General Construction & Real Estate News [Archive]

AsianDragons

July 20th, 2012, 12:19 PM

Phnom Penh's new apartments soar on high rents .

Thursday, 19 July 2012 Don Weinland.

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Real estate developments covered in green tarp have sprung up across the capital’s Boeung Kang Kong commune, and housing units are filling before the projects are finished, insiders said.

The value of construction approvals in Phnom Penh jumped by 557.5 per cent in March to US$150.5 million compared to a year earlier, according to a report from the Cambodia Development Resource Institute (CDRI).

The value of approved apartment, or flat, construction was worth $26.7 million, an increase of 855 per cent year on year.

Sun City Apartments, a 35-unit development in Boeung Kang Kong, has rented all but one flat even before the project has been completed, Sun City owner Channda Sok said yesterday. The units were put on the rental market about three months ago.

One-bedroom Sun City flats rent at $1,500 per month, two-bedroom flats at $2,500.

High rental yields compared to the low cost of land in Phnom Penh has boosted the construction market for flats, Sunny Soo, Knight Frank country manager, said yesterday.

Renters have not shied away from increasingly steep prices.

“There are still people willing to pay these prices in this market,” he said, adding that there are about 10 similar rental projects in Boeung Kang Kong alone. Soo could not confirm the CDRI figures for March.

The CDRI data showed that public, commercial, industrial and tourism-related construction was worth $122.1 million in March, a year-on-year increase of 604.3 per cent.

http://www.phnompenhpost.com/index.php/2012071957504/Business/phnom-penh-apartments-soar-on-high-rents.html

AsianDragons

August 17th, 2012, 10:10 AM

Daun Penh and 7Makara see sharpest increases in value
Thursday, 16 August 2012 Seun Son

Land in prime area are keeping increase. Photograph: Sreng Mengsrun/Phnom Penh Post
The areas where land prices in Phnom Penh have increased most sharply over the past six months are the districts of Daun Penh and 7Makara, according to a report from Asia Real Estate Cambodia.

The data shows that the price of land in Daun Penh district and 7Makara during the first six months of this year rose 19.7 per cent compared with the corresponding period in 2011.

And the price of land in Chamkarmorn district – an area in some demand – increased only 5.3 per cent, while Tuol Kork rose 12.7 per cent.

Keuk Narin, vice-president of Asia Real Estate Cambodia, said the price growth had begun in 2011 as the world economic crisis started to fade.

“The economic sector started getting on better while the banking sector reduced loan interest rates, pushing real estate gradually upwards with those buying property having specific targets,” he said.

The report revealed that land in Daun Penh district for business in the first six months of the year saw an average price of US$ 3,365 per square metre, with residential at $2,042 per square metre, compared to the same period last year, when business areas averaged $2,832 per square metre and residential areas only $1,692.

7Makara district’s business areas in the first quarter averaged $3,000 per square metre, and with residential at $1,681 compared to the corresponding period last year, when business land cost $2,597 and residential $1,357.

In Chamkarmorn, business areas in the first quarter was at $2,685 and residential $1,362 In Tuol Kork, areas for business in the first quarter of the year averaged $2,140 with residential areas at $948 for same period last year the figures were $1,827 and $874 respectively .

Keuk Narin said the real estate market by the end of the year was not expected to increase more than last year - it may be at only 6 per cent.

He said real-estate investors had more knowledge about changing from residential property to business.

Previously, they had invested in villas only, but now they had begun investing in apartments rather than selling or renting them.

“One villa is rented from $3,000 to $4,000 a month, but if you build an apartment, not in the same area, and the land size is the same, you can earn from $40,000 to $50,000 a month,” Narin said. He added that demand for apartments has increased more than the available supply, from 5 per cent to 10 per cent.

Sung Bonna, president of Bonna Realty Group and chairman of the Cambodia Valuers and Estate Agents Association, said that in Phnom Penh, the real purchase price for the first quarter had increased 10 per cent compared with the equivalent period last year.

He said land in Daun Penh district was filled with investment in buildings, but the district had some good locations.

“Daun Penh and Chamkarmon are good for a similar potential investment; actually, Boeng Keng Kang I residential area is in demand more than other areas in Phnom Penh,” he said.

He added that land in Chamkarmon district had a 50 per cent potential, with Daun Penh at 70 per cent, while 7Makara is a multi-market area, but trading was limited.

http://www.phnompenhpost.com/index.php/Real-Estate/daun-penh-and-7makara-see-sharpest-increases-in-value.html

AsianDragons

August 17th, 2012, 10:11 AM

http://www.phnompenhpost.com/images/stories/news/properties/2012/120816/120816_02.jpg

AsianDragons

August 17th, 2012, 10:16 AM

http://www.phnompenhpost.com/images/stories/news/national/2012/120817/120817_01.jpg

AsianDragons

August 17th, 2012, 10:17 AM

Cambodia's islands up for grabs
Friday, 17 August 2012 May Titthara and David Boyle

A view from the pristine beaches on Koh Rong island, off Sihanoukville. The island is one of 28 in Cambodia earmarked for development. Photograph: Will Baxter/Phnom Penh Post
More than 180,000 hectares on 28 of Cambodia’s 64 islands were reclassified as state private property for 31 companies seeking land concessions between 2008 and 2010, government sub-decrees reveal.

The reclassification sub-decrees, compiled by investigators at the rights group Adhoc, pave the way for firms to secure 99-year leases to develop hotels, resorts and casinos, mostly on islands dotted across the coasts of Preah Sihanouk, Kampot, Kep and Koh Kong province.

They include already popular destinations off Preah Sihanouk and Kep province such as Koh Tonsay (Rabbit Island), Koh Russey (Bamboo Island), Koh Rong, Koh Rong Somleom and Koh Takhieo, as well as far more obscure enclaves.

Experts in the investment and conservation communities have told the Post that on top of these land reclassifications, many of which have since gained final approval, plots have been earmarked for development by private firms on almost every single island in the Kingdom.

