Toul Kork is now considered a fast up-and-coming area for Phnom Penh in terms of both the residential and commercial real estate. Some realtors have even said that Toul Kork will soon become a second BKK1, due to its developing demographics of wealthy khmer and expatriate business people.
Toul Kork will also soon become home to the city’s newest shopping complex. Aeon Mall 2 is being constructed inside the Pong Peay City Project, Toul Kork. This second project coming three years after the construction of the first Aeon Mall, launched in mid-2014 on Sothearos Boulevard, next door to the Sofitel Hotel and the Russian Embassy.
The arrival of the first Aeon Mall contributed many positive changes in terms of new retail and consumer environment in Tonle Bassac, and especially the growth of property prices in the area. The construction of the Aeon Mall 2 in Toul Kork is also expected to bring high appreciation increases.
Mr. Hoem Seiha - Director of Research at VTrust Appraisal - said that Aeon Mall is a business center and a large-scale market, otherwise known as an “anchor tenant,” which means that it will attract other projects to develop around the same area.
Mr. Mam Sereypanha, CEO at Easy Property Investment, said that the “the rise of Aeon mall 2 in this area will significantly benefit the real estate sector.
According to Mr Mam, “it will push up the property prices, help increase the buying and selling operations, and contribute to the construction of infrastructure where almost 100% of the existing projects are done.”
For instance, for Borey New World and Borey Angkor Phnom Penh, located very close to Aeon Mall 2, unit prices have doubled since the announcement of the mall with buyers rushing to reserve residential units in this area, said Mr Mam.
He also added that since the potential of this area has grown, the business for Borey developments had also seen a rise, especially amongst existing projects that have been expanding their units in order to satisfy their client’s demands.
In regards to land price, Mr Mam said that, “in the last three or four years, before the construction of Aeon, land prices remained low. But now, those prices have doubled or even tripled. The land along Ouknha Mong Rithy Main Road (located close to the Aeon Mall), ranged as low as $600 to $800 per square meter. Now, the same sells for $2,000+ per square meter. And along Chea Sophara road, prices have risen from $400 to $800 per square meter up to $1,000 to $2,000. If the land site is located far from the main roads, the price goes below $1,000 per square meter.”
Mr Hoem also added that in terms of the land price, the arrival of the second Aeon Mall will allow property prices to rapidly appreciate. He found that from 2013 to mid-2016, land prices in the Phnom Penh Thmey commune increased by 19% per annum.
Japan, the luxurious 4-storey Aeon Mall 2’s investor, reached an agreement with Korean developer, HYUNDAI Engineering (Cambodia) Co., Ltd. -- together with Cambodian subcontractor SOMA Construction & Development Co., Ltd, a subsidiary of the SOMA Group Co., Ltd. -- to take charge of the construction and development of the project.
This project will have a total land size of 151,000 square meters, whereas the first project was only 68,000 square meters. Aeon Mall 2 will come with large department stores, high-end retail outlets, cinemas, bowling alleys, restaurants, pubs and food courts. The outside space will serve as a parking lot that can accommodate 2,500 cars and 2,000 motorcycles. This project is expected to be completed and opened by May 2018.
Other than Aeon Mall 2, there are also other shopping malls underway this year in the Toul Kork area, such as the Parkson mall. The Central Group from Thailand will also invest in Toul Kork, according to recent announcements.
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