Cambodia’s second affordable housing project, worth $70 million, was officially launched in Kandal province’s Ponhea Leu district on Monday.
Locally owned B&BM Development was granted by the government the license to begin construction soon after the first public housing project, developed by WorldBridge Land, began work in January.
This second public housing project will consist of 420,919 units on 92 hectares of land, of which 4.8 hectares will be earmarked for a market while 1.15 hectares for a parking lot for buses.
Land Management, Urban Planning and Construction Minister Chea Sophara presided over the ground-breaking ceremony and said that the housing project, targeted for low-income earners as well as civil servants, materialized following cooperation between the government and the private sector.
“To comply with the government’s policy on housing and to facilitate people, especially low-income earners, the government has decided to make it happen for them now,” he said.
B&BM Development president Bun Jes said that customers would need to put down a 30 percent down payment to purchase one unit and will be able to pay the remaining 70 percent in the form of instalments, which comes up to $142 every month.
“In the case of customers who have already made the initial purchase but don’t have the ability to pay the instalments or maybe they don’t want to continue making the payment, they can get their money back without attracting any losses of the money they have paid.
“What is important is that our people has to make sure that they have the down payment and that their income should start at $300 per month which is necessary for the application,” he said.
The project is expected to take three years to construct and each unit will cost approximately $23,500, depending on its size.
Emerging Markets Consulting (EMC) senior consultant Chou Ngeth said however that the price set by developers seemed high compared to the cost borne by the developer.
“If we compare the price set by the developer and the price range in the market of between $40,000 and $60,000, it is cheaper. But that is apples and oranges. The price of a house of 4 metres by 7 metres, is currently set by the developer at $25,000 which could be constructed at $15,000 including the cost of land, construction and contingency costs.
WorldBridge Land in December broke ground on the first ever public housing project in Cambodia, located on a 45 hectare plot of land in Kandal province’s Saang district.
The housing project is just 18 kilometres from the district capital and only 8 kilometres from the Takhmao roundabout.
Each of the 2,297 units, all of which will be two-story homes, will cost from $25,000 to $30,000 and will only be sold to married couples, with priority given to those in the civil service.
According to the Ministry of Land Management, Urban Planning and Construction, the demand for housing for Cambodia will be one million units in 2030, of which the demand in the capital will be about 52,000 units.