Earlier this week, Scott Wu, general manager of Cambodian-Australian developer J&L Property Development, announced his company would invest $250 million in the Sky Tree Condo, located in the Toul Sangke, Russei Keo District.
The 32-storey development will offer 1,104 units, starting at 62 square metres. A unit of this size would cost $668 a month and would require a down payment of $8000 – 10 per cent of the $80,000 unit starting price.
This latest announcement underscores the move by property developers to take on Phnom Penh’s more affordable north and north west, by targeting local buyers who are often priced out of the market in the city’s southern districts such as Boeung Keng Kong 1, according to Wu.
Ross Wheble, general manager of Knight Frank Cambodia said, “There is a definite trend of development spreading to the north and north west of the city which is largely being driven by improvements in infrastructure.”
“With the improvement of Street 598 and Hanoi Road, we have witnessed significant growth in the number of borey developments under construction, in addition to the announcement of Aeon 2 near Camko City.”
At around $1,300 per square metre, J&L’s Toul Sangke unit developments are very competitive compared to areas of the city’s south where prices can jump above $3000 per square metre.
“Toul Sangke is certainly a lot more attractive in terms of pricing compared with more central locations such as BKK1 and Tonle Bassac,” Wheble said, adding that as “infrastructure continues to improve to the north of the city, there is good potential for this location to outperform the market average.”
Kim Heang, president of the Cambodian Valuers and Estate Agents Association, sees a lot of near-term growth potential for Phnom Penh’s north in addition to the south, pointing out that “Phnom Penh’s south is also not bad but [value appreciation] now needs more time there.”
Additional reporting by Julius Thiemann