors, but foreign investors have helped the economy's rapid growth.
China is a leading foreign investor in Cambodia, with some 349 Chinese companies invested in Cambodia mainly in agriculture projects, construction and dams, according to the Chinese Embassy.
-----------------------------------------
Foreigners allowed to buy Cambodian property as parliament OK's law
Phnom Penh (DPA)- Cambodia's depressed property market received a boost Monday after parliament passed a much-anticipated law permitting foreigners to buy property.
The law, which developers had long pushed for, allows foreign nationals to buy property above the ground floor, but not the land on which the property stands.
Sok Chenda, the secretary-general of the Council for the Development of Cambodia, the government's investment body, said the law ought to help the struggling real estate market.
"Gradually other countries have opened up the possibility of ownership, and Cambodia is no exception," he told the German Press Agency dpa. "We were very strict, and now we still have some restrictions, but we try to open it up."
Asked whether the country might one day permit foreigners to own land as well, Sok Chenda said the government needed first to assess the effect of Monday's law on the local market.
"Everything has to be done gradually - we have made the first move so now let's see how the market reacts," he said.
In recent years Phnom Penh's skyline and surroundings have been transformed by developers erecting apartment blocks and high-end developments.
However, the global slump and lack of a substantial Cambodian middle-class meant many projects stalled or were pared back.
Under existing rules, foreign nationals who wanted to own property needed to find a trustworthy local partner to co-own the asset, adding to the investment risk.
The law will enter into force after it is passed by the Senate and signed by the king.
No comments:
Post a Comment