Triumph Commercial Centre (TCC) project has officially announced its first $48million condominium project targeting lower- and middle-income people. TCC is being developed by Yunnan Shengmao Investment (Cambodia) Co Ltd. Yunnan Shengmao started the construction of the $1billion complex in Phnom Penh’s Boeung Salang village in August 2018. It includes shopping malls, a hospital, a swimming pool, a playground, a supermarket, and a recreation centre.
Chen Tai An, chairman of the company behind the project called it a small city.
The TCC’s 20-storey complex has apartment prices starting from $950 per square metre (sq m) – around $30,000 to $40,000 per unit.
Chen said: “This condo is designed for lower- and middle-income earners. TCC’s condo has 20 storeys for the first building. From the ground floor to the fourth floor is the commercial centre, from the fifth floor to sixth floor is a car park and from the seventh floor to the twentieth storey are luxury condo apartments at a cost lower than the market price,” he said.
“I am optimistic about the condo market in Cambodia because the economy is growing, so the demand for homes is high. Also the number of millennials is increasing, so the demand is high because condos are safe, secure and hygiene plus the price is lower compared with villa and borey projects,” he said.“We are targeting local residents so we made the price of the condo very low. We want the Cambodian people to have an appropriate price and an affordable condo to live in, so we have to fulfill the need of the local market,” Chen added. He said the company will build 10 buildings in Triumph Commercial Centre. He added this 20-storey condominium will take 18 months to complete at a cost of $48mllion.
CBRE, a commercial real estate services and investment firm, has stated that the trend of using mixed-use development buildings has been increasing in the Kingdom because of the rising price of land in the city centre.
Cambodian millennials are driving affordable condominium sales as buyers shift towards developments that offer a sense of community, liveability and walkability, according to CBRE’s Fearless Forecast 2020. CBRE said that affordable places will rise in price because of healthy demand from local buyers, while mid-range and high-range condo prices will remain stable.
Based on the CBRE’s forecast, the condominium supply in 2020 is expected to increase 55 percent to 28,000 units. Of those, 24 percent are high-end, 46 percent are mid-range and 30 percent are considered to be affordable.
Sothida Ann, managing director of CBRE Cambodia, said that to develop a mixed-use building will depend on the area and size of land. Some projects are not well suited for mixed use because the land is small, with not enough space to separate the lobby, residential areas and offices areas.
She said that to have a mixed development you must have land that is at least 5,000 sq m. She added that these developments do not always have to be in the commercial business districts (CBD). However, at present, the demand for the mixed-use development buildings are mostly in the CBD zone.
In the Commercial Business District, the current average land price is $4,700 per square metre. Ann said the use of mixed developments can be a combination of different space usage.