Once a rabbit warren of sleezy bars and video game parlours, developers hope the Phnom Penh Pub Street concept will give new shine to a faded star

After years of slow decline, Golden Sorya Mall on Pasteur Street (Street 51) has been given a major overhaul and will re-launch later this month as Phnom Penh's latest 24-hour food and drink venue.

Named "Phnom Penh Pub Street", the open-plan complex boasts 29 outlets – some with two floors – all contained under a single roof, and promises a mix of themes and cuisines, ranging from local fare to Korean and Mexican.

"This is a new concept that is very popular overseas," said Van Porlim, general manager for the family owners who also operate the chic Van's Restaurant in the old Bank Indochina building near riverside.

"It is a tested theme that is very popular in Bangkok," she said. "It will cater to both Cambodians and expats."

Until the renovation, Golden Sorya Mall was a rabbit warren of sleezy bars and video game parlours where down-at-heel party girls and small-time drug dealers vied for the attention of mostly elderly and often decrepit Western male visitors.

It remains home to Pontoon, a popular night spot which often features top visiting DJs, and is opposite Heart of Darkness, the grandfather of Phnom Penh's club scene.

Over the years, however, the area missed out on the development enjoyed elsewhere in the capital and went to seed. Addicts and drunkards could regularly be seen in the morning slumped on the pavements, sleeping off their respective poisons even as youngsters were being dropped off to attend one of the many schools in the area.

Tuk-tuk drivers were more likely to offer you an illicit substance than a ride somewhere, while drunken brawls were commonplace. If a troubled foreigner went missing in Cambodia, Golden Sorya Mall was usually the first place to check.

If the development succeeds, however, it could breathe new life into an area which has already caught the attention of adventurous developers.

The recently opened Purple Inn, a striking needle of a building opposite Pub Street, is already doing brisk business, while around the corner All Sports, a 24-hour dedicated sports bar, is well established in just a year of operation.

Just 300 metres away, the glitzy new Sorya Centre Point opened to great fanfare in February, boasting several international brand stores and a multiplex cinema.

One local shop owner who asked not to be named said he was delighted with the new Pub Street concept.

"I hope it will also bring some business to my store," he said, "and if they can drive away the drug users from the area it will definitely attract more people."

There are some slots still available in the complex, with rents ranging from $900 to $2,500 a month.

"It is quite interesting," said one prospect, who identified himself only as Mr Chi when Post Property caught up with him viewing. "I am looking for a place to open a Korean restaurant."

Property consultant Paul Ellender said he had no doubt the concept would be good for the area.

"I believe the development at Golden Sorya Mall will likely have a positive effect on surrounding businesses and apartments as there will be more people in the area 24/7,"he said.

"With more people around, this will make the area safer, more diverse and more attractive in the longer term."

And could the launch impact land prices and rents – particularly of residences?

"This has been a publicly known project for some time so I think most of the impact has already taken effect," said Ellender.

"Rents are now being squeezed more by the large condos around Phnom Penh than by a single development," he added.

Although the official launch is only on May 30, a couple of bars have already opened and appear to be doing good business.

"The location is very good," said Sok Tida, manager of one.

AS A youngster growing up in a remote part of Prey Veng province, Sorn Seap and his family lived off the land, eking out an existence by growing rice.

Big things were expected of him as the eldest child, and he sometimes dreamed of becoming a teacher, or even a doctor. While he loved nature and the outdoors, he also dreamed of an easier life – although he knew he'd have to work hard to achieve it.

Thirty years later, Seap is still inextricably linked to the land – not as a farmer, but as the founding director of Key Real Estate, one of the biggest property companies in the Kingdom.

"It may sound a bit funny because I didn't even know what real estate was for the first two decades of my life," Seap says. "When I was young and inexperienced, I only wanted a good, comfortable life."

It was a high school sweetheart that got Seap more focused on his future. While romance in school is commonly viewed as a huge distraction to education by Cambodian parents, Seap's relationship encouraged him to dream big.

"Whoever I am and what I have today is the fruit of my hard work and active learning, but everything began when I started dating a girl who would become my wife in high school," he said.

"I wanted to have a family and I wanted to give them a great life so I started to write my plans in a notebook and strictly followed them. "I committed to work hard in my studies, become multilingual, work to earn lots of money, take my family to visit other countries and, most importantly, have a place to call home."

After finishing high school Seap signed up for an undergraduate program at the National University of Management (NUM), where his interest in real estate first blossomed.

"I did an assignment about a real estate company in the US, which evolved from a startup with a few hundred dollars of capital to a corporation with assets worth millions," he said. "It was how I discovered businesses around the world revolve around real estate, that about two-thirds of a country's total wealth lies with its land and property.

"Beginning with this one simple assignment, I committed to become fully involved in the sector and one day to have my own real estate company."

Seap realised that, in order to make his dream come true, he needed to build his skills and abilities outside the classroom.

He volunteered as a teacher for a local humanitarian NGO for two years just to practise his public speaking, and after his graduation in 2005 took a job paying just $120 a month at a real estate startup founded by a French-Cambodian.

"I told myself not to care about money at that time," Seap said. "If I had, no dream would have been possible."

Although the business folded after six months, Seap learnt much from the experience. He spent the next decade in a variety of real estate jobs – as a manager of an apartment building, a salesman and, finally, helping Knight Frank establish its business in Cambodia.

In 2010, he fulfilled his dream by starting his own company – Key Real Estate. Things got off to a rocky start, however.

When it first started, Key Real Estate had three staff – including the founder – working from a a one-room office and struggling to find clients.

In the first six months Seap lost his savings and money he had borrowed from his parents, but was able to find partners who believed in a business plan that had been seven years in the making.

After a year, the company turned a profit, and eight years later the company has 45 employees and three buildings in the capital – as well as offices in Sihanoukville and Battambang.

