2018-02-23
Interview with an investor who purchased real estate in a prime location in Cambodia for 10 million yen
- Interview
“Upon hearing that there are properties available from 10 million yen in the prime location of Cambodia, I immediately purchased one,” says Mr. K, a company executive who has made successful real estate investments domestically and internationally.
We asked about his experience of purchasing “L’attrait Boeung Keng Kang,” a property developed by Japanese-affiliated companies in Cambodia, which has increasingly become popular among overseas real estate investors.
After a successful investment in Malaysian real estate, the next investment destination was Cambodia
-Why did you choose Cambodia as the destination for your real estate investment?
A few years ago, I purchased real estate in the central area of Malaysia and earned capital gains at the time of sale. Through this, I experienced success in overseas real estate investment and was searching for a new location to invest in.
While I was looking for prospective countries and properties through various tools such as the internet and seminars, I came to think that Cambodia might be interesting as a destination for real estate investment.
One reason is that the country has great potential to develop. Compared to Malaysia where I owned real estate, Cambodia is still developing. It could be said that even in the capital city of Phnom Penh, the level of development is about 10 or 20 years ago in Malaysia.
However, the GDP growth rate in Cambodia is about 7%, which is the top in Southeast Asia. This is evident in the many condominiums and shopping malls built in the past few years. You can feel the country’s economic development in real time.
-Investment in Cambodian real estate also has the advantage of using dollar currency, right?
Yes, the fact that the country’s currency is the US dollar is a great advantage for real estate investment. You can purchase the property and receive profit in dollars.
As the dollar has little fluctuation, I decided to purchase real estate in Cambodia in order to hold assets in the currency.
Furthermore, you can create a bank account in Cambodia even if you do not live there, and the interest rate is 4.75% per year. This means that if you put your rental income and capital gains obtained from your property to a dollar account, your assets will increase.
And as I personally love Cambodia, I always wanted to own a house not only for investment but also as a second house. Cambodian people generally like Japan, the food is delicious, and alcohol can be enjoyed at reasonable prices. So I thought Cambodia is also an attractive place to live in.
You can now own a house in the prime location of Cambodia
-Why did you decide to purchase “L’attrait Boeung Keng Kang”?
First of all, my main criteria was that the property was developed by a Japanese-affiliated company.
I heard numerous cases where, in the process of purchasing overseas real estate, the project was canceled during the construction and the deposit was not returned. So, I pay great attention to whether I could trust the developer when choosing a property.
As this was the only property in Cambodia developed by a Japanese-affiliated company, it felt safe and captured my attention.
-How about the location of the property?
L’attrait Boeung Keng Kang is planned to be built in central Phnom Penh, an area which is expected to develop its branding in the future. It may become an upscale residential area in Cambodia.
-How is its potential as an investment property?
One attractive aspect of this property is that you can purchase it from 10 million yen, and you can expect a higher yield than in Japan.
If you purchase a property in the prime location of the capital of a country which already attracts real estate investment from overseas, prices would exceed 30 million yen event at the cheapest end.
However, in Cambodia, prices are still low, and you can purchase properties at extremely reasonable prices even in the capital city of Phnom Penh. As the demand for rental properties is expected to increase, you can aim for both income and capital gains.
It was the property that I truly wanted to live in.
-Please tell us the selling point of the property.
L’attrait Boeung Keng Kang is a property that is attractive from a Japanese perspective. The property was not built on Cambodian standards but was based on that of Japanese. For instance, the bathtub and shower are separated. Also, the developer is planning to build a sports gym, a swimming pool, and even a bouldering gym.
Also, as I was told that a Japanese-affiliated company will be responsible for the property’s management, I am not so concerned regarding quality maintenance of the property and troubleshooting.
Moreover, it is also an attractive aspect that there are reserve funds for property repairs, which is unusual for overseas properties.
-Do you have a message for those considering purchasing properties in Cambodia?
There is something I cherish when I make overseas real estate investments. It is to question myself if the property is somewhere I truly want to live in.
I have been successful in my overseas real estate investments due to this question. L’attrait Boeung Keng Kang, my property in Cambodia, is one I truly felt like living in, so I decided to purchase according to my own intuition in the end.
For those considering purchasing properties in Cambodia, I recommend that you make the decision whether it is truly good for you by viewing the actual property in person. Definitely visit the area if you want to buy a real estate in Cambodia.
If you have any questions or would like to arrange a viewing, please feel free to contact us!