New Construction Prakas slated

Kong Leanghour

29 March, 2012

The Ministry of Land Management, Urban Planning and Construction announced that it is drafting a new prakas, or edict, in an attempt to reinforce regulations in Cambodia’s construction sector.

The ministry is drawing up the new construction law with the assistance of local architects, engineer and international law makers, Lao Tip Seiha, construction department director at the Ministry of Land Management Urban Planning and Construction said.

“The law will strengthen the construction sector and provide an improved living environment for potential customers”; he said adding that it will also provide more transparency and attract investors to the market.

The proposed prakas will complement the Ministry of Economy and Finance’s Housing Development Law, which, among other requirements, obligates developers to deposit 2 percent of the total value of the project. It is slated for implementation in the third quarter of 2012.

The drafting of the law was overseen by members of Singapore based group PEMASEK, which has previous experience drawing up similar edicts in the city state, according to Beng Hong Socheat, spokesman for the Ministry of Land Management, Urban Planning and Construction. He added, however, that a completion date for the draft has yet to be set.

While the sector has experienced reasonable recovery from the economic downturn, some victims were claimed, such as the South Korean-funded Gold Tower 42 and Camko City, which both stand incomplete.

Some members of the sector, however, questioned the significance of another development-related prakas.

“What worries us is that the laws from different ministries will start to overlap. It requires prior consultation, so the same cake isn’t baked twice”, Sung Bonna president of the National Valuers Association of Cambodia.

He added that an increase in the number of regulators would help to minimize bad practice in the sector

Source: Phnom Penh Post

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Land size: 18m x 19m
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Good economy and low interest rates keeping Singapore mid property market going

WEDNESDAY, 29 FEBRUARY 2012

Low interest rates and a healthy economic outlook are expected to keep Singapore’s mass market residential property market resilient in the coming months, particularly for developments in the Outside Central Region (OCR), it is claimed.

Last year, mass market homes, excluding executive condominiums, hit a record, selling 65% or 10,374 units of the total number of new private homes in the OCR, according to figures from Urban Redevelopment Authority’s (URA).

Comparatively, OCR home sales reached 7,357 units in 2010, accounting for a 45% share, while sales hit 6,060 units or 41% in 2009.

According to the URA, the Core Central Region (CCR) comprises the Downtown Core, Sentosa and districts 9, 10 and 11. On the other hand, the Rest of Central Region (RCR) covers central areas except for those under the CCR.

Meanwhile, the OCR, which covers the rest of the island outside the central region, is where most of the private mass market housing and HDB towns are located.

The strong take up for new mass-market homes last year is attributed to supply and population growth, backed by low interest rates and healthy economic fundamentals.

Data from Singapore’s Department of Statistics shows that the country’s total population jumped from five million in 2009 to 5.08 million in 2010 and 5.18 million last year. The proportion of households that reside in private apartments and condominiums grew by 11.2% in 2010 from 10.4% in 2009.

The country’s open economy also continued to draw foreign interest. URA figures show that foreigners and permanent residents (PRs) acquired 4,337 new private homes in 2011, up from 3,887 in 2010.

Developers brought a total of 17,710 new homes into the market last year, an increase of 6.8% from the 16,575 units launched in the preceding year. About 64% of these units were in the OCR

Source: www.propertywire.com

Apartment Market in Phnom Penh - Cambodia

Supply Trends

There are 114 apartments of all grades A to C, including approximately over 2,093 units’ apartments for rent, in Phnom Penh. Market share remained the highest amongst grade B, accounting for 64% of total supply. The number of units in this quarter increased by 3% quarter-on-quarter and by 9% per year-on- year.

Market Performance

The average occupancy rate of the overall market of grade A increased by 94%, Grade B by 89%, Grade C by 82% in the last five quarters.

Demand Trends

Apartments usually have more space, privacy and comfort than hotels and therefore are often the preferred choice of international visitors who conduct repeated short-term stays for business purposes. Demand in some districts/Khans such as Chamkarmorn, Toulkork, Daun Penh and 7Makara but other khans has not been met, as there are no existing apartment projects in these areas. Demand for serviced apartments may also be affected by competition from large, although competition from private houses and fully furnished condominiums with housekeeping and security services and with professional services and management remain the preferred accommodation.

Outlook

Supply in coming years will increase the 20 known future projects coming on the market. Nine of these 20 projects plan to provide approximately 290 units, while the number of units in the other 11 projects is yet to be ascertained.

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Penh, Cambodia.

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 Phnom Penh is the Capital city of Cambodia, administratively, Phnom Penh is a municipality standing at 375 square kilometers. Phnom Penh is the business district where government office and most of the business are situated. As of 2011, according to preliminary census results, Phnom Penh had a population of more than 2 million people.

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