Singapore property investors are venturing into the Cambodian residential market, albeit in relatively small numbers, media reports said.
In March, a Singapore-based developer launched the first phase of the La Vie Residences in Phnom Penh.
According to Yuen Development’s chief executive Darren Yap, 60 percent of the 180-unit project has been sold, with buyers mainly from Taiwan, Cambodia and Singapore.
Construction works for phase one of the 17-storey building will commence in October, and is expected to be ready in Q1 2018.
“With a strong land bank repository on our backs, we are already looking to launching phases two and three in end-2015 and 2016 respectively,” said Yap.
Meanwhile, Singapore investors have also bought units at The Skyline, a mixed-use development located in the heart of Phnom Penh’s central business district.
Developed by SGPD Corporation, the project has moved 70 percent of its 792 residential units since its preview in March, revealed marketing agent Anthill Realtors.
The bulk of buyers were from Taiwan and Cambodia, while Singaporeans accounted for less than 20 percent.
Anthill Realtors’ chief executive Rhonda Wong noted that the project fared well among local buyers, which is a good sign for prospective foreign investors.
“As a foreign investor, you want to buy a product that local people want to buy, because it is safer for a resale market,” shared Wong.
Most of the buyers were entry-level investors who were drawn to the developer’s guarantee of six percent rental yield, she said.
Another draw is that buyers at some Cambodian projects like The Skyline only need to fork out half the purchase price before completion.
Despite this, Singapore investors remain a minority due to a lower risk appetite as well as a penchant for more established markets, Wong added.
The Skyline is set to complete in Q4 2018.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email email@example.com