On June 23, 2023, AmCham Cambodia hosted its “Mid-Year Review: Real Estate and Construction Law Update” with 70 attendees finding out more about the new Cambodian real estate and construction laws and regulations.
In attendance was H.E. Charles Vann, Acting Chairman of Cambodia Constructors Association & Executive Vice President of Canadia Group as the keynote speaker. The panel discussion was moderated by Ruwan Hulugalle, Chair of the AmCham Law Committee & Department Head of Corporate and Banking at BNG Legal who also added "Cambodia has made moves to help facilitate more foreign investment into Cambodia. We have seen in the condominium sector a law has been passed to allow foreign ownership. But this wasn't enough and the Trust Law was since passed."
Other guest speakers and panellists included:
- Mrs. Davy Kong - Co-Head of Real Estate and Construction Practice Group, DFDL Cambodia and Member of the Board of Governors of the American Chamber of Commerce - Discussed the current construction activities in the Kingdom and the real estate law and regulations.
- Mrs. Moniveark Sou - Chief Operating Officer of Borey Sovannphumi.
- Mrs. Chheang Sophea - Head of the Consumer Banking Division of Canadia Bank PLC.
- Mr. Lawrence Lennon - Managing Director of CBRE - provided an overview of the international real estate and construction market as well as Cambodian developments in commercial real estate thus far in 2023..
2023 Laws Impacting Property and Real Estate in Cambodia
Sub-Decree No. 50 on the Management of Real Estate Development Business
According to DFDL, On 2 March 2023, the Royal Government of Cambodia issued Sub-Decree No. 50 on the Management of Real Estate Development Business (“Sub-Decree 50”) which covers managing and inspecting the real estate development business in Cambodia will see new Prakas or implementing regulations issued. This Prakas will "determine the rules and procedures for managing and inspecting the real estate development business in Cambodia to ensure the effectiveness and transparency of management and control of the real estate development business, equity and balance of interests between developers and buyers, attracting investors and trust to the public preventing any financial risk in the real estate sector, and contributing to preventing money laundering activity in the real estate development sector."
The Sub-Decree 50 categorises business licenses and permits into three categories:
- Category 1: License or permit for housing development business;
- Category 2: License or permit for co-owned building development business; and
- Category 3: License or permit for land lot development business.
Exemption Of Public Service Fees
In May 2023, the Ministry of Economy and Finance, in collaboration with the Ministry of Land Management, Urban Planning, and Construction, also introduced the exemption of three public service fees (Inter-Ministerial Proclamation No. 312) which should positively impact construction, affordable housing, and surveying in Cambodia. By eliminating some of the fees associated with construction permits and initial registrations, it should promote private-sector participation and investment.
- Construction permits for private hospitals, private Schools, and affordable housing.
- Initial registration of co-ownership buildings for affordable Housing.
- First measurement certificate for civil servant surveyors.
Property and Real Estate Cambodia 2023
Some of the latest real estate and property sector data from Lao Tipseiha, Secretary of State at the Ministry of Land Management, Urban Planning and Construction released in June 2023 suggests:
- Licenses were issued to 1,463 construction projects during the January-May period of 2023.
- Cambodia currently has 2,586 high-rise buildings (between five and over 40 floors)
- There are 547 locations of new towns and residential complexes in the Kingdom.
- 40,917 flats/condos in Cambodia.