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Phnom Penh - Cambodia's depressed property market received a boost Monday after parliament passed a much-anticipated law permitting foreigners to buy property.
The law, which developers had long pushed for, allows foreign nationals to buy property above the ground floor, but not the land on which the property stands.
Sok Chenda, the secretary-general of the Council for the Development of Cambodia, the government's investment body, said the law ought to help the struggling real estate market.
"Gradually other countries have opened up the possibility of ownership, and Cambodia is no exception," he told the German Press Agency dpa. "We were very strict, and now we still have some restrictions, but we try to open it up."
Asked whether the country might one day permit foreigners to own land as well, Sok Chenda said the government needed first to assess the effect of Monday's law on the local market.
"Everything has to be done gradually - we have made the first move so now let's see how the market reacts," he said.
In recent years Phnom Penh's skyline and surroundings have been transformed by developers erecting apartment blocks and high-end developments.
However, the global slump and lack of a substantial Cambodian middle-class meant many projects stalled or were pared back.
Under existing rules, foreign nationals who wanted to own property needed to find a trustworthy local partner to co-own the asset, adding to the investment risk.
The law will enter into force after it is passed by the Senate and signed by the king.
The law, which developers had long pushed for, allows foreign nationals to buy property above the ground floor, but not the land on which the property stands.
Sok Chenda, the secretary-general of the Council for the Development of Cambodia, the government's investment body, said the law ought to help the struggling real estate market.
"Gradually other countries have opened up the possibility of ownership, and Cambodia is no exception," he told the German Press Agency dpa. "We were very strict, and now we still have some restrictions, but we try to open it up."
Asked whether the country might one day permit foreigners to own land as well, Sok Chenda said the government needed first to assess the effect of Monday's law on the local market.
"Everything has to be done gradually - we have made the first move so now let's see how the market reacts," he said.
In recent years Phnom Penh's skyline and surroundings have been transformed by developers erecting apartment blocks and high-end developments.
However, the global slump and lack of a substantial Cambodian middle-class meant many projects stalled or were pared back.
Under existing rules, foreign nationals who wanted to own property needed to find a trustworthy local partner to co-own the asset, adding to the investment risk.
The law will enter into force after it is passed by the Senate and signed by the king.
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