PHNOM PENH: To support the recovery of the real estate sector, the Cambodian government has decided to extend the exemption from real estate transfer taxes for buyers of residential properties worth less than US$70,000 until the end of 2025, even for properties with a long-standing purchase. agreements.

Prime Minister Hun Manet made the announcement during the closing ceremony of the annual meeting of the Ministry of Land Planning, Urban Planning and Construction on the afternoon of November 26.

Manet said the government had implemented two policies to support and promote the housing sector, aimed at helping both homeowners and potential new homeowners with their residential projects.

The first measure concerns the exemption from real estate transfer taxes on the transfer of rights or ownership for all types of residential properties with a value of less than $70,000. The second measure extends the exemption to first-time home buyers in residential projects priced below $210,000.

“Buyers who purchased before February 25, 2020 did not benefit from tax exemptions, a policy introduced by former Prime Minister Hun Sen. But now, I say, everything is fine: buyers of properties under $70,000 will benefit from tax exemptions until the end of 2025. those who have not yet registered their title deeds should do so to benefit from the exemption,” he said.

Additionally, he announced that another policy would be introduced for first-time home buyers in residential projects or condominiums worth more than $70,000 but less than $210,000, granting them tax exemptions property until 2025.

The Prime Minister stressed the importance of protecting the property 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 resolve current conflicts 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 November 27 that the extension of tax exemptions is an excellent strategy to support and revive Cambodia’s real estate sector, which is facing a steep decline since the Covid epidemic. -19.

He added that the policy would not only ease the burden on citizens having to buy or sell properties, but also benefit real estate developers, enabling them to strengthen and expand their projects, especially in the affordable housing sector.

He said: “The tax exemption policy for properties under $70,000 is part of the government’s efforts to provide moderate-income citizens with the opportunity to own their own homes.

Regarding first-time buyers of properties under $210,000, Soknoeun confirmed that this policy only applies to individuals purchasing homes for personal use, rather than for investment purposes.

In his speech, Manet urged relevant authorities to develop clear plans for new urban areas, including appropriate zoning for residential buildings, entertainment areas and commercial spaces.

He said: “We need to ensure that we can manage development effectively, particularly in new areas, as expansion of old areas is a challenge due to the lack of space available for further development. »

According to reports, between 2000 and 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 meters, with an estimated total investment value of $77.7 billion. – The Phnom Penh Post/ANN