The official groundbreaking ceremony for the $70 million Arakaw Residence, a low-cost public condominium, will be held today.
The project was started as a response to the demand from middle-class households for reasonably-priced accommodation.
It will be the second condo project for middle-income earners – the first was built by two local people with a total investment of $25 million for a 12-storey condo called Urban Living, and construction started in early January.
Arakawa Residence is being built by the Arakawa company, which is owned by local and Japanese investors who are also building the new complex on the old site of the White Building.
Alex Yasumoto, the company’s president, said because there are needs for low and medium-income earners, the company had decided to invest in the project in order to give this group a new lifestyle.
“The construction is built to target Cambodian university students, newly-wed couples as well as poor families,” he said.
“Even though they have low and medium-incomes, they will still be able to buy a unit in our condo that is affordable and offers comfortable living in a modern style in the heart of the city. They will also receive the condo ownership title.”
Mr Yasumoto said the Arakawa condo, in Sen Sok district in Teuk Thla commune along Russia Boulevard on the way to the airport, will be built into two phases.
The first phase will be 10 buildings with 2,000 units that will take two to three years to complete. The unit prices will be between $20,000 and $30,000, he said.
According to Eang Sophara, one of the local founders of Arakawa, the condos will go on sale within three to six months of the groundbreaking ceremony to build confidence in the public about the project. The construction sector has been playing a very critical role in backing economic growth and job creation.
The sector attracted about $5.63 billion during the first nine months of the year, up 22 percent over the same period last year, according to an official report from the Ministry of Land Management, Urban Planning and Construction.
Lao Tep Seyha, an undersecretary of state at the ministry, told a local television station on October 11 that the ministry had approved 2,522 projects worth about $5.63 billion, an increase of 22 percent on the same period last year.
“The majority of projects approved this year were condominiums, housing, factories, enterprises, hotels and office buildings,” Mr Seyha said.
“And increasing investment in the sector is due to factors such as peace, political stability and favourable investment laws. Many investors have looked into Cambodia and Cambodia has become an attractive market.”