Adhoc senior investigator Chan Soveth said although this was good for a small number of individuals in the business community and rich foreign tourists, there were few island areas left for average Cambodians to enjoy their own country’s serene getaways.

“For example, can residents travel along Sokha beach?” he said, using the private, 1.5-kilometre shore at Sihanoukville reserved exclusively for hotel guests as an example of how the Kingdom’s islands could soon become off limits to most Cambodians.

Soveth said there was a lack of vision and co-ordination from the government as it hastily divvied up Cambodia’s islands, reclassifying land for 99-year leases without assessing negative effects such as the depletion of forest resources that supported communities.

“We are concerned about development without transparency, and we don’t know what exists on those islands,” he said.

Seven of the sub-decrees reclassify land to firms that are not named, while two are simply referred to as “Chinese company”, a not uncommon practice in documents related to land concessions in Cambodia.

Some of the most audacious Cambodian island developments have been connected to shady individuals, including convicted pedophile Alexander Trofimov, who allegedly drove to his resort on Koh Pos from prison regularly before he was pardoned by the king last year.

Adhoc’s list of soon-to-be concessionaires includes a veritable who’s who of controversial development including LYP Group (Koh Kong Knong), TTY Corporation Co, Ltd (Koh Koan) and Try Pheap Company (Koh Tonsay), all firms that have been involved in major land disputes.

But Tourism Minister Thong Kong yesterday defended the aggressive island development plan, which was guided by the Cambodian Development Council, saying it would lead to jobs and prosperity for the local populations.

“If it affected villagers, for what would we be doing it? We have to make villagers get profit from those development projects,” he said.

Tobe Eastoe, protection adviser at Fauna and Flora International, said many companies had not even broken ground yet on their concessions, while some were developing on islands where 60 to 70 per cent of villagers depended on fishing for their primary income.

“Different types of development pose different threats to the marine environment. Some, such as those we have worked with, are interested in preserving natural beauty, as it is their primary tourist attraction,” Eastoe said. “Some are more interested in large-scale development.”

David George, Cambodia country manager at property investment firm CBRE, which has partnered with two of the biggest island development projects in Cambodia, said most firms developing Cambodia’s islands recognised it was in their own interest to do so responsibly.

“If you allow poor development on your island, it will affect the quality of your whole island,” George said.

He added that as Cambodia pushed to catch up with established markets in Thailand and Vietnam, it had the advantage of being able to learn from mistakes made in those countries.

“In a country where you have a relatively small number of people who have quite a lot of land, they have quite a lot of power [as to] how it’s developed,” George said.

With about 20 per cent year-on-year increases in tourist arrivals and the expected commencement of flights from Vietnam to Sihanoukville next year driving investment, Cambodia’s long-dormant island tourism industry had become nascent, he said.

As greater numbers of well-heeled tourists sojourned out to luxury island resorts, increasing trickle-down revenues would ensure that smaller-scale, locally owned onshore businesses benefited, George said.

But George and Thong agreed that a number of concessionaires who continued to idly sit on their leases – a strategy usually used to profit off land appreciation rather than follow agreed-upon development plans – remained a snag holding back tourist dollars from Cambodia’s beaches.

http://www.phnompenhpost.com/index.php/2012081758150/National-news/cambodias-islands-up-for-grabs.html

AsianDragons

August 17th, 2012, 10:17 AM

New building for Royal Academy of Cambodia
Friday, 17 August 2012 Kim Sarom

The Royal Academy of Cambodia will create a building for its academic advisers at the end of this year, its secretary-general said yesterday.

Um Pom said the building would serve as offices for the RAC’s advisers, many of whom do not have physical office space.

http://www.phnompenhpost.com/index.php/2012081758138/National-news/new-building-for-rac.html

mrfusion

August 21st, 2012, 06:04 AM

City could move to south, says Vann Molyvann
http://www.phnompenhpost.com/index.php/Real-Estate/city-could-move-to-south-says-vann-molyvann.html

Phnom Penh property experts used to have us believe that in the future, the city would expand to the west and the north, But Cambodian architect Vann Molyvann argues the development of Phnom Penh would best be directed to the south.

Speaking to around 100 architecture and construction students at Pannasastra University of Cambodia last month, Professor Vann said overcrowding in the city made development necessary, but that expansion should be made south, along the Bassac river toward to Takmao city.

“Phnom Penh is the capital of Cambodia, where a lot of people live and where most of the country’s economic activities occur,” he said. “The circulation and transportation of goods in and out Phnom Penh is 80 per cent of the country’s whole consumption, so that Phnom Penh is the country’s lynchpin to economic growth.”

The professor said that by 2015 the number of people living in Phnom Penh would increase to three million. The city would need three times as much land, with greater infrastructure to accommodate the expansion.

“I think that if the city develops to the south it is better than to the west as the south is an area that is higher above the river, which is key to avoiding floods.”

Tous Saphoeun, Dean of the Faculty of Architecture and Civil Engineering at Pannasastra University, agreed that the city should be expanded to the south rather than to the west, but said at present investors had not thought of the possibility of flood damage, only of their current business interests.

Tous said extremely high floods hit Cambodia every 50 years and Phnom Penh was exceedingly vulnerable to floods during the rainy season.

“During previous floods, the western areas where national roads 4 and 5 run were hardest hit, but according to Vann Molyvann’s idea, the south has never been affected as hard. There is a waterway which can be opened to release flood waters, the Prek Tnoat river,” Tous said.

He said Cambodia’s cities have faced environmental events since the sixth century – the Nokor Phnom era; the loss of Angkor Borey city; the fall from power and economic downturns have all resulted from floods. Longvek and Chaktomuk areas being much the same.

Investors should keep Professor Vann’s ideas in mind, he said.

Dith Channa, president of VMC Real Estate Company, said that city development experts like Vann Molyvann were thinking of life in the future, but that current industry and construction in the west and the north were mushrooming because it was easier to buy products via Preah Sihanouk and Kampot ports.

