Two local investors have injected some $25 million to build a 12-story condo project called Urban Living in Phnom Penh targeting middle-income couples.
Keang Kimleang, managing director of property developer Urban Living Solutions, said during the soft opening of the project on Friday that the Urban Living condo project will comprise five phases of development on 7.6 hectares in Meanchey district.
“In phase one of our project, we will invest about $25 million to build 700 units of a 12-story condo on 8,000 square meters of land. It is a joint-venture, where a local partner owns the land and I am the developer,” he said, adding that construction would begin in April.
“We don’t have any foreign partners – it is purely local investors. Our project focuses on having an affordable price point, which is just $35,000 per 50-square-meter unit.”
Kim Heang, the newly re-elected president of the Cambodian Valuers and Estate Agents Association, welcomed the new development but said it would compete with borey development projects built for those with lower-middle incomes.
“It is good to develop for middle-income people but the most important thing about condo development is the location, which should be in the middle of the city center,” he said.
“If you build a condo on the outskirts of Phnom Penh, I think middle-income people would prefer to buy a flat.” Mr. Kimleang, on the other hand, said that his project is not far from the city center, just 750 meters from Monivong Bridge along National Road 2. He remains optimistic it will be popular among those in the middle-income bracket.
“We have been conducting a study on the condo market for a long time. The price of condos is often very high, ranging from $1,500 to $3,000 per square meter. We don’t see any condos that will attract people who don’t own a house already – that is our target,” he said.
“I think the market is huge for us and I don’t see much competition. I don’t think it will be difficult to compete in this market when you look at our price which is only about 40 percent of the other developers.”
Saraboth Lee, the managing director at Maxem Property, told Khmer Times recently that as the 2018 general election approaches, there will be “a storm” in the condo market as a significant oversupply of units is scheduled to become available during that period.
“What’s different from the last election cycle in 2013 is that the local market supply of condos will reach unseen levels in the next few years,” said Mr. Lee.