World’s Second Tallest Building for Phnom Penh?
May 23rd, 2013, The Phnom Penh Post, Business & Commercial Development, Construction, Economics, Infrastructure, Land Tenure, News Source, Real Estate
A 555-metre tower planned for Diamond Island is to go ahead, and expert engineers from China and Vietnam are studying the river bank and calculating the strength of the foundations needed to support the building.
The building plan will not be changed and now the company is studying the site before setting a clear deadline to start constructing, according to Keo Sothy, assistant to deputy CEO of builders OCIC. “When the Diamond Tower will be built, it will become a part of the promotional beauty of Phnom Penh and will become one of the highest buildings in the world as well,” he said. …
Touch Samnang, project manager of OCIC’s Diamond Satellite City of OCIC, previously told the Post the building will be completed in 2017, after the company’s Riviera project is completed.
The Diamond Tower will be built on the same line running between the Independence Monument and the Chuon Nat statue. …
S. Korea’s Booyoung to build new town in Cambodia
May 7th, 2013, Yonhap News Agency Staff, Business & Commercial Development, Construction, Foreign Investment, Infrastructure, International Relations, Land Tenure, Real Estate
Booyoung Co., a mid-sized South Korean conglomerate, said Tuesday that it broke ground for one of the largest housing projects in Cambodia, a project Cambodia hopes to spur foreign investments.
Booyoung said it will build 40 apartments and seven residential and commercial complexes on 2.7 square kilometers of land in downtown Phnom Penh.
The planned buildings could accommodate 17,760 households in a landmark project, called “Booyoung town,” the company said, without giving any further details on financial costs and a completion date of the project. …
In terms of the cumulative foreign direct investments approved in the period of around 18 years ending at September 2011, the largest amount of US$8.9 billion came from China. The second biggest foreign direct investment provider is South Korea with $4 billion, according to data posted on the Web site of the Council for the Development of Cambodia.
Yonhap News Agency Staff
http://english.yonhapnews.co.kr/business/2013/05/07/45/0501000000AEN20130507006500320F.HTML
Investors Look For Hotel Opportunities In Southeast Asia
April 30th, 2013, The Cambodia Herald, Business & Commercial Development, Construction, Economics, Foreign Investment, Industry, Infrastructure, Land Tenure, News Source, Real Estate, Tourism
Hotel transaction volumes in Asia hit US$620 million (Bt18.18 billion) in the first quarter, up 190 per cent from the same period last year, and properties in Southeast Asia are attracting investor attention, according to real-estate services company Jones Lang LaSalle.
“Rising visitor arrivals, robust trading performance and positive market dynamics have put emerging Southeast Asian markets such as Vietnam, Cambodia and Myanmar back into the investment spotlight,” Tom Oakden, executive vice president, investment sales, for Jones Lang LaSalle’s Hotels & Hospitality Group, said at a recent industry event co-hosted with Ashurst, the international law firm. …
Neighboring Cambodia, meanwhile, is on the cusp of real economic and tourism growth, with rising visitor arrivals and increasing foreign direct investment from countries such as South Korea, Vietnam and China. …
With limited hotel supply in the key cities of Phnom Penh and Siem Reap and 443 kilometers of unexploited coastline, Cambodia is attracting the attention of both domestic and regional investors and developers. …
The Cambodia Herald Staff
http://www.thecambodiaherald.com/cambodia/detail/1?page=13&token=NGM4ODkxZTEzMjg
Families Foresee Rocky Road Ahead
April 26th, 2013, The Phnom Penh Post, Construction, Disputed Land, Infrastructure, Land Tenure, News Source, Real Estate
Fourteen Phnom Penh families claimed yesterday that government maps showing their houses in the path of a road-widening project were inaccurate and would condemn them to eviction without adequate compensation.
Ek Malin, 57, a representative of the community on Street 347 in Tuol Kork district’s Boeung Kak I commune, said Om Bunly, director of the Tuol Kork land office, had distributed a map that showed their houses in the middle of the road, supposedly already blocking traffic and planned development. …
Families have been haunted by the threat of eviction since 2007, when authorities announced plans to widen Street 347 by 30 metres. …
Khouth Sophak Chakrya
http://www.phnompenhpost.com/2013042665262/National/families-foresee-rocky-road-ahead.html
Mortgage Lending Rises for New Home-Buyers
April 25th, 2013, The Cambodia Daily, Banking & Finance, Borrowing, Debt Servicing, Financial Services, Real Estate
Cambodians, particularly young adults, are more often turning to banks to help them buy their homes, according to figures obtained from the National Bank of Cambodia (NBC) yesterday. …
From $179 million in 2008, the total sum lent out to those buyers fell to $94.5 million in 2009, the figures show. But in 2012, home loan lending reached $329.5 million – a 20 percent increase on the previous year – and by February it was at $344.5 million, according to the NBC. …
Acleda, the country’s biggest lender, has seen the number of borrowers getting home loans increase from 2,422 in 2010 to more than 4,550 in March, with the value of the bank’s outstanding home loans reaching $97 million. …
Simon Lewis
http://www.cambodiadaily.com/business/mortgage-lending-rises-for-new-home-buyers-20083/
Construction Sector Faces Chronic Labor Shortage
April 24th, 2013, The Cambodia Daily, Business & Commercial Development, Construction, Industry, International Relations, Labor, Land Tenure, Real Estate
Cambodia’s construction sector is facing a massive labor shortage due to a recent boom in construction projects throughout the country and workers migrating en masse to Thailand in search of higher wages.
