Friday, November 21, 2008

First Real Estate Expo in Cambodia

First Real Estate Expo will be held in Cambodia starting from today on 21 to 23 November. This event is organized by Whale Group Co., Ltd.

" Real Estate Expo is a new and relevant response to the country current property development. The one-stop exhibition expects to welcome 40,000 real estate cosumers. It is a "must see" event for all the real estate industry " according to Whale Event Management's website .

The question is that does this event would really help to boost the real estate sector in Cambodia, which is also now being impacted by Global Financial Crisis. As well, there is a real estate selling slowdown in many places. Some of many housing developers are suffering from lack of funds to continue to their construction projects and many sales were cancelled by the buyers.

Some real estate businessmen from Sihanoukville revealed recently that if this situation of non buying/selling transaction keep continuing for other 3 or 6 months, there will be a big crash, huge drop in properties price, many lossers etc...

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Thursday, September 25, 2008

Risk prevention for real estate buyers

Ministry of Economy and Finance organized on 23rd September 2008, a workshop about the management-control and issuing license to real estate developers, with the aim to inform to all real estate buyers about the risk when buying properties from housing developer without license.

The government of Cambodia has formed since October last year a Inter-ministerial to take control on the real estate development business, assisted from Ministry of Economy and Finance and Ministry of Land Management.

This goverment group will make and execute the laws and will ensure that the real estate developers in Cambodia must have Housing Development License,Compulsory Insurance for Construction Site and before starting their construction projects, they must deposit 2% of the total invesment capital to the deposit account of Ministry of Economy and Finance at National Bank of Cambodia. They could get it back when their construction project finish.

As well, the real estate developers must have the bank account with any commercial banks in Cambodia and are required to advise to their housing buyers to deposit the money directly to that account.

Recently, the housing development in Cambodia has grown noticeably although many real estate developers have no license and the inspection's quality of construction project has not done well.

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Thursday, September 11, 2008

New Sokha Hotel in Sihanoukville

The ground breaking ceremony was done yesterday for a new Sokha Hotel Group on Sihanoukville's O'Chheuteal beach.
The hotel will be built on 15 hectare section of a 54 hectare plot on the beachfront.
This is new 5-Star Hotel of 500 rooms(1 phase) of Sokha Hotel Group which is owned by Cambodian tycoon, Neak Okhna Sok Kong, also president of Sokimex petroleum company.

According to the Cambodia Daily dated on 10, September 2008,Sokimex has also started construction on another 500-room hotel on Chroy Changva peninsula opposite the Royal Palace a $1 billion holiday resort on Bokor Mountain in Kampot province.

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Tuesday, September 9, 2008

Real Estate Bubble in Cambodia?

Due to a global economic downturn and the hot border dispute with Thailand, there is a warning sign for real estate speculators in Cambodia that the real estate bubble is near.
For now the price of property is too high, there are more sellers in property market while there are low demands.

Although, some real estate experts said the price in Cambodia is very competitve than in Thailand and Vietnam.

The question is that real estate bubble in Cambodia?
Every thing should depend on the future Cambodian government which should ensure long political stability and the double digit of economic growth through fully apply the rule of laws and the diversification of economy sector-hydropower,technology, oil and agro-industry etc...which could attract more foreign direct investors to the kingdom of Cambodia. As the result, there should be no real estate bubble in this country.

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Friday, August 22, 2008

New Town in Kep?

Recently according to published article of The Cambodia Daily dated 19 August 2008 :"Development Project Planned for Beach in Kep".

An ambitious new development projected to cost $2 billion in planned for Kep, an investor said.

The development by Mekong Project Development International will reclaim 400 hectares of land along 6 km of beachfront property there in order to build a major new resort town incorporating about 10,000 housing units, including high-end bungalows, a university, a golf course and a 31-hectare park, according to Seng Vanntha, financial director of Seng Enterprise, one of a consortium of investors in the project.

In 2008, we have seen that number of development projects were planned. If it could become realistic in the coming years, it would be time for the prosperity to Cambodia.

