THE US$30 million development of Kaing Meng City outside the capital has been dampened by the real estate downturn, with sales in the doldrums, a project official said Monday, following the visit of a government team aimed at spurring the project forward.
Infrastructure has been completed, and nearly all 1,500 plots of land have been sold, but further movement has stalled, Yun Hong, sales manager for the development, told the Post.
“We have started sales for the second phase, but we cannot sell anything,” he said. “When the property market was booming, we sold a plot for more than US$30,000. Now we are selling at $20,000 a plot, but nobody is interested in buying.”
Kaing Meng City, which lies on 300 hectares of land in Kandal Steung District, Kandal Province, began in March 2008, just before Cambodia’s property and real estate markets slumped.
The developer had hoped to sell plots of land and to build houses on them, but the economic downturn stopped them, Yun Hong said. Now, he was hard-pressed to sell even the land.
“They [investors] cannot buy land to build the houses for sale,” he said. “I hope the property market will rebound in 2011.”
Officials from the Ministry of Land Management, Urban Planning and Construction inspected the site last week as part of an ongoing effort to encourage developers to complete projects.
“They are working very slowly,” Tanheang Hanida, chief of the Technical and Control Office at the ministry’s Construction Department, said Monday. “We’ve pushed them to go ahead with their plans, despite the impact of the global financial crisis, to feel good and confident about their project.”
Yun Hong said the developer welcomed the officials. “We will cooperate and push ... to go faster,” he said.