PHNOM PENH (Khmer Times) – Japan’s Creed Group is investing hundreds of millions in three housing developments in Phnom Penh, the company announced last week.
The first project, a condominium complex near the airport, will cost $134 million. The company did not provide the estimates for the other two projects, which will consist of villas and townhouses.
The three developments will add a combined 2,309 units to the property market. The condos will target international investors, including Japanese residents of Phnom Penh. The other two projects will be landed properties for Cambodians.
“Cambodia has always been of utmost concern to Creed Group because of its promising growth potential driven by a young population, investor-friendly government policies and the solid demand for Japanese quality,” the company said, in a statement.
The first development, Bodaiju Residences, will be a condominium next to Phnom Penh International Airport. The site will have a total of 928 units. Sales and construction will start on August 23.
Despite some banks’ worries about a condo oversupply in the capital, Creed Group is not concerned, saying that it has a segment of niche customers lined up.
“We believe the condominium market is at the beginning of the boom phase,” said Punnareay Heng, business development manager for Creed.
According to the Japanese Embassy in Phnom Penh, Cambodia has over 2,300 Japanese residents – more than double the number five years ago.
Hiroshi Uematsu, the CEO of Phnom Penh Special Economic Zone, said that Japanese businesspeople are drawn to Cambodia due to its potential as an alternative production base near Thailand and China. He also said that investors are interested in the “rapidly growing” Cambodian domestic market.
Mr. Heng said he expects that Japanese people involved in PPSEZ will favor the condos due to their closeness.
Creed expects that the other properties will be in demand by young Cambodians as they become more upwardly mobile, Mr. Heng added.
The second development, Arata Garden Residences, will consist of villas and shop houses in Khan Sen Sok, with community waterways running down the middle and along one of the sides. The site will have 712 units. Sales and construction will begin in September.
The third development, Borey Maha Sen Sok, will have townhouses developed northwest of the airport in Plov Wat Tang Krosang. It will contain 669 units and the first sales and construction will also start in September.