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Friday, July 11, 2008

Royal Group and Millenium Group will invest $2 Billion for Cambodian Resort

According to Bloomberg July 10- "Royal Group , which owns Cambodia's biggest mobile-phone operator, plans to raise as much as $2 billion with Hong Kong- based Millenium Group to build resorts, casinos and an airport on an island off the coast of Cambodia". Details at

This is another good news for a real estate development in the Kingdom of Cambodia. Next National Election is coming soon and everyone is hoping that the new government will assure more political stability for the Country.

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Thursday, June 19, 2008

Tallest buildings rising in Phnom Penh (2)

Sung Bonna, president of local real estate firm Bonna Realty, said that of the major real estate projects in the country, he had the confidence in the IFC. “In terms of location, in terms of the credit of the company, in terms of the timing, this looks like a good idea,” he said.

Famed architect Vann Molyvann , who designed the Independent Monument and Olympic stadium, said Wednesday that the high rise projects are good for the city, but he questioned whether too many of the projects are coming to soon. “I think now it’s not a good time…If they can start with the small projects it can be better,” he said.

Recently, there was rumor that Gold Tower 42 will not be built as the company took all money and went back to South Korea…Why? But accordingly, it has been reassured by top management of the company during a conference talk organized by CTN, that the rumor is wrong.

Gold Tower 42 will be started and to be finished in 2011. Until now all retail space in Gold Tower has been sold and 60 percent of residential units are spoken for.

Local firm Royal Group has also announced they plan to begin construction on two 25 -story buildings near Phsar Thmei by the end of the year.

Tallest buildings rising in Phnom Penh (1)

Construction is set to begin on Cambodia’s tallest building as officials broke ground on the 52-story International Finance Complex that will dominate the skyline of the Kingdom's low-slung capital after its completion in 2012.

The $1 billion project, developed by IFC Phnom Penh, will include a main office tower surrounded by several smaller glass-and-steel structures, making it the latest in a string of mega-projects set to transform the city’s urban landscape in the next decade.

The International Finance Complex, located on a 6.8-hectare site near the Russian Embassy on Sothearos Boulevard, will contain 1,064 residential units in six towers ranging in height from 44 to 51 stories. There will also be a 34-story service apartment building, a school and other facilities.

“The IFC Phnom Penh project [is] a symbol of Cambodia’s recent economic growth and will become a new landmark of Phnom Penh,” said Kevin Kim, CEO and President of GS Engineering & Construction, the project’s South Korean contractor, at the June 18 groundbreaking ceremony at the building site on the Bassac River.

“I am confident that under the strong leadership of Mr. Hun Sen, the Cambodia’s economy and stability will continue to grow and be open to more Korean firms entering the Cambodian market” said GS E&C Chief Executive Officer, Kim Kab Ryul

Koh Puos Bridge Construction Project

The construction of a 900 meter bridge from Sihanoukville’s Hawaii Beach to Koh Puos (or Snake Island) has been started. This project costs about 20 millions Euros and will be finished by 2011.

Russian company Kos Puos Investment Group , which signed a 99-year lease to develop the island in September 2006, said in a statement the project will create up to 25,000 new jobs. The total cost of this international hotel & resort is estimated around $300 millions and this project is subject to be completed in 10 years.

Thaksin aimed to build a new modern city in Koh Kong province

Cambodian-Thai Border

Koh Kong Bridge

Koh Kong Safari World

Thaksin is interested in buiding a new modern city in Koh Kong province by developing another casino and entertainment complex, morden residential houses,schools, hospitals. The amount of investment is not known yet.

Wednesday, June 4, 2008

Koh Kong: land prices are about soaring?

After the recent renovation of N.48 and the four bridges financed by Thai government's loans and funds, which link from Phnom Penh to Koh Kong Province,and as announced by Prime Hun Sen recently, there will be multi-millions invesment of a five star hotel & resort development by a Chinese company, there are more and more poeple (local and international tourists) have been pouring to visit Koh Kong, which used to be a sleepy town.

Accordingly, there are also many land buyers now going down to shop around and looking for the opportunities to speculate on land prices, that are currently at low level comparing to other development areas of Cambodia.

So land prices in Koh Kong will be soaring soon?

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Loan restricted has stabilized land prices

According the Cambodia Daily date on 04 June 2008:
"Loan Curbs, Poll Concerns Cool Land Prices"

After more than a gear of soaring growth, land prices appear to have stabilized, officials in the business community said Tuesday, citing a curb on bank loans and July’s national election among a host of likely reasons.

