Despite recent political turbulence, local investors in the Phnom Penh property sector are not deterred and are still bullish on the market’s future prospects.
One good example of this local optimism is Ly Hour Group, which recently announced it would invest more than $100 million to build a mixed-use commercial and residential development with 280 apartments.
Earlier this month at the ground-breaking ceremony for the project in Borey Vimean, Ly Hour Group chairman Oknha Ly Hour told the Post that recent political events in the capital have not affected his outlook for the city’s property sector.
“If I worried about political issues, I wouldn’t be doing projects like this. I think the recent events are just a small matter that will not lead to any larger troubles,” Hour said. “Some aspects of this political dispute will be solved easily. I’m more interested in Cambodia’s population growth and economic growth.”
Hour’s new project, which is the third phase of Borey Vimean Phnom Penh, is located along Street 598 (Chea Sophara Street). In addition to the 280 flats involved in the project, there will also be a four-storey shopping centre with a cinema on the top floor.
Ly Hour Group expects construction of the development, which covers more than four hectares, to take 24 months.
Oknha Ly Hour said that post election, some [developers] have trouble in selling but his Borei is still going well as usually, as the company focus mainly on quality construction and modern architectural style is appropriate and technically updated—“People come to see and they always satisfied with them.”
Hour said that more than 80 per cent of the more than 600 villas in Borey Vimean Phnom Penh’s first phase had been sold. As for the second phase, which includes 300 apartments, 80 per cent had also been sold, he said. Villas in the development are currently selling for $80,000 to more than $500,000, while apartments are presently priced between $70,000 and $100,000
Asia Real Estate general manager Po Eav Kong said that despite the property market’s resilience, local purchases of residential properties in the capital had slowed compared to the first half of 2013. Many investors have kept a close eye on political developments and have adopted a wait-and-see approach to investment for the time being.