Booyoung Town moves slowly ahead

Thu, 26 September 2013

3_A-view-of-the-Booyoung-Town-project-on-a-billboard-in-Phnom-PenhThe plan to build the US$1.1 billion Booyoung Town commercial city and housing estate on Russian Federation Blvd near the 7 Makara Bridge is moving forward slowly while the political situation remains unclear.

Despite the political situation, construction at Booyoung Town was slowly moving forward and the company’s machinery has been digging up the soil and preparing the foundations for the carparks under the commercial building, Geum Yeon Hwang, the General Manager of Booyoung Khmer Co, Ltd told the Post.

“Now the company is considering the political situation and the real estate sector in Cambodia,” he said. “However, we expect that everything will be better soon.

“We did not suspend the construction, but we are just doing it slowly and the entire project is scheduled to be completed within seven years, but things can change depending on the situation.”

However, Geum Yeon Hwang was still optimistic for the project, saying the project would be successful and the real estate sector in the country would be better soon.

The builders have to dig a 12-metre deep excavation for the four-storey carparks before starting to drill the foundations of the commercial building, Sara, a security guard for the large real estate development projects, said.

While many Khmer people have not yet adopted the habit of living in condominiums, the builders think that will change in the near future as more projects come on the market.

The location is very good, said Kim Heang, president of Khmer Real Estate co.

“The location of the project is number one because it is on the main road for delegations and foreign visitors to travel through, which is interesting and that’s why it helps to promote this project to be successful,” he said.

“This project is really in a good location and if they start work now it is good because when Cambodia is economically integrated into ASEAN in 2015, many investors will invest in Cambodia, so there is a good opportunity for the company, Chroeuk Soknim, a Deputy Director of VTrust Group, said.

The Booyoung Town project’s investors are the large multi-business South Korean Booyoung Group.

The project was inaugurated on May 7, 2013, on a total area of more than 2 million square metres and the company will construct 17,000 housing units, commercial and sport buildings and schools worth a total of more than $1.1 billion.

In the first phase the company will build condos and commercial buildings on an area of 25,000 square metres with a $105 million investment.Read Original text

Work starts on new 22-storey hotel

Thu, 26 September 2013

11_An-MOU-between-OCIC-and-Toyoko-Inn-Co,Ltd-was-signed-in-December-2012-at-Koh-PichConstruction has started on the 22-storey Toyoko Inn Hotel, which will cost US$20 million to build, near the Hang Bridge. The project is due to be completed in November 2014.

Touch Somnang, the Project Manager for the Koh Pich development project, said the Toyoko Inn Hotel is a joint venture between OCIC Company and Japan’s Toyoko Inn Co, Ltd, which is well known in the hotel sector. He said work had been going smoothly on the project so far and the second floor has been completed.

He added that building a 3-star hotel is not a problem.

“I believe the project will be a success as the hotel is located in a good, beautiful place with plenty of fresh air,” he said.

He added that only the hotel building alone will cost $20 million, but more will have to be spent on internal and external features.

The Toyoko Inn Hotel will be built on 1,223 square metres of land, it will rise to 22 storeys and there will be 304 units in the 3-star hotel. According to Toyoko Inn sources, it will be open to guests in 2015.

Ho Vandy, the Managing Director of World Express Tours And Travel and a member of the Cambodian Chamber of Commerce, said from 2003 to 2010, the hotel sector experienced fast growth, but from 2010 to 2013 the sector did not seem to make significant progress because the need and supply for the sector had stalled.

He added that it is now the rainy season and because of that the occupancy rates for hotel rooms was 40 to 60 per cent. The rate jumps to between 80 and 90 per cent in the prime season and most hotel customers are in Phnom Penh and Siem Reap.

“If compared between Siem Reap province and Phnom Penh, the hotel investment in Phnom Penh has more potential because Siem Reap is rich in only tourists and that is seasonal,” he said.

As for building work at the Toyoko Inn Hotel, he said: “The hotel being built on Koh Pich will be a success if it’s managed well, provides quality service and gives a proper price as it is located in a good, beautiful place with plenty of fresh air.”

There are now more than 500 hotels and more than 1,000 guesthouses in Cambodia.

Luu Meng, president of the Cambodia Hotels Association, said the investment in hotel construction has increased continuously, particularly for small-scale hotels because large-scale ones take a long time to complete and the quality service for the sector is limited.

He said that in Siem Reap there is need for 5-star hotel rooms, while in Phnom Penh the 3-star and 5-star hotels are more favoured.

Asked which location has the most potential – Siem Reap or Phnom Penh – he said: “All investments are good because before investing in something, investors have to do research and marketing first.”Read Original text

Olympia City will finish its first project in mid-2016

Thu, 12 September 2013

8_Olympia-CityMore skyscrapers will appear on Phnom Penh’s skyline by 2016, and by that time the construction projects at Olympia City should be well under way.

Meng Chamroeun, the chief engineer for the Olympia City project, said they are now building shophouses, or houses that sell goods from the ground floor, and condos on the upper floors for the four projects – S1, S2, S3 and S4. This project will be finished in mid-2016.

Engineers are now aiming to start the process of laying the foundations for a seven-storey supermarket, called Olympia Plaza, in the middle of 2014 or in early 2015.

Meng Chamroeun said it is not yet known when they will start building the 45- and 55-storey buildings.

“For the 45- and 55-storey buildings, we don’t know yet when we will start building because we are now studying market requirements and the polical situation,” he said.

“The projects for the third phase have two 45- and 55-storey skyscrapers for such things as offices for conglomerates, trading, hotels, apartments and office space.”

So far, the projects for shophouses and condos have been a success in the Cambodian property market.