The slowdown began in May after the National Bank of Cambodia doubled bank reserve requirements to 16 percent. The government introduced the reserve increase-the amount of total cash deposits banks must keep a t the central banks- as a move to curb the country’s double-digit inflation by reducing credit to private sector.

But the plateau in land prices also coincides with concerns about political stability as investors await the outcome of the national election before they resume purchasing property, some businesspeople said.

Sung Bonna, president of Bonna Realty, said his company has not completed a report on property prices since April but have one planned for release in July. If things continue as they have of late, he said, that report will show prices having hit a plateau.

He added that the levelling off of what were skyrocketing prices is likely a positive thing.

The price is stable not only in Phnom Penh but also across the country, Sung Bonna said, adding land speculators, who have been driving up prices but not actually developing land, will be most affected.

The beginning of the rainy season, which makes travel in the provinces more difficult for buyers, is another reason for the levelling off, he said. But concerns about political stability and what kind of government will form after July are key, he added.

Debasish Pattnaik, director of business development, project and investment at the Royal Group, said land prices were to level off after so much growth.

Foreign investors have been responsible for some of the price increases, he said, but as many of them have become more familiar with the business landscape here, they have become more savvy about prices.

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Tuesday, May 20, 2008

Property sales slowdown recently in Cambodia

According to Phnom Penh Post's related article dated on May 16-29, 2008: "Property sales hit a bump as elections nears".

Cambodia’s red hot property market has cooled significantly as investors fretting over the outcome of July national elections curb a buying spree that has seen land prices more than quadruple in some parts of the country, realtors and lawmakers say.

“In general, businesspeople involved in real estate are waiting to see what the situation is after the national election”, Bonna told the Post, adding that without buyers, property sellers have been forced to cap prices. “Also the rainy season isn’t a good time to go out and see land”, he added.

Realtors, however, including Bonna, predict the elections would register as only a small blip on the long-term pattern of rising Cambodian property prices.

“I think real estate will remain a tool that helps the country develop”, said Cheng Kheng, owner of Cambodia Properties Limited (CPL), adding that he expected prices to resume climbing a few months after the polls, once concerns over restructuring subside.

According to Kheng, many of the bigger spenders in Cambodia’s real estate sector have political party affiliations that were demanding more of their time as the election approached.

“I think people who have a lot of money to buy are busy campaigning for the election.”

But the real estate sector slowdown has also hurt an unprecedented building boom that was a key factor behind Cambodia’s recent double-digit economic growth.

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Tuesday, April 29, 2008

The future of Sihanoukville

Every Cambodian is dreaming about the future of Sihanoukville which will be look like Singapore or Hong Kong according to its existing and future potentials: Tourism destination to the long beautiful beaches surrounded by beautiful islands, Ream National Park, International Sea Port and Air Port, Special Economic Zones, Luxury hotel and resort, the future of new city development, entertainment and park attraction centre, Sea Museum & Aquarium etc…

Although in order to make those above plans happened, Sihanoukville should have a good Master Plan for the future development as following:

• Sihanoukville Master Plan for long term project (15 years – 50 years) must be designed by local and international experts
• Water reservoir must be built
• High voltage of Electricity must be linked to city
• Existing wasted water cleaning should be covered and better be relocated a bit far from the sea
• Planting the tree along side walk of the main roads
• All public beaches must be reorganized (Pave way along the beaches, sewage tank for public and private WC, drainage system for wasted water) to make sure that the environment is clean for the local and foreign tourists.
• If possible, some old government officials should be replaced by young officials who have the energy, skills and the capacity to participate in the development of Sihanoukville
• Real estate development must be controlled by the governments

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Thursday, April 24, 2008

PM Hun Sen expressed concerns on inflation and high property price in Cambodia

Speaking at the biannual Government-Private Sector Forum on Wednesday 23 April 2008, Prime Minister Hun Sen announced a series of taxes and banking restrictions to help curb inflation and address other economic concerns.

The prime minister then proposed a series of measures to deal with inflation, high property prices and food security- measures he said would also improve the government's budget.