Key Real Estate provides the usual property management, project sales and marketing services, but the area it specialises in is valuation.

"Property valuation is a requirement when the banks or other financial institutions have to decide whether they should accept a property as collateral, and it is also needed for many other purposes such as investment," Seap said.

"It has to be done very carefully through comparison, investment, cost and profit procedures, each of which is important in its own way."

Seap said the key of his company's success is the prioritising human capital to ensure the accuracy of the information and data collected.

"I and others in the management team train our young employees very hard and encourage our employees to learn and share their ideas," Seap said.

"It sounds very simple but we want them to be better than us. Only well-trained employees can collect reliable and credible data and information and use them to analyse the value of properties.

"I want investors in the country to call us whenever they want to know how much land or property is worth."

PAY a visit to landscape specialists Sokea Garden in Sen Sok district, and you'd be forgiven for thinking you've entered a different world.

The 2,000-square-metre parcel of land is a veritable tropical paradise, bursting with trees, bushes, flowers and ferns – a cool green oasis of calm and tranquility.

On a path from the road to a small office building deep inside the compound, Lao Mekeang, the 39-year-old CEO and founder of Sokea Garden, is carefully examining a rocky fish pond following a sudden thunderstorm, concerned the downpour may have caused damage. He is accompanied by his wife, Hok Sokea, who the company is named after.

"Water gives life, but too much water can also ruin the plants," says Namkeang. "And these plants are very important because they are the heart of my business."

As a teenager growing up in Koh Sotin district of Kampong Cham province, Namkeang wanted to be an artist – specifically a sculptor – and attended training courses organised by the French Institute of Cambodia.

A sculpture made of bamboo and coconut shells at an exhibition called Ponleu, earned him a scholarship to art school in France, but Namkeang chose instead to follow in his father's footsteps and studied business administration at Norton University.

When the family business fell on hard times 1998, Namkeang was forced to drop out, but won a scholarship to study interior design at the Royal University of Fine Arts.

"I never planned on studying it, and I was so nervous when I took my first step into the class," Namkeang says. "However, after a while I found that my artistic talent and skill helped me a lot. The close relationship between art, which I love, and design meant I really enjoyed studying.

To help the family finances, a sophomore started doing freelance work – mostly designing stages for concerts.

But just a few months after graduating in 2000, Namkeang received a huge break when he was commissioned to design the Kirirom Hillside Resort.

It was a quirky endeavour.

Although he designed the houses and bungalows, his favourite part of the project was landscaping the ground, planting thousands of exotic plants and installing many sculptures – including a 17-metre statue of a Brachiosaurus.

"Before, I had only worked on indoor designs and had never realized that landscapes, especially the gardens, could be such a feature. Hardscaping [installations], meanwhile, involved creating artwork, which I love very much."

Eight years later, shortly after his marriage, Namkeang changed tack and focused entirely on landscape design.

The newlyweds brought together a group of young Cambodian designers and in 2013 registered as a limited liability company.

"There were so many reasons I turned our small group into a company, but the main one was the increasing enthusiasm among business owners and investors for landscapes," Namkeang says.

"Meanwhile working indoors stressed me. As an outdoor person I needed to turn back to working with nature – which at the same time allows me to use my artistic skills and talents."

Sokea Garden provides a number of landscaping services including design and construction, civil work, water features, and "hardscaping", as well as maintenance of indoor and outdopor gardens.

In five years the company has grown at great pace, accepting projects from a number of major investors and companies.

Some examples are the garden at Cambodia Beverage Company's plant – which incorporates a pond in the shape of a Coca-Cola bottle – as well as the first and second branches of Aeon Mall and the side road garden at Phnom Penh City Center.

His toughest project to date was designing the garden at Veal Preah Men, the funerary complex for the late King Norodom Sihanouk, which he had to complete in a month.

"I couldn't believe we'd been chosen for such a prestigious project," Namkeang said, "but we now have a large portfolio of original and classical designs for many satisfied customers, big and small."

According to Namkeang, the key to his company's success is concentrating on creating landscapes that fit with the property's identity.

"What I mean by identity is what we want the structure to be," he says. "It depends on whether the property is place where people work or relax, whether it is modern or classical, Western or Asian – but one thing is clear: All these elements must blend with nature.

Another important factor is to precisely understand the client's desires and budget.

"One thing we always strive for is to make dream of the client come true without compromising the quality of our work," he says.

"We always keep our eye on marginal differences in cost, for example, between buying artificial grass or real stuff."

Namkeang starts on his designs by painting the landscape on canvas and draws inspiration from travel – both in Cambodia and abroad.

Like many local companies today, Sokea Garden is facing intense competition from the foreign companies, especially in term of design quality and pricing.

"Our mission is to make customers think about us first when they are thinking about beautifying their structures," he says.

"But my ultimate dream is to have a resort that I design myself, which I can enjoy after my retirement when my children and younger employees can take over my business."

From something of a backwater less than a decade ago Chbar Ampov has become a residential area with a focus on leisure

JUST across the Bassac River, but not far from the city centre, Chbar Ampov district is fast becoming one of the most popular residential areas in the capital as Phnom Penh's urban sprawl continues.

Despite the need to further develop services and infrastructure, the area is nevertheless attracting developers and private builders keen to take advantage of the relatively cheap land rates and abundant greenery.

"It is an area with great natural advantage including the Bassac and Mekong rivers and many trees," said Kim Heang, president of the Cambodian Valuers and Estate Agents Association (CVEA). "The natural surroundings are healthy and make people want to live there."

Located along National Road 1, Chbar Ampov is sub-divided into eight "sangkats" – Prek Pra, Chbar Ampov 1, Chbar Ampov 2, Nirouth, Kbal Koh, Prek Eng, Prek Thmei and Veal Sbov – and now home to some 140,000 people.

