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Funan Techo Canal - Opening Cambodia Up To The World
Funan Techo Canal - Opening Cambodia Up To The World
May 29, 2023, 2:35 a.m.
The Cambodian government-approved Funan Techo Canal, which will be the first capital-coastal waterway in the Kingdom of Cambodia, is the latest large-scale infrastructure project set to transform the Southeast Asian nation into a new logistics and economic hub in the region.The estimated cost for the development project is expected to be USD $1.7 billion and it will take approximately four years to complete.The announcement follows the news of a targeted extended list of investment projects which are set to redefine the infrastructure in Cambodia which is trying to better provide much improved and modern transport routes including major expressways, international airports, seaports and waterways - driving diversification and economic development as well as promoting the country as a potential destination for logistics and shipping. With the combination of infrastructure and logistics projects, and significant investment in the sector (and Foreign Direct Investment), Cambodia is positioning itself to challenge and become a major player in regional trade and commerce. What is the Cambodian Funan Techo Canal?The Funan Techo Canal project will establish a direct link between the capital of Phnom Penh and the coastal provinces and create an alternative route set to unlock untapped supplementary logistics opportunities for Cambodia.The man-made canal will be 180 kilometres long and will connect Prek Takeo to Prek Ta Ek and Prek Ta Hing of the Bassac River System and onto Kep province. Once completed, the canal will pass through Kandal, Takeo, and Kampot and see the installation of three watergates or locks (on the current plans these will be added outside of Phnom Penh, in Takeo, and at Kep), as well as 11 bridges and the addition of 208 kilometres of roads on either side of the waterway. The canal will be 100 metres wide upstream and 80m downstream and have a  depth of 5.4 metres. There will be two shipping lanes, to enable vessels to safely travel in opposite directions simultaneously. In the area impacted, there is an estimated total population of 1.6 million living on both sides of the waterway. John Yip Weiyan (Head of Investment of Real Estate at Belt Road Capital Management) said of the project: “The Funan Techo Canal infrastructure project will be a game-changer for Cambodia logistics as it will impact the distribution of containers throughput between Sihanoukville’s deep sea port and Phnom Penh Autonomous Port (via Vietnam). More freight will end up being routed through local Cambodian port(s) as use of the waterway commences.The usage of the waterway could also stimulate the development of additional international ports, such as the proposed Kampot International Multi-Purpose Logistics and Port Centre. With an alternative route available for freight transportation to and from the capital, logistics facilities could be relocated or constructed to support and complement this alternative transportation corridor.”The initial planning document we have seen supports this as currently 67% of goods reach the port in Sihanoukville but after the completion of the canal, this is hoped to reach 90%.Cambodian Investment and Economic GrowthThe World Bank increased its financial outlook for the Kingdom of Cambodia in May 2023 and under its Cambodia Economic Update, raised its growth forecast to 5.5 per cent this year, which is an increase from its previous projection of 5.2 per cent. Most global financial institutions as well as the National Bank Cambodia have predicted GDP growth of between 4-6% for 2023 which is high compared to the global averages. The World Bank also advised Cambodia to bolster economic growth “through investing in connectivity infrastructure and human development, safeguarding financial stability, and promoting diversification of exports to enhance the economy’s resilience and competitiveness.” The projects such as the Funan Techo Canal appear to be addressing exactly that.Previous reports from the World Bank suggested that the logistics costs in Cambodia are estimated at 26 per cent of the GDP in 2020 and that costs in the Kingdom were much higher than those of neighbouring countries.The Cambodian government realises investment is key as are private-public partnerships which have seen the completion and ongoing development of major projects to improve connectivity nationwide. Located strategically at the centre of China, India, and Indonesia, and in a region seeing comparative growth - there is massive potential as a key logistics hub. Minister of Public Works & Transport, H.E. Sun Chanthol discussed the Comprehensive Intermodal Transport Master Plan 2022 – 2030 (CIT-MP). The CIT-MP is a comprehensive plan covering infrastructure such as roads, railways, waterways, airways, logistics and ports and has already identified more than 150 projects which will require as much as US$30 billion of investment. Chanthol previously said that the intention is “ to strengthen and expand road infrastructure and connect major thoroughfares – especially international border checkpoints – in order to increase Cambodia’s competitiveness, attract foreign investment, and reduce logistics and transport costs and avoid delays.”Cambodia Port, Logistics & Maritime ProjectsPort container traffic has indicated a shift in the dynamics of Cambodia's logistics landscape, with Sihanoukville (PAS) emerging as a prominent port and even surpassing the Phnom Penh autonomous port (PPAP).The PAS is undergoing investment to modernise, deepen, and enlarge its capabilities to host larger ships more often. Only 20 km northeast of the international deep-water Sihanoukville Autonomous Port, is the SSEZ which Sihanoukville Deputy Governor Long Dimanche said is the biggest industrial zone in size and occupancy in Southeast Asia.Both are key in China's Belt and Road Initiative (BRI) which consists of the Silk Road Economic Belt and the 21st Century Maritime Silk Road, which intends to link trade and infrastructure networks in Asia with Europe and Africa.In May 2023 it was announced that the Japanese-financed Sihanoukville container terminal had started, aimed at transforming the seaport into a Southeast Asian hub by 2029. The upgrades will include the modernisation and automation of the port’s equipment. The PAS capacity will increase from 700,000 TEUs (twenty-foot equivalent unit) a year to 1.4 million by 2026, and 2.6 million by 2029, while the port’s shallow channel which is 9.2m deep will be dredged to a new depth of 14.5m in the project’s first phase and allow more and bigger container ships to dock at the Cambodian port. Currently, 82% of container ships are unable to access the port.Koh Kong province’s first international seaport is due to be launched in the second half of 2023, said provincial governor Mithona Phoutong.Kampot International Port & Logistics Centre is a USD $1.5bn project in Kampot province, which started foundational work in 2022. The multipurpose port will have a depth of 15m and will be developed over 15 years and across three phases.The Kampot International Tourism Port was also completed in mid-2022 and needs additional dredging.A new Sihanoukville Logistics Hub was established via a public-private partnership.In addition, there are a number of airports still being developed with the new Siem Reap International Airport due to be operational before the end of 2023 with other large transport & logistics projects continuing development.The Knight Frank “State of Logistics Asia-Pacific Focus Report 2023” indicated that with global supply chains adjusting, Southeast Asia is seen as a top destination for foreign direct investment among emerging regions.The creation of new and more affordable trade routes, facilitating the seamless movement of goods in a foreign trade and in an investment-friendly nation should have investors and businesses take notice and look for opportunities within Cambodia's burgeoning logistics and infrastructure sector.
Renting in Phnom Penh
Be A Smart Renter in Phnom Penh
May 22, 2023, 2:29 a.m.
