Development comes to Suong

Thu, 12 April 2012
The town of Suong has made a lot of changes and seen some development in its property sector after this formerly most-populated commune in Kampong Cham province’s Tbong Khmum District, to the north east of Phnom Penh, was promoted into a town.{jathumbnail}

Suong’s acting governor Chea Naron said that Suong Commune was promoted into a town by a government sub-decree dated 31 December 2008, by merging two communes in Kampong Cham’s Tbong Khmum district together.

The town consists of 2 Sangkats – Suong and Vihear Loung – with a total population of 35,641. However, he said, the town is not developing fast, as there are no funds reserved for the town development yet.

“People here are very happy following the town transformation, and they want the town to swiftly develop, but as an authority, we are not able to make developments as quickly as they would like yet,” he said. “After its town transformation, there are two satellite cities arising; however, those cities are not developed smoothly because people seem to live sparsely in those new cities.”

“The property prices here are rising since it became a town. However, the land here is not sold per square metre as in Phnom Penh city and other provinces; it is sold per metre width. Best property prices vary from $1,000 to $10,000, depending on location,” he said, adding that for infrastructure, asphalt roads are only about 20 per cent of the total, while the rest are dirt and partly concrete roads. He added that there is one high school, two lower secondary schools and seven elementary schools in the town.

Sung Bunna, manager of Bunna Realty Group and chairman of the Cambodian Property Evaluator’s Association, said that aside from Phnom Penh city, in other small towns, like Suong and Bavet towns, the property price is much the same as before. “The land price is also not improved, and we are in the process of studying and surveying those towns’ potential,” he added.

Realtor CEA’s general manager Sen Chan Rietry said that Siem Reap town, Sihanoukville and some border towns are developing fast, yet smaller towns, such as Suong, have not changed much.

“In order for an area to be developed, we need to develop its infrastructure first so that we can attract investors,” he added. Read Original text


River banks under construction by OCIC Company for start of 555-metre building

Thu, 12 April 2012
120412_02

OCIC Company, which is currently building Diamond Island City, has begun preparing the riverbanks around the island by filling stones into the river for the construction of a 555-metre tall tower, a building that would become the tallest in ASEAN.{jathumbnail}

Mr. Touch Samnang, Managing Director of the Diamond Island City Project, told Post Property that it is now preparing the riverbanks before starting the construction of the 555-meter building, which will contain condominiums, hotels, restaurants and office space.

He said “We have already taken soil to the laboratory for experiments and found that this location can be built on, but the exact date for the start of this building construction has not been set yet.” Touch added that international experts were being brought in to help with surveying the site: “there are a lot of engineers from overseas coming to conduct the study. The construction of this building will cost $200 million”.

According to Mr. Meng Chamroeun, Section Manager of Diamond Island Project, the tower will enhance the beauty of the island, and will become a landmark building in Phnom Penh. But he couldn’t say when construction might start as “now the river banks are being expanded to the site we want to build on, because the building will be constructed in parallel with the Independence Monument and the Samdech Chuon Nat Statue.”

He added “from my point of view, this project cannot be constructed in a quick way, at least three or four years, because the company is hiring engineers from China to study the river banks.”

Mr. Sung Bonna, Director of Bunna Realty Group and Chairman of Cambodia Real Estate Valuation Association, said “if we are able to construct this building, it will be a good thing because this building represents the identity of this era.

Mr. Beng Hong Socheat Khemaro, spokesman for the Ministry of Land Management, Urban Planning and Construction, said if Cambodia is able to construct the building, it would be good in terms of attracting more investors, and it would show that Cambodia’s economy is moving forward and has the ability to construct a building valued at hundreds of millions of dollars.


Construction approvals grow

Thu, 5 April 2012
The value of construction approvals granted by the government increased 43 per cent in the first two months of the year, compared to the same period in 201, figures show.{jathumbnail}

Some 315 potential projects, worth US$281 million, were given the go-ahead in the period, compared with 340 construction projects, worth $197 million, approved last year, according to Ministry of Land Management, Urban Planning and Construction figures obtained this week.

The ministry’s Construction Department Director Lao Tip Seiha said that the growth was, in part, due to an increase in the construction of coal-power plants, oil refineries and satellite cities.

“We have indeed seen a sharp increase in construction investment, which provides job opportunities, for skilled and unskilled labour, and helps alleviate poverty,” he said, adding that it also boosts the state’s income.

Growth in the sector has also led to increased demand for domestic and imported construction materials, he said.

“Manufacturers are happy because the number of orders has grown, compared to last year, when the market was still unstable.”

Chhim Mao Charo, a Phnom Penh-based construction business owner, said that while projects in the city had increased, sales at the company had only increased by 20 per cent.

“As long as demand for housing continues to increase, the sector has nothing to worry about,” she said, adding that while the Kingdom is capable of producing materials, such as bricks and cement, it still relied on the regional import of products, such as steel.

The current price for cement varies from $92 to $102 per tonne, while steel is worth between $580 and $790. A total of 10,000 bricks sells for $550, according to Chhim Mao Charo.

Construction material imports in the first two months amounted to 138,348 tonnes, worth $69 million, ministry figures show.  Read Original text


Skyscrapers to attract investment

Thu, 5 April 2012
120405_02

The construction of five skyscrapers on Phnom Penh’s Koh Pich Island is set fuel international investor confidence in the coming months, according to industry experts.{jathumbnail}

The development, named the Koh Pich Riviera, is part of Overseas Cambodia Investment Company’s US$300 million project and is slated for completion in 2017, according to deputy manager Chin Hok.

Upon completion, two of the buildings will comprise 28 floors, while the remaining three will be 37 storeys high, surpassed only by Gold Tower 42 as the Kingdom’s tallest buildings. Construction at Gold Tower 42 has, however, been postponed for more than a year, leaving it 11 storeys short of its target, with no restart date in sight.

“There are many shopping malls, hotels and residential units surrounding the project, and, as of today, 104 units have been sold,” Chin Hok said, adding that this is a positive sign for future sales.
He was, however, unable to provide an estimate for the total value of the project.

The development of OCIC’s latest project is a positive sign that the property sector is recovering, Cambodia Real Estate Company general manager Sen Chanrietrey said.

“We congratulate the project because it will boost investor confidence. If units are reasonably priced, it will surely succeed,” he said, adding that he could not guarantee the strength of the market in the coming years.

Sung Bonna, president and CEO of Bonna Realty Group and president of the National Valuers’ Association of Cambodia, said the project had been undertaken at the right time, as the market is once again a favourable investment destination.

He added that the key factors for a project to succeed included location, brand power and the climate of the market. Read Original text