A decade ago the area was very much considered a rural district – albeit neighboring the capital – but interest picked up after the launch of the first borey projects.

Since then several other developers have already started or announced plans to build in the area – not least Oxley-Worldbridge, who last week unveiled their design for the luxury The Palm project, complete with a marina, canals and an artificial beach.

"A lot of residential borey projects in Chbar Ampov such as Borey Heng Meanchey, Borey Sambath Meanheng and Borey Hi-Tech Luxury have been very successful," said Yim Socheat, CEO of CDN Property. "In general, the area sees more residential than commercial projects."

One recent home buyer is Tob Sreymeng, an accountant, who recently moved into a house in Borey Penh Huoth, Sangkat Nirouth.

"My husband and I decided on that location because it has lots of fresh air from the two rivers, making my family feel comfortable," she said. "Also, Chbar Ampov does not have many industries or factories causing pollution."

A lack of infrastructure has kept industries from moving in, but planned improvements should help the area become a fully-fledged multipurpose district.

"In terms of development, we have a clear plan to repair the roads in the district and implement infrastructure projects," said Huot Huy, Director of Chbar Ampov district's administration.

"The district has implemented a three-year development program that costs about 5 billion riel [$1.2 million] per year from City Hall. The money will be spent on programs that cover issues such as roads, building restoration and rehabilitation and new sewage lines"

Met Meas Pheakdey, the City Hall spokesman, said the plan would focus on the development of bridges, roads and sewage systems to fully integrate the area into greater Phnom Penh.

"City Hall plans to build a sky bridge at the intersection near Monivong Boulevard. This should further promote the city's infrastructure development and boost economic activity," he said.

Although Chbar Ampov is attracting more residential projects, stakeholders say land prices in the area have not risen as remarkably as elsewhere in the city.

Residential land prices range from $100 to $300 per square metre while commercial land along the National Road 1 from Borey Peng Huoth to Chbar Ampov Bridge is going from $1,500 to $2,500, according to CDN Property's Socheat.

"The price is under $1,500 per square metre the further the property is from the main road," he added.

"Prices are not rising as much compared to other districts since there are not many big international brands or international schools. Also, there are not many big roads except for National Road 1, therefore it will be a while before land prices rise."

District Administrator Director Huy explained further: "Property in Sangkat Chbar Ampov 1 and Chbar Ampov 2 is relatively higher based on the annual property tax charged by the two sangkats. Chbar Ampov 1 and Chbar Ampov 2 are more expensive than other Sangkats since they closer to the city."

Realtors consider average-priced condos as those costing from $30,000 to $50,000 per unit.

While the market for luxury condominiums aimed at the wealthy is nearing saturation point, developers are eyeing the burgeoning local middle class as the next big thing in property sales, according to realtors.

"I think developers that focus on average-income customers can be successful as local people are now able to afford them," Ann Sothida, director of realtors CBRE Cambodia, told Post Property.​ "There is definitely a trend developing."

The middle class in Cambodia is loosely defined as a household earning from $500 to $2,000 a month. In the past, families attaining this status would likely think about buying land or property near their ancestral homes, but now even first-time buyers are considering moving into so-called average-priced condominiums.

Realtors consider average-priced condos as those costing from $30,000 to $50,000 per unit.

Sothida said this year alone has seen three such condo projects come online, with a total of 2,000 units.

Developers are aiming their product at buyers like Narith, who recently bought a unit in a condo in Boeung Trobek commune as a second home.

"I think more Cambodians are choosing to live in condos because some of my friends have also bought into the lifestyle," he said. "Living in a condo will definitely be different from living on the ground floor. It will be a new experience."

Kim Heang, president of the Cambodian Valuers and Estate Agents Association, said condos aimed at the middle class were a bargain compared to landed property – particularly in the Chamkarmon and Daun Penh districts.

"If condos in these areas are built from 15 to 25 floors and priced from $800 to $1,200 per square metre, they will be successful," he said. "For that price you would only get perhaps one floor of a landed house, which is likely to be old and lack modern infrastructure.

"Any developer looking at that model will get many local customers since condos have better services than older flats."

Developer L Residency Cambodia, currently involved in five average-priced condominium projects with units priced from $29,000 to $50,000 per unit, said it had definitely seen growing interest from locals – even though it was mostly foreigners snapping up the relative bargains.

"Condo units prices from $900 to $1,200 per square metre are on the right course with the right target audience and I am not concerned about being able to sell them," said official Tuy Bun.

"The reason we are building so many units like this is because there are more customers."

Still, he said, investors from China remain a lucrative market. "They purchase 100 units or more at one time as a long term investment" he said.

The demand for co-working space in Cambodia is on the rise as young entrepreneurs, startups and designers seek economy and flexibility while they find their feet in the market

Despite the glut of office property in Phnom Penh, co-working enterprises are flourishing, thanks to demand by local entrepreneurs, start-ups and visiting businessmen seeking accommodation and services they can't provide themselves.

Coworker.com, the office-sharing equivalent of Airbnb, lists 13 companies in Cambodia currently offering co-working facilities – although real figure is certainly more and set to grow in line with the boom in small business openings.

A relatively new concept here, co-working has quickly gained a foothold. Facilities range from trendy open-plan offices favoured by hipster entrepreneurs, freelancers and designers, to more private boardroom-like premises used by visiting businessmen seeking an office away from home.

"The demand for co-working space has been rising over the past few years, particularly for startups and individual entrepreneurs who need a good working environment at an affordable price," said Chea Mara, General Manager of Emerald Hub, which has two locations in Phnom Penh.

"They stand a better chance to build networks with other firms, as well as enjoy communal meetings and seminars that will help boost their knowledge and experiences."

Most co-working spaces in Cambodia offer similar services, but also try pitch themselves at a specific market, offering specialties in that area.

