The first phase in the construction of Ly Hour Group’s latest venture Vimean Phnom Penh City housing development has been slated for completion by the end of 2012.

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Phase one of the project, located in Phnom Penh’s Russey Keo district, is set to comprise about 145 units, according to Ouch Pysal, the group’s assistant president.

“Construction on this project commenced last June, amid positive signs that the market was growing,” he said, adding that about 50 per cent of the development had been constructed.

The 18-hectare project will be constructed in four phases, comprising 585 units, of which about 40 per cent have already been sold, Ouch Pysal said.

Interest in the units, which range from 206 to 522 square metres, had come entirely from the local market, he added.

“Customers can buy houses through mortgage loans provided by OSK Bank and ANZ Royal Bank for 20 years, with a 10 per cent per annum interest rate,” Ouch Pysal said, adding that customers, however, are required to pay a 40 per cent down payment of the property’s total value.

Due to the steady recovery of the sector, Ly Hour Group expects to sell all phase-one properties in 2012, he said.

Some members of the property sector have welcomed the construction of another sizable development in the Phnom Penh area.

“While prices of urban properties and land remain stable and the sector is showing positive signs, prices are still below 2008 levels,” Bonna Realty Group President Sung Bonna said.

He added that units in the area which are currently worth between US$80,000 and $150,000 sold for between $100,000 and $180,000 before the economic downturn.