New Condo Aimed at Local Investors

KHMER TIMES
SUM MANET

Condominium units ranging in price from $16,000 to $60,000 are in the pipeline for local investors. KT/Chor Sokunthea

Star5 Development and the Skyland Company have formed a joint venture, with approximately $20 million in investment capital, to develop an affordable condominium named Skyland Condo aimed at local investors.

They officially announced pre-sale units to the public this week.

Construction starts at the end of this month and will be completed within 18 months. The project has eight floors and has about 192 units with 47 units already sold, according to the developers.

The unit prices range from $16,000 to $60,000, which they say is affordable for locals. The project is located in Vihear Sour commune in Ksach Kandal district, Kandal province.

C. Kiran Kumar Reddy, the CEO of Star5 Development, said the condominium is in a good location near lush pasture land and rivers, and added that the Vihear Sour region has a lot of potential.

“The company will contribute to the economic development of Cambodia through housing projects that are affordable for Cambodians,” he said.

Srey Chanthorn, the CEO of Skyland, said because Phnom Penh already has a lot of development which is causing heavy traffic jams, he is helping to organize the building of infrastructure such as wide roads, adequate drainage and electricity systems in Vihear Sour.

He said that besides offering condos ranging in price from $16,000 to $60,000, the company also has split plots of land nearby at reasonable prices and with special payment conditions. He added that the company is preparing a resort which has areas for horse riding, motorcycle and car racing tracks and parks built to international standards. He is planning for the area to be a satellite city in the future, covering an area of more than 2,000 hectares.

“Now in the area there are more than 40,000 people employed in 30 factories, which will invigorate property prices rapidly, particularly when the government builds a bridge in the next two years. The area will develop very quickly,” Mr. Chanthorn said.

Ouk Mali, the deputy governor of the National Bank of Cambodia, said growth of the real estate sector is due to Cambodia’s political stability and strong economic growth.

“Skyland is developing properties in the area and that will make the Vihear Sour region see rapid development, and with the development of infrastructure that will make the condominium project successful,” she said.

“I believe that the project will be successful because the expectation is that investing in the real estate sector is seen as a profitable investment.”

Chrek Soknim, the CEO of real estate company Century 21 Mekong, said investing in condominiums for middle-income people is a good move.

The sector is now strong, he said, and relying on the domestic market rather than the market abroad is a smart move. Many Cambodians will be able to buy these affordable condominiums and newly-married couples who combine $800 to $1,000 of their salaries a month may be able to afford one, he said.

“In the future, there will be more and more people, especially young families, who will change the mindset to live in a condo because of the lack of urban space, traffic congestion and rising real estate values in the city.”