When thinking of the long-term future however, he said the professor’s ideas were right.

“I think in the next five to 10 years the development of the city in the west and the north will increase, but in the future Vann Molyvann’s ideas will be better than ours. Construction and investment is not targeted at the south of the city,” he said.

He added that the price of land in the south of Takmao city was currently priced at $400 to $500 per square metre, with residential areas on small roads at $100 to $150 per square metre.

The prices were similar to areas west and north of Phnom Penh, though sales activities are significantly less.

mrfusion

August 21st, 2012, 06:09 AM

I think it makes sense to expand north and south, next to the river.

It will also make sense to look at possibility to expand east, the the other side of the river.

MYPHNOMPENH

August 23rd, 2012, 04:42 PM

Its a new news to me but maybe not new for everybody...
http://www.postkhmer.com/index.php?option=com_content&view=article&id=84534:2012-08-23-07-15-48&catid=5:sport&Itemid=80

bojemrythem

August 25th, 2012, 12:37 PM

You have to follow some best real estate property for your business and manage the construction business. There are many sites available which give you best place for construction your business and manage the real estate property.

AsianDragons

September 15th, 2012, 10:54 AM

Cambodia sees shortage of builders
Thursday, 13 September 2012 Seun Son

Cambodian labourers working in a construction site in Phnom Penh. Photograph: Hong Menea/Phnom Penh Post
The increasing level of investments in new buildings in Cambodia is causing a shortage of trained building workers, according to the government and to major investors.

Vice director of the Building Department and deputy chairman of the Cambodian Architects Committee Lao Tepseiha said the extent of building investment in Cambodia is increasing this year, but is coming up against the shortage of workers.

“The owners of both small and big building projects, which need 200 to 300 workers, are complaining about the shortage of building workers”, he said, adding that there is demand for more than 18,000 or 20,000 workers per day. The lack of expert workers is especially notable.

He continue “the concept of using emigrants is not good because it could involve many risks: we would rather work with locals, so that if we have numerous building jobs they will gain skills, experience and money.”

The average income for unskilled workers is between 15,000 riel to 20,000 riel per day.

Cambodia Building Worker Confederation (CBWC) president Sovandeth said that the demand for building workers really showed a shortage, while the number of building projects was growing. “Building worker growth increased 70 per cent in 2012 and the lack of workers is some 50 per cent right now,” he added.

He went on: “there is a shortage of workers due to the low pay, causing some Khmer to go back home in the rainy season.”

Khmer immigrant workers went to Thailand, Malaysia, Korea and Japan a few years ago, but now demand has decreased after the government increased the rules and regulations governing their movement, he said.

He confirmed “if there is low payment for a building job now, there will be a lack of workers, but if there are suitable benefits and a safe job, there will be no shortage. You need to pay less skilled workers on average $5, while skilled workers should get $10 per day”.

Assistant to the chairman of House Building Investment Co, Nget Piseth said “Our company lacks less skilled workers because of procedures to provide a place for workers to stay who work in our company”.

Ky Real Estate Company CEO Soun Seap said “it is unlikely there is a lack of workers within each housing project. When they start working they usually have enough workers but by I know there can be lack of workers for those projects with small budgets,” he said.

“Cambodia does not lack many workers now, but I think we will lack skilled labour when we integrate in ASEAN in 2015,” he added.

http://www.phnompenhpost.com/index.php/Real-Estate/cambodia-sees-shortage-of-builders.html

AsianDragons

September 15th, 2012, 10:54 AM

http://www.phnompenhpost.com/images/stories/news/properties/2012/120913/120913_02.jpg

AsianDragons

September 15th, 2012, 11:00 AM

Construction approvals soar
Construction approvals granted by government authorities have increased 158 per cent in the first 11 months of the year, compared with the same period last year, figures showed...

according to phnom penh post

camtv03

November 8th, 2012, 03:35 PM

NagaCorp Holds Ground Breaking Ceremony for Naga2 Development

PR Newswire

The finest business, leisure and entertainment integrated complex in Indochina!

HONG KONG, Nov. 8, 2012 /PRNewswire/ -- NagaCorp Ltd. ("NagaCorp" or the "Company", SEHK stock code: 3918), the largest hotel, gaming and leisure operator in Cambodia, held the official ground breaking ceremony yesterday for Naga2, a large-scale mixed-use expansion that will be completed by 2015. Situated 200 meters from the existing NagaWorld, the Naga2 expansion project will feature two 5-star hotel blocks, a world-class gaming and entertainment complex, an elegant theatre, luxury shopping boutiques, as well as top dining selections in the country.

Spanning a total of 1.2 million square feet ("sq ft"), Naga2 will be the first integrated resort in Cambodia that comprises two luxury hotels and a podium block. The first luxury hotel has more than 1,000 rooms housed in a 24-storey block with a rooftop pool. The second hotel consists of 50 VIP luxury suites spread across 22 storeys -- a first for gamers anywhere in the world -- and will provide patrons with an exclusive and unique gaming experience.

The podium block will incorporate an elegant theatre with state-of-the-art facilities which can accommodate an audience of 3,000. This makes Naga2 the perfect choice for sizeable shows and performance events of world-class standards, bringing Phnom Penh's entertainment scene to a new level. Another highlight of Naga2 will be the 200,000 sq ft of retail space which stretches from NagaWorld to Naga2, also known as the NagaCityWalk. This distinctive mall will offer a spectrum of luxury fashion shopping boutiques, as well as top restaurants to cater to patrons. The integrated resort will be serviced by 532 parking bays.

The transaction for NagaCorp to acquire Naga2 upon its completion was approved by independent shareholders in January 2012. This business move was necessary to cater for further expansion beyond NagaWorld -- more gaming facilities, retail space, and hotel rooms are required to support the growth of the gaming market in Indochina and Greater China. The completion of Naga2 will sharpen the company's competitive edge in the Asian entertainment gaming market, especially in light of new and developing integrated gaming projects underway in Vietnam, the Philippines, and Macau. NagaCorp's latest announcement of its operational highlights on 8 October 2012, for the 9 months ended 30 September 2012, underscored NagaWorld's significant growth in its gaming and non-gaming business volume, further demonstrating the critical need for expanded and enhanced facilities.