In 2012, the construction sector expanded rapidly with the total value of approved projects totaling $2.11 billion, a 72 percent increase on the previous year’s figures, according to data from the Ministry of Land Management. …
But construction companies are in some cases having to wait months while they search for an able work force and economics say, will have to increase wages if they are to compete with jobs on offer over the border in Thailand. …
Peter Brimble, senior country economist for the Asian Development Bank, said that the construction sector is steadily planning a big role in Cambodia’s economy, which is expected to grow by at least 7.2 percent this year. Cambodia’s construction currently accounts for 6 percent of GDP and the International Monetary Fund said in January that Cambodia’s construction sector “is picking up thanks to the real estate rebound, in part fueled by rapid credit growth.” …
Dene Hern Chen and Khuon Narim
http://www.cambodiadaily.com/news/construction-sector-faces-chronic-labor-shortage-19742/
Cambodia’s economy to grow by 7.2 pct in 2013, stronger in 2014: ADB
April 9th, 2013, Xinhuanet News, Business & Commercial Development, Construction, Economics, Foreign Investment, Industry, International Relations, Land Tenure, Real Estate
Cambodia’s economic growth is forecast at 7.2 percent in 2013, picking up to 7.5 percent next year as recovery in Europe and the United States takes hold, according to the Asian Development Bank’s annual economic outlook released on Tuesday.
The United States and Europe are the largest purchasers of Cambodia-made garment and footwear products. …
The report noted that net foreign direct investment (FDI) inflows into Cambodia surged by an estimated 75 percent in 2012, to 1.5 billion U.S. dollars, funding new industries including automotive parts, electronics, and processing of agricultural products, as well as diversifying garment production into higher- value products and tourism into new areas. …
Xinhuanet Staff
http://news.xinhuanet.com/english/business/2013-04/09/c_132295116.htm
Cambodia Organizes Real Estate Exhibition
April 8th, 2013, Xinhuanet News, Business & Commercial Development, Construction, Industry, Infrastructure, International Relations, Land Tenure, Real Estate
A 3-day Cambodia-Real Estate Exhibition 2013 kicked off [in Phnom Penh] on Monday as the country’s construction sector is rapidly growing in the last couple of years.
The event, held at the Diamond Island Exhibition Center, brought together 68 exhibitors who are real estate developers, real estate investor banks, construction material manufacturers and suppliers, home product suppliers, real estate agencies, and architecture and engineering designers. …
The reports from the Ministry of Land Management, Urban Planning and Construction showed that the investments in the country’s real estate development had declined from 3.1 billion U. S. dollars in 2008 to 1.98 billion U.S. dollars in 2009 and further drop to 840 million U.S. dollars in 2010.
However, the sector bounced back in 2011 to 1.2 billion U.S. dollars and further grew to 2.1 billion U.S. dollars in 2012.
Xinhuanet Staff
http://news.xinhuanet.com/english/business/2013-04/08/c_132292162.htm
Better Recovery for Construction and Real Estate Sector
April 1st, 2013, Cambodian Business Review, Business & Commercial Development, Construction, Economics, Infrastructure, International Relations, Labor, Real Estate
2012 has been an impressive year for Cambodia’s economic resilience. Among the many sectors that had positively grown are the construction and property development [sic] and they are expected to be among the highest growth achievers in the current year as well. …
In 2012, the Ministry of Land Management recorded investments on construction had grown by 72 percent to US$2,109 million for 1,694 projects covering 6.5 million square meters, an increase from the previous US$1.2 billion for 2,125 projects covering 4.2 million square meters in 2011. …
Amid the last year’s strong recovery, construction on residential projects such as ‘Borey’ and apartments claimed a large proportion (about 70 percent off the total projects) and is likely to surge higher responding to the growing local populations (about 10,000 new families are added to Phnom Penh annually), along with more incoming foreign nationals for living and business purposes which require more residential supplies. …
Due to development disparity, growth varies between zones. The property market recovery has appeared vigorously only at the popular industrialized zones such as Phnom Penh’s downtown, leaving the low industrialized areas like suburbs and rural areas less commercialized. …
With more investors coming, Kheng observes now international firms are competing with the local property developers as they begin to understand more about the local markets, knowledge which they previously lacked. …
The important thing in this property business, according to Cheng Kheng is having accurate data. “The key to improve this industry is to have a one-stop recording center where all transactions have been recorded properly and published to the public. In that way, it will be easier for the public to keep themselves up-to-date with the market.” …
Tim Vutha, P.18
www.cambizreview.com
Sihanoukville land prices largely flat
March 14th, 2013, The Phnom Penh Post, Land Tenure, News Source, Real Estate
Land prices in Preah Siahnouk province have risen slightly, by 5 to 10 per cent in early 2013, despite increasing numbers of tourists who have visited Cambodia and travelled to the province.
