Apartment demand falters in Q3

Apartment demand falters in Q3

Thu, 31 October 2013 Siv Meng The apartment rental market was flat in the third quarter after strong growth earlier in the year, with oversupply and political tensions among the causes blamed by realty experts. Chrek Soknim, deputy director of VTrust Property Co, Ltd, said that growth has stagnated after the January-March period saw a quarterly rise of up to 15 per cent. “The decrease in demand in the third quarter had only one reason: the uncertainty of the political situation,” Soknim said. Soknim added that a Class-A apartment in Phnom Penh with one room currently has an average monthly rental price of between $1,500 and $1,700, with two rooms costing $1,500-$2,000 and three rooms $2,000-US$5,000. A Class-B apartment with one room is priced at $500-US$1,300 per month, with two rooms $650-$1,500 and three rooms $700-$2,500. A Class-C apartment with one room costs less than $500 per month while with two rooms is $400-$700. However, Po Eavkong, managing director of Asia Real Estate Cambodia Co, Ltd, rejected Soknim’s appraisal of the situation. The political crisis did not significantly affect the apartment rental market because a stream of foreign investors all requiring living quarters continued to enter the country, Eavkong said. Asia Real Estate Cambodia saw apartment demand jump about 10 per cent in the first quarter, he said, and conceded that there was a slight decline in the third quarter. Finding clients for apartments in districts such as Chamkarmon and Daun Penh has not been a problem, Eavkong said, but added that some areas on the outskirts of Phnom Penh like Tuol Kok and Boeung Tum Pun districts are...
Flood crisis another setback for real estate sector

Flood crisis another setback for real estate sector

Thu, 24 October 2013 Siv Meng While the political crisis in the country is still ongoing, Cambodia is now suffering another crisis due to flooding, which has had a big impact on the country’s real estate business. Kim Heang, the President of Khmer Real Estate, said the buying and selling of real estate has slowed because some areas have been so flooded they have become lakes. He said that some customers were interested in buying land they had looked at before the floods hit, but now that land had turned into a lake, so potential buyers were backing away from any purchases. He added that the flooding has had a lot of impact on the real estate market, even causing traffic jams and making it difficult to travel around. Residents living along Preah Monivong Boulevard have also starting complaining about traffic jams and flooded roads. “The flooding crisis is seriously affecting the real estate sector because this time no one is interested in going to see land,” he said. Dith Channa, the General Manager of VMC Real Estate, said the sector has been suffering from the flooding crisis. He added that while the political situation has not yet improved and with the current flooding crisis, the real estate industry has been seriously affected and it is difficult to predict when the sector will improve, especially if there is not quick end to the political problems. Po Eav Kong, the Managing Director of Asia real Estate Cambodia Co, Ltd, said there are two major crises in Cambodia at present, and politics is the most serious one. He said some land...
New highway to run through Boeung Tompong

New highway to run through Boeung Tompong

Thu, 17 October 2013 Siv Meng A new highway that is being built is expected to not only reduce traffic jams, but to also open up a large area for real estate development. The new highway, called Samdech Techo Hun Sen Blvd, runs from the intersection of Road 271 and Monivong Blvd to National Road 2 at Prek Kampis, and some initial work has already started. An employee of ING Holding Co, Ltd, a subsidiary of AZ Group, who asked not to be named, said the new highway is to help reduce traffic jams along National Road 2. The new road will be one-way with a park in the middle and will run for 9.16 kilometres and be 60 metres wide. The employee did not know how much capital had been put into the project or when it was expected to be completed. “It is to avoid traffic jams between Phnom Penh and Takhmao, because in the Chak Angre area along National Road 2 to Takhmao there are traffic jams every day, so when this road is completed there would be no traffic problems,” he said. “My company has a development plan for the real estate in this area as well, but I do not know when that project will start.” Long Dimanche, the spokesman for the Phnom Penh’s City Hall, and Sang Piseth, the director of Phnom Penh’s Department of Public Works and Transport, and Kim Borey, the general director at the Ministry of Public Works and Transport, refused to comment on the projects. However Kuch Chamroeurn, the governor of Meanchey district, said work on the road had...
OCIC ready to construct more condos on Koh Pich

OCIC ready to construct more condos on Koh Pich

Thu, 10 October 2013 Siv Meng Overseas Cambodian Investment Corporation (OCIC) is ready to build two more 30-storey buildings in the Casa Meridian Condo development on Koh Pich (Diamond Island) in the near future. Om Bun An, sales manager of Casa Meridian Condo, said construction on the two condos will start at the end of the year. Each building will be 30 storeys high, have an underground car park, 188 units and 16 shop houses. She added that the condos will be completed by the end of 2016. Part of the project is to build another butterfly bridge linking the Sofitel Hotel to Koh Pich. “The company is developing this now because it sees a need in the condo market,” she said. “I believe the projects will be a success due to Cambodian laws authorising foreigners to own a place from the first floor up as well as conditions provided by the companies.” The price of a Casa Meridian condo will range from $80,000 to $600,000 per unit. Om Bun An said there are three things that make her company confident about the project’s success. “First off, we installed quality materials. Secondly, the glass in the condos are wind-proof and sound-proof. Finally, the project is in a great location with plenty of fresh air.” Kim Heang, the president of Khmer Real Estate Co, Ltd, said demand for condos is greater than the number available. But he added that it can still be difficult to find buyers as the majority of Cambodians have yet to adapt to living in condos. However Kuy Vat, the president and CEO of VTrust Group,...
Warehouses enjoy surging demand

Warehouses enjoy surging demand

Thu, 10 October 2013 Hin Pisei Things are looking up for the capital city’s warehouse rental market, with demand increasing significantly and prices rising about 10 per cent so far this year. Economic growth is driving the demand for goods storage facilities, especially in Phnom Penh and on the outskirts of the city in areas such as Stung Meanchey near Northbridge International School, Veng Sreng Street, Po Chen Tong and Chom Chao, CL Realty Co, Ltd CEO Chailin Sear said. “Nowadays those who have warehouses for rent are not worried about finding customers,” he said, adding that those with floor space between 500 and 3,000 square metres are doing the best. The average warehouse rental price is between $2 and $3 per square metre a month and rental prices have risen about 10 per cent since the third quarter last year, Chailin said. Most people renting warehouses are Cambodian, Chinese, Korean, Malaysian or Thai. Van Chanthorn, managing director of Town Real Estate, talked up the potential of warehouses as a long-term investment, especially those of at least 1,000 square metres. The rental price in Phnom Penh is currently between $1.5 and $2 per square metre a month. The highest demand is being experienced in areas with access to land, air and water services in western Phnom Penh, such as Chamka Doung, Lou 5, Veng Sreng Street and National Road numbers 3 and 4, he added. Chanthorn said building new warehouses is a smart investment because “economic growth and population growth raise demand for consumer goods, so warehouses to store the materials and goods will also see great demand”. There...