Why Phnom Penh Boreys are so popular, Realestate.com.khTV
Why Phnom Penh Boreys are so popular, Realestate.com.khTV
Jum reap sour! And welcome to another weekly Real Estate News Report brought to you by Realestate.com.kh. The leader in real estate news in the Kingdom and the best place to find your new home.
On this week’s show, we’re going to be speaking with Mr. In Sitha, Director of Business Development at VTrust Appraisal.
Sitha has over 20 years experience in the real estate business in Cambodia and he now specializes in property development consultancy and real estate business development. He’s also a renowned real estate teacher in real estate law and real estate practice.
In this 6 Part series, we’re going to get some tips for property developers and real estate businesses seeking to gain an edge when entering the Cambodian real estate market.
PART 4: WHY PHNOM PENH BOREYS ARE PROVING SUCH A POPULAR MARKET FOR DEVELOPERS AND HOMEBUYERS
Realestate.com.kh: We’re seeing a real rise in new borey developments across Cambodia recently. Can you explain why property developers are particularly interested in the Phnom Penh Boreys market? Why build a Borey?
In Sitha: Okay. This is a good question. In this industry right now are seeing two main types of major developments: Borey development and condo development.
Realestate.com.kh: Sorry, I guess for the viewers, can you explain what a Borey is? – Because I know this word is used a lot in Cambodia, but for people outside Cambodia, maybe they don’t know what a Borey is.
In Sitha: Essentially, a borey is a gated community of flat houses, twin villa houses and single villa houses, including public areas, gardens and full security services. Those who want to buy a borey home are looking for privacy, a safe place for their family to grow, areas where communities can develop, and a place where all modern amenities are assured. They are they prefered first home of newlywed Cambodian couples looking to start a new family.
Most of the local developers choose to invest in Boreys. The reason is that developers themselves gain a lot of profit from investment in borey projects over relatively short investment periods. The customers themselves also buy into a good environment for family living. It is popular with Cambodian people who prefer landed buildings, or flat houses. In the Borey, it’s generally all some kind of a flat house, link house or villa home. It can be one story or two story maximum. They also generally have a common area and playground for children. Check out the Borey buyers guide!
Realestate.com.kh: Like a neighborhood. Like a fenced neighborhood.
In Sitha: Yeah, that’s right.
Realestate.com.kh: They have infrastructure, have water, have electricity.
In Sitha: All included. Generally, for a home in the Borey, the market price increase yearly from 10-15%. This is a good investment to the buyer themselves. They can buy this year, and next year they can sell. If the market is good, it could be more than 15% appreciation. Compare the interest rate with the bank, it’s much better than investing the bank.
Realestate.com.kh: Because the Borey buyer, they own the land right? They have freehold ownership of the land.
In Sitha: Yes they own the plot of land that their home is situated on, hard title generally – but best to check!
Realestate.com.kh: Now lots of local people move away from the city center to the Borey’s on the outskirts of town right?
In Sitha: Yes, that’s what you see. The Borey developments are long line investment development projects. Which means that the developer spends much more time on the investment, starting from the early master plans and filling the totally undeveloped land.
Realestate.com.kh: Maybe fill the land.
In Sitha: Yeah, up to the completion of the development projects. The marketing time also takes longer to promote and ultimately sell it. Borey means one community. And each household shall pay the management fee. Management fees are reserved for the security, reserved for the public life, reserved for the street cleaning, pool and playground for children- garbage collection as well. Boreys offer great security to families.
Realestate.com.kh: More of a community lifestyle too?
In Sitha: Yeah, yeah.
Check out the latest and greatest borey properties, on realestate.com.kh today!
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Source: News – Real Estate Cambodia