Thursday, April 30, 2009

Confidence's concerns on Korean Real Estate Developers?

In just recent years, it has seen many numbers of Korean Real Estate Developers flowing to Cambodia. Large and tall building construction projects have been announced and with projects'names such as Camko City, De Castle Royal, Golden Tower 42, International Financial Center (IFC) and recently Phnom Penh Tower etc...

Although, due to the financial crisis started last year and as Korean government wanted to secure its economic growth remaining strong with financial stability, it has forced to call back Korean investors, who are doing business overseas to return back home. As result, this situation has translated into the delay or the slowdown of many real estate projects in Cambodia. Many buyers who bought and deposited already some money have been worried about this issue and there have been some concerns on confidence on those Korean investors - should they trust or not on them in any other projects made by Korean?

But as confirmed by Im Chhun Lim, Senior Minister of Land Management, Urban Planning and Construction during the ground breaking ceremony of Pearl City in Sihanoukville yesterday, some construction projects made by Korean Developers will continue as usual and just some have been delayed, he mentioned Camko City, which is developing a satellite city in the outskirt of Phnom Penh, has almost completed its first phase of the construction. He continued that the situation will be back to normal or it will attract more Korean real estate investors after signing the MOU in June 2009 by Prime Minister, Hun Sen and Korean President in South Korea.

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Wednesday, April 29, 2009

Pearl City in Sihanoukville

Today, Thai Boon Roong , one of local giant Cambodian Company inaugurated its first ambitious real estate development project called “ Pearl City” in Sihanoukville and the ceremony was held under the present of Mr. Excellency Im Chhun Lim, Senior Minister of Land Management and Cadastral Ministry.

According to the Company staff, even amidst the global financial crisis, the Company still decided to start this development project after 4 years of plan studied and it is also considered as the biggest city in Sihanoukville including residential village houses, market, school, hotels, hospital, entertainment and cultural centre, condominium and apartment houses etc…The investment project for its 3 phases during 10 years of the construction development was estimated approximately $600 millions.

This project will contribute to the economic growth, the infrastructure development of Sihanoukville and will help to attract more investments into the area, which has a great potential in the future for both industry investment attraction and tourism destination (with its deeper Sea Port, International Air Port, SEZs, Oil Exploration & Extraction, long beautiful beaches and its Islands…).

During his speech of the inauguration, Mr. Senior Minister has positively confirmed that the construction projects in Cambodia as a whole has dropped only about 2%, which is against the figures of 40% made by the international institution. He said that even some big projects are slowing down during this crisis but numbers of small households or small construction projects are still going on and increasing.

Thai Boon Roong is currently under direct control of Oknha Khov Samath, son of Okhna. Theng Bun Ma. The Company owns Intercontinental Hotel, Mekong Bank, Factories and other real estate lands.

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Wednesday, April 1, 2009

Property price is going down

Recently, there has seen numbers of sellers who are now trying to sell out their properties - asking the price which said be to down from 30% or 50% from the previous offer during last year 2008 - although, it is still remaining high for some places like in Sihanoukville.

On and near the beach front land, the asking price varies from the low one at $139 to high one about $1,042 per sqm from Otres, Ocheuteal to Independent Beaches.

Some local real estate agents said that the price or value of properties in Cambodia is based on the mouth of the sellers who asked what they preferred - and sometimes not really consistent with the infrastructure development or the real market values. Simply talking there is no real system yet to calculate that property price.

Buyers are just waiting for the property price going down - and its number presents very low.

Some experts said that the time to buy should wait in 6 months or in 1 year more in Phnom Penh, Siem Reap or in Sihanoukville, when there will be more debtors starting for foreclosure - and the price will be much more low.

For now, the future looks uncertain - that is now depending on the world economic driver- US reassuring the recovery - the financial stability - and the good governance of banking system etc...

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Real Estate Development in Cambodia

Cambodia: New Investment Destination in Southeast Asia