CBRE Cambodia is delighted to present our Weekly Property News Round-up for April 24th, 2020.
Affordable Property Market Stable, CBRE Cambodia
Property Area (Khmer) – April 23rd, 2020
According to the latest study conducted by Realestate.com.kh across some 2,000 individuals, approx. 40 per cent of the result favoured residential unit priced below USD50,000, while 26 per cent favoured residential units priced between USD50,000 and USD75,000. Mrs Sothida Ann, Managing Director of CBRE Cambodia, said that affordable condominiums in Phnom Penh are currently priced between USD 1,500/sqm and USD2,500/sqm. According to the latest report published by CBRE Cambodia, the supply of affordable condominiums is estimated to expand approximately 55 per cent during 2020.
Hyundai Engineering Wins a Bidding to Build the Third AEON Mall
Construction Property – April 14th, 2020
Construction of the third AEON mall has been awarded to Hyundai Engineering, who will erect the USD164 million shopping mall project. The development consists of 5 storeys and extends over 174,000 square metres, greater than the first and the second malls, combined. The construction site is located in Prek Ta Long 3 Village, Chak Angre Kroom Commune, Meanchey District, Phnom Penh. The development is estimated to complete within 27 months and set to open for costumers in 2023
CDC Okays Five Projects to Creating 6,373 Jobs
The Phnom Penh Post – April 19th, 2020
The Council for the Development of Cambodia (CDC) gave the greenlight to five new investment projects between April 13th and April 17th. The total investment capital tally was USD24 million and is anticipated to generate 6,373 jobs. The 5 new projects bring total approved investments to 26 in April alone, equivalent to USD584.3 million. The 5 new investments consist of two garment factories, two fabric bag factories, and a cardboard box factory. The total approved investment projects in April are estimated to generate 18,666 jobs.
Sihanoukville Airport will Soon Offer Long-haul Flights
The Phnom Penh Post – April 20th, 2020
The new 3,300 meters runway expansion at Sihanouk International Airport has been partially completed. 2,500 metes have been finished, whilst 800 meters is set to be completed by June 2020. The current runway is only capable of accommodating planes used for flights of six hours or less. Once the runway expansion is completed, planes used for long-haul flights of up to 12 hours will be able to land at the airport. The expansion of the runway is expected to strengthen both logistics and tourism sectors
Mong Rithy’s World-Class Car Pitch Launch After Covid-19 Fade
Property Area – April 15th, 2020
The first world-class race-track in the Kingdom is set to officially launch after the COVID-19 pandemic eases. The development is under the stewardship of Oknha Mong Rithy who is cooperating with a Japanese firm. Dr Mong Rithy visited the project last week to examine and observe the activities of Yamamoto, world-class experts in the preparation automotive raceways. The grand opening of Cambodia’s world-class race-track is currently being organized by multiple parties. The facilities accommodate a total track length of 2,217-metres, alongside which are car and motorcycle parking, car showroom, gas station, public restroom, F&B outlets, offices and other services, specator seating, auto repair shop.
Sihanoukville Starts Building USD76-Million Ring Road
AKP – April 21st, 2020
A new 43-kilometres ring road will connect the deep-sea port to a section of National Road 4. The groundbreaking ceremony was presided over by H.E. Sun Chanthol, Senior Minister and Minister of Public Works and Transport. The new ring road is estimated to cost circa USD77 million and will be constructed by China Road & Bridge Corporation Co., Ltd.
New Clothes Pile Up at Cambodian Factories, COVID-19
Daily Sun – April 19th, 2020
Clothing products from several garment factories are currently being held in Cambodia’s factories due to the cancellation on orders by American and European retailers. The United States retail sector experienced the largest decline in sales on record last month. The Cambodian garment sector makes up to 40 per cent of Cambodia’s economic output and up to 80 per cent of its exports.
Economic Slump to Spill Over into Real Estate, Construction
The Phnom Penh Post – April 22nd, 2020
In a recent report the World Bank has sounded a warning on the real estate and construction sectors. The bank adjusted its forecast of GDP growth to just 2.5% for 2020 before rebounding in 2021 to 5.9%. The report cites financial market turmoil as a driver for risk for real estate and construction, sectors which have emerged in recent years as leading growth drivers for the Cambodian economy. The bank recommended that banks tighten their lending requirements to real estate and construction by amending their view of loan-to-value ratios.
See also our previous weekly news round-up: