Japanese company to invest $248M in condos

Japanese company to invest $248M in condos

Japanese real estate developer Creed Group will invest close to $248 million in three residential projects of over 2,000 units in Phnom Penh over the next three years, the firm announced in Phnom Penh last Thursday.

Located near Phnom Penh International Airport, Bodaiju Residences, a $134 million condominium project consisting of 928 units, will be the first project to get underway, according Punnareay Heng, business development manager at Creed. Construction is due to start later this month with a target completion date of December 2017.

“We think there is a high demand for Bodaiju because our condo isn’t located in the city centre,” Heng said. “We are located just outside the airport.”

Bodaiju will target foreign property buyers, namely factory owners and upper-level factory management, Heng said, particularly those manufacturers located at the Phnom Penh Special Economic Zone, which is also situated close to the airport.

Offering one-, two- and three-bedroom condos which, according to Heng, will be a fusion of both French and Japanese architecture, the average net selling price for Bodaiju will be $1,600 per square metre.

Heng said that the remaining two projects, Arata Garden Residences and Maha Sem Sok, will cost about $114 million and be located closer to the city, yet still on Phnom Penh’s outskirts.

These developments will be affordable housing projects aimed at Cambodian buyers across a range of incomes, Heng said, adding that further details will be available next month.

“The growth of Japanese private investors reflects the confidence in Cambodia’s open-economic policy, political stability and Cambodia’s long term economic growth, Im Chhun Lim, minister of land management, urban planning and construction, said in a statement following the company announcement on Thursday.

“[It reflects] the optimism that the economic relations in ASEAN will progress smoothly when the ASEAN economic integration happens at the end of this year,” he added.

The Creed announcement comes off the heels of rising concerns from the Ministry of Economy and Finance, who will hold a meeting this week to address issues about a potential property bubble in Cambodia’s real estate sector.

Sung Bonna, director of Bonna Reality Group, welcomed the addition of property developers to the market yesterday, but cautioned that real estate firms carefully assess the market to ensure that demand is readily available.

Real estate developers need to know the size and affordability of their local market, and assess whether or not they can attract overseas investors, he said.

“So if the developer can sell at least 50 per cent of its housing development costs to overseas investors, then I think they will have new demand, which means that it will be okay,” Bonna said.

The headline of this article has been corrected to $248 million, not $244 million.

MOST VIEWED

  • US names new ambassador to Cambodia

    US President Donald Trump on Friday appointed W Patrick Murphy as the new US Ambassador to Cambodia, replacing incumbent William A Heidt. A press release posted on the White House’s website said nominee W Patrick Murphy is currently acting principal deputy assistant secretary at

  • Kingdom is at a crossroads between East, West after poll

    It was dubbed a success by caretaker prime minister Hun Sen after the electoral victory of his Cambodian People’s Party (CPP), which is poised to take all seats in the National Assembly. But the July 29 national election has not been positively looked at by

  • Chinese influence to sweep Kingdom?

    Growing Cambodia-China ties have seen the latter’s influence sweep across the Kingdom through increased investments and tourism. The Asian giant has become the leading source of foreign funds in Cambodia, fuelling the construction sector with huge casino and hotel projects. Much of the growth

  • Final poll results confirm first single-party Assembly

    IN an unprecedented situation in Cambodian politics, the official results of the July 29 national elections have declared that the Cambodian People’s Party (CPP) will take all 125 seats in the National Assembly on the back of it receiving 76 per cent of the votes. The National