Tourism statistics from the Ministry of Tourism, Cambodia, revealed a grand total of 2.88 million international tourist arrivals in 2011. It was also reported that the country saw a 24% increase in tourist arrivals from January to September 2012, over the same period in 2011. The development of Naga2 will cater to this tourism growth. In fact, with its strategic location in the city and top notch offerings, Naga2 is pivotal to attracting more business and leisure travelers.

With its completion in 2015, Naga2, along with NagaWorld, will seamlessly combine business and leisure in a single destination, making it the finest business, leisure and entertainment integrated complex in Indochina.

ABOUT NAGACORP LTD

NagaCorp Ltd. was listed on The Hong Kong Stock Exchange in October 2006 (SEHK stock code: 3918). Established in 1995, NagaCorp's wholly owned subsidiary NagaWorld Ltd. owns, manages and operates the only world class comprehensive hotel casino entertainment complex in Phnom Penh, the capital city of the Kingdom of Cambodia. It owns a casino license valid for 70 years and exclusive gaming rights for a period of around 41 years (1995-2035). NagaCorp Ltd. was selected in the Hang Seng Foreign Companies Composite Index and the Hang Seng Global Composite Index launched on 5 September 2011.

For further information, please contact Hill+Knowlton Strategies Asia, or NagaCorp's Investor Relations Department

NagaCorp

Kevin Nyland

Vice President, Investor Relations (USA/Europe)

E-mail:

kevinnyland@nagaworld.com

Gerard Chai

Director, Corporate Finance / Investor Relations (Asia Pacific)

E-mail:

gerardchai@nagaworld.com

Hill+Knowlton Strategies Asia

Jingo Chan

Tel: +852 2894 6213

E-mail: jingo.chan@hkstrategies.com

SOURCE　NagaCorp Ltd.

kimmy

November 8th, 2012, 03:52 PM

I think there is a thread for this project.

http://www.skyscrapercity.com/showthread.php?t=1527298

Cant wait to see what Phnom Penh look like after all project completed

AsianDragons

December 1st, 2012, 08:42 AM

Bank of China funds new cement factory
Wednesday, 28 November 2012 Erika Mudie and Reuy Rann

An artist’s impression of the new cement factory which is to be built in Kampot province. Image supplied
A new cement factory is being built in Kampot which hopes to help meet domestic demand as the Kingdom’s construction industry grows.

The joint venture will cost more than US$100 million, said Ouk Bunseng, deputy plant manager for the Cambodia Cement Chakrey Ting Factory, with the Bank of China providing a $67 million loan and the remaining amount being supplied as equity.

Kampot governor Khouy Khunhour said the loan from China will accelerate the development of the cement factory, which is expected to be operational in 2014.

The new factory will occupy more than 40 hectares and will have the capacity to produce 3,200 tonnes per day or 1.1 million tonnes of cement each year, said Ouk Bunseng.

Government officials were uncertain of the local demand for cement but Ouk Bunseng said Cambodia’s demand is three million tonnes per year and now two million tonnes is imported from neighbouring countries.

Construction of the factory will employ more than 1,000 Cambodian labourers and there are plans to send 50 workers to China for technical training.

“Our aim is to not recruit too many expats,” said Ouk Bunseng.

As yet there are no plans to export the cement as regional cement exporters have a surplus of capacity,

“I think in this region it would be very difficult to export. Perhaps Myanmar is an option but it’d be very difficult to be competitive with current suppliers,” said Ouk Bunseng.

There is one other cement factory in Cambodia in Kampot’s Toukmeas district, Kampot Cement, a joint venture with Thailand’s Siam Cement which has the capacity to produce 2,800 tonnes per day.

Prak Sokserey Vathana, Manger of Kampot Cement, said he doesn’t anticipate much competition between his factory and Chakrey Ting as the techniques and costs between the two are not very different.

http://www.phnompenhpost.com/index.php/2012112859978/Business/bank-of-china-funds-new-cement-factory.html

AsianDragons

December 1st, 2012, 08:43 AM

^^

http://www.phnompenhpost.com/images/stories/news/national/2012/121128/121128_08.jpg

mrfusion

December 1st, 2012, 09:54 AM

^^ looks very impressive, I don't understand why we are unable to export. It will surely sell a better price then what the locals can afford to pay. So if you have a business model that is profitable here, it will most likely be profitable to export.

AsianDragons

December 3rd, 2012, 09:35 AM

^^ most products in cambodia only sell because they get concessions from other countries, our products are too expensive compared to thai and viet products, note that 60% of exports go to america under a tax exemption and 10% go to germany under a tax exemption too, so 70% of exports go to tax exempted countries

AsianDragons

December 5th, 2012, 08:42 AM

Three satellite city projects underway
Thursday, 29 November 2012 Seun Son

A view of under construction Koh Pich town. Photograph: Hong Menea/Phnom Penh Post
Three projects of the six satellite cities around Phnom Penh that were originally approved by the government have been “significantly” developed, according to officials of the Ministry of Land Management, Urban Planning and Construction.

The ministry says the other three are still in the planning stages.

The huge projects, costing hundreds of millions dollars, including housing development, economic zones, supermarkets, fitness centres, hotels, industrial parks, hospitals, and other public utilities.

Lao Tepseiha, deputy director of the construction department of the Ministry of Land Management, Urban Planning and Construction, said that Koh Pich Island, Grand Phnom Penh International and Camko City have been significantly built among the key projects of the satellite cities.

“Development on huge projects is potent and is pushing the building sector in Cambodia up,” he said.

