Local and foreign developers sign $100 million MoU on affordable housing

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Oknha Sear Rithy and Dr Beng Hong Socheat signing the MoU yesterday. Photo Supplied

Local and foreign developers sign $100 million MoU on affordable housing

Local property developer, World Bridge Land, Co. Ltd., and Singapore-based companies are planning to invest 100 million dollars on housing for the middle and low-income class in 2016.

Sear Rithy, general director of World Bridge, Co. Ltd, said in a press conference that after signing a memorandum of understanding with the Ministry of Land Management, Urban Planning and Construction yesterday, housing for the low and middle-income class will begin construction in collabortation between the ministry and Strait Construction Group Pte, Ltd, a company experienced in housing for the low and middle-income class in Singapore.

“The company will study the needs for housing and income of the people as soon as possible to start the project next year,” Sear said. “The company already has the land; we need a big area of land to construct community-type housing, and we’re only thinking about building one-storey housing before moving onto higher buildings.”

Regardless, Sear will not disclose the price of the housing until the study on the type of housing and income is complete.

Im Chunnlim, senior minister of the Ministry of Land Management, Urban Planning and Construction said due to the reformation on the property sector, especially on cheap housing for the middle class, Cambodia’s government has drafted a policy on housing which indicates seven choices to solve housing issues, one of which is a collaboration between private sectors.

Im added that there are three options to collaborate with private sectors: companies can give part of their housing to the government to sell to the middle class; the governmnet can give a piece of land to a developer to build housing for the middle and lower class by requiring them to sign up for a long-term mortgage without interest; or the government can allow for infrastructure and social development in the case that the developers have a piece of land or enough capital to invest, but developers must give a certain area back to the government to use as housing for the middle and lower class.

Wong Chee Herng, manager of Strait Construction Group Pte, Ltd, said his company decided to participate in this project due to Cambodia’s economic growth, political stability and the growth of the middle class. In addition to that, the population’s income and the need for housing in Cambodia is similar to that of Singapore in the past.

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