Logo of Phnom Penh Post newspaper Phnom Penh Post - SKorean project is latest to be delayed

SKorean project is latest to be delayed

SKorean project is latest to be delayed

VOGO Village II, a South Korean development project on the outskirts of Phnom Penh, has delayed construction until the property market improves, a company official said Thursday.

“We planned to begin the construction of 80 villas for [the] project in 2010, but our research shows that we cannot get started this year,” said Tan Socheath, general manager of VOGO Co Ltd. “We are waiting for a good time to build, but we don’t know when we will do it.”

Not enough buyers had come forward for the Dangkor district project, “That’s why we decided to delay,” he said, adding that work has been confined to a new administrative office.

VOGO will continue with the Star River construction project with its contractor, South Korea’s Posco Engineering and Construction Co Ltd, Tan Socheath said.

Posco is behind the US$300 million Star River development along the Tonle Bassac river in Chamkarmon District, the designs for which include 1,000 apartments in three buildings higher than 40 stories.

Work is already complete on the $3 million VOGO Village I, near Phnom Penh International Airport, which sold out all 80 of its residential villas last year, Tan Socheath said.

Prices for Village I ranged from $140,000 to $220,000 per unit, and a similar price structure had been expected for Village II, he added.

Neuk Narin, general manager of Bonna Realty Group, said Thursday that the project is suffering because of its location.

“Every residential development outside the city has been very hard to sell,” he said. “But if they develop a housing project within the city, they can hope to attract clients to buy it.”

The delay for VOGO represents the latest in a series of developments that have stalled amid a sluggish property market following the onset of the economic crisis in the last quarter of 2008.

In an effort to spur more projects to completion, the Ministry of Land Management, Urban Planning and Construction has begun inspections.

VOGO’s Village II project has so far escaped scrutiny.

“We didn’t know project development at VOGO Village II had been delayed,” said Lao Tip Seiha, director of the ministry’s Construction Department. “We will prepare a suitable time to go down and check it.”

MOST VIEWED

  • Malaysia MP accused of ‘influencing law’

    Malaysian Member of Parliament (MP) Larry Sng arrived in Siem Reap early on Wednesday, in what was slammed by one NGO as efforts by Kuala Lumpur to “influence Cambodian law”. The Malaysian Embassy in Phnom Penh requested on January 30 “cooperation from the Ministry of Foreign

  • Ministries begin measures to offset EU’s EBA decision

    In the wake of the EU’s controversial announcement this week that it has begun the withdrawal process for Cambodia’s Everything But Arms (EBA) preferential agreement, government ministries and political analysts continued to share their reactions and economic mitigation plans in preparation for the

  • Emirates launches route connecting Phnom Penh, Bangkok

    Emirates will launch a daily service on June 1 linking Phnom Penh (PNH) and Bangkok (BKK). The service from Phnom Penh to Dubai, via Bangkok, will provide more flight options to passengers travelling between the capitals of Cambodia and Thailand. Travellers from the Southeast Asian nations

  • US Embassy urged to stop ‘disrespecting sovereignty’

    The Ministry of Foreign Affairs and International Cooperation called on the US Embassy in Phnom Penh on Saturday to respect the Vienna Convention on Diplomatic Relations after it called former opposition leader Kem Sokha “an innocent man” – a move deemed to be “disrespecting Cambodia’s