Buying an Apartment in Daun Penh, the center of Phnom Penh

While Daun Penh is an attractive area for foreigners due to the number of tourist spots, what few know is that it also houses multiple renowned businesses and breathtaking architecture, providing an attractive environment to live in long-term. However, there is scarce information available for prospective foreign residents on how it is like to live in the area.

Therefore, we have interviewed a foreigner currently residing in Daun Penh to find out about living in the area. 

Daun Penh - An international district with rich culture

-Firstly, why did you choose Cambodia, and why Phnom Penh?

I have no idea! I simply fell in love with the area during the times I’ve been to Cambodia for vacation. Additionally, Cambodia enables you to easily obtain a long-term visa with multi-entry, which was very attractive to me.

Even after nearly two years, I don't regret my decision. The living costs are extremely low, the weather is excellent, the food is appetizing, plus I have a beach on my doorstep and an airport close by.

-Why did you choose the Daun Penh Area?

My apartment is located in the Daun Penh Area of Phnom Penh, Cambodia. I purchased it in early 2016.

I chose this area because it's the busiest area in Phnom Penh, which suits my preference. Furthermore, the area is very close to the biggest tourist attractions in Phnom Penh, such as the Royal Palace, Wat Phnom, and the breathtaking riverside. From an economic perspective, I thought this factor would be advantageous if I decide to rent out my property.

Highly satisfactory prices and standard of living

-Please describe your property.

 My apartment is on the third floor of a building built in 1964. Apart from myself, five parties in the building are Khmer families and four are foreigners.

It includes one bedroom, bathroom, and a living room with an open kitchen. My favorite place is the huge balcony where I sit all day long.

The building’s design was initially inspired by the ancient “Khmer-style,” but was completely renovated in a western style when I moved in. Overall, the renovation is highly satisfactory.

-What was the price of your property?

The price for the fully furnished apartment was $53,000. The apartment was listed at the property agency, YongYap. The price wasn't the most ideal, but if I would rent it out the return of capital would be around 8% p.a.

However, the costs for the contract, the Sankat (the official bureau which is in charge of property issues) and the agency were paid by the seller/former owner. Therefore I can't say how much costs were.

-How are the prices for properties in Cambodia?

The prices for properties are still good in Cambodia compared to other countries. In fact, the prices kept stable despite the law change.

While properties are not built to the same standards in the west, I think the prices will still rise in the near future. However, it also depends on the political future of Cambodia.

The utility costs are also worthy of discussion. While it varies per person, the electricity bill is usually around $12 per month, while the costs for water and trash around $1.50 per month. There are no further costs like cleaning, maintenance, insurance, and so on like in my home country Germany.

Search for "Strata Title" properties

-Any advice for foreigners who want to buy property in the Daun Penh Area?

Three weeks after I bought the apartment, the government instructed the local officials that foreigners are no longer allowed to buy certain apartments in the Daun Penh Area. Currently, foreigners can only buy properties with a "Strada Title" ("Title" is a document which proves the ownership, "Strada Title" is the title for condominiums).

Properties like the old houses in the Daun Penh Area are based on "Soft Title" and "Hard Title," meaning if I sell the apartment, the buyer must be a Cambodian.

To get out of this disaster a foreigner can nominate a Cambodian as a buyer by keeping the rights to sell, rent, or live in the property.

Nonetheless, if you are planning to move to Southeast Asia, Phnom Penh (and especially the Daun Penh Area), is definitely an area to consider.