[PHNOM PENH POST]
Prime Minister Hun Sen yesterday promised accolades to the builder of
Cambodia’s next skyscraper, while downplaying disputes on tall buildings
near the Kingdom’s monuments.
Construction investments in
Cambodia increased by about 105 per cent in 2011, hitting US$1.73
billion, according to Hun Sen. “Currently, there are no problems with
skyscrapers [in Cambodia] and I declare that I will grant a medal to the
builder of the highest skyscraper,” the premier said before hundreds of
government officials at the opening of a new Ministry of Land
Management, Urban Planning and Construction building on the capital’s
Monivong boulevard.
He also rebuked “extreme conservatism” on the
building of skyscrapers near the Royal Palace, deeming anywhere except
near the airport open for potential building projects.
Prices for
office space fell on oversupply last year, real estate insiders have
said, and the trend could accelerate with the opening of the Kingdom’s
third grade-A office block, the 38-storey Vattanac tower, expected to be
finished in October.
The price of A-grade office space fell by
$2.5 per square metre to $21 in 2011, the Post reported last week. Phnom
Penh Tower, which opened last year, had about a 50 per cent occupancy
rate in January.
Keuk Narin, vice president at Asia Real Estate,
said yesterday that builders should focus on grade-B office space to
accommodate the expected increase in small-and medium-sided enterprises
in the Kingdom.
“The price could stagnate this year and could
decrease for some new buildings,” he said. “I don’t think skyscrapers
are the priority for the builders now.”
The expected opening of the Cambodian Securities Exchange could create higher demand for the A-grade skyscraper space, he added.
Prices
will remain stable in 2012 until new developments currently under
construction open, Sung Bonna, president of the National Valuers
Association of Cambodia, said yesterday. “Now it’s ok, but we are a
little concerned when the Vattanac tower opens,” he said.
An
increase in competition among developers, however, would improve the
quality of construction projects, Sung Bonna said. International
investors have showed interest in Phnom Penh’s Gold Tower 42, Sung Bonna
said. Developers Yonwoo Cambodia would have potential buyers should it
look to sell the partially constructed building.
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