Impact Hub Phnom Penh, for example, is part of a global network that bills itself as "a business incubator, a social enterprise builder and above all, a community of like-minded people who believe they can make the world a better place".

The Desk, another co-working space in the capital, targets small business people – particularly in the tech sector – providing "the resources and solutions for today's entrepreneurs by offering affordable workplace, networking, educational and personal growth workshops".

With co-working space, you get what you pay for.

Emerald Hub, which entered the market in 2016 and is planning a third premises within the year, currently serves 32 tenants, from individuals to teams paying from $60 a month to over $500.

Services at their BKK3 office, for example, start at $60 per month for a "hot desk" – you grab what is available in an open plan office – to $300 for a room of your own that could accommodate up to four people.

Pok Sina and her team of three have been renting a space in Emerald Hub for a year after starting a small e-commerce company known as Fado168 which orders and ships goods from Amazon in the US to sell in Cambodia.

"We decided to rent a space here because it is in a good location and the price is affordable," she said. "We just pay monthly rent [$300] but get free, fast internet service and other utilities, which is different from renting office space in a commercial centre with higher price.

"Moreover, we have a chance to get more knowledge by attending seminars here every week."

Earlier this year, Toong, a leading Vietnam startup in co-working space, announced its first foray into Cambodia, with a facility near Vattanac Capital Tower.

Expected to open during the fourth quarter this year, the Phnom Penh office will consist of 700 square metres and will be their ninth such facility in the Indochina region.

"The modern co-working space increasingly attracts a young and dynamic generation by providing a comfortable, economical workplace as well as a creative working culture for clients," Duong Do, Founder and CEO of Toong , told the Nikkei Asian Review recently.

Ann Sothida, country manager of realtors CBRE Cambodia, said her company had yet to fully analyse the co-working market, but the entry of players such Toong showed great potential existed.

Echoing her view, Hoem Seiha, Director of Research at Vtrust Appraisal, said the segment would definitely see more growth given the rise in the number of young Cambodian entrepreneurs and professionals such as designers starting their own small business.

"The co-working concept has already proved popular in Thailand and Vietnam, and so it will be Cambodia in the near future."

The government says wages for unskilled construction workers are rising in line with the building boom, but ask any labourer and you'll hear otherwise

WAGES for low-level workers in construction are not keeping pace with the building boom despite official government statistics suggesting they are ahead of inflation, industry representatives say.

While workers can boost their earnings by specialising in specific areas, general labourers doing so called muscle jobs are struggling to make ends meet – particularly those who have left the countryside to seek a living in the capital.

Sok Kin, President of the Building and Woodworkers Trade Union Federation of Cambodia (BWTUC), said wages were definitely not keeping pace with demand and were lower than government statistics.

The union estimates that manual laborers earned between 16,000 to 40,000 riels (between $4 and $10) a day, with an average of 30,000 riels.

"This is low compared to $10 – $12.5 wage per day in Thailand," he said. "Moreover, Cambodian construction workers do not have insurance or other benefits."

The Ministry of Land Management, Urban Planning and Construction, says the average wage for unskilled construction workers in 2017 was between 35,000 to 40,000 riels per day. Semiskilled labourers and supervisors averaged from 50,000 to 75,0000 riels while those with accredited qualifications moved out of the daily-rate category and could expect upwards of $400 a month. An informal survey of labourers suggests otherwise.

"When I first started construction work in 2015, I received 18,000 riels a day carrying tiles and mixing concrete,"said Kim Hong, a 24-year-old from Svay Rieng province. "My first job was really tiring because I needed to work under the sun for long hours every day."

Despite having now specialised as a tile aranger, Hong still makes just 45,000 riels doing literally back-breaking work for eight hours a day on a borey construction site in Khan Por Sen Chey.

"A construction worker requires great endurance and physical force and is prone to danger, but the wage isn't equivalent to the work required," he said.

Even on $340 per month – against a national minimum wage of $160 – he is unable to save enough money to support his hometown family.

"Food takes a lot out of the salary, not to mention medicines, household costs and various other costs. "I only received a raise because I specialised in tile arranging. If I didn't have a specific skill, I don't think my wages would exceed 25,000 riels."

A spokesperson for the ministry was not available for comment, but construction firms in the capital confirmed the discrepencies.

"Right now, workers who do muscle jobs get between 25,000 to 30,000 riels a day and labourers with expertise from 40,000 to 80,000,"said Phou Sambath, assistant director of developers Phnom Penh Thmey, which operates three construction sites in the capital employing over 500 workers – 95 percent of them Cambodian.

Most workers on his sites earned at the top end, he said, because the company preferred hiring people with specific skills in order to prioritise quality. "Salaries change according to the field of work and experience,"he said.

There can be some envy in the much higher salaries that foreign workers – mostly from China, Vietnam, Thailand and Malaysia – are seen to recieve, but like Phnom Penh Thmey, some companies are changing their payment plans.

"Any foreign team or experts the company hires do not receive daily or monthly wages, rather they are paid for the aspect that they are handling, such as specific landscaping, wood or marble work," he said.

Olympia City contractor OCIC said its unskilled workers earned in the region of 20,000 a day – well below what the ministry claims – while semiskilled labourers twice that.

"The wages have increased a bit compared to last year," said Meng Chamreoun, OCIC project manager, who overseas 2,000 workers, mostly Cambodian.

"The sites at Olympia City also have Chinese experts involved in the process, but they only work in certain parts of the project," he said, adding some of them earned upwards of $7,000 a month.

According to Chamreoun, the site he's managing doesn't have a problem filling casual positions – apart from during the harvesting season.

Figures from the Ministry of Land Management, Urban Planning and Construction say the construction sector in Cambodia provided employment in 2017 for around 260,000 Cambodians a day, compared to around 185,000 a year earlier. Phnom Penh accounted for between 125,000 to 160,000 jobs per day in 2017.

