Cambodia considering freehold for foreign investors

According to the Cambodia Ministry of Land Management, Urban Planning and Construction, there is an amendment being debated to Cambodia's law that if passed would allow the freehold purchasing of property in the country by foreigners.

This is being done in an effort to augment the local development boom, although some social implications might derail part of that boom before it ever becomes international. 

Recently the Cambodian government has decided to review their property laws with regard to foreign buyers. Currently, foreigners are only allowed to purchase land on a leasehold agreement with a tenure of 99 years. While this option has proved popular with many buyers in the Southeast Asian property market, many feel that it is still being restricted due to those laws. This week, however, Nuth Nurang, the Secretary of State for Cambodia's Land Management, has revealed that the government is actually considering an amendment. This amendment would make it possible for foreign investors to buy land freehold. Analysts believe this will help this emerging market to really take flight.

Analyst currently suggest the Southeast Asian property market has at least 5 years of sustainable growth. Phnom Penh is prime example of Cambodia's future. Properties that could only be described as "slums" are slated for demolition to make way for multi-million dollar developments. Prime real estate has begun to sky rocket as the previously war torn country begins to build a new economy. Land that previously had little to no value is now stated to be worth $3,000 per square meter.

All of this does not come without its social price. Many of the nations poor are being forced out of their homes because the government does not acknowledge their right to occupy the land. For some developers, this has become a source of frustration. Some are refusing to leave their homes while others have resorted to violence. This forces the Cambodian government to make many efforts to establish social order. Above all else, Cambodia is focused on becoming a prosperous nation. If recent land sales are any indication, the timing couldn't be any better.