Opportunities and risk abound for plot land activity

The outskirts of Phnom Penh is littered with billboards of ‘land for sale’ ads, and while plotted land is cheaper than purchasing a traditional bricks and mortar dwelling, real estate experts say plotted land buyers are at increased risk of getting a bad deal if they don’t tread with caution.

Mann Chandy, the CEO of real estate services firm Premium Housing which has been investing in numerous plots of land around Phnom Penh, told Post Property he was targeting low and middle income customers for his emerging project in Kandal province.

“Some of my customers have purchased plotted land to build houses, while some others have purchased to make a profit in the future based on improving infrastructure in the area,” he said.

Chandy said, unfortunately, he had seen many plotted land buyers and investors who have fallen victim to opportunists who scam people out of money.

“I have had to educate many people about the land buying procedures for plot land purchases so they can avoid the risk so that they won’t fall victim again,” he added.

Plotted-land sale transactions mostly occur in private, involving local authorities who do not have the rights to issue property owner certificates. Ministry of Land Management, Urban Planning and Construction (MLMUPC) deputy secretary Lao Tip Seyha previously told Post Property that only ministerial departments and the ministry itself have the right to issue property owner certificates. Therefore, buyers need to consider, and ask for property owner certificates from sellers to avoid wasting their money, and future complications.

Kim Heang, president of the Cambodian Valuers and Estate Agents Association, acknowledged there were companies involved in plotted land activity who were actively scamming innocent people.

“Their projects don’t have proper roads, sewage systems, clean water nor electricity, while some other opportunists ask 10 percent or higher of the land’s price to the new land owners just to convince them for plot divisions to put up on sale on a board,” he said.

“However, when they cannot sell them then they flee and make the land owners and buyers fall victim.”

To avoid this occurring, Heang urged potential buyers to make sure they only purchased from legitimate and reputable landlords.