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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