Kammekor wrote: ↑Sun Aug 16, 2020 11:34 am

basta.binici wrote: ↑Sat Aug 15, 2020 8:57 pm

armchairlawyer wrote: ↑Thu Aug 13, 2020 11:49 am

Dunderhead wrote: ↑Sat Aug 08, 2020 5:59 pm I think the owners of most of these land plots are probably very wealthy. As such the price will probably remain totally out of touch with the new reality (tourists are never coming back in large numbers) and there will never be a sale.

True. The land is not for sale, however. It's just a lease. And btw, surely nobody would develop the site without owning the freehold or a lease a lot longer than 16 years?

I was at Saracen Bay two weeks ago. It was lovely and quiet. Great time to visit. No hurry though, even the most optimistic Thai operators are saying 2022 at the earliest for any tourism recovery. There were plenty of boats, all small speedboats so you get there quickly. The main problem, there was nowhere to relax in the daytime except in the hot sun, maybe beach umbrellas are banned.

16 years is a big time and people can calculate that the cost of construction divided by 192 months is a cost just like a rent concerning the size of the land and development. So many buildings (especially hotels) in Sihanoukville are rented for 15 years. Even last years of these leases are sold at the end.

Doing major developments on a 16 year lease doesn’t make sense. Buildings are typically written off in 30 years of more. If you have to write it off in 16 years your costs will double, and I doubt the tax department will allow you to do so because your profit will be significantly reduced by this.

Maybe some non pro running a few wooden bungalows will be interested, but nobody With serious plans will give a 16 year lease even a second look.

It may not make sense to your budget. Yet, if this is a big cost according to your business plan to develop 4 hectares land, then you shall alter that plan. Investors in Cambodia aren't thinking like you. Chinese investors are even paying a 5 months deposit (for 16th to 20th years of contract because general rule is to pay 1 month deposit for each year of land rental contract) more to complete it to 20 years. More than 90% of land tenants just ask if 15 years is possible. This includes developers of high rise office buildings.

basta.binici wrote: ↑Sun Aug 16, 2020 12:25 pm
It may not make sense to your budget. Yet, if this is a big cost according to your business plan to develop 4 hectares land, then you shall alter that plan. Investors in Cambodia aren't thinking like you. Chinese investors are even paying a 5 months deposit (for 16th to 20th years of contract because general rule is to pay 1 month deposit for each year of land rental contract) more to complete it to 20 years. More than 90% of land tenants just ask if 15 years is possible. This includes developers of high rise office buildings.

Must be a great way to launder money, building high rise office buildings on another person's land.

Kammekor wrote: ↑Sun Aug 16, 2020 3:36 pm

basta.binici wrote: ↑Sun Aug 16, 2020 12:25 pm
Commercial spacre rent rates are high.
It may not make sense to your budget. Yet, if this is a big cost according to your business plan to develop 4 hectares land, then you shall alter that plan. Investors in Cambodia aren't thinking like you. Chinese investors are even paying a 5 months deposit (for 16th to 20th years of contract because general rule is to pay 1 month deposit for each year of land rental contract) more to complete it to 20 years. More than 90% of land tenants just ask if 15 years is possible. This includes developers of high rise office buildings.

Must be a great way to launder money, building high rise office buildings on another person's land.

It is about calculation of revenue vs expenses. Even renting the building with extra rent makes sense. The investors let individual offices or hotels or apartments or use the property for their business.

Freightdog wrote: ↑Sun Aug 09, 2020 10:51 pm

Powaline_Digi wrote: ↑Sun Aug 09, 2020 10:37 pm Basta binici is (in your) unqualified opinion ....

Is this a troll type statement, or something that you can qualify?
If the former, then I’m sure it will end up where it deserves

Sorry lads, I withdraw my comment that Bini Binici is untrustworthy. Carry on.

newkidontheblock wrote: ↑Sun Aug 23, 2020 12:40 am Give basta.binici a break. He is doing his job. Maybe on the wrong forum to advertise, but still, he’s got a good work ethic. And especially thick skin to survive the keyboard warriors on this forum.

But I liked the insight into the Chinese investing hordes.

Please share more about what the new masters are thinking in real estate investments.

Thank you for your kind comments. Still getting used to it but so nice people around and I am glad to be here.

Be prepared for unique projects. Not just Chinese but also Western investors are looking for land and property at the beaches of Cambodia. The demand after corona is low as it is lower in every country but there are serious investors. On that level, investors nationality hardly matters. They are mostly after quick return on investment.
For beach zones: the target clients' economical level will rise up each year. Royal Sands hotel had high occupancy levels at belated Khmer new year holiday. For Chinese tourism, there is a data of last years which shows that the Chinese people going outside China each year will exceed the population of USA and Chinese tourists spend money much more than anoy other country's tourists at the same economical level.
Other projects include transferring some manufacture to Cambodia and use the port as the new hub.
For Phnom Penh. Definitely next Bangkok. I hope no highways that block the sunlight.
There are Japanese and Korean companies as well. Cambodia is a growing market with benefits. There is a high demand last years.

basta.binici wrote: ↑Sun Aug 16, 2020 12:25 pm

Kammekor wrote: ↑Sun Aug 16, 2020 11:34 am

basta.binici wrote: ↑Sat Aug 15, 2020 8:57 pm

armchairlawyer wrote: ↑Thu Aug 13, 2020 11:49 am

Dunderhead wrote: ↑Sat Aug 08, 2020 5:59 pm I think the owners of most of these land plots are probably very wealthy. As such the price will probably remain totally out of touch with the new reality (tourists are never coming back in large numbers) and there will never be a sale.

True. The land is not for sale, however. It's just a lease. And btw, surely nobody would develop the site without owning the freehold or a lease a lot longer than 16 years?

I was at Saracen Bay two weeks ago. It was lovely and quiet. Great time to visit. No hurry though, even the most optimistic Thai operators are saying 2022 at the earliest for any tourism recovery. There were plenty of boats, all small speedboats so you get there quickly. The main problem, there was nowhere to relax in the daytime except in the hot sun, maybe beach umbrellas are banned.

16 years is a big time and people can calculate that the cost of construction divided by 192 months is a cost just like a rent concerning the size of the land and development. So many buildings (especially hotels) in Sihanoukville are rented for 15 years. Even last years of these leases are sold at the end.

Doing major developments on a 16 year lease doesn’t make sense. Buildings are typically written off in 30 years of more. If you have to write it off in 16 years your costs will double, and I doubt the tax department will allow you to do so because your profit will be significantly reduced by this.

Maybe some non pro running a few wooden bungalows will be interested, but nobody With serious plans will give a 16 year lease even a second look.

It may not make sense to your budget. Yet, if this is a big cost according to your business plan to develop 4 hectares land, then you shall alter that plan. Investors in Cambodia aren't thinking like you. Chinese investors are even paying a 5 months deposit (for 16th to 20th years of contract because general rule is to pay 1 month deposit for each year of land rental contract) more to complete it to 20 years. More than 90% of land tenants just ask if 15 years is possible. This includes developers of high rise office buildings.

That's good for you then, business must be booming!