The change of the weather season in Cambodia around this time of the year often heralds a changeover of expats in Phnom Penh, particularly over the coming months as many who have been working on fixed contracts, studying, or families leave (temporarily or permanently) while foreigners also seek to move to the Kingdom for the first time.The reason people leave is the Summer season which sees many flock to the European climate or elsewhere within Asia for extended summer breaks to catch up with family, and start or complete university and school - the latter of which also leads to expats exploring new opportunities abroad in Southeast Asia and Cambodia.We look at some of the latest market sentiments among property renters in Phnom Penh, and at some of the best tips for renting in the capital of Cambodia.Realestate.com.kh Annual Real Estate Consumer Sentiment Survey 2023The most recent source of rental sentiment can be accessed via the results published in Q1 2023 by realestate.com.khAs many as a third of respondents of the survey were foreigners and the two dominant age brackets were 21-30 & 31-40 years old respectively - which probably reflects most of those looking to rent in the city, whether you are new or currently looking for a change of accommodation in the city.What Can You Expect To Pay To Rent A Condo In Phnom Penh?Most respondents suggested they earn a combined family income of over USD $2,000 per month. Among foreigners who responded, there is generally higher spending power and at the top-end, 42.5% indicated an income bracket of over USD $5,000. This opens up the rental options of condos, villas and some of the larger borey units.Those who partook in the Realestate.com.kh Annual Real Estate Consumer Sentiment Survey 2023 also represent a broad cross-spectrum of professions and industries. A third of expats are looking for properties under $500 per month, while just under a third of all respondents (including all nationalities) have a budget of USD $500-$1,000. This price range should be suitable for serviced apartments (condos) in Phnom Penh, which on average can start from USD $700 per month.The rental prices in Phnom Penh depend on factors such as the type of property, number of bedrooms, amenities, services and location. Tenants can pay anywhere between $1,000 to $2,000 monthly for houses or villas within Phnom Penh but for condominiums, the range is comfortably between $500 to $2,000 monthly.Daun Penh and the Phnom Penh riverside area rental costs are estimated to be:1 bedroom: USD $400 – USD $1,0002 bedroom: USD $900 – USD $1,3003 bedroom: USD $1,300 – USD $2,000Expat Renters in Phnom Penh PreferencesAs many as half of foreigners who took part in the survey indicated that they live with family or a partner, while a third live alone - by far the biggest groups represented. A small minority indicated that they live with friends which is common among many Western expats - in particular those who might be on internships and seeking to be more budget-conscious.This guide is an essential read before you start your property search in Cambodia.Condos and apartments are the most popular property types among all renters with half indicating this choice. Among foreigners alone, condos and apartments gained 74% of the votes! For a hassle-free living experience, it makes sense as condos will often include security, parking access, a swimming pool, and even a gym (albeit often basic). Some tips for locking in paying your rent are:Negotiate rent prices - most landlords will probably be open to some level of negotiation and most will offer discounted rates for longer leases.Most landlords will now prefer payments by the banking apps - it's just more convenient for everyone and instant.A deposit is usually for 1-2 months’ rent which is paid upon signing contracts and can be refunded after the final inspection by the landlord when you leave the rental.  Many tenants will give notice and ask for the deposit to be used for the final month/s rent which is something you should ask your landlord about.Checking actual costs for amenities (electricity, water, gas, cable TV, internet etc) is key - ideally you want to be paying the rate from the utility supplier even though many condos will have their own rate. Most utility bills can be paid via the banking apps.Where To Rent In Phnom Penh?The preferences for the most popular areas in the capital have largely remained unchanged and many areas saw the same level of interest in previous years. There are some fluctuations in the city as outlying areas develop but some key central Sangkats remain the most popular and therefore demand a higher price - they have the easiest access to the most popular food and beverage areas, social hotspots, tourist attractions and a populous expat community.New outlying areas are seeing new small and large malls, better infrastructure and access routes - while you should also be aware of new significant projects such as airports, highways, bridges etc which may impact an area.Outlying areas such as 7 Makara, Chbar Ampov, Dangkao, and Prek Nov all saw noticeable declines of interest but Chamkarmon / BKK is still the most popular among all respondents but especially for foreigners - with 58% indicating the areas as their top pick to rent. Daun Penh is second most popular for foreigners with 35% selecting this always popular area of the city.What To Consider When Renting In Phnom PenhSome of the main considerations for choosing the right rental property in Phnom Penh would be the same as any other city - what suits your needs, comforts, location, and budget?Among the key considerations for those looking to rent in the capital were security (46.3%), followed by price (30.2%), noise (21.3%), and services (18.4%).For Phnom Penh, the most popular areas of the city are relatively safe but well-lit entrances, peace of mind with onsite security and secured parking are all considerations when visiting a property or asking questions about a rental property. Noise is a particularly unique issue in Phnom Penh - partially due to the rapid development of the city with new buildings and properties being torn down to make way for bigger, taller structures.There are also cultural aspects to consider when it comes to noise in Cambodia -  from street weddings and funerals, ground floor restaurants and open-air BBQ, clubs and other venues which only really come alive at night time - so visiting an area and property at daytime and at night time (even over weekends) are strongly encouraged before signing a lease.It is still required to be registered on the FPCS (Foreigners Present in Cambodia System) which was introduced in July 2020 but it is hit and miss. It is the responsibility of the landlord to register you as a foreigner and to avoid issues you should follow up on this and ask for a screenshot of the registration. Most recent visa renewals might require to see a copy of a lease agreement and the FPCS registration.How To Find The Right Rental Property?Picking the right real estate agent is certainly one way to go to find the right rental property in Cambodia and real estate agents play a vital role in Cambodia's property sector.In the survey, respondents valued reputation, professionalism, knowledge, response time, honesty and commission fees, however, the most dominant reason for selecting an agent was honesty, followed by response time to inquiries and then market knowledge. Realestate.com.kh for example continues to be the main source of property information in Cambodia and lists all of Cambodia’s available real estate - offering easy-to-use online search functions, as well as regularly updated content on the sector.Other sources for sourcing a rental property might include using social media (Facebook Groups) or event targeting desired areas to live by walking around with someone who can speak Khmer to enquire about available properties to rent which certainly is more time-consuming.Finally, before you sign any lease agreement in Cambodia, have a read of these tips which cover a broad base of important aspects to consider.
Cambodia Set for Economic Growth in Second Half of 2023
Cambodia Set for Economic Growth in Second Half of 2023
May 15, 2023, 3:17 a.m.
Cambodia is on the brink of an economic growth spurt in the second half of 2023, with the International Monetary Fund (IMF) predicting robust expansion in key sectors. This anticipated recovery is expected to have an impact on the country's overall development.The sectors of exports, services, tourism, and non-industrial industries drive this impressive growth. As Cambodia solidifies its position in these areas, the momentum of its economic recovery is set to gain considerable strength.Compared to neighbouring countries, Cambodia is poised to maintain a robust growth rate throughout 2023. A contributing factor to this positive outlook is the rapid normalisation of social activities. As the world gradually recovers from the pandemic's effects, Cambodia's trading partners are anticipated to experience an enhanced recovery, providing an additional boost to the country's economic growth.The World Bank projects that Cambodia's economic growth will rank third among other ASEAN countries, with a forecasted rate of 5.2% for 2023. Moreover, the Asian Development Bank (ADB) recognises Cambodia as the 14th fastest-growing economy, projecting a growth rate of 5.8%.As Cambodia's economy gains momentum, one sector that stands to benefit immensely is real estate. With increasing investor confidence and a thriving business landscape, the real estate market is poised for a surge in activity. This presents an ideal opportunity for both local and foreign investors to explore the potential offered by Cambodia's real estate sector.Supported by positive projections from reputable institutions such as the World Bank and the ADB, these assessments further underscore Cambodia's trajectory, validating its upward trajectory as an attractive investment opportunity within the country. Visit Realestate.com.kh to find your dream propertyClick Here
The Ground Market - Retail Innovation
The Ground Market - Retail Innovation
May 15, 2023, 4:28 a.m.
