Borey Residences Show Strong Growth

KHMER TIMES
SUM MANET

An artist’s impression of a borey residential project. Due to a rising middle class, there is now strong demand for borey residences in Phnom Penh. Supplied

There has been a significant increase in the construction of gated communities ‒ also known as boreys ‒ in Phnom Penh due to growing domestic middle class wealth and foreign investment in the real estate sector, according to a report from the Ministry of Land Management, Urban Planning and Construction.

The ministry report indicated that for the first seven months of the year, there were 234 borey construction projects, valued at $169 million, and covering a total area of 380,000 square meters. In the same period last year, 141 borey projects with a total value of $30 million were approved in an area spanning 92,000 square meters.

Lao Tip Seiha, deputy general director of the construction department of the Ministry of Land Management, Urban Planning and Construction, said the growth of borey residences was due to the city’s growing middle class and foreign investment flowing into the country’s real estate sector.

“We hope the construction projects will continue growing in 2016 to meet the growing housing demand,” said Mr. Seiha.
Dith Channa, managing director of Lucky Realty Co., Ltd., agreed that the demand for borey residences was growing due to the increase in income of Cambodians.

But he said the demand and supply of borey dwellings was still manageable in the sector.

“Buyers want modern, quality and harmonious houses and residences with a combination of Western and Khmer styles and there is competition among developers to build these kind of residences,” said Mr. Channa.

“Potential buyers have choices and developers who are very keen to attract them, offer very low down payment rates. It’s all part of competition to grab buyers,” he added.

Mr. Channa said the strong growth in borey construction was good for the country’s economy.

According to James Whitehead, content director at realestate.com.kh, a borey home is for those who are looking for privacy and a place where all modern amenities are assured.

“They are they preferred first home of newlywed Cambodian couples looking to start a new family,” he said.