Cheng Kheng, director of the CPL real estate company and president of Cambodian Valuers and Estate Agents Association, said that land trading in Preah Sihanouk in early 2013 has grown between 5 to 10 per cent this year, but some areas have advanced and some have only slightly increased. …
Siv Meng
http://www.phnompenhpost.com/2013031461949/Real-Estate/sihanoukville-land-prices-largely-flat.html
Camko City’s potential seen
March 14th, 2013, The Phnom Penh Post, Construction, Infrastructure, Land Tenure, News Source, Real Estate
Property experts say the Camko City project has a great deal of potential, after visiting and studying the satellite city last week.
Kim Heang, general manager of Khmer Real Estate Co, said that he is very interested in Camko City because he has seen that it has good infrastructure and sewage and electricity systems, the buildings are of good quality and its interior design is of international standards. …
Siv Meng
http://www.phnompenhpost.com/2013031461948/Real-Estate/camko-city-s-potential-seen.html
Bonna Reality inks deal with Malaysian real estate developer
March 8th, 2013, The Phnom Penh Post, Business & Commercial Development, Domestic Investment, Foreign Investment, Land Tenure, News Source, Real Estate
Bonna Realty Group yesterday signed an agreement with the National 6A Investment, a Malaysian real estate developer, to be an authorised sales agent for a 10-storey condominium that is currently being constructed and is expected to be finished by the end of 2014.
The National 6A Investment Co, Ltd had invested millions of dollars in building the 10-storey condo in the capital’s Chroy Changva district. Construction began about two years ago and is now 60 per cent complete. And Bonna Realty will begin finding tenants this month or next, said General Manager Nuon Ritty. …
May Kunmakara
http://www.phnompenhpost.com/2013030861822/Business/bonna-reality-inks-deal-with-malaysian-real-estate-developer.html
Bavet prices flat
March 7th, 2013, The Phnom Penh Post, Economics, Land Tenure, News Source, Real Estate
Land prices in Bavet town in Svay Rieng province have been “stable” despite a great deal of purchasing seen in early 2013, property experts said. …
Nuon Rithy, general manager at the Bonna Realty Group, said there have been lots of land trading in Bavet so far this year, but prices have not soared. The prices in Bavet are hovering around $100 to $200 per square metre along economic zones, $20 to $25 in special economic zones for factories, and $10 to $20 in housing areas. Most of Bavet’s plots are bought for turning in to guesthouses and restaurants. …
Siv Meng
http://www.phnompenhpost.com/2013030761788/Real-Estate/bavet-prices-flat.html
Construction costs low, but could rise
March 7th, 2013, The Phnom Penh Post, Business & Commercial Development, Imports, Land Tenure, News Source, Real Estate, Trade
Construction costs in the Kingdom have increased only 1.36 per cent year-on-year, compared to Cambodia’s inflation rate, which is projected at 3.5 per cent for 2012, according to a new report from global estate agents CBRE.
The company says the minimal increase is due to the competitive market conditions, as well as labour costs remaining the same year on year. Labourers on average receive $5 per day, which is the same rate as in 2011. …
Rupert Winchester
http://www.phnompenhpost.com/2013030761790/Real-Estate/construction-costs-low-but-could-rise.html
Finance Minister Lauds Boeng Kak’s Tax Bill
February 28th, 2013, The Cambodia Daily, Business & Commercial Development, Disputed Land, Domestic Investment, Economics, Land Tenure, News Source, Real Estate
The Finance Ministry has sent a letter to well-known businesswoman Choeung Sopheap thanking her for paying her taxes on the highly controversial filling in of Phnom Penh’s Boeng Kak lake, and holding her firm up as an example of corporate professionalism.
