The Diamond Twin Tower condominium project on Koh Pich has been selling quickly in the first two weeks on the market, according to its sales agency.
Chan Nara, sales manager at FURI Real Estate, said the project has sold 35 percent of its units since early this month.
“We just started selling during this month, and we are 35 percent sold out both in the local and Taiwan real estate market,” said Mr. Nara. Units are priced on average at $2,800 per square meter. “Our target customers are looking for a five-star standard of living in a luxury zone with full facilities, plus the first sky beach in Phnom Penh and also the first office building located on Diamond Island,” he added. The project is slated for completion in May 2018.
Mr. Nara said that the company’s decision to include an office tower would help it benefit from the upcoming ASEAN Economic Community, which will begin at the end of this year. Local companies expect that it will see more investment flow into Cambodia, and Phnom Penh, as the country positions itself as a gateway to the region as well as part of the region’s supply chain for manufacturing.
Chreck Soknim, CEO of Century 21 Mekong, said the location on Diamond Island is naturally favorable for high-rise development. “The area is surrounded by water and has a nice view. If the area were in other countries, the condo developers would set higher prices,” Mr. Soknim said. “The unit prices are not expensive for such a high-end development. However, prices have to be based on construction quality, facilities, surrounding environment, and accessories in the buildings.”
Mr. Soknim brushed off concerns about a glut of supply of high-rise condominiums, saying that the supply and demand are running parallel. “[The developers] also clearly study the market before they decide to invest money,” he said.
Developed by Chao Ting International Real Estate Co. Ltd and constructed by SPCC Pacific Company, the twin-tower Diamond Island project will have a 30-floor and 328 unit office building next to a 32-floor residential building. It will feature a 20-meter swimming pool, gym, spa, sauna, restaurant, shopping center, coffee shop and sky bar.
According to an October report from real estate agency Century 21 Mekong, condominium development increased by 20 percent annually from 2008 to 2014 with 13 projects successfully completed, which translates to 3,090 available units as of today. With another 17 projects currently underway, the report predicted that by 2018, when many of the current projects are slated for completion, the number will have more than tripled to over 10,000 available units across Phnom Penh.
Return on investment on condo projects in Cambodia is around 7.5 percent per year, compared to Thailand and Japan at 6.3 and 5.5 per cent respectively. Meanwhile China and Hong Kong are offering rent yields of only 2.7 and 3.3 percent respectively.
