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Cambodia: Real estate firms touting southern Phnom Penh’s investment potential
Southern Phnom Penh’s combination of affordable land and $2 billion of infrastructure development has positioned it as the key area for future growth across all property segments, from landed homes to industrial parks, according to CBRE Cambodia.
The Kingdom’s largest foreign-owned property consultancy says infrastructure investment in the new Phnom Penh International Airport and road links such as Hun Sen Boulevard have triggered speculative activity across the area.
“Due to the physical geographic boundaries surrounding Phnom Penh, expansion into the south is inevitable. With large scale infrastructure development ongoing, the south’s pre-eminent position is clear,” said CBRE Cambodia Managing Director James Hodge.
There are already four condominium projects in the region and another nine being built between now and the end of 2024.
One of the completed projects is phase one of Urban Village. All 828 units sold out in nine months. Phase Two is due for completion in December next year and will add a further 1,700 apartments. That project has already managed to sell 80 percent of its units according to PropNex Cambodia chief eexecutive officer Alan Neo. He says developments like Urban Village appeal to both domestic buyers and international investors
“It’s an opportunity. Prices went down compared to one year ago but there’s not enough exposure to the international market,” he said.
Neo believes that the sector here needs to improve its marketing to raise awareness in the international market. He says that once more foreign real estate investors know the market better, they will see Cambodia as a good place to invest. He cites enticements like return on investment (ROI) of about 7 percent ROI and prices that have dropped compared to a year ago as well as developers offering interest free instalments as potential market drivers.
There are 54 landed properties in the region and 30 under construction with several new shopping options coming online soon. There are two completed retail projects and three on the way including the new Aeon 3 mall and Chip Mong’s 271 mega mall.
Industrial projects in the region are also bringing jobs to the area with six industrial zones, one existing special economic zone and one more industrial zone on the way.
“Observing regional industrial and logistics trends, we’re excited to see how the sector develops. Considering the proximity to existing manufacturing hubs, the country’s stable business friendly outlook, and the nation’s rapid expansion of infrastructure. We have an ever improving foundation to build on,” said Lawrence Lennon, associate director of CBRE’s professional services team.
The areas included in the study of southern Phnom Penh’s potential are the lands around the site of the new Phnom Penh International Airport, Meanchey, Dangkao, Takhmao, Saang and Kandal Stueng.
Source: https://www.khmertimeskh.com/50915071/real-estate-firms-touting-southern-phnom-penhs-investment-potential/