Though Shukaku Inc., which is run by Ms. Sopheap and her husband, CPP Senator Lao Meng Khin, has been subjected to years of criticism and protests for its role in the forcible eviction of some 3,000 families from around the now filled-in lake, Finance Minister Keat Chhon said the firm was a good partner with the government in reducing poverty and developing the country. …
The minister made no mention in his letter of how much Shukaku paid in taxes for filling in the lake, and Finance Ministry officials declined to comment. …
Khuon Narim and Zsombor Peter
http://www.cambodiadaily.com/news/finance-minister-lauds-boeng-kaks-tax-bill-11863/
Kampot land prices stable
February 28th, 2013, The Phnom Penh Post, Construction, Infrastructure, Land Tenure, News Source, Real Estate
Property experts said the land prices in Kampot province have been “stable” in early 2013 despite trading more actively than last year.
Nuon Rithy, managing director at the Bonna Realty Group, said the trading of land in Kampot province is quiet and nothing changes much because there are no nice beaches for attracting tourists.
“If there are many tourists visiting Kampot province, there will be much development like building and hotel construction, and then the property prices may rise”, he said. “The province is an eco-tourist area and has the special economic zone to help spur industry, but the special economic zone is not yet under way.” …
Siv Meng
http://www.phnompenhpost.com/2013022861646/Real-Estate/kampot-land-prices-stable.html
Foreign investment in Cambodia’s property rises
February 28th, 2013, The Phnom Penh Post, Business & Commercial Development, Foreign Investment, International Relations, Land Tenure, News Source, Real Estate
Property experts say foreign companies are coming to invest in Cambodia’s property sector, as they see the growth and potential of the Kingdom.
Sung Bonna, director of Bonna Realty Group, said that the number of foreign companies in the sector has grown, and most are from South Korea, Japan, China, Singapore and Malaysia. …
“The property investment companies growth rose a little bit during 2011-212 as it grew better during 2012 and early in 2013”, Bonna said, “After Cambodia hosted the Asean Summit, with world leaders joining the meeting, we see the inflow of foreign investors into Cambodia, but some of them, at the moment, have been doing research and considering about the possible investment in Cambodia”. …
Land prices along major roads increase sharply
February 14th, 2013, The Phnom Penh Post, Business & Commercial Development, Economics, Foreign Investment, Land Tenure, News Source, Real Estate
The price of land along four major boulevards in Phnom Penh climbed by 16 per cent in early 2013, according to real estate experts, compared to the same period in 2012.
VMC Real Estate chairman Dith Channa said land prices increase because the quality of the real estate on offer has improved, although land prices along Monivong, Norodom, Mao Tse Tung and Russian Federation Boulevards have always been healthy. …
Private residential property in Cambodia attracting foreign investors
February 13th, 2013, Channel News Asia, Business & Commercial Development, Construction, Foreign Investment, Industry, International Relations, Land Tenure, Real Estate
Private residential property in Cambodia is being seen by some investors as relatively cheap, with potential for attractive returns.
Industry players believe these factors are the main draw for foreign buyers, looking to grow their money in Cambodia.
Keuk Narin, vice president of Asia Real Estate Cambodia said: “If you compare with other countries, like Malaysia, Singapore, Thailand, I think it’s very challenging to invest in property.
“If we invest in property, like US$20,000, to buy property in Thailand, it might not be in the city centre but if you invest in Phnom Penh, it will be in the city centre and as for the value, it will be different. The capital growth is still high. And also in the city centre, in Phnom Penh especially, for the properties like condominiums, they are very good for renting. Even those like the investment, in terms of the investment it’s still very limited, five to six per cent, but there’s still room for growth.”
Market watchers say returns on property investment could reach up to 8 per cent this year, up from just 3 per cent five years ago. …
May Wong
http://www.channelnewsasia.com/stories/marketnews/view/1253968/1/.html
De Castle Royal to be completed by 2014
February 8th, 2013, The Phnom Penh Post, Business & Commercial Development, Construction, Infrastructure, International Relations, Land Tenure, Real Estate
The De Castle Royal Condominium project, which has been on hold for some time, has announced that it will go back on the market after gaining $28 million in loans from Canadia Bank, which will allow for the completion of the 32-storey-building.
The general manager of the development division of Nuri D&C Company and the owner of the De Castle Royal condo, Eom Jae-yoon, said that the building with 36 storeys, including four underground, was completely built, but its interior still needs to be finished. …
“Additionally, our company partnered with Canadia Bank to allow customers installment options with a 10 per cent interest rate per year over 15 years.” …
Yem Chivoan, general manager of Dragon Real Estate Company, said that the condo market is climbing because the number of foreign customers has increased.
He expects condo purchases to increase 10 to 20 per cent in 2013 compared with 2012. …
Siv Meng and Hin Pisei
http://www.phnompenhpost.com/2013020761213/Real-Estate/de-castle-royal-to-be-completed-by-2014.html