Casual labourers in Sihanoukville appear to be faring a little better than their counterparts in the capital, fuelled in part by a China-led construction boom.

"Since most projects in the province are financed and developed by the Chinese, high-skilled jobs are usually given to their nationals," said Non Thim, a construction analyst in Sihanoukville.

"More investment in real estate such as residences, condos, hotels and casinos in the province has led to an increase in employment, but most Cambodians are employed in low-skilled jobs with an average salary of around 35,000 riels per day.​

DHAKA (The Daily Star/ANN)

Dhaka is set to welcome half a dozen international hotel chains over the next couple of years, brought about by the growing influx of business travellers to Bangladesh.

"The economy is expanding and so is the number of guests," said Md Jashim Uddin, vice-chairman of Bengal Group of Industries, which is constructing a 370-room hotel in the capital's Niketan area for about BDT 600 crore.

The property will be managed by Swiss hotel chain Swissôtel Hotels and Resorts. "We want to make the ultimate business hotel, which we do not have in the city yet," he added.

Bengal is not the only local business group pouring in funds to expand the capital's luxury hotel landscape; Jamuna, Marium and Premier are entering the fray too.

New business opportunities have come up for construction of large infrastructure projects such as the Padma bridge, Rooppur nuclear power plant, metro rail and LNG terminals.

At the same time, the flow of business travellers related to the export-oriented garment industry is set to get bigger as the apparel makers chase an export target of $50 billion in 2021.

Altogether, the new hotels are expected to bring forth investment of about BDT 5,400 crore, according to industry insiders and a banker.

Marium Group is establishing a 200-room hotel in Hatirjheel area for about BDT 1,500 crore. The property will be christened the Holiday Inn Dhaka City Centre and is expected to open its doors to guests by the end of this year.

"There is a huge demand for luxury hotels. In fact, it is more than the supply in the city," said Alam Ahmed, managing director of Holiday Inn.

Jamuna Group has struck a deal with Marriott International, the American luxury hospitality chain, to set up the 700-room JW Marriott Dhaka. The hotel will be located at Jamuna Future Park in Progoti Sarani. Premier Group is building JW Marriott's sister brand Courtyard by Marriot in the capital's Gulshan area. Unique Group, the parent company of Westin Dhaka, is establishing Sheraton Dhaka in Banani, while Lakeshore Hotels has teamed up with Thai hospitality group Dusit International to set up a business hotel in Uttara for BDT 150 crore.

Once all the under-construction properties become operational, the total supply of upscale hotel rooms in Dhaka will more than double to 3,000 from existing 1,250, according to industry operators.

The new entrants will also drive up competition, and possibly lower the room tariffs, said MA Awal, director of sales and marketing of Pan Pacific Sonargaon Dhaka.

He went on to state that the supply is growing faster than the demand. Al-Amin, director of sales and marketing of The Westin Dhaka, differs in opinion.

"The room rates in upscale hotels in Dhaka are high, which reflects the solid demand," he added.

Shahidus Sadeque, director of marketing and business promotion of InterContinental Dhaka, which is expected to resume welcoming visitors later this year, has a similar position. The economy grew steadily in the last five-six years, but the number of international hotels has not increased to that extent, he said.

"Our market is under-supplied. We have only half a dozen of international hotel brands whereas Kolkata has more than a dozen of such hotels," he added.

At present, five international hotel chains are serving in Dhaka: Marriott International's brands Westin and Le Meridien, Radisson, Pan Pacific and Amari.

About 3.1 million visited Bangladesh in the last six years and the average occupancy rate in the upscale hotels in Dhaka is 60-70 percent, according to Syed Mehran Hussain, manager marketing of Four Points by Sheraton, which began operations last year. "And the number is increasing day by day. With the rise of visitors, the number of star-hotels is also increasing."

As a youngster, Yang Thearith dreamed of being a doctor, but a change of direction saw him become an engineer with a focus on the health and safety of his projects

It is a national holiday and the morning sky is filled with black clouds, signalling a rainy day ahead, but Yang Thearith, managing director of GBC Engineers, is cycling to his office on Street 331 in Beung Kak II to finish some work and get some exercise at the same time.

Health has always been very important to the 34-year-old, who as a boy dreamed of becoming a doctor. Although that dream was not fulfilled, the engineer, who two years ago co-founded a multinational company still considers himself a "healer" – not of people but of buildings.

"After more than 10 years working in this sector, I can say that like a doctor, an engineer is mostly sought by customers when a problem happens," Thearith says. "But an engineer not only cures, but also shapes the destiny of a structure."

The third son from a poor farming family in Battambang, Thearith has always valued hard work. Although his parents didn't receive much education, they encouraged their children to study and do well at school. Their dream for Thearith was to see him as a doctor, examining patients in a hospital, wearing a gown and a surgical mask.

"Unfortunately I was not accepted into medical school after I finished high school in 2001," Thearith says. "So I applied to Institute of Technology of Cambodia, and was accepted in their three-year technician training program."

Disappointed but not downhearted, Thearith set his sights on the ITC's Department of Engineering by becoming a top student in his current program. After a year of hard work – which involved frequent struggles to stay awake overnight to study – he achieved his goal. A major bonus was discovering a love for the subject, especially designing engineering.

"I always loved maths, but engineering is not just about solving equations," Thearith says. "It is also practical and technical, which I really love."

Upon graduation in 2006, Thearith spent half a year working as an engineer for a paper factory in Sihanoukville and another six months for ILI Consulting Engineering , a German company. In 2007, he was awarded a postgraduate scholarship from Gadjah Mada University in Yogyakarta, Indonesia.

After receiving his master's in 2009, Thearith, then 25, returned home and resumed working for ILI. In the next six years he had worked on many major projects, most notably the ACLEDA building in Phnom Penh.

