Camko City ends contract with Hanil

Thu, 25 July 2013

3_Camko-CityA dispute that waged on for years between developer World City and construction firm Hanil Company over the stalled Camko City project has ended after a court ruled to sever a contract between the two parties last month.

The satellite-city project launched in 2007 fell into disarray when the global economic crisis hit in 2008 and construction halted.

Kheng Se, a member of Camko City’s management, told Post Property that a Phnom Penh Municipal Court ruling in his firm’s favour severing their contract with Hanil at the end of June had paved the way for construction to resume.

“We are currently re-preparing for construction by looking for a new company to continue building the seven condos that contain 1,273 units,” he said.

Camko City looks to restore confidence in the project that was halted in 2008. HONG MENEA

Camko City looks to restore confidence in the project that was halted in 2008. HONG MENEA

“In fact [seven of] these condos are already built, but only the internal and external decoration is not completed yet.”

World City deputy manager KC Whang said the original project deadline of 2018 had been pushed back “two or three years”.

“Our company’s plan hasn’t changed,” he said.

Kuy Vat, president and CEO of VTrust Group, a partner in the project, said the consortium remained in a good position despite the setbacks because the real estate sector was growing while Camco City was well-positioned in terms of location and infrastructure.

“The important thing in reorganising is to promote and attract clients so confidence in our project can be restored after construction of this project has been delayed since the global economic and financial crisis in 2008,” he said.

Cheng Kheng, president of the CPL Real Estate Company and president of the Cambodian Valuers and Estate Agents Association, said the success of the parts of Camko City that had already been developed suggested when completed, the development had strong prospects.

“We see only that development of the project that is already read has attracted many people to live there because it has a good location, suitable price and the buildings are not separately built but rather the satellite city is prepared based on international standards,” he said.

“To restart construction now is good because Cambodia will be integrated into ASEAN in late 2015 so the real estate market will be useful,” he said, adding that if the project was successful it would boost the whole market.

Construction on the 100-hectare Camko City development in Phnom Penh located in Russey Keo district’s Tuol Sangke commune began in 2007.Read Original text


All quiet in Siem Reap for houses and land

Thu, 18 July 2013

5_Angkor-Wat-by-Meng-KimlogAlthough Siem Reap is known as the land of smiles, the growth of the culture, civilization and power, the real estate sector in the province for the first six months of 2013 has not increased a great deal.

The buying or selling of properties in Siem Reap for the first six months of 2013 has seen very little activity, Po Eavkong, Managing Director of Asia real Estate Cambodia Co, Ltd, said.

Now land in the commercial areas and on the main roads in Siem Reap ranges from $1,500-$2,000 per square metre, while land along National Road No 6 to the Royal Palace is between $600-$1,000. Housing land is between $100-$300 per square metre or higher, depending on the location.

“The fact that residential land prices and land in the province has not increased much is due to the global economic crisis in 2008 when housing supplies exceeded the demand, while the value of land skyrocketed,” he said.

“The biggest potential investments for foreigners are only in hotels and guesthouses because there is less potential for trade,” he said.

For the last several years investments in large hotels in Siem Reap has been less active, he said, but guesthouses and motels have been increasing remarkably. Some housing that was built before the economic crisis and have been frozen until now, they are seeing less buying and selling activities.

Dith Channa, the General Manager of VMC Real Estate Cambodia, said much the same thing, but added that buying or selling land in Siem Reap has seen a small increase of between five to 10 per cent when compared to the same period in 2012.

Most of the buying and selling has been in commercial areas, he said. He added that before the global economic and financial crisis, land prices had already jumped and he doesn’t expect prices to rise again.

“However, in a few years the value of properties in the province will grow because when Cambodia is integrated into the ASEAN economic community, the number of tourists and investors coming to Cambodia will grow,” he said.

“The growth can be seen through Cambodia, the chair of ASEAN in 2012 and when Cambodia hosted the meeting of the World Heritage Committee. These events have made people more aware and interested in Cambodia.”

Property values in Siem Reap have not significantly changed compared to the same period last year, Chrek Sokhim, the Deputy of VTrust property Co, Ltd, said. The prices for people buying and selling have seen almost no change because the province does not have the potential to attract main investors, besides investing in infrastructure for tourism such as hotels, guesthouses and restaurants.

“What is important is the main investors are less focused on the goal there, that is the increase in tourists only,” he said.Read Original text