By the start of 2023, the total existing retail supply in Phnom Penh reached over 7,000 000 sqm net leasable area (NLA) while 2022 saw the biggest growth in this space on record. Retail malls and outlets are seeing experiencing a boom in Cambodia's capital.Among the types of malls entering the market, The Mall Company said in a recent report that the ‘community mall’ class of retail asset has been particularly popular, while green spaces remain in demand and retailment will be a key innovator in attracting shoppers to the new retail spaces. The Ground Market in Koh Norea, Phnom Penh has managed to strike a balance and promises to be the “ultimate speciality market experience for the community,” while encompassed in the integration of a well-designed green space.The Ground Market - Koh NoreaThe contractors of The Ground Market, TDB Projects, say the project “lies somewhere between a traditional market, retail mall and an urban park, and offers the best of all of these types of space, doing this in a way that represents modern Cambodia culture and urban development”.Located in Koh Norea Village in the Chbar Ampov District, the new mall is located in front of CIA International School.The area has seen rapid changes with the reclaimed land and the Koh Norea Satellite City development expected to generate countless jobs and increase the value of surrounding land and other developments in Chbar Ampov. The development has also seen the addition of an OCIC $40 million bridge to connect Nirouth with Koh Pich (Diamond Island) to ease traffic congestion.On the opportunities in the area, Daniel Jury from TDB Projects adds that “The Ground Market is accessible due to its layout and location as well as the fact that it supports regional small businesses and vendors rather than multinational brands and tenants, in comparison to other malls. Market sellers and vendors have options to conduct business in a modern retail setting that is difficult to find elsewhere in Phnom Penh. So in a sense, it’s a more democratic urban space. The emphasis on and integration of green space is also key in creating an urban oasis and encouraging visitors in a quickly developing city.The Mall Company (TMC) Managing Director, Simon Griffiths says “Rather than targeting a crowded upper-middle market positioning, The Ground Market innovates and elevates a mid-to-low mass market positioning in style allowing them to tap into the under-supplied mass market.”“The Ground Market is the most innovative retail project to enter the market in recent times. The development team have succinctly understood the nature of providing visitors with an exciting experience, environment and entertainment mixed with an on-point tenant mix and mass market price point. As a result, The Ground Market is resonating with the public and large crowds are being attracted on a daily basis” added Griffiths.He adds “I would categorise the project as an elevated, next-generation community mall, although it has roots within much loved local markets and night markets but executed to a level seen in Thailand but a first of its kind in Cambodia.”The Ground Market intends to be very community focussed and promote local/speciality/ crafts & sellers.Green Spaces in Phnom PenhThe capital has been screaming for more green spaces and oases which are very limited and made less so by the recent closing for development of the Odom Park.A recent article from shiftcities suggests that “80% of cities worldwide now face extreme climate-related events, and more than 1.4 billion people living in the world’s largest urban centres are threatened by natural hazards.” It also adds that all stakeholders have a role to play in “scaling up urban nature-based solutions, and partnerships are key to amplifying their benefits.”The Ground Market has been developed to serve the local community but also offer a unique retail experience. “The development is unique in Phnom Penh, and whilst it brings together other existing elements of the current retail landscape the curated combination of these elevates it beyond the sum of its parts into a successful placemaking exercise, that serves and benefits the general urban fabric,” said Jury.The mall is fully operational and shoppers can expect an extensive food court that focuses on Khmer food, while market stalls, local retailers as well as events and entertainment offer weekly attractions with live shows catering to the retail market. There are also free activities and games to be found throughout the green space. The Retail Landscape in Phnom PenhWith the future of Community Malls, Retail Arcades and Retail Podium retail spaces in the city quickly changing, adapting and competing, how will The Ground Market stand out?Jury explains “From our perspective (TDB-Projects) we’re very happy to have had the opportunity to be involved with delivering The Ground Market. We were involved in some of the early planning and prototyping of certain elements so we appreciate the commitment and detail that has gone into the planning of it all. As a contractor, it was great to contribute in bringing fantastic and innovative concepts into fruition.”Griffiths expands on this and said “What The Ground Market does very well is combine providing an experience, fun and excitement within an enjoyable environment that offers a wide range of food and drinks at affordable prices for the mass market.  With this achieved, The Ground Market becomes a place for everybody, be it families with children, students, parents, or grandparents - it is accessible to all. In this sense, The Ground Market becomes almost a public space that can be enjoyed by anyone to relax, meet friends, eat, drink, and listen to music. It in some small way enriches the lives of those who use it. Spaces such as The Ground Market, which are relatively rare in Phnom Penh, are increasingly important.”Does The Ground Market Offer an Innovative ‘Retailtainment’ Culture?The Mall Company has outlined in its previous market assessments and reports that the malls which engage in and invest in actual “retailment” will stand out.Griffiths said that The Ground Market has focussed on attention to detail which is evident as soon you enter the space.  “Real care and attention has been given to even the smallest detail and it really shows. One small design detail does not make much of a difference, but when you put together all the small design details and features, the cumulative effect on the customer is significant and that is translating into attracting lots of visitors every day, but importantly, those visitors are going back again and again and that is the sign of a successful retail project. It is partly due to the adoption of ‘retailtainment’ concepts at The Ground Market, such as garden walkways, tree houses, elevated tree-lined walkways, and an event garden but also the flow as the public areas ease from one area to another with gentle curves and through gardens and different spaces which leads you on a journey from one place to another. It has been executed (and innovated) very well.”
Mean Chey Residences: A new Luxury Residential Project Right Next to AEON 3
Mean Chey Residences: A new Luxury Residential Project Right Next to AEON 3
May 11, 2023, 9:59 a.m.
Mean Chey Residences by RoseMarvel is a new modern contemporary luxury residential project situated in Phnom Penh’s highest potential area. This project is now officially open for sale to potential homebuyers who are seeking a unique perspective on luxury living in the Southern part of Phnom Penh City.The design of Mean Chey Residences focuses on a human-centered first design, where all of our types of home are carefully thought-out to fit the needs of our customers. Our types of home offer spacious living areas and an abundance of indoor and outdoor facilities that offer our customers a sense of luxury and comfort of living. Natural lighting and sufficient air flow are present throughout all of our house types. The Mean Chey Residences also has a over 0.6-hectare garden located in the center of the project, which is the largest garden of any residential or commercial project along 60M Road.Mean Chey Residences is an 20-hectare residential development situated along Samdach Techo Hun Sen Boulevard, commonly referred to as 60M road. The project is developed right next to the newly opened AEON Mean Chey Mall (AEON 3), which is less than one minute's walk apart.The project offers 4 types of Villa options and 2 types of Shophouse options. The Villa options available in Mean Chey Residences are King Villa, Queen Villa, Prince Villa, and Princess Villa while the Shophouse options are Standard Shophouse and Special Shophouse. Mean Chey Residences’ Shophouses are all facing toward AEON 3 Mall, perfect for commercial usage as well as convenience of living.For more information, please contact the number below078 / 086 / 090 72 77 88
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Why Should You Invest in Cambodia?
Why Should You Invest in Cambodia?
May 5, 2023, 2:04 a.m.