Despite his success, Thearith quit in 2015 to found a company with two German colleagues. The huge risk make him nervous, but also excited to put not only his engineering and design skills to work, but also test his management and marketing abilities.

"It was a huge risk using my life savings on the venture, but we wanted to see how far we could go on our own, he said.

"In addition, I had got married and was not getting any younger. I really needed something of my own for my family before it was too late for me to do anything."

With a head office in Berlin, Germany, GBC also has international offices in Cambodia and Vietnam.

In GBC's Phnom Penh-based office, there are more than 30 employees – both Cambodian and German, working on engineering services such design, consultancy, supervision and building assessment.

In the past two years, GBC Cambodia had been assigned to many major projects including the civil and structural concept designs of Mercedes-Benz Autohaus and the 21-storey Diamond Apartment Building. Its biggest project is the Novotel Hotel Palace's nine-storey building, over 16,600 square metres GFA in Sihanoukville, with construction possibly starting in mid-2018.

The main reason behind their success, according to Thearith, is their priority on building safety, focusing on minimising danger or risk of harm by strictly following international standards.

"Many investors expect lower prices and quality from local engineers and designers although they actually have similar academic backgrounds and experience to their foreign counterparts," he says.

"I believe this is a very big obstacle for local engineering students, despite the country's booming construction sector, and one of my lifelong missions is to improve the skills and also perception of my Cambodian employees.

"Many investors and engineers here focus only on the look of the project, but our principle stands on 100-percent safe buildings," Thearith says. "We will not compromise anything for safety.
Thearith says he always makes sure that designs from his company matches the abilities of the labor force as well durability of materials used.

"High-quality materials and human resources are needed for great projects," he says. "So while our fees may be high, what investor receives will be what they really desire."

It is early days, but with growing disposable income and increased leisure time, Cambodians are learning to relax more. Are they ready for a vacation home?

With Cambodia boasting 28 official public holidays this year – the most of any country in the world – it is hardly surprising that property developers are eyeing a lucrative new market: the vacation home.

Local and foreign investors are already well represented in the condominium and "borey" gated community markets, but the possibilities for further profit have developers looking for opportunities in the countryside.

Some are already well underway.

Hin Socheat, business development manager of A2A Town Cambodian, said his company broke ground on a project boasting some 130 holiday villas in 2015, near Kirirom National Park in the southwest.

Priced at between $44,000 to $135,000 per villa, some 30 percent of the so-called V Kirirom first stage homes have already been sold, mostly to foreigners.

"Our market mostly focuses on Japan as 60 percent of our customers are Japanese and the rest are Cambodians," said Hin in a telephone interview.

"[But] I think it's about time local investors thought more seriously about vacation homes as the national GDP is growing."

Many of the developers entering the market are offering similar gimmicks. New owners can use the property themselves or rent back to the developer to market and sublet. They suggest a minimum return of around 6 percent annually.

Kirirom V sits on about 500 hectares of land near the pristine forest, and the project includes a hotel, restaurants, outdoor public spaces and an undefined Technonolgy Institute. Construction on a golf course will begin soon.

Din Somethearith, meanwhile, is developing a more down-to-earth and back-to-nature project in Kandal province, 28 kms south of the capital, having identified a yearning for Phnom Penh residents to go back to their roots.

Named Phum Pka Trokoun, the 15-hectare development will boast wooden pre-fabricated houses and a distinctively more village feel, with a watch tower, BBQ pits and places for residents to plant their own organic crops.

The project has about 100 vacation homes priced from $20,000 to $30,000, said Din, adding that it was due to be completed before the end of 2019.

Kheang Puthy, vice president of the Cambodian Valuers and Estate Agents Association and the CEO of Sleuk Rith, said he expected the development of the holiday home market to follow that of the booming condominium industry, and urged investors to get in while they could.

"It is a good opportunity. If you wait until more projects emerge, it will be very competitive," he said.

But like all property investments, Puthy urged those interested to do their research.

"The price range of this type of houses depends on its location, size, quality and appeal," he said. Investors should focus on areas close to a river or a beach and priced between $50,000 and $200,000.

"Land for these types of project is still not expensive, so if you have the capability it is a good opportunity. If you wait until many emerge, it will be very competitive."

There is also the opportunity for crossover cooperation between property developers and tourism operators.

"Foreign tourists like staying in this type of resort and vacation home," said Ho Vandy, an adviser to the Cambodian Association of Travel Agents.

"Local people are also starting to appreciate and love nature more. I think it is about time there were more investment project like this."

While construction cranes hover over Phnom Penh's skyline, recruitment and employment agencies are swooping on qualified candidates to fill a myriad of positions that go along with the current property boom.

"Compared with the last two years, the labour pool is very different today," said Pengte Saoborina, Business Development Director of the human resources agency Phnom List. "I believe all HR agencies are seeing strong demand in job postings related to real estate and construction companies."

The demand for labour starts from the ground up, with companies seeking architects and draughtsmen before a project begins, and completed ventures requiring workers ranging from security guards to cleaners once they have topped out.

Between the start and finish, sales and marketing executives were in high demand.

"Jobs in the property sector have really been increasing," said Saoborina, adding that one of the biggest growth areas was related to new condominiums whose developers were seeking property managers, sales executives, marketing experts and business development officers.

Wages and salaries have also gone up as a result of the boom.

A foreign property manager with around five years experience could expect to earn between $1,500 to $3,000 a month, while a similarly experienced local counterpart could make around $2,000.

The range of salary for entry-level quantity surveyor – a popular route for young Cambodians with a technical college education – was between $250 to $700.

Freshly graduated university students with no work experience can expect to earn around $350 per month in their first role.

Sophea Sam, a senior consultant with Top Recruitment, echoed the trend.

