Private vs Public Property in Cambodia

The first step to understanding the real estate market in Cambodia is knowing what types of properties are there. This can help alleviate worries and allow you to make the best financial decision, whether as an investment to increase your portfolio or to have your own home. Of utmost importance to know is that there are only two types of properties which are private properties and public properties

Within Cambodia and in other countries, public properties are owned by the government. All of them can be utilized for the public’s benefit, whether for leisure or to make things more convenient. For example, they can be public schools, hospitals, rivers and more. Additionally, this type of property can’t be traded according to Article 15 and 16 of the Land Law.

On the other hand, private properties are owned by individuals, organizations, or companies and could be residential homes and more.

What are Nationalization vs Denationalization

Considering the strict use of these properties, it’s not common that they can change and become another. However, it is possible for a public property to become private and vice versa. This process is called denationalization and nationalization as you can see below:

  • Denationalization → If a state public property needs to be reclassified to become a state private property, then this process is called denationalization. This is only possible for some public properties if they lose any benefit or interest for the public.

A rare example of this is what happened when Boeung Ta Mok lake was reclassified as a state private property. The lake no longer had public usage which allowed it to undergo denationalization. However, residents of the area still rely on the lake even if sections of it are ongoing developments to be usable land.

Do note though that state public properties can only be denationalized if they are already included in the inventory list of state properties. 

  • Nationalization → On the other hand, the process of making a state private property into a state public property is called nationalization. This is only possible if a private property is beneficial to the public for its services or value. Meaning, since a private property or land can usually be rented, sold, or transferred, this would no longer be possible once it becomes public property.

Both processes of denationalization and nationalization can have astounding benefits to the convenience and lifestyle of the nearby community. This could mean more amenities that the whole neighborhood can enjoy, making daily life easier and things more accessible.

Moreover, knowing how to check for the signs that a state property will either become public or private can allow you to make better investments. For example, if you’ve seen the signs that a state public property will be denationalized soon, then you can start researching its neighborhood. In this case, you can create a development plan for that property or see its surrounding areas for real estate investment opportunities that will only increase in value.

The same goes for signs that a state private property will undergo nationalization. Appreciation value is only bound to increase, especially if the state has concrete plans for that state property. For example, if they plan on turning it into a road, then traffic will increase as well as opportunities for businesses and commerce.

When you’re ready to invest in Cambodia real estate, browse through our numerous property listings. Everything you need to get started on investing in properties are also here so check it out!

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