For many years the Cambodian economy has been seen as a rising star in Southeast Asia and post-pandemic there remains buoyant optimism in the potential of the country as an investment destination. With a huge delegation of international athletes in-country over the coming weeks for the SEA Games, and hopefully as many as half a million visitors who will travel to enjoy the sporting activities, it is timely to remind potential investors of the opportunities in Cambodia as the nation is probably misunderstood overseas.The core key points often used to promote the Kingdom as an investment destination remains true:Consistent growth rates and tracking strongly post-pandemic in the region.Companies can be 100% foreign-owned in Cambodia and foreigners can 100% own certain properties.Fast rate of urbanisation.Favourable Investment Laws and new Trust Laws.Cambodia consistently ranks as an expat-friendly nation.Political stability.Ease of visas.Changing The Perceptions of CambodiaThe economic maturity in Cambodia still relies heavily on the development of the financial markets and foreign direct investment. What has been noticeable since the travel restrictions eased is that an overwhelming number of visitors and investors to the country have shared an almost consistent surprise in the level of economic development that Cambodia has experienced.The impact of COVID-19 has been undeniable to the Kingdom’s economy, but it remains a frontier market with a very positive macroeconomic outlook, a much improved and accountable banking and finance sector, diverse foreign direct investments, and there is a healthy return in the tourism & hospitality sector, while the real estate market correction have more realistically positioned the pricing of property.Tom O’Sullivan, CEO of Realestate.com.kh said in a recent interview that Cambodia's consistent economic growth has solidified its position as a desirable destination for foreign realty investment.He acknowledged that tourism remains a pillar of the economy and it helps drive real estate and real estate development but more needs to be done to encourage tourism to the country. “Once you get a delegation to the country, the reaction is remarkable once they see how developed Cambodia actually is. The return of tourism has already impacted positively on the real estate market and changing perceptions of the country internationally is key to this.”Potential Of Real Estate In CambodiaCambodia is more than just Phnom Penh or Angkor Wat, the key investment locations are Phnom Penh, Sihanoukville and Siem Reap. The range of investors come from many different nations too.Most retail international property investors in Cambodia are focussed in Phnom Penh, and condos are the main target due to the ease of owning them as a foreigner but the Trust Laws have resulted in more looking at land and other types of properties and in May 2023, Sok Dara, Director General of the Trust Regulator said funds invested in the trusts will soon reach the $1 billion.Historically, Chinese, Japanese, and Koreans have been the main buyers but there are also many from the US, Europe, Singapore, Malaysia and other ASEAN nations. In the commercial space, most investment is still from the Chinese and Japanese but there is increasing interest from India, Indonesia, and the Middle East - new embassies opening up are a good sign and indicator of potentially opening up investment avenues.Some general positives for the Cambodian real estate sector:Potential for growth due to the country's young population and increasing urbanisation.Real estate development influenced infrastructure and tourism.Increasing diversity of interest from countries like India, Indonesia, and the Middle East, indicates the potential for growth and investment opportunities.Siem ReapO’Sullivan confirmed that most investment is in the capital but successful property projects are in Siem Reap too. Developers are limited by the fact that they can not build beyond the height of Angkor Wat. These limitations make it less attractive for some developers but the regulations maintain the uniqueness of Siem Reap and it's been a key selling point for tourism.The new airport in Siem Reap is due to be operational in 2023 and its impacts are aspirational but it is difficult to predict the exact growth potential as well as the positive effects for tourism and real estate.SihanoukvilleWe recently outlined the plans to address the building issues in Sihanoukville. What is dubbed Operation UB (Unfinished Buildings), all buildings which are incomplete and 5 floors and above have been identified and the process of ensuring ownership is underway. Once the process has been completed, the plan is to provide favourable terms to local and international investors to take over and complete the projects, and this could see renewed interest in the coastal city.Although many grand projects are underway, the Cambodian coastline remains somewhat underdeveloped compared to other countries in the region and there is still a lack of beachside resorts and activities etc. The new projects on several islands, in Kep, and the Canopy Sands project should create job opportunities in the construction, hospitality, and tourism sectors.The Phnom Penh-Sihanoukville Expressway has already contributed to the city's revival and a dramatic increase in domestic tourism.Investors ExpectationsThe pandemic resulted in a market correction which was possibly needed as pre-pandemic, property prices may have become unrealistic. Prices in 2023 are arguably more reflective of the property’s location, and the build quality, and in line with expectations. With continued investment (and there are short-term pressures) asset-rich and affluent investors will drive the market. The pricing also means the property market is now within reach of the growing Cambodian middle class who are looking to buy.Buyers who previously expected a return of investment from 5-8% from rentals might need to wait as this may not happen in the short term. However, with more young Cambodians moving to a city like Phnom Penh, there will be a market and demand. For the developers, they need to better understand the target market and pricing needs to reflect this. For investors, it's still a buyer's market if buyers have cash in hand and have long-term aspirations.O'Sullivan concluded: “For anyone overseas or visiting now for the SEA Games, I just really encourage them to come and have a look. Once someone lands in Cambodia it really opens their eyes to how developed the country is, and regardless of what type of visitor you are; business, tourist, family - there is something for everyone in Cambodia.”
Revolutionary Digital Advertising Network at Phnom Penh Airport Connects Property Developers to Global Buyers
Revolutionary Digital Advertising Network at Phnom Penh Airport Connects Property Developers to Global Buyers
May 3, 2023, 11:03 a.m.
IAAC (International Airport Advertising Corporation), the renowned experts in global airport advertising management, wasted no time in revolutionising Cambodia's Digital OOH ad industry when they became Cambodia Airports' exclusive ad partner just eight months ago.With their innovative approach, they created the first-ever super-premium, integrated digital ad programme at Phnom Penh International Airport, setting a new standard for excellence in airport advertising.IAAC's million-dollar ad investment project at Phnom Penh airport is revolutionising Cambodia's advertising market by providing B2B and B2C brands with an engaging way to reach thousands of affluent Cambodians, international business decision-makers, and tourists to the Kingdom of Wonder. This cutting-edge advertising platform brings a new level of sophistication to the industry, promising a seamless connection between brands and their target audiences.The first of its kind in Cambodia, it is transforming the way brands connect and engage with inbound travellers. With this new tool, brands across various sectors including property development, telco, food delivery, hotels and tourist attractions, are able to effortlessly promote their products and services to potential customers from the moment they touch down in Cambodia. Advertisers are rapidly embracing the opportunity, as it is a game-changing addition to the industry.The timing couldn't be better for property developers in Cambodia, especially with the return of Chinese visitors and the launch of the Digital Arrivals Network. Waiting times for luggage average around 15 minutes, and that's exactly how long each of the 12 super large format, LED digital screens located on the baggage carousels at Phnom Penh airport will capture the attention of potential buyers.These unmissable advertising messages, displayed in various languages, offer property developers the perfect opportunity to showcase their offerings to a diverse audience before they scatter across the city - a feat that's proven challenging until now.IAAC's swift entry and transformative approach to advertising at Cambodia Airports not only highlights their dedication to bringing innovative solutions to the country but also positions them as a key player in advancing the premium digital OOH advertising sector in Cambodia.For more information, please contact:IAAC (International Airport Advertising Corporation)Contact - Mr Jonathan Goldsmid Phone - 081 836 636Email - Jonathan.Goldsmid@airportadvertising.comWebsite - www.airportadvertsing.com
What is the housing price in Cambodia?
