Logo of Phnom Penh Post newspaper Phnom Penh Post - Japanese company to invest $248M in condos

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

  • ‘Life goes on’ if Cambodia loses Everything But Arms

    Cambodia's business sector is exploring ways to mitigate any fallout from a possible loss of access to the EU’s Everything But Arms (EBA) agreement as talks continue before the 28-member bloc makes a final decision. The EU monitoring process is set to conclude in

  • PM: Workers must train for Industry 4.0

    Prime Minister Hun Sen has urged the Kingdom’s workforce to seek more technical training and strengthen their skills if they are to avoid job losses resulting from the Fourth Industrial Revolution. Hun Sen said the fourth industrial revolution is like a double-edged sword that

  • Huawei applies for OS trademark in Cambodia

    China's Huawei Technologies Co has applied to trademark the “Hongmeng” operating system (OS) in a number of countries including Cambodia in a bid to launch its homegrown operating system as a replacement for the Android OS, Reuters has reported. Huawei has applied to trademark the “

  • Kingdom’s dengue cases triple this year

    Within a span of 20 weeks this year, the death toll from dengue fever has risen to 21, while the number of those who have fallen ill due to the disease has reached over 12,000. A specialised official said the figure has risen about three times as much