Hun Sen said the government would better implement taxation policies regarding land sales, which are supposed to be taxed by the goverment, and the oft-ignored tax on unused land.

Hun Sen also said the NBC must restrict commercial banks from loaning money to real estate market from "overtheating". [quoted from the Cambodia Daily dated on 24 April 2008]

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Do you think there is a property price bubble in Cambodia?

The interview between US lawyer Bretton Sciaroni and the Cambodia Daily's Tim Sturrock:

Q [Tim Sturrock]:Do you think there is a property price bubble in Cambodia?
A [Bretton Sciaroni]: Not in a sense that a lot of people talk about a bubble because… usually a bubble occurs when there’s so much involved.

A bubble happens when everyone is borrowing to buy the land or finance it and all of a sudden the whole thing collapses. It implodes because they can’t make their payments, and so on and so forth. But here I have the impression that so much of acquisitions are 100 percent equity. It’s cash transactions.

I keep on thinking about what happened after Untac. When the UN came in here, they needed housing. Everyone needed housing. And they were willing to pay top dollar, and there was nothing there. This was really a different city in 1993, 1992.

And so all kinds of people were getting unbelievable amounts of money for their property and the UN left. And all money, all the millions and millions of dollars left too. And what happened? Did people lower their prices? In many cases, no. They figured, “No, we’ll let it go empty. Sooner or later someone is going to pay that price the UN was paying.”… So, let’s say people stop buying. They say, “OK, I’m not going to put any more money into land.” Are [owners] then going to put a fire sale on their property and slash the price and take a loss? Or are they going say, “I’ll sit on it, and sooner or later someone is going to come along and pay me what I paid or pay more than what I paid”.

With the image of a bubble- I’m not sure it’s applicable here.

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Tuesday, April 22, 2008

Real estate development in Cambodia

DE CASTLE ROYAL in Phnom Penh - Korean Developer NURI D&C and RUNS&WALKS

Golden Tower 42 in Phnom Penh - Korean Developer Yonwoo - Project Financing DaeHan Real Estate Investment Trust

Grand Phnom Penh developed by Ciputra Group Indonesia and YLP Group Cambodia

Residential, Shop-house, Restaurant developed by CPN Property in Sihanoukville

BS HOLIDAY VILLA in Sihnoukville

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Thursday, April 10, 2008

Sovanna Shopping Center, largest mall opened in Phnom Penh

Sovanna Shopping Center, Cambodia's newest and largest shopping mall, which opened its doors last month in Phnom Penh's Tuol Kok district.

Standing five floors and spanning about 50,000 square meters, Sovanna, located a short walk from the Khmer-Soviet Friendship Hospital, is 20 percent larger then Canadia Group's first mall, the Shopping Center Sorya, which opened in December 2002.

Tuesday, April 8, 2008

Cambodia: lending restricted for real estate speculators

Due to recent credit crisis in US and to the unusual increasing in value of properties in Cambodia, National Bank of Cambodia (NBC) prepares to instruct to all banks operating in Cambodia to restrict the lending to all real estate speculators, which is considered to be driver of possible credit crisis in near future.

All banks in Cambodia should lend to the business people/investors in the following sectors: tourism, manufacturing, retail trade etc... that are more productive businesses and also could create more jobs for young Cambodian people.

Thursday, March 20, 2008

Speculation in real estate will kill the Cambodian people as a whole?

The word " Speculation in real estate " means hoping to make profit from buying and selling lands or house property etc... but risking loss.

In Cambodia, the value of real estate has just been appreciated very fast for recent years while its economy and insfractures are being developped gradually.
Now just for the few weeks, due to increasing in oil's price and depreciated of US dollars currency plus especially the current speculation in real estate, many Cambodian people have faced the difficulty with the increasing in price of all consumer goods that are mostly imported from neighbord countries or overseas.

Many farmers have sold their agricultural land properties and most of them got the money to purchase the consumming products that are for the unproductive investment due to lack of ideas/knowledge.

With land prices rapidly increasing, are you worried about the creation of a bubble in the market?

Sung Bonna at one time was homeless and poor, working at a fast food restaurant. Now he owns one of the largest real estate agencies in Cambodia.