Long Sopheak, the sales manager for the Olympia City projects, said that of the five condo buildings, the first one has sold about 90 per cent of its 390 unit. The second building has sold 60 per cent of its 358 units, while the third, fouth and fifth buildings have not yet been marketed and put up for sale by the company at this stage.

Sopheak added that of the 158 shophouses, about 90 per cent have been snapped up.

The shophouses are from the first to fourth floors, and from the fifth floor up there will be condos. In the complex with the shophouses, there will also be entertainment venues, gymnasiums, swimming pools and some clubs for entertainment.
Sopheak said the prices of the condos in Olympia City range from $70,000 to $430,000 and five condo buildings will be complete by the middle of 2016.

She added that the 45- and 55-storey buildings are being prepared to serve as serviced hotel apartments and office space and the company will continue making a variety of buildings. She said the engineers are now studying things like the soil quality before starting the construction process.

Keo Sothy, an assistant to the director of OCIC Company, the main investor in Olympia City, said: “The success of Olympia City is due to being in a good location in the centre of the city and it is priced properly.

“We offer special conditions to clients to enable them pay only $3,000 in deposit and the first year of depreciation requires clients to pay $500 per month and from the second year on, clients pay only $550 per month.”

Kim Heang, president of Khmer Real Estate Co, Ltd, said the projects are good and are selling well thanks to the company investing in the projects offering special depreciation conditions to clients in need for buying a low-priced house – an average house price is only $1,500 per square metre, and the projects have drawn people’s interest.

“The projects are good because it is in a number one location and that company has built well, but the lifespan of Olympia City is only 99 years,” he said.Read Original text

Cambuild ’13 exhibit

Thu, 5 September 2013

3_A-visitor-checks-out-a-display-at-the-exhibition-Cambuild-’12As the standard of living in Cambodia improves and the construction sector beefs up, the demand for construction materials for interior design, home and office construction, schools and entertainment venues is also evolving accordingly.

AMB Events – with the support and cooperation from the Ministry of Commerce of Cambodia, the Ministry of Land Management, Urban Planning and Construction, Board of Engineers of Cambodia, Cambodia Constructor Association – is organising the international inexhibition Cambuild ’13 from September 10 to 12 at the Koh Pich Conference and Exhibition Center.

Nuon Veasna, business development assistant manager of AMB Events said that this international exhibition is organised so that national and international investment companies in the construction and real estate sectors can showcase their products and services. Cambuild will become an opportunity for all big investors to meet. This event will also show that the political deadlock will not affect the growth of construction sector.

“The coming international exhibition will be successful, because many big companies in the country and from oversea will participate, including the electricity authority of Cambodia and the Phnom Penh Water Autonomous Authority. It will bring the latest technology to Cambodia,” Veasna said.

The event will showcase high-rise projects, construction equipment, construction materials, machinery, clean water systems, electricity materials, fire safety systems, with about 300 companies participating from 22 countries, including Japan, China, South Korea, Malaysia, Singapore, Thailand, Vietnam, the Philippines, Taiwan, India, Italy and Germany.

Kim Heang, president of Khmer Real Estate Co, said that Cambuild is important for three reasons: it is where professionals in the field meet to share knowledge and experience; it introduces constructors to producers of needed supplies to forge professional ties; and it is an opportunity for the sellers to show their new products to customers.

Sorn Seap, general manager of Key Real Estate Co, said that Cambuild is good because it will give Cambodia a chance to show international guests that its construction and real estate sectors are growing.

A recent survey of 475 American CEOS working in Southeast Asia reported on by the Post showed that Cambodia is the most attractive country to live in the region.Read Original text

Land prices in Siem Reap spike 15 per cent

Thu, 5 September 2013

5_Strong-economic-conditions-have-lifted-property-prices-in-Temple-TownStrong economic growth and an increase in tourism had driven Siem Reap land prices, according to an industry expert.

Sorn Seap, general manager of Key Real Estate who had studied land prices in Siem Reap town, said land prices in Siem Reap town increased about 15 per cent in the first half of 2013 to $950 per square metre compared with $825 per square metre in the same period last year.

“The land prices increased because this city is small in size and land demand is still high, amid increasing number of tourists year on year. Although the land market in Siem Reap is small, I think it is the second market after Phnom Penh, because Siem Reap province has investment projects, such as those for a new airport, new hotels, golf course. Particularly, the influx of tourists into this great ancient temple province has increased demand.”

The study on real estate prices divided Siem Reap town into nine zones: zone A is located on Pub street and land there is priced between $2,300 and $3,000 a square metre; zone B, which is from Phsar Kandal market to National Road 6, is priced between $1,300 and $2,000 along main thoroughfares and between $500 to $1,000 along smaller roads. Zone C is located at Night Market, and along big roads land is priced between $900 and $2,000 and between $300 and $600 near smaller roads. Zone D runs from Damnak pagoda to Reach Bo pagoda near National Road 6, where land is priced between $500 and $2,000 on major roads and between $300 and $800 along smaller roads.

For zone E, which is set from Reach Bo pagoda to Phsar Leu market, land along big roads is priced between $800 and $3,000 a square metre and along small road at between $100 and $300, while zone F, which is set from national road 6 off Samaki market to Angkor Kyung Yu, prices land between $800 and $3,000 along main roads and on small road between $100 to $250; zone G which runs from Sokha Hotel to Kralanh market is priced between $800 to $1500 and on small road priced from $100 to $300. Zone H, which runs Phsar Krom market to the western outskirts, sees land go for between $400 to $800 and on small roads between $70 to $200. Finally, in zone I, located in the southern part of town near Angkor high school, along big roads land is priced at between $400 and $500 and along small roads at $50 to $300 per square meter.

Sieb said he remains optimistic that land prices will continue to climb in 2014 as investors learn their lessons from the 2008 economic crisis.