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Warning to Kingdom’s property-buyers

Chhut Bunthoeun / Khmer Times Share:
Developments in Cambodia.The government advises caution in purchases. KT/Mark Hughes

The Ministry of Economy and Finance has warned property projects that have not obtained a proper licence will face legal action.

It is also alerting people to the possibility of buying such properties.

“We have monitored property projects that include housing, condominiums and land plot projects.

They are often advertised on social media such as on Facebook and some of these projects did not have a licence issued from the Ministry of Economy and Finance, the ministry said.

It noted the ministry will take strict legal action against Facebook account owners who advertise non-licenced property projects.

“The ministry would like to appeal to the public who desire to buy property projects such as a house, condominium, apartment or  land plot projects, that they have to be highly careful,” it said.

It explained that essential information has to be examined.That means regular housing, condominiums  and land plot business licences issued by the Ministry of Economy and Finance and construction permit must be issued by Ministry of Land Management, Urban Planning  and Construction before the property is legally developed.”

 

The government last week also decided to exempt the 4 percent stamp tax on all residential properties valued less than $70,000 until January in a move to stimulate the real estate and construction sector amid the epidemic fear of COVID-19, also known as Novel Coronavirus.

This tax relief is applicable to property developers who registered at the Finance Ministry.

It said the policy is aimed to help low- and middle-income people to buy a home. Meanwhile, the government also wants residential developers to consider the possibility of discounting home prices.

Sean Sothea Nhem, a certified international property specialist at Keller Williams Cambodia, applauded the action taken by the government, explaining this will not only benefit people seeking low-price housing, but it is encouraging developers to do their business legally.

“This is important because it incentivises those [developers] who do their business legally, while it also encourages more developers to register obtaining business licences at the Finance Ministry and construction permits from the Construction Ministry. When they all do business legally, this simply means more contributions for government revenue,” he said.

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