Orphaned by the Khmer Rouge, the entrepreneur said he slept in garages and at friends’ homes in the early 1990s while he worked at Lucky Burger as a cook and was later promoted to supervisor. In 1997, a friend encouraged him to become a real estate agent, telling him all he needed was a mobile phone and a motorbike. In 1999, he started Bonna Realty, setting up an office with an unconnected landline phone for show on his desk and about $250 in his pocket. Sung Bonna recently spoke with The Cambodia Daily’s Kay Kimsong and Tim Sturrock about property value bubbles, local development and the future of real estate in Cambodia.

Q: How will the national election in July affect the real estate market?
A: it looks OK. During this time, it’s not like it was before. Everyone feels, even my feelings and some investors also feel, that it’s no problem.

Before with elections, for almost six months or eight months it was already quiet in the property sector. This month, there’s still actively because everybody feels that nothing will happen-they don’t feel worried or anything. There are one or two out of 10 people who have some feeling, but the other eight says it’s OK.

Q: With land prices rapidly increasing, are you worried about the creation of a bubble in the market?
A: This one of the worries-not just for me-but for some other people also. We are worried but so much worried for the whole country. The thing that we’re worried about is the outskirt properties, outside like in the provinces.

But the in-town properties are not a worry, even if it’s jumping too high. Why are we not so worried? Because we’re thinking the development is still continuing…

Also the economy has demand. The demand, what we are talking about demand is, for example, Cambodian people still need a lot of nice houses, still need a lot of offices. We don’t have a good office supply yet for example, like some businessmen or restaurants want to get a good [commercial space] to occupy or find a nice restaurant to eat. We don’t have such good things like that yet. Now people need it but don’t have it yet. So the commercial property is still needed.

And like the hotels. The tourism number is increasing and increasing but the number of hotels is not enough…

There are old houses and number of people that say in one building with a lot of familys-like one shop house with three stories but it has like 10 families. These people, they are planning to move to independent homes. Because Cambodian culture before, one family, like the grand father, they own one property-the son, the grandson, everyone stays together. Like 20 or 15 people stay together.

But now people are trying to move, to separate, to live independently when they become couples. They want to have an independent house, so it’s not like before.

Q: Do you think Cambodia and Phnom Penh have a clear plan for developing real estate?
A: Actually, the planning and ideas it has, but the practicing and the doing it depends… for example, the plan is to begin construction on one road in the next six months and complete it in the next 12 months, but it may delay. It may change. This kind of thing is what we think is affecting the property market.

And also, planning is not 100 percent under the government control. It depends on the investor. The private sector has some control. If the private sector can move and change it does not depend on the government 100 percent. So that’s why we are not 100 percent sure that government’s planning and city’s planning will 100 percent follow that they are planning.

Q: What more does the government need to do?
A: The government needs to protect from the bubble breaking. They have to control so the plan is clear. They have to control construction and the developments and developers…The government has to control that, to have clear plans, clear money…Do not just let one company come and they say they will build this and build this, when actually their financial background is not really good.

Q: So, the government needs to provide more oversight?
A: Yeah, so we need our country to have more control. It has to have something that is more secure to Cambodian people. People say, “Oh, I’m doing a development”… But nothing happens. Later on it’s just empty land for the next two or three years. It’s just empty land. They did not do anything. So they just speculated and this kind of thing is not good. [source: the Cambodia Daily on 20 March 2008]

Friday, February 29, 2008

Sihanouk Ville: Two more islands have been leased recently

The government awarded developpers 99 year leases for two islands off the coast of Sihanouk Ville on Thursday, bringing the total number of leased islands to 11 officials said.

In two seperate deals, Koh Russey Resort Co., Ltd will develop 78 of 137 hectares on Koh Russey island, while Royal Group will develop a resort on the 7,826 hectare Koh Rong island, company officials said.

Monday, February 18, 2008

Bokor mountain: new hotel complex at the summit

The Bokor project, announced late last month, will see the refurbishment of mountain's casino, hotel and other infrastructure, as well as the development of a new hotel complex at the summit. The development project is tipped to cost Sokimex Group, parent company of Sokha Hotel Co., $1 billion over 15 years.
" Our mission is to develop Bokor into a first class hotel," said Sok Kong, Sokimex founder and chairman of Sokha Hotel Group.[source: Phnom Penh Post]

Queenco Leisure buys land in Cambodia for 10 mln usd to build beachfront resort

Queenco Leisure International Ltd said it has purchased 9 hectares of land in Sihanouk Ville, a coastal area in the south-west of Cambodia, for 10 mln usd, which it plans to develop as a destination beachfront resort and casino, including hotels and conference centres.

