The Ly Yong Phat (LYP) Group announced it will invest millions of dollars to develop The Premier Land project to meet the demand for shophouses, thanks to the potential the location has for the development.
The project is next to Aeon Mall 2 and other commercial projects such as the Macro Global Shopping Center and the Sen Sok Convention & Exhibition Center in Sen Sok district, Phnom Penh.
The project features 100 shophouses and the unit prices start from $300,000.
Seng Nhak, the project manager of The Premier Land, said the reason the company chose the location for development was not by chance, but thanks to the potential of the area and the surrounding existing developments.
“This is also the reason why we decided to invest in the projects. Having a good location is not enough and we also care about the quality and beauty of the construction,” Mr Nhak said.
“This modern shophouse project has been designed in a modern style by Thai designers and we focus on the quality and beauty at first. The shophouses feature four-and-half floors. Meanwhile, we care about our customers’ businesses,” he added.
Dith Channa, the CEO of Lucky Realty, said for the last few years the residential sector has seen strong growth in terms of sales.
“The market is simple and like other markets as well because two or three years ago the purchasing power was strong and the market was full, absorbing all the purchasing power,” he said.
He added that the upcoming national election in July has not affected the borey market.
“I think the political situation does not influence the residential market because Cambodian buyers buy for business and living,” Mr Channa said.
“For the next few years the residential market will be prosperous, based on the inflow of people into the city and the towns and many newly-wed couples who need their own shelters and businesses,” he added.
According to a report from the Ministry of Land Management, Urban Planning and Construction (MLMUPC), from 2015 to 2030 Cambodia will need about 800,000 homes to meet demographic growth and social economic growth.
“With the rapid growth of the economy and urbanisation, the ministry found that the population of urban areas in 2014 was 4.5 million, equaling 27.1 percent, and will continue to reach 7.92 million by 2030, or 44 percent of the total population of Cambodia,” the report said.
“Because of the country’s economic growth, urbanisation has also increased rapidly.”
According to the data, it shows that for 15 years [2015-2030] residential demand for the capital city and urban areas is about 800,000 homes, which averages out at about 50,000 homes per year.