Six huge satellite cities were approved by the government, including Koh Pich satellite city in Phnom Penh’s Chamka Morn district’s Tonle Basac commune, Grand Phnom Penh International at Sensok district’s Khmunh commune, CAMKO City in Boeung Pong Peay developmental area at Sensok, Boeung Kak Lake in Daun Penh district’s Srais Chark commune, a future satellite city in Russey Keo district’s Chroy Chongva commune, and Oknha Ly Yong Phat’s satellite city along National Road 6.

Tous Saphoeun, dean of the Architecture and Urban Planning Faculty of Mathematics, Sciences and Engineering of Pannasastra University of Cambodia, said that three huge projects are progressing well.

“First, Koh Pich is conclusively progressing and then Grand Phnom International that is gradually finished its own project. Finally, Camko City has been regularly and daily developed,” he said.

“Only Koh Pich is being marketed well among all the projects because it is the first development of an entertainment center,” he said.

It will take at least five or six more years before the other three projects will be constructed, he said.

Cheng Kheng, director of the CPL real estate company and vice president of the Cambodian Valuers and Estate Agents Association, said that the three satellite cities under construction are “interesting”.

Significant investment and selling and purchasing activities are focused on diverse customers, he said.

The Cambodian government should open more opportunities for investors and do not put pressure on them, because it will hurt the growth of investment in Cambodia, he added.

http://www.phnompenhpost.com/index.php/Real-Estate/three-satellite-city-projects-underway.html

AsianDragons

December 5th, 2012, 08:43 AM

^^

http://www.phnompenhpost.com/images/stories/news/properties/2012/121129/121129_03.jpg

AsianDragons

January 1st, 2013, 11:53 AM

BUSINESS

China to invest $9.6b in Cambodia
LAST UPDATED ON 01 JANUARY 2013 BY MAY KUNMAKARA

Liu Ziming (L), chairman of China Railway Major Bridge Engineering Group Co Ltd, and Zhang Chuan You, general manager of Cambodia Iron & Steel Mining Industry Group, shake hands following a signing ceremony in Phnom Penh, Monday, Dec. 31, 2012. Photograph: Heng Chivoan/Phnom Penh Post
The Cambodia Iron & Steel Mining Industry Group (CISMIG) and the China Railway Group Limited agreed yesterday to build a new railway line with 11 stations as well as an iron and steel factory in Preah Vihear province.

The Memorandum of Understanding between the Groups is worth US$9.6 billion.

“We will start our project in July next year and it will take about four years,” Zhang Chuan Li, Chairman of CISMIG, told the Post yesterday. He added that Chinese and Cambodian experts analyzed the project’s feasibility and its environmental impact in October 2010.

According to the company statements the railway will be 405 kilometres long, from the mining area of Preah Vihear province through the southern provinces of Kampong Thom, Kampong Chnang, Kampong Speu and finally Koh Kong province. It will not connect to the existing lines of Toll Royal Railways.

Zhang Chuan Li told reporters at the signing ceremony that the $9.6 billion investment will be used to build the new railway line, a new port and a new bridge in Koh Kong. The planned iron and steel plant in Preah Vihear will cost $1.6 billion.

However, he said that the company received 1,300 square kilometres of land concessions from the government and 10 square kilometres would be necessary for the factory in Preah Vihear. The companies did not disclose the exact route of the new line.

Yim Sovann, spokesman for the opposition Sam Rainsy Party, claimed that the government should follow the international bidding process for the approval of any foreign investment in all industry sectors.

“I don’t want to see companies grab people’s property and destroy natural ressources,” he said. “It will allow corruption, if government and company agree on such projects without a public bidding process.”

Referring to the factory, Zhang Chuan Li explained: “With the factory we want to minimise the country’s import of steel. We also plan to export to neighbouring countries like Vietnam and Thailand.”

The construction of the factory, which will produce 1 million tonnes of steel and iron per year, will take two and a half years, according to the CISMIG chairman.

The company will not import raw material for the production, but use national mines in Preah Vihear, Rattanakkiri, Kampong Thom and Stung Treng provinces.

Minister of Transportation Tram Iv Tek, who participated in the signing ceremony yesterday morning in Phnom Penh, said the investment will contribute to the development of the Cambodian economy.

“If the investment is successful, it will definitely help the development of Cambodia’s economy. It will not only allow the transportation of resources, but also of agricultural and industrial products as well as passengers,” he said.

Youn Heng, director of the Evaluation and Incentive Department of the Council for Development of Cambodia, confirmed that the CISMIG’s plans were approved by the government in 2010.

Chinese investments in Cambodia, mostly in the garment, textile, agriculture and mining industry. They totalled $9.1 billion between 1994 until the end of July 2012.

On Friday the stretch of railway line from Phnom Penh to Preah Sihanouk province started temporary operations.

The first operations on the southern railway will boost trade activities in the region and attract trade transportation activities, officials said.

http://www.phnompenhpost.com/2013010160560/Business/china-to-invest-9-6b-in-cambodia.html

LuvKhm3r

January 3rd, 2013, 05:13 PM

"On Friday the stretch of railway line from Phnom Penh to Preah Sihanouk province started temporary operations."

About the train... Can someone tell me more information about it?
How many days is the train going to operate in a week?
How much is it for round-trip?

AsianDragons

January 4th, 2013, 01:41 AM

^^ no passengers yet, they plan about 3 weekly freight only

LuvKhm3r

January 5th, 2013, 04:28 PM

Oh, I see... Hope many people will use the train instead this will help the crazy traffic...:)

AsianDragons

January 15th, 2013, 10:30 AM

BUSINESS

Real estate demand to grow
15 January 2013 By Sarah Thust

Construction workers stand outside the building site of Phnom Penh’s Vattanac Capital Tower in November 2012. Photograph: Bloomberg
The growth of the Cambodian economy will create a need for more office space, insiders told the Post yesterday.

New supply onto the office-building sector in 2012 has been limited, but this is due to change in 2013, with the launch of several high-quality projects.

According to estimates of the Economic Institute of Cam**bodia, the Kingdom’s eco*n*omic growth reached 6.2 per cent in 2012.

