Logo of Phnom Penh Post newspaper Phnom Penh Post - Stop-start condo build starts again



Stop-start condo build starts again

The 32-floor tower on the corner of Monivong and Sihanouk boulevards has been under construction for the past seven years.
The 32-floor tower on the corner of Monivong and Sihanouk boulevards has been under construction for the past seven years. Photo Supplied

Stop-start condo build starts again

Developers have assured government representatives that the half-built Gold Tower 42 won’t stay empty for much longer

Construction on Gold Tower 42, the $240 million project on Monivong Boulevard that has been deserted for two years, will restart this March, according to the Ministry of Land Management, Urban Planning and Construction.

Spokesman Lao Tip Seiha said that last month, the ministry invited a Gold Tower 42 representative to discuss resuming the project’s development.

The representative promised that Gold Tower 42 would resume in early March.

“The ministry does not allow Gold Tower 42’s developer to leave a massive construction site in the centre of the city,” Tip Seiha said.

“If the company does not follow the promise, the ministry will summon the company.”

Gold Tower 42’s developer is Yon Woo Cambodia and the project is financed by DAIHAN Real Estate, both South Korean companies.

Work on the tower began in 2008, with an investment of $240 million. But the financial crisis delayed construction several times.

The first postponement was in 2009, although construction resumed in 2010. The second postponement was in 2012, and after resuming for a while in 2013, work on the project ceased.

Despite all the delays, Gold Tower 42 eventually reached 32 floors, turning into a grey hulk that looms above the intersection on Monivong and Sihanouk Boulevards.

“If the developer does resume Gold Tower 42’s construction, it will be a good sign for the condominium market in Cambodia as it would increase confidence,” said Bunrany Roth, chief executive of Century 21 Kingdom Property.

Restarting construction at this time is a good move, with ASEAN economic integration coming at the end of the year, she added.

“When ASEAN integration comes, ASEAN member countries will erase tax barriers in trade; as a result, Cambodia will see lots of investors come into the country,” she said.

“High-rise and luxury buildings will demonstrate the property sector’s prosperity and give a warm welcome to investors.”

Sung Bonna, director of Bonna Realty Group, said he had already met a Gold Tower 42 manager who told him that – sooner or later – construction would resume.

Leaving such a huge building unfinished in the middle of the city gives the capital’s property market a very negative impression, said Bonna.

“I think the owner of the Gold Tower 42 project will restart soon,” he said. “They will be successful, as the property market is seeing strong growth.”

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