The casino developer and operator said as part of the acquisition, it has also acquired exclusive rights from the Cambodian government for the stretch of beach immediately in front of the site.

'Along with the expansion of Sihanouk Ville's airport, the area is being transformed as a tourist destination, with a growing local economy, as both foreign and domestic investors recognise the future potential of the area,' chief executive Dror Mizeretz said.

Today's announcement follows the company's acquisition of 48 hectares of land in Sihanouk Ville in February 2007, Queenco added. [source: LONDON (Thomson Financial) ]

International Real Estate Consultant Sees Room for Upward Growth

According to the Cambodia Daily dated on 7 Feb 2008 that Edward Hopkins fell in love with Southeast Asia while backpacking in the region in the early 1990s. He returned to Britain and earned a degree in Southeast Asian Studies and Languages. Hopkins has returned to Phnom Penh to head up the Cambodia office of real estate consulting firm CB Richard Ellis. The Los Angeles-based company, with about 24,000 employees worldwide, is hoping to tap into Cambodia's booming real estate market by facilitating investments and consulting with developers. He spoke with Stephen Kurczy recently about the potential of Cambodia's property market.
Q. Plans have been announced for three skyscrapers in Phnom Penh-a 30-story, a 42- story and 52-story. But there are doubts that they'll even go up.
A. There are always doubts. I have my concerns. First of all: Is there a need to build things that high here, especially with the difficulty of construction on this type of land? You can't go 50 stories up without hitting bedrock...and the construction costs of that will be very, very expensive. My feeling is that you probably don't need to go any higher than 20 stories here.
Q. So do you wonder if these skyscrapers will ever be built?
A. I think something will go up. I know the companies you're talking about-they're serious people. We ve done a lot of work with these guys already. They do their homework. They do build things. Something certainly will go up. There's a desperate need for office. The other thing is that people like to be in buildings with the companies they do business with. It's very easy when you're on the 10th floor to press the elevator button to the eighth floor to go and see your insurance broker, or go down to the ground floor to see your banker, or see your lawyer, because you end up with lots of different services in the same building. For example a huge multinational moves in, now I'm not going to quote any names, but let's say a huge American company, an oil company, decides to move in, they're going to 2,000 square meters, everybody who is going to provide service to that company will move into the same building...If I were a developer, I would be looking to get a 20-story office building up within 18 months.

Tuesday, January 22, 2008

Cambodian goverment has leased 3 other islands to private companies

The goverment of Cambodia has leased 3 more islands in Sihanoukville to private companies.

The Council Development of Cambodia (CDC) has approved the investment projects for 3 private companies: Angela Real Estate, RPB Investment and Twin Golden to lease Preus Island (562,800 sqm), Krabei Island(122,330 sqm)and Tres Island respectively.

The total investment from those companies is estimated around USD 43 millions.

This is a good news for Sihanoukville where is going to be developped very soon.

Thursday, January 10, 2008

Phnom Penh: New Skyscraper building of 53 floors in 4 years

International financial center of 53 floors will be built in the mid of year 2008 on the 6 hectares land at Tole Basac District, Phnom Penh. The construction's cost is estimated at about $1,100 Mio and the construction works will take 4 years. (source: Reaksmey Kampuchea).

This is a new giant real estate development by Korean construction company "GS".

Wednesday, January 2, 2008

New bridge from the mainland of Sihanoukville to Snake Island

The first new bridge will be built soon, connecting from the mainland of Sihanoukville to Snake island (Kos Puos Island). The construction of the bridge will be done by a Korean firm.

The island was taken by Kos Puos Investment Group, owned by a Russian tycoon who got the lease from the Cambodian government for 99 years.

This is a multimillion dollars project on the island where there will be a real estate development of 5 star hotel&resort, bungalows, new town etc...

Real Estate Development in Cambodia

Cambodia: New Investment Destination in Southeast Asia