The government is calling on investors to prioritise affordable housing projects for low and middle-income earners.
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Urban Planning and Land Management Minister Chea Sophara, speaking during the groundbreaking ceremony of Arakawa Residence yesterday, urged developers and investors to take on more low-cost housing projects.
“We support oknhas and wealthy people wanting to invest in public housing. Just make sure your project is affordable and quality-driven,” Mr Sophara said.
Arakawa Residence is a $70-million, low-cost public condominium project in Sen Sok district in Teuk Thla commune along Russia Boulevard on the way to the airport.
It will be the third project of its kind built in cooperation with the Ministry of Urban Planning and Land Management (MLMUPC) after similar low-cost buildings on National Road 5 and in Takmao city in Kandal province.
Alex Yasumoto, Arakawa’s president, said about $40 million will be spent during phase I of the project, with an additional $30 million invested in phase II.
Phase I comprises 2,000 condo units and will take three and a half years to complete. Unit prices will range from $20,000 to $30,000, Mr Yasumoto said.
“The project is built to target all end-users who buy and live in the project and also Cambodian university students, newly-wed couples as well as poor families,” he said.
“Low and middle-income earners will be able to buy a unit in our building that is comfortable, modern and located in the heart of the city. They will be given an ownership title as well.”
Last year, locally-owned WorldBridge Land was contracted by the government to build public housing in Kandal province.
On March 2 this year, the MLMUPC signed an MoU with Bun Cheth Group for the construction of another public housing project in Kandal province’s Ponhea Leu district.
Built only 21 kilometres from central Phnom Penh, it will consist of 5,340 units built over an area of 822,160 square metres.
In 2017, the ministry approved 2,522 projects worth about $5.63 billion, an increase of 22 percent year-on-year. Most projects were condo buildings, factories, hotels and office buildings.
According to the MLMUPC, demand for housing in Cambodia will reach one million units by 2030, with 52,000 of those units located in the capital.