High hopes for city’s new tower

High hopes for city’s new tower

110421_12a
The 22-storey Phnom Penh Tower, which is due to open at the end of this month or at the start of next month, already has 40 percent of its space rented out. Photo by: WILL BAXTER

WORK on the US$60 million Phnom Penh Tower should be finished at the end of April, an official from the South Korean developer has said.

“We already completed 95 percent [of the tower],” said Hong Youvoin, Marketing Manager of Hyundai Amco Co, late last week. “We’re preparing the grand opening ceremony for the end of this month or beginning next month.”

The 22-storey skyscraper, a commercial office space set on Phnom Penh’s Monivong Boulevard, is just one of a number of towers now being constructed across the capital’s skyline. Although some – such as Gold Tower 42 – have halted construction, Phnom Penh Tower should be finished by the end of the month, according to Hong Youvoin.

He noted that since the beginning of the year demand for office space has increased, with a lot of new investors coming from Vietnam, France and South Korea.

“We have already rented 40 percent [of the building to] international firms in banking, auditing consulting, airlines, embassies and especially real estate companies,” said Hong Youvoin, who declined to name the firms for reasons of confidentiality.

Rents in the tower will average US$19 per square metre he said, adding that he hopes the tower’s occupancy rate will reach between 50 percent to 60 percent by 2012.

Sung Bonna, President and CEO of Bonna Realty Group and President of the National Valuers’ Association of Cambodia, said he believed the tower was situated in the right location to attract clients.

“In this year, we have noted that occupancy rates increased because a lot of investors came to the Kingdom,” he said.

He claimed that Cambodia’s property market in the first quarter of this year has been good compared with the same period last year, adding that there have been double the transactions since January 1.

Occupancy is at about 75 percent at the 14 Grade B buildings in the capital, according to the National Valuers’ Association. Sung Bonna said the price of rental office space in Grade A offices is between $20 and $30 per square metre, while Grade B has fetched between $10 and $20 per square metre.

There are nearly 40,000 square metres of Grade A office space in Phnom Penh, Sung Bonna said, with another 30,000 square metres expected to come on line in the next three months. Now there are 10,000 square metres of Grade B office space in the city.

Sung Bonna also said that when Cambodia’s stock exchange opens this summer it will boost demand for office space and, as a result, lift prices.

“Many investors will come to our country to invest here,” he said.

MOST VIEWED

  • Chinese influx pushing locals, Westerners out of Preah Sihanouk

    Some within the Kingdom’s tourism industry have speculated that the recent influx of Chinese visitors may hinder domestic tourism as the price of accommodations in the coastal city of Sihanoukville continues to rise. Preah Sihanouk province, which has become a hotbed for Chinese investment

  • ‘Dire consequences’ from sanctions, warns AmCham

    American businesspeople in Cambodia have warned that any sanction against the Kingdom would have “dire consequences” that could push Cambodia even further into the arms of China. In a letter to US senators and representatives dated Monday, the American Chamber of Commerce Cambodia (AmCham) said

  • CPP: ‘Behave or Sokha suffers’

    The ruling Cambodian People’s Party (CPP) spokesman warned Kem Monovithya on Thursday that her attempt to damage “national reputation and prestige” would lead to her father, Kem Sokha, receiving even harsher punishment. Sok Eysan issued the warning as Monovithya, who is the court dissolved

  • Preah Sihanouk beach developments halted

    After receiving an order from Hun Sen, Minister of Land Management Chea Sophara led a team of experts and relevant officials to Sihanoukville to call a halt to the illegal development of a beach. The prime minister ordered the Prek Treng beach in Otres commune