SINGAPORE property investors are dipping their toes into homes in the largely untested market of Cambodia, though in relatively small numbers.
In March, a Singapore developer launched phase one of the 17-storey La Vie Residences in the capital Phnom Penh.
Yuen Development chief executive Darren Yap said 60 per cent of the 180 units in the Chroy Changvar precinct have been sold.
Half of the 108 units sold were one-bedroom units.
The rest were an almost equal mix of two- and three-bedroom units.
Mr Yap noted that buyers were mainly from Singapore, Taiwan and Cambodia.
Construction for phase one of La Vie will begin in October, and is estimated to conclude in the first quarter of 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,” Mr Yap said.
Meanwhile, Cambodian developer SGPD Corporation launched The Skyline on May 24, a mixed development in the heart of Phnom Penh’s central business district.
Anthill Realtors, the agency managing sales, reported that 70 per cent of the 792 residential units had already been sold since the preview in March.
Its retail units are not for sale.
Fewer than 20 per cent of buyers were from Singapore.
Taiwanese and Cambodians formed the bulk of buyers.
One of two residential towers was bought by Taiwanese private investors.
At the other tower, nearly 60 per cent of the 280 one-bedroom units and half of the two-bedders have been sold.
Three out of four penthouse units were snapped up.
Ms Rhonda Wong, Anthill Realtors’ chief executive, said The Skyline fared well among local buyers – a good sign for potential 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.”
She added that many buyers were entry-level investors drawn by SGPD Corporation’s guarantee of a 6 per cent rental yield.
Another draw is that for some Cambodian projects such as The Skyline, buyers fork out only half the purchase price before completion.
However, Singapore buyers remain a minority, owing to a lower risk appetite and a penchant for more established markets, Ms Wong said.
The Skyline is expected to be ready in the fourth quarter of 2018.