She said demand was currently particularly strong for qualified individuals in the following positions: leasing manager, residential manager, sales and marketing, and sales executive.

"There is also a great need for specialised labour to manage and maintain properties," she said. For example, the need for cleaners, security guides and maintenance workers is growing."

The Palm, billed as the first project in Cambodia to focus fully on the environment, was officially launched on May 2, becoming developer Oxley-Worldbridge's third major Phnom Penh Development.

Located over 3.7 hectares of land along National Road 1 in the Chbar Ampov district, The Palm is designed to be home to more than 200 dwellings and will feature lush gardens, rivers and even an artificial beach, while focused on what the company calls organic development.

Oknha Sear Rithy, Chairman of the Worldbridge Group, said the project was testimony to the confidence international developers had in working with highly qualified local partners.
"The Palm is attractive to both local and international customers who have confidence in Cambodia's political stability and economic growth," he said. "The bottom line is that The Palm can promote beautiful construction in Chhbar Ampov."

The Palm is a joint venture between Singapore's Oxley Holdings Limited and local Worldbridge Land. This project gives the right to Oxley-Emerald (Cambodia) Co, Ltd to develop with a total investment capital of $100 million dollars."

Ching Chiat Kwong, CEO and Chairman of Oxley, said the project aimed to bring a hint of new development thinking from Singapore, where the emphasis has long been on the environment.

"The Palm has a lot of amenities including an artificial beach along the riverbank that will make people feel proud of their residence. All of them can enjoy the facilities together in this project," he said.

Chea Sophara, the Minister of Land Management, Urban Planning and Construction who presided over the groundbreaking ceremony, said The Palm would further contribute to Cambodia's real estate development.

"There are now 189 borey residential projects including The Palm," he said at the launch.

"In 2017, construction projects in Cambodia totaled $6.4 billion dollars – increasing by 21 percent over 2016. Last year there were over 520,000 houses in progress, an increase of over 1,600 percent compared to 2016."

He added that the construction industry currently provided over 260,000 jobs.

Sophara praised the concept of The Palm and urged other borey developers, restaurants and hotels in Cambodia to also plan with a focus on helping the environment.

The Palm is the third project by Oxley-Worldbridge following the success of the eye-catching Bridge and Peak developments. Aimed at the high end, prices will likely start at $350,000, depending the prevailing economic climate.

Despite the price, Rithy was confident the venture would be a success.

"Over 200 houses in our project will not difficult to sell considering that we have a unique concept and a great location. Our customers still have a strong confidence in our project after the success of The Peak and The Bridge."

Sorn Seap, CEO of Key Real Estate, agreed with the optimism.

"This project will be popular with high-class people who value luxurious residences. It will be successful since unlike other big projects in Phnom Penh, The Palm is a small project with only 200 houses."

ONE of the 10 biggest real estate investment companies in China, R&F Properties, is investing in a huge Cambodia project named R&F City, perched on a 7-hectare stretch of land along Samdech Decho Hun Sen Boulevard. Siv Meng, real estate correspondent for Post Property, met up with the company's senior sales executive, who goes only by the single name Rayson, to find out more about the development.

When did R&F Properties first enter Cambodia?
R&F properties came into Cambodia as an investor in 2017. Cambodia is the second country in Southeast Asia that R&F properties invested in after Myanmar. The reason we decided to come to Cambodia is due to the “Belt and Road” initiative proposed by [China President] Xi Jinping, and Cambodia is in a position to receive a lot of benefit from this policy. We developed the project because we wish to provide a new lifestyle for Cambodian people and the Chinese community who came to this country to invest and to work.

When did the construction for R&F begin? When will it be completed? How much was the investment capital?
R&F City began construction in March this year and plans to finish everything by 2020. The project has an investment capital of more than $2 billion.

What are the special features of this project? When will it be open for sale?
This project has a total of 20 buildings with each boasting an impressive 33 floors. Furthermore, it has a total of 5,232 housing units, including a 3,200-square-metre gym, 38 shop houses and a spacious garden. This project is already open for sale, and we're targeting the Chinese and Cambodian market especially. The structure and the design of the building is geared toward wealthy Chinese customers looking to get a taste of the luxury lifestyle abroad. We also focus on Cambodian customers because I think that in the future more Cambodian people will change their lifestyles and live in apartments or condominiums, because living in these spaces is more convenient and safe. The R&F City houses will sell from $1,900 per square metre.

There have been rumours that R&F has joined hands with the Royal Group on a luxury hotel in Sihanoukville. Is this true?
As of right now we are not working on any project nor have we partnered up with Royal Group, but we're not sure what the future may hold. We are also not working on any project at present in Sihanoukville.

What are the factors that attract Chinese investors to Cambodia?
There are a few deciding factors. First, the region contains a silk road [good trade routes]; second, the Cambodian government has great diplomatic relations with China; third, Cambodia has strong economic growth; and fourth, there's great political stability in Cambodia. Right now, there are many Chinese investors coming into Cambodia, and they are investing in various sectors and projects such as airports, highways, factories, enterprises and the electrical power industry. At present, the number of Chinese investors who want to invest outside of China is rising rapidly. Cambodia is a great market and very attractive to investors, especially in Phnom Penh.

What do you think about the market in Sihanoukville and Siem Reap?
Even though Sihanoukville and Siem Reap have great potential, these two provinces don't have the infrastructure and services to offer comfortable living like Phnom Penh. Even I want to live in Phnom Penh – and I can always go to Sihanoukville or Siem Reap on weekends.

Why did the company choose the Samdech Techo Hun Sen Boulevard as the project's development location?
The location and the land situation here boasts great prospects both in the present and the future. Moreover, it's not very far from the airport.