While no high-quality buildings were completed last year, the demand for offices rose.

Still, corporate real estate needed to recover from the global economic crisis in 2009 and 2010, when many projects were paused or not even started.

“In 2012, no Grade-A or Grade-B building was completed, but several projects were started or continued. The future Vattanac Tower will be the first building on the Grade-A market, with 285,000 square metres in 2013, and the Gold Tower 42 would add 15,000 square metres on the A-Grade market,” CB Richard Ellis Cambodia Country Manager David George said.

However, the Post reported at the end of December that cranes have been removed from the $240 million Gold Tower 42 project in central Phnom Penh.

Construction halted on the project in September 2010 due to poor unit sales and cost overruns, an official involved in the process said.

Grade-A office space is the most prized and sought-after classification of real estate. It refers to brand new or recently redeveloped buildings in prime locations, with high-quality furnishings, state-of-the-art facilities, and excellent accessibility. Grade B falls below Grade A, typically in terms of location, facilities and maintenance.

Grade-C offices provide functional space for tenants looking for low rents.

“The majority of the market is still the Grade-C standard office, with a 57 per cent share of the current supply. Grade A and B currently have a 43 per cent share,” George said.

However, the quality of new constructions will rise in 2013. “This increase is not driven by the government though, but by developers,” George said.

With rising demand, the prices will increase slightly, according to George. While one square metre in Ho Chi Minh costs $35 on average, the current prices in Phnom Penh are at $28 per square metre.

According to Sung Bonna, president of the Natural Valuers Association Cambodia, the price range for A-Grade offices lies between $35 and $70 per square metre.

The new Vattanac Tower will open a new category, the A+ Grade.

Meanwhile, customers will pay $10 to $20 per square metre for Grade B and $5 to $10 per square metre for Grade C.

“We will see how Grade A+ buildings like the Vattanac Tower develop. We don’t expect any price increase yet, as the projects have just started,” Bonna said.

Currently, there is a wide range of local, regional and international companies investing in offices of all price sectors, according to Bonna.

“The biggest investors at the moment come from China and Japan, planning garment factories or working in the explorative industry,” George said.
http://www.phnompenhpost.com/2013011560778/Business/real-estate-demand-to-grow.html

HarroDom

January 29th, 2013, 01:48 AM

Cambodia begins to construct 3-storey stock market building in capital center
English.news.cn 2013-01-28 14:57:29
PHNOM PENH, Jan. 28 (Xinhua) -- Cambodia's Securities Exchange (CSX) on Monday broke ground for the construction of a 3-storey building in the heart of Phnom Penh, the country's capital.

"The construction of the building reflects the government's firm stance in developing the stock market and the building will build more confidence among both local and foreign investors in the CSX," Cambodian deputy Prime Minister and finance minister Keat Chhon said at the groundbreaking ceremony.

The building will cost 4 million U.S. dollars and the construction will be completed in early 2014, he said.

It is located near the capital's historical site Wat Phnom in Duan Penh district.

In the original plan in December 2009, the country announced to build the CSX building in a South Korea-invested Camko City on the outskirts of Phnom Penh.

"The government has decided to cancel the plan to construct the stock market building at the Camko City because it is a bit far," Hong Sok Hour, CSX's general director, told Xinhua over telephone. "The new location is in the heart of the city and is in the financial area."

The CSX was officially launched trading on April 18, 2012 at a temporary office at the Canadian Tower. To date, only one state- owned enterprise, Phnom Penh Water Supply Authority, has listed on the stock market.

The CSX was initiated by the Korean Exchange in 2007. It is a joint venture between the government of Cambodia holding 55 percent of the stakes and the Korean Exchange owning the remaining 45 percent.

SeeMacau

January 29th, 2013, 03:36 AM

^^ It is a smart move :)

SeeMacau

January 29th, 2013, 03:39 AM

At first Vattanac Capital Tower was chosen to be the permanent site for the stock exchange. Anyway it is good to have an individual building for the stock exchange.

AsianDragons

January 30th, 2013, 11:56 AM

Construction Sector Picks Up Pace in 2012
By Phok Dorn and Simon Lewis - January 27, 2013

Cambodia’s construction sector is again growing at a fast clip, with the value of newly approved in*vestments in construction projects increasing by 72 percent last year, figures released Thursday by the government show.

According to data from the Min*istry of Land Management, a total of 1,694 construction projects were approved last year, valued at a total of $2.11 billion.

That figure compares to $1.23 billion worth of approved investments in the construction sector in 2011 relating to 2,125 projects.

“We saw the number of projects in 2012 is less than the number of projects in 2011, but the investments were on more land, and the amount of capital invested in*creased,” said Lao Tip Seiha, de*puty general director of the construction department at the Min*istry of Land Management, add*ing that approved construction pro*jects last year covered 6.5 million square meters, compared to 4.2 million square meters in 2011.

Mr. Tip Seiha said the majority of the construction projects were in Phnom Penh, but Kandal, Preah Sihanouk, Siem Reap and Battam*bang provinces also at*tracted a lot of investment.

“The majority of projects are build*ings people will live in, such as apartments, villas and condominiums,” he said, adding that industrial buildings and restaurants also represented a significant part of the growth.

“We can say we now have a do*mestic market economy, and the demand is ever higher for buildings to live in,” he said, predicting that the level of growth in 2012 would continue this year.

More evidence of a construction boom was witnessed at the Phnom Penh Autonomous Port, where construction materials enter the city. A port official said earlier this month that construction materials represented a large part of the growth in goods coming through the port, which grew by 17 percent in 2012, compared with 2011.

Owen Williams, a surveyor at the global real estate firm CB Rich*ard Ellis, said work had be*gun on a large number of new pro*jects last year.

“The majority of current construction sites will be serviced apartments,” he said. “Condominiums are not far behind.”

“Rental rates and sales prices are stable if not growing in some sectors,” Mr. Williams added.