What is the housing price in Cambodia?
May 3, 2023, 8:30 a.m.
Housing prices, being a crucial market indicator, have consistently gained the attention of investors and home buyers. In this article, we will break down the different housing prices in Cambodia. Cambodia's Recent Housing Price ChangesOver the past 10 years, housing prices in Cambodia have been showing a steady upward trend. Especially in the capital city of Phnom Penh, due to the acceleration of economic development and urbanisation process, the rise of housing prices is more obvious.According to the National Bank of Cambodia (NBC), house prices in Phnom Penh rose by an average of about 8.7 per cent annually between 2010 and 2019. This is mainly due to the rapid economic growth of Cambodia and the increase in foreign investment, which has greatly increased market demand.However, due to the impact of the epidemic, Cambodia's real estate market has been hit to a certain extent, and there was a short-term decline in early 2020. With its economic recovery on the right track, coupled with the Cambodian government's stimulus measures and overseas investment, the market has begun to recover from 2022, and housing prices are gradually picking up.What Is The Average Property Price?As per a data report by the National Bank of Cambodia (NBC), the Phnom Penh housing price index is expected to reach 115.4 points in August 2022, marking a substantial 15.4% rise from the index based on 2020 figures. The housing price index is expressed in points, with each point representing a percentage change from the base year. This surge in prices puts the average cost of a property in Phnom Penh at US$114,164. How Much Do Apartments Cost In Cambodia? Cambodia's development continues to flourish, it offers an increasingly diverse range of properties, with apartments becoming a popular choice among foreign investors. The price of an apartment can vary depending on factors such as location, property quality, and delivery standards provided by developers.According to market research by Realestate.com.kh, the price range of apartments is typically between US$1,500 to US$3,500 per square metre, with high-end apartments in central Phnom Penh commanding prices above US$3,500 per square metre, and apartments in suburban or sub-central locations being relatively more affordable.For instance, a studio apartment with an area of 50 square metres would cost around US$100,000 at US$2,000 per square metre, while a one-bedroom apartment with an area of 80 square metres would cost approximately US$160,000. Moreover, buying an off-plan apartment could provide a 5% to 10% appreciation in a short period of time and can offer interest-free instalment plans. How About The Price Of Borey In Cambodia? When it comes to borey, prices can vary greatly depending on factors such as location, size, and level of luxury. It's helpful to have market data as a reference, such as the Phnom Penh Post's report of an average price range of US$1,000-1,500 per square metre for suburban borey in 2019. Luxury borey can go for more than US$3,000 per square metre.According to the market research conducted by Realestate.com.kh, it indicates that the average price of borey in Phnom Penh and surrounding areas will be around US$2,000 per square metre. Meanwhile, prices in other cities like Siem Reap and Kampot will be relatively lower, around US$1,000-1,500 per square metre.While ultra-low prices may be tempting, it is important to consider other crucial factors before making a purchase. For example, buyers should investigate whether the developer has obtained the necessary legal documents, such as title certificates and construction permits, as well as the reliability of the development plan, to avoid any potential scams. Visit Realestate.com.kh to find your dream propertyClick Here
Recap in Cambodia: Updates on Tourism, Economy, and Development News
May 2, 2023, 10:29 a.m.
For those who missed the weekend's events, we have put together a summary of the happenings in Cambodia. Our coverage spans a range of topics, including updates on the economy, SEA GAMES 2023, the real estate market, tourism, and development news.Night Tourism in Sihanoukville to Attract More VisitorsTourism Minister Thong Khon has revealed that the Ministry's aim to boost night tourism will involve a partnership with the Sihanoukville Provincial Government to establish a street bar. It is expected to attract a greater number of night tourists. Alongside the street bar plans to introduce night food streets are also under consideration, reflecting the growing trend for food-related tourism. Siem Reap which also has a "Pub Street" is one of the popular locations where F&B, especially during Khmer New Year, where locals gather to celebrate.Moreover, Minister Khon shared that the Sihanoukville-Siem Reap night bus service will soon be launched, catering primarily to international tourists. Departing from Westport at 7:00 pm, the bus will reach Siem Reap at 4:00 am the following day.More than 20 Tourist Attractions Approved by the CDCThe Cambodian Development Council (CDC) has given the green light for the development of over 20 islands in the province to be used as tourist attractions, out of a total of 30 large and small islands. Prominent among these are Koh Rong, Koh Song Saa and Koh Rong Sanloem. 28 companies have been granted approval to carry out these development projects.While some island development and operation projects were put on hold due to the COVID-19 pandemic, they have resumed operations. All development projects are executed according to the principles of sustainable development, with no negative impact on the environment or natural resources.SEA Games 2023: Cambodia Aims to Attract Half a Million Tourists to Boost Tourism IndustryAs the host nation for the 32nd SEA Games, Cambodia is preparing for a major tourism event that is expected to draw a significant number of international visitors. The country is gearing up to welcome around 500,000 international tourists during the Games, making it a grand tourism event for ASEAN and Southeast Asia as a whole.The tourism industry in Cambodia has been on an upward trajectory, with a total of 2.2 million international tourists expected to visit the country in 2022. The first quarter of this year alone saw 1.2 million international visitors arrive in Cambodia, and it is projected that this number will surpass 4 million by the end of the year.Phnom Penh-Siem Reap Expressway Feasibility Study to Conclude in May 2023The feasibility study for Cambodia's third expressway, the Phnom Penh-Siem Reap route, is set to be completed by May 2023. The Ministry of Public Works and Transport has authorized China Road and Bridge Corp (CRBC) to undertake a more comprehensive and formal analysis. The proposed expressway will span several provinces, including Kandal, Kampong Cham, Kampong Thom, and Siem Reap. Discover your dream home by exploring our listings Click Here!
Cambodian Logistics Drive Could Benefit All Sectors
Cambodian Logistics Drive Could Benefit All Sectors
May 29, 2023, 8:55 a.m.
