In Phnom Penh, the European Chamber of Commerce in Cambodia is calling for major reforms to the country’s condominium management laws, warning that unclear regulations could weaken investor confidence and create unnecessary risks in Cambodia’s growing real estate sector. The recommendation was highlighted in EuroCham’s White Book 2027, which outlines 77 policy proposals aimed at improving the business environment and supporting long term economic growth in the Kingdom.
The chamber believes clearer rules for managing co owned buildings would help improve transparency, reduce legal uncertainty, and strengthen trust among both local and international investors. As Cambodia’s condominium market continues to expand, industry stakeholders say modernizing the legal framework has become increasingly important for maintaining stability and attracting future investment.
More information about the organization can be found through EuroCham Cambodia.
Concerns Over Legal Uncertainty
According to EuroCham, the current legal framework surrounding condominium “Management Boards” and “Executive Committees” remains unclear. These committees are responsible for overseeing building operations, maintenance, and financial management within shared residential developments.
Although Sub Decree No. 126 requires these committees to establish internal regulations, existing laws do not clearly define whether they should operate as non profit organizations or commercial property management entities. This lack of clarity has created confusion for many condominium management groups trying to comply with registration and taxation requirements.
As a result, some management committees reportedly avoid formal registration altogether in order to bypass licensing costs and profit taxes. EuroCham warned that this has contributed to the emergence of a regulatory grey area within Cambodia’s property sector.
Investor Confidence at Stake
EuroCham expressed concern that the current uncertainty could increase financial and operational risks, especially when large maintenance funds are involved. Without a proper legal framework, investors may worry about accountability, governance standards, and the long term sustainability of condominium projects.
The chamber believes these concerns could eventually affect confidence in Cambodia’s broader construction and real estate sectors, which have played an important role in the country’s economic development over the past decade.
To address the issue, EuroCham proposed the creation of a dedicated legal, licensing, and tax framework specifically designed for non profit condominium management boards and executive committees. The organization says such reforms would encourage more transparent registration practices and improve oversight across the sector.
Calls for Practical Reform
EuroCham emphasized that its recommendations are intended to support constructive dialogue between the private sector and the Cambodian government. The chamber noted that practical reforms could help improve governance standards, reduce financial risks, and strengthen Cambodia’s investment climate in both the short and medium term.
Business leaders also believe that modern and transparent regulations would send a positive signal to international investors looking at Cambodia’s fast developing property market. Stronger oversight and clearer legal protections could help position the Kingdom as a more attractive and reliable destination for regional real estate investment.
As Cambodia continues urban development and condominium expansion in major cities like Phnom Penh and Sihanoukville, industry experts say the need for updated property management regulations is becoming increasingly urgent.
Conclusion
EuroCham’s call for condominium law reform highlights growing concerns about transparency and investor protection within Cambodia’s real estate industry. By introducing clearer legal definitions and modern management regulations, Cambodia could strengthen confidence in its property sector while reducing operational risks for both developers and homeowners. If implemented, the proposed reforms may help create a more stable and investor friendly environment for the country’s rapidly evolving urban market.