According to Deng Vuthy, a consultant at Bonna Realty, the most expensive properties in Phnom Penh’s Boeng Keng Kang 1 commune are currently priced at $3,000 per square meter, compared to $2,500 a year ago.

“It’s very expensive, but there is no land available,” he said.

The International Monetary Fund (IMF) said in a report earlier this month that construction had re*bounded thanks to cheap and available credit for building projects. But the IMF warned that the growth of lending by banks, estimated at more than 30 percent for 2012, was nearing a level last seen before Cambodia’s property bubble burst in 2008. Prior to the bust, property prices in some areas of Phnom Penh had grown tenfold between 2005 and 2008.

John Brinsden, country adviser for Jardine Matheson, which owns several property projects around Phnom Penh, said the growth in credit was fueling the boom in the construction sector, though he said the credit boom was not a cause for concern.

“I don’t think that just effects property. There is a big increase in agricultural financing too,” he said.

Mr. Brinsden said the growth in construction projects was probably a reflection of the strength of Cam*bo*dia’s wider economy, and would include major projects like the Japanese-backed Aeon Mall project that broke ground in Decem*ber, costing $205 million.

“We’re seeing much more diversification. It used to be garments, garments and garments. There has been a small but welcome di*versification of the manufacturing base,” he said, pointing out the an*nouncement on Wednesday that Japanese auto parts maker Denso would be setting up a factory in Phnom Penh this year.

Former ANZ Royal Bank CEO Stephen Higgins said the construction figures were likely inflated by some large projects that may never get off the ground, pointing out the unlikely possibility that almost $2.2 billion of Cambodia’s $13.68 billion economy was in the construction sector.

“Is construction really going to represent that proportion of GDP?” he asked.

And though the figure may be inflated, it did not mean there is no growth in the construction sector, Mr. Higgins said.

“Houses are going up, shopping centers are going up…. Within that figure I think there is no doubt that construction is booming.

http://www.cambodiadaily.com/business/cambodias-construction-sector-boomed-in-2012-8303/

HarroDom

February 1st, 2013, 02:51 AM

http://www.phnompenhpost.com/images/stories/news/national/2013/130130/properties/130130_pro03.jpg

http://www.phnompenhpost.com/2013013061082/Real-Estate/foreigners-buying-phnom-penh-condos.html

The number of foreigners who bought condos in Cambodia increased by between 30 and 40 per cent in 2012 compared with 2011, a recent study showed, while 997 condo units currently belong to foreigners.

Nuon Rithy, general manager of the Bonna Realty Group, said that according to the recent study, about five districts – Toul Kork, Daun Penh, Chamkarmon, 7 Makara, and Russey Keo – had 16 condo buildings, with a total of 2,362 units.

Among those, eight condo buildings were being built, with a total of 1,264 units. Foreigners had bought 327 units in 2012, an increase of 30 to 40 per cent in 2012 compared with the same period in 2011.

A majority of the foreign condo owners are Chinese, Korean, American, Singaporean and Filipino, most of whom run businesses in Cambodia.

“The study aims to examine negative and positive points after Cambodia approved co-owner laws of private foreigners who buy housing units in Cambodia from the first floor up. The number of foreigners increased in Cambodia after the laws were approved; they are experts, investors, and contribute to develop Cambodia in the future,” said Rithy.

About 60 to 70 per cent of those condos were bought by Cambodians. They prefer to live in condos because they are safe, have a good environment, gyms and modern living services, Rithy said, adding that the study showed that some older residents’ villas are rented and they prefer living in condos instead.

The price of condos is between $600 to $1,000 per square metre in the suburbs and from $1,000 to $2,500 per square metre in the city, while the price is more expensive if the condos are higher, the study showed. The construction of some condos, such as Keo Charanai Vimean condos, Sen Sok condos and De Castle Royal, will be completed in 2013.

Dith Channa, general manager of VMC Real Estate Cambodia, said the condo market has not significantly increased recently. However, he said, “The condo sector will increase in the future because of the population in the city gradually increasing. The more high buildings and condos increase, the more living habits change and Cambodia’s reputation is more civilized, while people do not go out to the market or exercise because they live in condos.”

Keuk Narin, vice president of Asia Real Estate Cambodia, said the condo market has not climbed more than villas and apartments, observing that new condos have not yet come on to the market since the first quarter of 2012. This sector has not grown significantly because Cambodian people currently do not choose to live in condos, so the market is not good for Cambodia yet, he said.

“Cambodian and foreign buyers buy condos for their business or for renting. If they take money from banks with 10 per cent interest rate a year, they get only 4 to 5 per cent of income from renting. However, the investment in sector is not important because the market in Cambodia is good now and Japanese investors are interested in Cambodia,” said Narin.

SeeMacau

February 1st, 2013, 02:58 AM

^^ In that case we can say demand is generally come from the locals, a healthy trend in the long-term prospective.

HarroDom

February 1st, 2013, 03:01 AM

^^ In that case we can say demand is generally come from the locals, a healthy trend in the long-term prospective.

I remember the locals didnt like living in highrises, but now it looks like they do :D

SeeMacau

February 1st, 2013, 03:23 AM

I don't think majority of these people are purchasing the units for the sole purpose of living in it. They may rent it out, resale when the price climbs up.

SeeMacau

February 1st, 2013, 03:24 AM

For those who can afford a second home, I believe they'll prefer to stay at their own villas instead of moving to an apartment building.

HarroDom

February 8th, 2013, 01:44 AM

Investors from Korea relocate to Cambodia
Last Updated on 07 February 2013 By Anne Renzenbrink
Korean investors are relocating labour-intensive businesses to countries such as Cambodia after Indonesia raised its minimum wage.

A number of Korean investors had closed their Indonesian factories and relocated to other countries in the region because their requests for minimum-wage exemption had been refused, The Jakarta Post reported.

Indonesia has raised provincial minimum wages about 40 per cent to RP 2.2 million ($226) a month.

“One or two factories have moved their garment production base to Cambodia recently because of wages,” Nam-Shik Kang, chairman of the Korean Chamber of Commerce in Cambodia, told the Post yesterday.

