A residential, office and retail project will emerge in Toul Kork in coming years, adding more supply to a real estate market which is already facing lacklustre demand.
Development of this joint venture between Parkway Group and Natong City Daxin Engineering is expected to cost $100 million, according to Parkway project manager Sour Soktheng.
With the groundbreaking process having already taken place, the construction team is beginning to build a two-storey underground parking space which is set to be complete at the end of the year, Soktheng added.
The project will be built on one-hectare of land and will comprise condos, malls, office space and an entertainment centre. Soktheng said the Parkway development would be undertaken in a phased approach over the next three to four years.
“In our first stage, we will build about 200 to 300 units and a shopping mall,” Soktheng said.
“Each unit at Parkway will sit from 45 square metres up to 200 square metres, and our target customers will be those with average and high-incomes.”
“Our target customers are primarily the locals but also the foreigners,” he added.
The project is being spruiked as a multi-community hub in Toul Kork, “consisting of three large buildings, where the first one will be 35 storeys, the second one will be 28 storeys and the third is 26 storeys.”
Soktheng dismissed concerns over Phnom Penh’s already oversupplied residential market, believing Parkway would receive strong demand because the target market is the growing middle class.
Kim Heang, president of Cambodia Valuers and Estate Agents (CVEA), said the project would be successful if the investors had enough financial backing.
“Those that try and sell units to get money to continue and finish their projects will face issues,” he said.
Heang said Toul Kork was an attractive destination for real estate development as it has a growing young population.
“However, since Toul Kork is a C-grade area, project owners should target customers who have an average income.”