Is Buying Off-plan Property Good Choice in Cambodia?

• 15 February 2022
• Local News
• 1486 Views

By Harbor Property

When it comes to buying property for investment or a permanent stay, generally you will have three options: 1. Buy project with construction completed 2. Buy under-construction project and 3. Buy off-plan property.

Among the above three options, buying off-plan property is the popular method for some buyers due to three main reasons.

First, if you purchase off-plan property, you can buy those properties below the market value and can resell them for a good profit. Second, you can have the freedom of selecting your preferred unit. You will be the first to choose a specific location, features, rooms and much more. Third, you will be offered a good payment option.

However, if you want to buy off-plan property, you will face the risk that the developer might fail to finish the project or does not even start to build the project after you pay full price or instalment for the property.

Recently, there have been quite a lot of bought off-plan property disputes. Mrs Tith Bunna is a factory worker and one of the home buyers who lost her money in a project that is never built in Dangkor district.

“I bought the house in 2018 with full payment and the company promised to it within 18 months plus 4 months delay. Now it is February 2022, the house is still partially finished,” said Mrs Bunna.

Therefore, you are recommended to study your developers about their previous projects and financial sources carefully before you decide to buy an off-plan project. You can also find professional real estate agents or lawyers to help you choose the right developers.

Mr Yoeng Samdy, an attorney at L.D.R. law firm specialising in off-plan property disputes, said seeking a lawyer or professional advice is the safety net for you buyers to do before purchasing an off-plan project.

“By law, before being qualified to build and sell the project, property developers must get their project approved by relevant ministries. Before getting approval from the ministry, developers must have some reserved capitals required by law, construction license, company registration, project license, project master plan and hard title (master and individual hard title),” said Mr Samdy.

“Thus, investors or home buyers should seek legal advice or service from lawyers to avoid the risk when they buy off-plan property because lawyers will do the due diligence of the project before recommending clients to buy,” he added.

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