Residential property prices see steady growth

Residential property prices see steady growth

Thu, 27 March 2014 Siv Meng A property expert and investor in the construction sector says that home prices have increased between 10 and 20 per cent so far this year compared to last year. Kim Heang, president of Khmer Real Estate, says that demand for property in boreys is healthy. Most homebuyers bought properties for personal use rather than for speculative reasons, he adds. According to Heang, Cambodia’s demographics – around nine million people are under 35 – mean that demand for residential property will continue to increase as young people marry and have children, thus it makes sense for people to buy early as property prices are going up by 10 to 20 per cent on an annual basis. “I think residential demand will keep increasing for 10 years because there are so many young people,” he says, adding that the majority of growth in the market will be on the outskirts of Phnom Penh due to more affordable prices. Most property sales are for personal use, realtors say. Heng Chivoan According to Heang, prices for apartments and villas have increased, while prices for condominiums remained stable or slumped due to oversupply. He adds that newly introduced bus services could boost land prices on the outskirts of town by making commuting easier and more affordable. VTrust Appraisal CEO Chit Uys Stevexo, however, is more sceptical, suggesting that land prices have been flat due to Cambodia’s adverse political situation. He says land prices are not going up, and the same applies to residential units, even though prices might have rise due to taxes on imported construction materials. Meanwhile,...
Koh Russey, a jewel by the sea

Koh Russey, a jewel by the sea

Thu, 27 March 2014 Post Staff After its November launch in Hong Kong, Alila Villas Koh Russey will break ground late next month, initiating the construction of a world-class luxury resort. Alila Villas occupies 25 hectares on Koh Russey, an island in the Koh Rong archipelago in the Gulf of Thailand, with easy access from Sihanoukville via Ochheuteal jetty. The first phase of the development will see the completion of the villas and the hotel in late 2015, according to Chris Hobden, surveyor at CBRE Cambodia, which is the authorised sales agent for the luxury island-resort development. “It will bring a new standard of luxury to the southern coastline of Cambodia. Both Alila and CityStar are very focused on sustainability, which is not always a priority here,” says Hobden, who adds that just last week the project design was endorsed by EarthCheck. EarthCheck is an Australia-based organisation that provides benchmarks and scientific advice and certification for sustainable tourism. Among the many sustainable features of the villas are systems that automatically adjust lighting and temperature when occupants enter or leave the villas. Meanwhile, resort structures only account for 15 per cent of the total site area, preserving most of the natural foliage. A fishing exclusion zone 200 metres around the resort will preserve the marine environment. PHOTO SUPPLIED The resort will also feature a nursery, which aims to protect more than 20 species of trees indigenous to the island, and an exclusion zone 200 metres around the resort that will preserve the marine environment – fishing boats will dock at jetties at the northern side of the island. CityStar is...
Small-scale construction firms suffer amid slump in demand

Small-scale construction firms suffer amid slump in demand

Thu, 27 March 2014 The Editor Small business owners in the pillar construction industry say they are facing hard times as demand increases for large pillars but diminishes for small-scale construction. Hun Bun Heng, who owns a small business on Street 272 that makes pillars for homes, said sales had been flat since last year’s contested elections, and that many construction projects had been postponed. However, he noted that sales had since normalised in Kampong Speu, Takeo and other provinces. He added that his business specialised in making small-scale pillars – ranging from three to six metres in height – for the construction of flats. He said prices ranged from $10 to $20 per pillar. “If the political situation normalises, we expect that our business will be revived, and sales are already growing gradually,” he said. “We were selling 700 to 800 pillars per month before the elections, but sales plummeted after they were held.” According to Heng, the pillars, which are needed as foundation supports, can today be put in place with little disturbance to neighbours because new technology makes it possible to drill with very little noise and with minimal vibrations. Kov Meng, owner of Craft Made Pillar Hay Meng, agreed that sales had fallen in the aftermath of last year’s elections, but he said he expected that the situation would improve later this year. He said he usually sells around 100 to 200 pillars per month, but prices have been flat for some time. “Our products are used for building flat units that require foundation pillars of between three and six metres in height,” Meng said....
City’s third overpass shoots for ahead-of-schedule completion

City’s third overpass shoots for ahead-of-schedule completion

Thu, 20 March 2014 Post Staff Phnom Penh’s third overpass, or flyover, bridge is now close to completion, some eight months ahead of schedule, and its planners say it will not only greatly improve traffic congestion in the southwest of the city but will also lead to price increases for property that will have easier access to downtown. The so-called butterfly-shaped overpass – a variation on a standard cloverleaf interchange – is now visibly taking shape, with construction slated to be completed in August. The Stung Meanchey flyover project was inaugurated on November 26, 2012, with a budget of $19 million financed by the Overseas Cambodia Investment Corporation (OCIC), and is now 70 per cent complete, according to Touch Samnang, the project’s manager. Samnang confirmed that progress on the Stung Meanchey flyover was continuing to proceed ahead of plan, and that the main bridge and feeder roads were scheduled for completion in August, well ahead of the scheduled date of March next year. “The current situation [in terms of construction] is causing many difficulties for people who live in the area, so we are sparing no efforts to try and get this project completed by August, but we can’t make any 100 per cent guarantees on that front,” he said. Once completed, the overpass is expected to significantly ease traffic congestion in the area, but traffic issues are likely to continue to worsen in other parts of Phnom Penh as vehicle numbers increase by the day. It is an issue, sources say, that the municipal government is devoting considerable efforts to rectify. Po Eavkong, managing director of Asia Real...
Construction on Cambodia Plaza resumes after years-long delay

Construction on Cambodia Plaza resumes after years-long delay

Thu, 20 March 2014 Siv Meng After postponing construction due to the 2008 economic crisis, work on the ambitious Cambodia Plaza is gradually being resumed. The plaza is a mixed development project along Russian Boulevard close to the western end of the 7 January Overpass. Cambodia Plaza project manager Adam Liv said the project is moving forward, and four floors of office space will be open next month, while a three-storey hotel with 72 rooms and an automobile showroom will open together at the end of the year. Some parts of the project continue to be on hold, he added. “The supermarket and the apartment units have been on hold since 2009, and I don’t know when the projects will restart,” Liv said, adding that the project owner is hiring an American architect to redesign and develop the blueprints of the mall and hotel, replacing the previous ones prepared by a Chinese designer. According to Liv, Cambodia Plaza occupies 15 hectares, and half of the land would be used for gardens and a landscaped lake. Liv was unable to confirm the total investment capital for the project, but said that $3 million has been spent on compacting the land. He added that 20 houseshops have been completed, with an occupation rate of 50 per cent. Cambodia Plaza is being developed by Lipo Politan Corporation in cooperation with Knight Frank, which will be managing the office space and property services. Po Eavkong, managing director of Asia Real Estate, said that the project had not seen any remarkable developments since being put on hold in 2009. However, he also noted that,...