[PHNOM PENH POST]
SIEM REAP -- THE
Kingdom’s property sector is beginning to emerge from the global
financial crisis, but could further improve with the implementation of
anti-corruption laws and enforcement of property rights, according to
industry experts.
Although the sector is some ways off the
pre-crisis peaks experienced in 2007, the number of transactions are on
pace for a 10 percent increase this year on 2009, said Cambodian Valuers
Association President Sung Bonna.
“Cambodia’s real estate market
remains on track for a robust recovery and we expect foreign investment
to continue to be a key driver of growth for the sector in 2011,” he
said at the 17th annual ASEAN Valuers Association seminar held in Siem
Reap on Friday.
Government tax revenue from property related
transactions surged 60 percent from US$12.2 million in 2009 to $19.5
million the following year, according to the Ministry of Urban Planning
and Construction figures presented by Sung Bonna at the seminar.
However,
some impediments remain to the sector’s growth, such as corruption and
poor enforcement of property rights still remain, he added.
“The
government have tried to work very hard [to enforce property rights],
and it’s improving by the year, but they need to collaborate with the
private sector to improve the law,” he said.
With the formation
of the anti-corruption law and the launch of the Cambodia Securities
Exchange, Sung Bonna said he expects improving legislation within the
Cambodian property market to draw further foreign investment.
Asian
Development Bank officials echoed claims anti-corruption laws was
likely to strengthen Cambodia’s investment climate and enhance
confidence among the business community.
“The new anti-corruption
law plays an important role in improving public sector governance and
therefore, reducing corruption in Cambodia,” ADB External Relations
Coordinator Sothea Ros said.
Phnom Penh-based property agents also expect increases in foreign investment with improvements to the regulatory environment.
“When
investors consider whether or not to invest funds in any country, the
degree of transparency is a key factor in their decision-making
process,” CBRE Cambodia Chartered Surveyor Ryan O’Sullivan said.
“The perception of land expropriation needs to change so that land owners feel secure in their land purchases.”
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