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.
Vong Kokheng and Don Weinland
The Phnom Penh Post
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