There has been plenty of media coverage on the speculative and approved logistics projects and aligned infrastructure in the Kingdom. The push for investment from the government and private-public partnerships in the logistics sector could be a boon for all industries, including the demand for specialised commercial property and result in rising land prices in Cambodia.Comprehensive Intermodal Transport Master Plan 2022-2030 (CIT-MP)Minister of Public Works & Transport H.E. Sun Chanthol has provided recent updates on the Comprehensive Intermodal Transport Master Plan 2022 – 2030. More than 150 projects have been identified for investment - needing a total of around US$30 billion. There were hundreds more projects that have not yet been approved (around 332 projects needing a total combined investment of $48.6 billion).Most of these identified projects fall under the various master plans which are in varying degrees of competition and approval in the Kingdom. The CIT-MP is a large and comprehensive plan which includes infrastructure such as roads, railways, waterways, airways, logistics and ports. The main goal is the improvement and modernisation of the logistics framework to ensure the Kingdom can be elevated to a tech-savvy regional hub by 2030. offering world-class infrastructure within ASEAN.Logistics and Infrastructure in CambodiaAt the start of the year, we outlined a selection of key investments and new infrastructure projects. Most of these are on track and have had updates - but significantly even more projects have been announced to enhance logistical endeavours and upgrade major transport routes to ensure connectivity domestically and regionally.Some of the new projects announced since the start of 2023 are:Bassac Sea Link Project - Aims to connect the Bassac River to a seaport in Kep province, and the Bassac River to the Gulf of Thailand, providing direct access from the Phnom Penh Port to Cambodia’s seaports.Several more bridges are under construction; such as the tallest bridge in the country on National Road No.10, connecting Battambang and Pursat Provinces with Koh Kong Province.Expressways – The completed Phnom Penh-Sihanoukville Expressway, since its launch in October 2022, has seen more than 2.5  million vehicles make use of it. The Phnom Penh-Bavet Expressway construction is due by mid-2023 and could connect with a new freeway on the Vietnamese side to offer quicker access between the capital of Cambodia and Ho Chi Minh. A study is also being carried out on a Siem Reap Expressway connecting to Phnom Penh.Railways – No real concrete progress has been made but several options are still being explored to improve and modernise the rail network for freight and passengers and interconnect Cambodia to the region.Coastal Development -  a government-approved massive satellite city project in Kep is set to drastically increase land prices and 2 islands in Koh Kong and Preah Sihanouk have had investment projects worth $40 million approved.How Much Can Logistics Grow in CambodiaIn a recent presentation from Profitence, they stressed that ongoing policy dialogue between the private sector and the government is crucial and that the Kingdom has the benefit and advantage of learning from best practices abroad. The private sector can capitalize on this and international companies can transfer their technology and market know-how into Cambodia.Air passenger traffic could grow to between 26.5 and 30.5 million annually - the new much larger and modern airports are key to this - but also their transport connectivity domestically and the hotels, F&B, tourism etc built around the vicinity.Air cargo is predicted to reach 350,000 to 400,000 tonnes, railway freight could reach eight million tonnes per year and 1.5 million passengers annually by 2030 - all freight is set for growth as facilities are added, improved, and systems modernised and digitised.Impact on Land PricesThe January 2023 land prices from the Ministry of Economy and Finance of Cambodia suggested land prices are higher when situated close to main roads and infrastructure, while land bordering rivers or lakes impacts price valuations and may contribute to a higher land price.Although property prices have stabilised, data suggests land prices are still on the move in the popular areas of the capital. This will be driven by local and foreign buying interest, and comparatively stronger economic growth for the region in the untapped potential of the economy. In developed markets, the limited availability of land in prime city locations has driven up land values, and to alleviate demand and rental pressures, several authorities are establishing logistics hubs in neighbouring cities and provinces. This is where Cambodia should be targeting investment.What will Drive Growth - E-Commerce & Logistics OpportunitiesThe Southeast Asia E-Commerce Industry Report 2023 says that the Gross merchandise value (GMV) of e-Commerce increased from USD $10.9 billion to $131 billion between 2017-2022 in the region.The State of Logistics Asia-Pacific Focus Report 2023 also adds the surge in demand from e-commerce operators during the pandemic threw the entire logistics sector off as “asset owners were ill-equipped with the necessary space to accommodate it, particularly institutional grade properties.”  As the emerging market with the fastest economic growth and greatest development potential, the e-commerce industry in Southeast Asia has developed very quickly and continues to cater to the regional population of over 600 million. Southeast Asia has an overall economic growth rate higher than the global average and is one of the key drivers of future global economic growth.Within the region, Cambodia is tapped to have the strongest GDP growth.Yahoo Finance ranked Cambodia as the 14th Fastest Developing Country in 2023 with an expected GDP growth of 5.8%.Cambodia was ranked tied second with Vietnam for regional GDP growth according to the International Monetary Fund, projecting 5.8 per cent growth in 2023.The Asian Development Bank has projected Cambodian GDP growth of 5.5 per cent in 2023 but rising to 6.0 per cent in 2024.The governor of the National Bank of Cambodia, Chea Chanto, has set a 6 per cent target for 2023.The State of Logistics Report also highlighted the potential of an emerging market like Cambodia’s. “With evolving supply networks, emerging Southeast Asia is set to become an important investment market for logistics real estate. The region remains critical to supply chain diversification… In the longer term, its e-commerce potential is massive given its considerable and growing consumer class.”According to TikTok and Boston Consulting Group, the e-commerce gross market value (GMV) in APAC is estimated to reach US$3.5 trillion by 2025.Rebalance of supply chains and increased resilience – the decoupling from China will make SEA a top destination for foreign direct investment among emerging regions.Much of the domestic strategic planning needs to tap into technological trends and build now for the future. The Asian Development Bank (ADB) indicated that technology and big data are key to fast-tracking economic recovery in Southeast Asia (SEA). In terms of commercial spaces in the Kingdom, investors are still able to secure land and large-scale properties that can accommodate a range of logistical and technological needs and still be situated relatively close to urban city centres, and major new transport and logistics hubs. The rising price of land and property in the future will make these ambitions more expensive.Japan for example is sending an investment delegation for the third time in November 2023 to study potential investment projects in Cambodia such as factories, science and technology parks and EV charging stations. They have already been funding the Cambodia Post Operational Processes Upgrade to help transform Cambodia Post by upgrading processes, training and facilities to automate tracking and delivery of goods and better recording and delivery of services.For overseas investors now is an opportune time to gain long-term benefits as in-city hubs, urban warehouses and the needs in new satellite cities only gain in popularity.
Tom O'Sullivan, CEO of realestate.com.kh, shares insights on real estate market
April 28, 2023, 9:23 a.m.
During yesterday's press conference for the launch of the new B2B Cambodia on April 27th, Tom O'Sullivan, the CEO and Director of realestate.com.kh, shared his observations on the real estate market in Sihanoukville and Phnom Penh. He noted that the Phnom Penh-Sihanoukville Expressway, along with the deep-sea port, Special Economic Zone, and the beautiful beaches and islands, are contributing to the city's revival. The government has been making efforts to address the issue of stalled investment projects in Sihanoukville to instil confidence among investors.Cambodia's Industrial Development Policy 2015-2025 and Sihanoukville Masterplan aim to transform the coastal city into the "Shenzhen of Southeast Asia.".Sihanoukville is an investment hub with numerous projects that included hotels, commercial buildings, hospitals, schools, restaurants, and casinos. However, the changes in online gambling laws and the pandemic slowed down the city's growth.Tom emphasised that there are indications of the city returning to its roadmap of revival, although he wasn't claiming a realty boom. He believes the city will become a vibrant hub catering to everyone's needs, including families, tourists, foreign investors, and more.Tom also shared his thoughts on the real estate market in Phnom Penh, stating that it's currently a buyer's market. Foreign investors have focused on tier-one areas, including Chamkarmon, specifically BKK1 and Tonle Bassac, due to the current investment climate's risks. Chroy Changva is also gaining attention due to the upcoming SEA Games, the completion of a new bridge, and further connectivity to the area.Despite the challenges posed by the current investment environment, Cambodia's consistent economic growth has solidified its position as a desirable destination for foreign realty investment. Tom pointed out that both the Borey and condominium markets are experiencing oversupply. He attributed this to the market being hot before the pandemic, and almost anything seemed to be selling. In addition, the CEO noted that although foreigners still prefer purchasing condominiums due to their straightforward ownership structure, the emergence of the Trust Law has led some to consider buying land or landed property.Tom stated that China is the biggest foreign investor in Cambodia, but he noted increasing interest from the US, Europe, Singapore, Malaysia, Japan, South Korea, and others playing a major role. Discover your dream home by exploring our listings Click Here!
