Open sky policy investment (globalisation) and its impact on land prices in Phnom Penh/Cambodia

Abstract
Cambodia experienced many political regimes. In 1989, the Government of Cambodia changed policy from planned economy to free market by providing ownership rights on land which has been reintroduced. After the election in Cambodia in 1993, demand on land for local needs and investments increase noticeably. Land is a commodity to invest in Cambodia and there is no restriction on this field. The Government opens “sky policy” for investment by providing thousand hectares of land for concessions to local and foreign investors. At the same time this access is prone to cause land speculations even Cambodia has the law on unused land since 1996.

As result land price increased dramatically, especially in Phnom Penh which provides an opportunity for business/ rich men to make a lot of money from real estate transactions.

In addition, cadastral map was destroyed during the Pol Pot regime (1975-79) and currently there are around 4.5 million parcels to claim ownership. It is a big burden task for the Ministry of Land Management Urban Planning and Construction. The cadastral map has been starting again in the mid 2001 by using two systems-sporadic and systematic registrations through the Land Management and Land Administration Project.

Most of land transaction in Cambodia is in the informal process, which is leading to more land grabbing and land conflicts in the nationwide. As land price increases steadily in the main cities and whole country, people start selling their land. Nowadays, many people become landlessness and land conflicts are hot issues in Cambodia.

To enable the land market and to have a basis for land taxation, for mortgages on land and for building insurances, land valuation is needed. Up to now, land valuation system is in the process of studying only.

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Powerpoint Presentation: Globalisation and its impact on land prices (pdf)2.49 MB