A new condominium project first unveiled a little over a month ago has already proven to be a hit with investors and future home owners. Since it entered the market, Bodaiju Residences has already sold over 50 per cent of Phase 1, according to Tomohiro Yakushi, vice president of the Japanese developer Creed Group.
The reason, according to Yakushi: most developments aim to capture foreign investors, but Bodaiju, Japan’s first and largest development in Cambodia, garnered interest by local investors and home owners who understand market potential and the need for well-financed projects.
“Unlike other condominium projects that mainly target foreigners, we aim to target locals pursuing home ownership and high standards of living,”said Yakushi, explaining that local confidence is the key to success, adding that upon success in country, Creed would start advertising Bodaiju abroad.
“We mainly want local people to live here - not only foreign investors buying and selling condo units. We want to add real value,”he said.
Punnareay Heng, business development manager of Creed Group, said that “so far, the majority of our sales are 60 per cent local Cambodians, 10 per cent Japanese, 15 per cent Chinese and 10 per cent Singaporean and another 5 per cent are Korean.” He added that at the current rate, “we expect sales figures to jump to at least 75 per cent sales in Phase 1” by the end of this month.
Heng went on to explain that by not promoting pre-booking or sales prior to the official launch, until they had obtained the construction permit and sales gallery, “customers would develop confidence, trust and belief in our project that we are real developer and adding real value to the market.”
With financing available for up to 90 per cent of the property value by ORO Financecorp—a subsidiary of Creed Group—investors can acquire loans starting from as low as 5 per cent interest.
“More people will be accessible to buying the home as they do not require [as] much money for the down payment, as long as they can prove their income,”says Heng, adding that the financing options are very competitive for today’s market.
“This means that the low-entry investment starts at $100,000,” Yakushi added. The average net selling price is $1,600 to $1,700 per square metre.
During the launch, Her Excellency Louk Sovanna from the newly formed KH Niron Investment company, said that they have purchased 37 units at the tune of $5 million.
“I think the Bodaiju project is a good project because it is the first and biggest project to be invested outside of the city and in front of Pochentong international airport. It’s the focal point of Phnom Penh,”she said, adding that 20 to 30 per cent of their investment has already been sold to other local investors.
Infused with Japanese and French architectural elements, Bodaiju provides the everyday conveniences expected in a modern apartment building that will tap into the “emerging middle class,”explained Yakushi.
Offering one-, two- and three-bedroom condos, the project is designed by Ivan Tizaniel, a French architect who has worked on projects that include The Plantation Hotel, the VIP terminals for both Phnom Penh and Siem Reap airports.
Each unit will house large covered terraces that act as a second out-door living rooms. Other amenities include rooftop sky pools, sky parks, a gym, clubhouse, BBQ pit, mini marts, cafes and kids space.
“The architecture developed for Bodaiju is mostly inspired by the local climate,” Tizianel said adding that, “in tropical countries [like Cambodia], we have to provide shade to protect from the sun and get natural ventilation.”
Therefore, all buildings in the development are surrounded by large balconies that give shade and outside living space for all apartments.
The parking lots open up to the ground floor gardens and are covered by additional suspended gardens and walkways that link all buildings on the second floor.
Such suspended gardens hide the parking lots and create a nice landscape for the apartments, Tizianel explained.
Summarising the overall appeal of the development, he commented: “The Japanese touch is in the simplicity of details and the relationship with nature.”
Even though Bodaiju residents will live in a natural environment, they won’t miss all the conveniences of a metropolis and vicinity to Cambodia’s developing industrial centres.
Located on the outskirts of Phnom Penh, across Lion Mall and a short drive to the international airport, the project also aims to capture Cambodia’s growing industrial base. By being close to the Phnom Penh Special Economic Zone and other emerging hubs of industry, the development is suitable for factory owners and upper-level factory management who wish for a convenient location close to the workplace.
“We do not portray our condominium for the high end users like many projects within the city centre. Our project is a little outskirt of the city. We simply portray Bodaiju as a liveable condominium with gardens, open space, and full of facilities,” Heng said.
The nature-inspired development is an ensemble of six 14-storey buildings woven into the landscape. With construction commencing this month to be completed by 2018, the project will be built in three phases on a 23,531 square metre parcel of land. The first phase will include 372 units, while the second and third phase will produce 372 and 184 units respectively.
“Everything is in place. We have the permit to begin construction and our own financial commitment to start selling,”says Yakushi.
The $134 million Bodaiju Residences development is the first of three projects undertaken by Creed Group to bring a total of over 2,300 housing units to the Kingdom in hopes of satisfying the growing demand. The two landed properties projects, which will be officially announced for sale later this year, include the 669 unit Borey Maha Sen Sok and the 712 unit Arata Garden Residences.
Although still on the outskirts of Phnom Penh, they will be closer to the city centre. In total, Creed Group has lined up $248 million of investments in Cambodia’s rapidly expanding property sector.
Established in 1996, Japanese Creed Group has developed properties in eight countries across Asia and has managed over $5 billion worth of property assets.