New Floating Markets and Bungalows to Sustain Tonle Sap Lake Fisheries
April 28, 2023, 10:03 a.m.
The Alliance for the Conservation of Fisheries Resources (FACT) has established a new initiative to build floating markets and bungalows in the provinces bordering the Tonle Sap Lake, including Kampong Thom, Kampong Chhnang, and Pursat. The project aims to improve the livelihoods of the local community while sustaining the fishery resources in the lake.Tonle Sap Lake is one of the largest freshwater lakes in Southeast Asia and a crucial resource for local communities who depend on it for their livelihoods. However, the overexploitation of fishery resources has resulted in the depletion of fish stocks and the degradation of the lake's ecosystem.To address these issues, FACT has initiated two projects. The first project aims to promote the rights of local communities towards the sustainability of fisheries resources. This involves engaging with local communities and empowering them to take an active role in the management and conservation of the lake's resources.The second project focuses on conserving biodiversity and addressing climate change. This includes developing sustainable practices that minimize the impact of human activity on the lake's ecosystem.To promote sustainable livelihoods, FACT is encouraging the diversification of income sources, such as processing fishery products and producing souvenirs and other flooded non-timber forest products. Additionally, it is promoting the development of tourism and ecotourism services through the construction of floating carp markets, bungalows, and centres focused on biodiversity, culture, and social activities.By engaging with local communities and promoting sustainable practices, FACT hopes to improve their livelihoods while preserving the ecological integrity of the Tonle Sap Lake. Developing sustainable livelihoods and conserving biodiversity and addressing climate change are crucial for the long-term health and well-being of the community and the lake.  Discover your dream home by exploring more of our listings Click Here!
Tbong Khnum Prepares to Welcome More Visitors with its SMART Area Development
Tbong Khnum Prepares to Welcome More Visitors with its SMART Area Development
April 28, 2023, 10:02 a.m.
Tbong Khmum is taking steps to enhance tourism by turning an artificial river into a SMART Area. The provincial authorities have been working hard to make the province more attractive to tourists, especially young people, after the past two years due to the COVID-19 crisis.The artificial river can hold up to three million cubic metres of water, making it an ideal place for people to enjoy water-related activities. The provincial authorities have been preparing this artificial river to become a SMART Area, which means that it will have modern technology integrated into it to make it more attractive and convenient for tourists.In addition to the artificial river, the province has also set up a garden around it, which will further enhance its appeal. The SMART Area is expected to attract young tourists to the province and will be an excellent addition to the existing tourist attractions in the area.Located in the eastern part of Cambodia, Tbong Khmum is a province that shares its border with Vietnam to the east. Despite being a new province, established only in 2013 after being separated from the larger province of Kampong Cham, Tbong Khmum has been working diligently to promote tourism and attract more visitors to its scenic landscapes, ancient temples, and cultural heritage sites. Discover your dream home by exploring more of our listings  Click Here!
Sihanoukville to Get Third Wastewater Treatment Plant
April 27, 2023, 4:08 a.m.
Sihanoukville is set to receive a boost in its efforts to maintain a clean environment with the upcoming opening of a new wastewater treatment plant. The third wastewater treatment plant, worth over 20 million US dollars, is expected to be operated by X-Water Technology, the developer of the plant.The government-licensed wastewater treatment plant will play a crucial role in treating wastewater from the city, which has been causing harm to the environment by being discharged into the sea. The new plant will join the first and second treatment plants in Sihanoukville, each with a capacity of about 5000 and 7,200 cubic metres per day.The third plant is designed to handle up to 20,000 cubic metres of wastewater per day, making it the largest of the three. The plants are expected to significantly reduce the amount of wastewater being released into the sea, thereby improving the quality of the water along the coast.According to Long Dimanche, the deputy governor of Sihanoukville Provincial Hall, in the future, people living in Sihanoukville will be required to pay for the drainage of sewage from their homes.The authorities are also planning to educate the public on the importance of environmental protection and encourage them to participate in conservation efforts. By doing so, it is hoped that the people of Sihanoukville will develop a greater sense of responsibility towards maintaining a cleaner city.As a popular tourist destination, the new wastewater treatment plant will not only benefit the residents but also attract more tourists to the area. With the completion of the new plant, Sihanoukville's wastewater treatment capacity will increase, potentially improving the overall environment and contributing to a more sustainable tourism industry.   Read More About the Latest in Sihanoukville Here
Update on Sihanoukville's High-Rise Buildings: Over 1,000 Structures and 614 Projects in Limbo
April 25, 2023, 9:09 a.m.
According to the latest report from the Cambodian Constructions Association (CCA), Sihanoukville has experienced a remarkable surge in high-rise buildings in recent years, with a total of 1,006 structures encompassing 902 projects.The coastal city has been a hub of construction activity, but the report also highlights that 614 projects are currently stalled, awaiting resolution by stakeholders. Among these, 359 buildings are suspended from construction activities, equivalent to 336 projects, while 255 completed buildings are unable to commence business operations, equivalent to 221 projects.Despite these challenges, there are still positive signs of progress, with 89 buildings currently under construction across 61 projects. Additionally, 303 completed buildings are operational across 284 projects.In addition, to address the issue of stagnant investment projects in Sihanoukville, the government has recently launched a comprehensive package of measures aimed at boosting investment confidence and stimulating market demand in the short, medium, and long term. These measures will be rolled out in stages, starting from April-May 2023, with a focus on identifying and resolving the issues faced by stuck investment projects.In a letter dated 23rd February 2023, the Ministry of Economy and Finance (letter No. 1438 MEFL) has expressed the government's unwavering commitment to resolving the challenges faced by these stalled projects and reviving the construction and business sectors in Sihanoukville. The measures include close coordination among relevant stakeholders, streamlining administrative processes, providing necessary support, and engaging with investors to find mutually beneficial solutions.
Phnom Penh's New High-Rise Development: Norodom Business Tower Begins Construction
April 25, 2023, 6:19 a.m.
The construction work for the Norodom Business Tower, a 28-floor high-rise located on Preah Norodom Boulevard in the heart of Phnom Penh's hub has begun. Led by TPMG, a premier property builder in the Kingdom, and with esteemed partners such as Pan Pacific, MCC, Aedas, and others, this ambitious project is expected to be completed in just 30 months.  Norodom Business Tower will feature 10 floors of Grade A Serviced Offices with modern and natural designs, offering a prestigious and functional workspace for businesses in the city. Additionally, the building will house a 5-star hotel by Pan Pacific, spanning across 16 floors and providing luxurious accommodation, a restaurant, leisure facilities, a rooftop bar, and a pool with stunning city and riverside views.TPMG Group Chairman, Khun Ty, emphasized that the Norodom Business Tower project represents a significant milestone in the company's history. It is expected to bring new opportunities and potential partnerships, while also contributing to the development of the group's real estate portfolio in line with the long-term national interest, under the leadership and vision of Samdech Techo Hun Sen, Prime Minister of Cambodia.With its strategic location and world-class facilities, Norodom Business Tower is set to become a landmark in Phnom Penh's skyline, contributing to the city's economic growth and positioning itself as a premier destination for businesses and travellers alike.
