Following the success of Borey River Town, the investor behind it has announced plans to inject $100 million into developing a new project.
General manager Teng Rith says that construction of Borey River Town is now 50 per cent complete, with some 80 per cent of the units already sold.
The company is now contemplating investing $100 million in a new 25-hectare property development near Borey River Town that will be both residential and commercial, Rith says.
The construction of Borey River Town has been carried out with an investment of $20 million.
The river town comprises 26 twin villas, five single villas and 60 flats.
The second project would consist of twin villas, single villas, shophouses, flats and more than 10 floors of office space, and have a starting date for construction at the end of the year, Rith says.
“We’re investing in the area because city planning will turn it into a business hub that will include a variety of services such as a mall, a school and a hospital, among other amenities that will boost the area’s livability,” he says. “Medium and high-income earners will move into the area because it is close to the city, with two bridges to ease the traffic, and it has a good environment to live in due to the surrounding areas.”
The general manager at KEY Real Estate, Sorn Seap, agrees that the area will attract more investors and residents for many reasons, including the riverside setting, infrastructure, riverside gardens, resorts, hotels, guesthouses, condominium and apartment developments and the Chroy Changvar Satellite City.
“Those factors are catalysts helping property developers achieve success in the area,” Seap says.
However, Kuy Vat, president & CEO of VTrust Group, warns of a price bubble similar to that of 2008. “Rising prices are excessive,” Vat says.
“If investors truly intend to buy land in the area in order to develop it, there shouldn’t be any problems,” he says. “But if they just follow each other and buy land in the area speculatively it could lead to problems.”
Source: Phnom Penh Post
