PHNOM PENH: To support the recovery of the real estate sector, the Cambodian government has decided to extend the exemption of property transfer taxes for buyers of residential properties valued under US$70,000 until the end of 2025, even for properties that have long-standing purchase agreements.
Prime Minister Hun Manet made the announcement during the closing ceremony of the Ministry of Land Management, Urban Planning and Construction’s annual meeting on the afternoon of Nov 26.
Manet stated that the government had implemented two policies to support and promote the housing sector, aimed at aiding both property owners and potential new homeowners in residential projects.
The first measure involves the exemption of property transfer tax on the transfer of rights or ownership for all types of residential properties valued under $70,000. The second measure extends the exemption for first-time homebuyers in residential projects with properties priced below $210,000.
“Buyers who purchased before Feb 25, 2020 did not receive tax exemptions, a policy introduced by former Prime Minister Hun Sen. But now, I say, it’s fine – buyers of properties under $70,000 will receive tax exemptions until the end of 2025. Those who haven’t registered their property titles yet should do so to receive the exemption,” he stated.
Additionally, he announced that another policy would be introduced for first-time homebuyers in residential projects or condominiums valued over $70,000 but below $210,000, granting them property tax exemptions until 2025.
The prime minister emphasised the importance of protecting the real estate sector from collapse, warning that its failure would have significant negative effects on the economy and society as a whole.
He said, “If the real estate sector faces problems, it will affect the banking sector and everything else. Therefore, our main goal is to address the current disputes and ensure the survival of the real estate sector.”
Sam Soknoeun, president of the Global Real Estate Association and SAM SN Group, told The Post on Nov 27 that extending tax exemptions is an excellent strategy to support and revive the Cambodian real estate industry, which has faced a sharp decline since the outbreak of Covid-19.
He added that the policy will not only ease the burden on citizens needing to buy or sell properties but will also benefit property developers, enabling them to strengthen and expand their projects, particularly in the affordable housing sector.
He said, "The tax exemption policy for properties under $70,000 is part of the government's effort to provide moderate-income citizens with the opportunity to own their own homes."
Regarding first-time homebuyers of properties under $210,000, Soknoeun confirmed that this policy applies solely to individuals purchasing homes for personal use, rather than for investment purposes.
In his address, Manet urged relevant authorities to develop clear plans for new urban areas, including appropriate zoning for residential buildings, entertainment zones and commercial spaces.
He stated, “We need to ensure that we can manage development effectively, especially in new areas, as expanding old areas is challenging due to the lack of available space for further development.”
According to reports, from 2000 to July 2024, the government issued permits for 66,978 construction projects across the country. These projects cover a total area of 194.3 million square metres, with an estimated total investment value of $77.7 billion. - The Phnom Penh Post/ANN