Cheat Khemara, senior officer at the Garment Manufacturers Association in Cambodia, said an increasing number of Korean investors had been coming to Cambodia to invest in the garment sector.

Hiroshi Suzuki, head of the Business Research Institute for Cambodia, said there was a trend of rising labour costs in countries such as China, Thailand, Indonesia, the Philippines and Vietnam.

This meant labour-intensive industries were seeking to invest in low-labour-cost countries, including Cambodia, Suzuki said.

From last month, every Thai worker is entitled to a 300 baht ($10) daily minimum wage.

Monthly wages in Vietnam rose to 2.4 million dong ($113) in January, and Beijing has pledged to increase minimum wages to at least 40 per cent of average salaries.

The minimum wage for a Cambodian in a garment factory is $61 a month. Trade unions have called for the minimum monthly wage to be increased to between $120 and $150.

Cambodia would not lose its low labour costs advantage, Suzuki said.

“Of course, wages in Cambodia will increase to some extent.

“However, the increase would be much greater in neighbouring countries. So the advantage of low labour costs in Cambodia would not be undermined.

“Cambodia has also the advantage of its location in the centre of ASEAN and improved logistical infrastructure, such as roads and ports.”

TK Garment Co, a leading Thai fashion manufacturer, is relocating its largest production site to Cambodia to escape high wage costs.

Nam-Shik Kang, however, said that although many Korean garment factories in Vietnam were looking to relocate to Cambodia, they were hesitant “because Vietnam’s infrastructure for business is very strong and well organised”.

He said that if Cambodia raised its minimum wage to $150 a month, factories would lose their competitive edge to Vietnam and Indonesia without improving their productivity and quality.

“Many Korean investors will start thinking of relocating their production base to Myanmar very soon.”

KhmerArchitect

February 25th, 2013, 05:25 AM

Premier Pushes Skyscrapers

The Phnom Penh Post reported on Friday the 10th of February, 21012, that Prime Minister Hun Sen has promised an accolade to the builder of Cambodia’s next sky scraper.

Premier Hun Sen downplayed contention surrounding disputes on the construction of tall buildings near the Kingdom’s monuments and commented at the opening of the new Ministry of Land Management, Urban Planning and Construction, before hundreds of government officals that “Construction investments in Cambodia increased by about 105 percent in 2011, hitting US$1.73 billion….Curently, there are no problems with skyscrapers [in Cambodia] and I declare that I will grant a medal to the builder of the highest skyscraper,” The premier said.

With Vattanac Tower due to complete this year, the next highest skyscraper in Phnom Penh will face tough competition. We can expect to have a building thats greater than 40 floors.

yangkhm

February 25th, 2013, 11:54 AM

KhmerArchitect

March 7th, 2013, 03:28 PM

Construction costs low, but could rise

Construction costs in the Kingdom have increased only 1.36 per cent year-on-year, compared to Cambodia’s inflation rate, which is projected at 3.5 per cent for 2012, according to a new report from global estate agents CBRE.

The company says the minimal increase is due to the competitive market conditions, as well as labour costs remaining the same year on year. Labourers on average receive $5 per day, which is the same rate as in 2011.

However, compared to construction costs regionally, Cambodia’s costs are approximately 10 per cent higher than in neighbouring Thailand and Vietnam, because even though labour costs are significantly lower here, the lack of supply of domestically manufactured construction materials has created a dependence on imported materials, resulting in higher costs.

The construction sector is projected to grow by 9.9 per cent from 2012 to 2015, according to CBRE.

Construction approvals by the Ministry of Land Management, Urban Planning and Construction have seen large fluctuations in recent years, with the first three quarters of 2012 seeing construction approvals reaching $541.3 million in Phnom Penh.

That is already higher than the yearly total since 2009. The value of the construction projects has been steadily increasing each year, which clearly indicates that the market dynamics are starting to shift, and strong growth is returning to the market.

However, with a limited amount of vocational training on offer, the current supply of skilled workers is not meeting the increased demand of the construction sector, and skilled workers’ wages are likely to increase at a faster rate due to the current lack of supply. This could potentially lead to an increase in construction costs.

The demand for materials remains high across the region, particularly China, and this will mean construction material prices are unlikely to decrease in the short or medium term.

Material costs will only fall if there is an increased supply of domestically manufactured construction materials, and this is not likely to change in the coming months, if not years.

The outlook for the construction industry is positive, but construction materials will remain subject to international forces, while the supply of skilled labour will increase overall construction costs and could hit development.

SeeMacau

March 8th, 2013, 09:46 AM

Bonna Reality inks deal with Malaysian real estate developer

Bonna Realty Group yesterday signed an agreement with the National 6A Investment, a Malaysian real-estate developer. Photograph: Vireak Mai/Phnom Penh Post

http://phnompenhpost.com/images/stories/news/national/2013/130308/130308_11b.jpg

Bonna Realty Group yesterday signed an agreement with the National 6A Investment, a Malaysian real estate developer, to be an authorised sales agent for a 10-storey condominium that is currently being constructed and is expected to be finished by the end of 2014.

The National 6A Investment Co, Ltd had invested millions of dollars in building the 10-storey condo in the capital’s Chroy Changva district. Construction began about two years ago and is now 60 per cent complete. And Bonna Realty will begin finding tenants this month or next, said General Manager Nuon Ritty.

“We expect to sell it out at about $10 million” he said, adding that that the building will contain 44 condos, nine commercial rooms on the ground floor and four penthouses.

Kuy Vat, chairman of VTRUST property Group, said that Cambodia’s condo market is not quite active yet.

“It is the new products to our people - only foreigners buy it. The product is not so much popular in the market yet.”

Ritthy, said that market will be more active in the next few years.

“When the ASEAN Economic Community materialises, it will push the high demand on condos because more and more investment will come in. So I think we will face a shortage of such properties.”

There have been 17 condominium projects launched since 2012.