Sea Games 2023 - Chance For Cambodia To Shine
Sea Games 2023 - Chance For Cambodia To Shine
April 26, 2023, 6:16 a.m.
With a little over a week to go until Cambodia hosts the biggest and most significant sport event in its history, nerves have been allayed by excitement as the government and SEA Games organisers (CAMSOC) have hardly misstepped over recent weeks in promoting a sporting spectacle that should place the Kingdom front and centre of the regional and potentially global stage.Excitement Builds For 32nd SEA Games - What are the Costs?The 32nd SEA Games run from May 5-17, 2023 (while the 12th ASEAN Para Games takes place from June 3-9) and the major sporting events have been linked to several key infrastructure and transportation projects in Cambodia, which are expected to have a significant impact on investment and tourism in the mid and long-term future.The total expense of hosting the Games is estimated to be around $200 million. We assume this excludes the cost of the new Morodok Techo Stadium which cost between $150-170 million based on various reports, and it is unclear if the complexes were “donated” as some reports suggest. The precise economic benefits for Cambodia are hard to gauge right now. The generosity in recent announcement from Cambodia SEA Games and ASEAN Para Games Organising Committees (CAMSOC-CAMAPGOC) would have grown the budget of the hosting the Games and resulted in lost potential revenue streams:Free tickets for fans to attend (These were originally planned to be $25-$50 each)Free accommodation and food for delegates (which usually would cost $50/day per person)Free broadcasting rights (the figure initially linked to the broadcast rights was $800,000 from Thailand alone)Prime Minister Hun Sen in April 2023 said: “We don’t want to earn money by selling tickets. The biggest goal is to showcase Cambodia to the world through this event.”The removal of accommodation (full board) fees for the 11 participating NOCs of the 32nd SEA Games (which would not have been budgeted for considering how late it was announced) is a big cost-saving on food, accommodation, and transportation for the visiting delegations. Cambodia is the first host nation to do so, and with Bangkok due to host the SEA Games in 2025, Malaysia in 2027, and Singapore in 2029 - will the Kingdom have set a precedent that others cant follow?The Khmer Times suggested that this could have generated nearly half a million dollars a day from the coaching staff and athletes (which equates to nearly $6 million in total for the duration of the SEA Games alone).Between 11,000-12,000 sports delegates registered for the SEA Games-ASEAN Para Games 2023 in Cambodia. Even with CAMSOC’s Secretary-General Vath Chamroeun saying that “no fees” only applied to the coaching staff and athletes who are directly involved in training and competing, the announcements albeit positively greeted, means we may only know the full extent of the total cost of the events in the months to come, but in the long-term it may be a small price to pay.The three biggest delegates for the SEA Games 2023 are:Thailand - 1,985 delegatesIndonesia - 1,802 delegatesCambodia - 1,158 delegatesTo prepare for the provision of health protection and emergency services during the upcoming SEA GAMES, the Ministry of Health has tasked in total, 833 doctors (457 in Phnom Penh), 114 ambulances (72 in Phnom Penh), 9 mobile clinics (6 in Phnom Penh), and 11 health tents (7 in Phnom Penh).Cambodia’s Minister of Tourism Thong Khon had suggested that 5,000 law enforcement officers and as many as 3,000 medical workers will be on duty during the sporting events.What Sports Are Taking Place and Where?The SEA Games 2023 gets underway on 5th May, and in total, there are 608 events across 37 sports on display over the two weeks. Cambodia has waited 64 years to host the SEA Games and ASEAN Para Games for the first time - and in 2023 the slogan is “Sports - Living in Peace”.Fans will be able to collect free tickets online (via the mobile app SEA Games 2023 and website Cambodia SEA Games 2023) or at the venues hosting the competition. These resources also outline the full schedules, venues and dates for all of the sporting events (our tip is to download the guides on the app which are all very informative).2023 Southeast Asian Games by the numbers:The Opening and Closing ceremonies will feature 1,000 artists, 2,000 athletes & soldiers.Volunteers who have signed up total 5,000 for the SEA Games and 2,000 for the ASEAN Para Games.The Morodok Techo Stadium in Phnom Penh will host the opening and closing ceremonies for the events as well as; Athletics, Swimming, Diving, Table Tennis, Badminton, Tennis, Basketball, Kickboxing, Kun Khmer.National Olympic Stadium (NOS) is host to 9 different sports; Men’s Football, Soft Tennis, Gymnastics, Volleyball, Weightlifting, Water Polo, Petanque, Sepak Takraw, Dance Sports.Four stadiums will be used for football -  women’s matches are at RSN and Army stadiums, and men’s football matches will be played at the Olympic and Prince stadiums - all four are based in Phnom Penh.The Olympic Stadium has undergone some upgrades such as laying grass to replace the artificial turf which was funded by FIFA several years ago. All stadiums also have seating installed (the centrally located NOS for example usually has concrete seating).Aside from the many events taking place around the capital, cities in Cambodia that will host events are:Siem Reap - Angkor Wat hosts the Marathon and Road Cycling races.Kulen Mountain - Will provide the backdrop for Mountain Biking.Preah Sihanouk - Will host the Sailing (May 1-8), Beach Volleyball (May 11-16) and Jet Ski events (May 13-16).Kep - Triathlon/ Aquathlon/ DuathlonKampot - Traditional Boat RaceEconomic Impact of the SEA Games 2023In total Cambodia hopes to attract between 250,000 – 500,000 foreign tourists for the SEA Games-ASEAN Para Games 2023 according to Thong Khon, Minister of Tourism and Permanent Vice President of the CAMSOC.With so many key infrastructure and transportation projects developed in preparation for the events and the growth of Phnom Penh in particular - these are expected to have a significant impact on investment and tourism.Worldbridge Sport Village was intended to include 12 buildings with 1747 rooms providing accommodation capable of holding up to 7,000 athletes, during the Games. They will be converted afterwards to housing - you can find out more here.On April 10, 2023 Chamroeun said the village will accommodate half that number (3,500 athletes) during the SEA Games, and that sports delegations and athletes will also be staying at four-star hotels and other places located near venues on Chroy Changvar.We previously looked at the housing and development spin-offs from the SEA Games and the areas which are most likely to benefit from visitors (all potential visitors).The weeks of international media coverage leading up to and during the Games, as well as the foreign visitors to Cambodia should all be favourable for the property market, businesses, and the economy in the long run.Recently reported financial and economic data is already painting Cambodia in a very positive light in 2023 despite the ongoing headwinds and global trepidation:Cambodia is ranked tied second with Vietnam for regional GDP growth according to the International Monetary Fund (IMF) which has projected 5.8 per cent growth in 2023.The Asian Development Bank (ADB) has said that Cambodia’s GDP growth is expected at 5.5 per cent in 2023 and 6.0% in 2024.Economists Intelligence Unit (EIU) forecasts that Cambodia’s real GDP growth will accelerate slightly to 5.3% in 2023.Yahoo Finance indicates that Cambodia is the 14th Fastest Developing Country in 2023 with an expected GDP growth of 5.8%.Chea Chanto, governor of the National Bank of Cambodia has set a 6 per cent target for 2023.The 2023 Southeast Asian Games is something we should get excited by and cherish, but aside from nation-building and celebrating sporting prowess, these events could showcase the Kingdom for an injection of foreign investment and a shot in the arm for the long-term economic development of the Kingdom of Cambodia.