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.

Real Estate Development in Cambodia

Cambodia: New Investment Destination in Southeast Asia