100% Freehold Ownership for Foreign Investors at J Tower 3

For incoming investors to Cambodia, the condominium market offers strong security over real estate assets.

Under the legal framework established by Sub-Decree No. 126 on the Management and Use of Co-Owned Buildings (2009), foreigners can own ‘private units’ within a co-owned building located in the Kingdom of Cambodia, excluding the ground floor and underground floors. This framework provides the basis for strata titles.

Additionally, Article 2 of Sub-Decree No. 82, issued on July 29, 2010, permits foreigners to own private units in a co-owned building, provided their ownership does not exceed 70% of the total surface area of all private units within the building.

This regulation seeks to balance foreign investment with local ownership, ensuring both can coexist in the property market.

The Strata Title is typically translated as “The Certificate of Ownership of Private Unit" and includes information such as the co-owned parcel number, the address and the name of the co-owned building, the total surface area of the private unit, the floor number, and the percentage of the private unit in relation to the total size of the co-owned building, as well as details about the private unit owner.

Benefits Of Strata-Title Holders

• Ownership of a Defined Space: Strata title holders own their specific unit within a larger complex, allowing them to have full control over their property, including the ability to sell, lease, or modify it (within certain regulations).
• Shared Ownership of Common Areas: Alongside individual ownership, strata title holders share ownership of common areas like gardens, swimming pools, gyms, and car parks. This shared ownership means that the cost of maintaining these areas is shared among all owners, often resulting in higher quality and well-maintained amenities.
• Rights to Bequeath, Mortgage, Rent and Resell: As with other freehold titles, the strata title allows foreign investors to bequeath the property to a next of kin upon their passing (whether the next of kin is a Cambodian national or foreigner). The property title can also be leveraged as collateral for a mortgage or other loan type; and it can be rented to tenants for returns or resold (to a local or foreigner) at any point in time.
• Affordability: Strata-titled properties are often more affordable than standalone homes, providing an entry point into the property market, especially in urban areas where land prices are high.
• Community Living: Strata living can foster a sense of community among residents, with opportunities for social interactions and activities. There are often community rules and by-laws that help maintain a peaceful living environment.
• Maintenance and Management: Strata title properties are managed by a body corporate (also known as an owners’ corporation) which takes care of the maintenance of the building and common areas. This can include cleaning, landscaping, and repairs, relieving individual owners of these responsibilities.
• Enhanced Security: Many strata complexes offer enhanced security features such as gated access, security cameras, and onsite security personnel, contributing to a safer living environment.
• Investment Potential: Strata-titled properties can be a good investment opportunity due to their lower entry costs and potential for rental income. Well-maintained common areas and amenities can also increase the attractiveness and value of the property.
• Regulated Environment: Strata title ownership is regulated by specific legislation which provides a framework for resolving disputes, managing common property, and ensuring that owners’ rights and obligations are clear.
• Professional Management: Many strata properties are managed by professional property managers, ensuring that the complex is well maintained and that the value of the property is preserved over time.

However, not all condominiums and apartments in Cambodia come strata-title ready. The law only applies to newly constructed buildings that have been approved for strata-titling preconstruction. Make sure you seek clear legal advice on the title type available before purchasing a unit.

Looking for a future proof property asset with above market returns?

Secure one of the last remaining units at J Tower 3 with IPS Cambodia today!