Recently, R&F Properties put up another enormous sign on Monivong Boulevard. What is this project and when will it start?
Indeed, this is another one of our big new projects. However, we haven't commenced construction as the company is currently doing market research, therefore, we can't say for sure what this new location will become.

With a property boom continuing unchecked in Tuol Tompong and Phsar Daeum Thkov, real estate agents, renters and buyers are noticing a cooling of prices as owners and investors seek to profit before the market becomes even more saturated.

Noun Rithy, CEO of property consultants Khmer Foundation Appraisal, said recently that rentals in the two communes – located close to the ever-popular BKK1 and Tonle Bassac areas – were down 10 percent on the same period last year, and could fall further as more units become available.

Still, he says, the property market is maturing to the point that such declines are unlikely to deter new investors.

"Although it is becoming more competitive and supply is on the rise, I'm not concerned as Cambodia has integrated as a member of Asean [Association of Southeast Asian Nations] and the wider global economic community," he said.

"This motivates and reassures international investors, and I am sure that the demand for apartment units will rise. There cannot be demand unless there is supply … if we wait for the demand to rise before we start supplying, it will be problematic."

Currently rental prices of so-called Grade B one-bedroom apartments in Tuol Tompong and Phsar Daeum Thkov range between $350 and $750 per month depending on facilities. Two-bedroom apartments were going for between $750 to $1,500 and three-bedroom units in the range $1,500 to $2,500, according to Rithy.

"There cannot be demand unless there is supply … if we wait for the demand to rise before we start supplying, it will be problematic," he said.

This is a discount of about 20-30 percent on the more established BKK1 area, according to Chrek Soknim, CEO of Century21 Mekong consultancy.

"BKK1 is a better attraction as the area is popular with foreigners and has good infrastructure with many different types of services," he said.

"Tuol Tompong and Phsar Daeum Thkov communes don't have those attractions yet, but things are changing and they will become more popular."

Chrek said that as of the first quarter of 2018, there have been 148 apartment projects completed of some 365 ongoing projects in Phnom Penh. Many of those were in Toul Tompong and Phsar Daeum Thkov, where the average occupancy rate was about 70 percent – healthier than Phnom Penh as a whole.

Chheng Keat, meanwhile, head of Tuol Tompong commune said there were around 20 under-construction projects in the area with many more scheduled to break ground in coming months.

This is even causing a spillover further afield.

"My apartment listings have now priced down a bit and I've improved the facilities to better attract tennants, said one owner who asked not to be named.

He owns units in the Phnom Pehn Star complex in Boeung Trabek , a commune bordered by Tuol Tompong.

A prominent Chinese developer has designs on the capital's riverside, where it hopes to build a strip of luxury condominiums and office towers on land currently occupied by the capital's state-run river port.

Guangzhou Yuetai Group, a Chinese real estate developer whose projects in Cambodia include East One and East View, has confirmed that it has a project to develop a 9.25 hectare sliver of land adjacent to the Tonle Sap river. Its proposed Harbour Bay development could see the construction of 24 high-rise buildings along the riverbank from the Chroy Changvar bridge as far south as the Night Market, according to a concept drawing of the project.

Almost half of the land earmarked for development is currently under the management of listed state port operator Phnom Penh Autonomous Port (PPAP), while the other part includes a paved walkway where private riverboats dock.

Contacted yesterday, a representative of Yuetai Group's local office confirmed the existence of the Harbour Bay project, but declined to provide details on the project, or indicate whether the company had secured the land.

It remains unclear whether the government has already approved or concluded the sale of the land to Yuetai Group, and officials contacted declined to comment on the matter.

A royal decree signed by Prime Minister Hun Sen and released in the first quarter of 2018's royal book, reclassifies a 9.25 hectare plot of state-public land corresponding to the location of the Harbour Bay project as state-private land. The decree assigns the Ministry of Public Works and Transport and the Ministry of Economy and Finance responsibility for managing the land, which under its new classification could be leased to private developers.

The action would appear to be aimed at preparing the land for sale to Yue Tai, whose interest in the riverfront real estate dates back much further.

In November 2017, Yuetai Group created a Facebook page for Harbour Bay project, posting concept drawings that show a row of residential and commercial towers, as well as a private marina. The drawings depict tightly packed buildings, each over 30 storeys tall, with several built on top of what appears to be a multi-level retail plaza.

Ann Thida, country director of real estate firm CBRE Cambodia, said to the best of her knowledge the Harbour Bay project was still only a proposal.

"Yue Tai has yet to finish the master plan of the project and therefore no details have been released regarding this project," she said. "However, one will hear more details of the project after the company finishes the master plan."

According to Cheam Samnang, CEO of Lucky Property Service, land prices along the street between the Chroy Changvar bridge and the Night Market are valued at between $3,500 and $6,000 per square metre.

The reopening of a 48-kilometre rail line between Poipet and Serey Sophorn in Banteay Meanchey province this month was a milestone in the long-delayed plan to restore passenger and commercial train service along the Northern Line that connects Poipet to the capital. But it is also a huge boost to the local economy, expected to reduce transport costs and facilitate trade, and which is having a palpable impact on real estate prices in the cities it connects.

Sun Chanthol, Minister of Public Works and Transport, said during the launch ceremony for the rehabilitated section of rail line on April 4 that work on the rest of the 336-kilometre Northern Line was nearing completion.

"The Poipet-Serey Sophorn railway service is just the first step of our project to restore the rail line," he said. "The next steps will be connections to Battambang and Pursat, and then Phnom Penh."

He said the section between Serey Sophorn and Battambang should start service in May, with an extension to Pursat to open a month later and the final stretch to Phnom Penh completed by the end of the year.

San Sean Ho, governor of Poipet city and a local real estate developer, said he expects the railway to improve livelihoods and accelerate commercial growth.

"The reopening of railway link between Poipet and Serey Sophorn will reduce people's travelling cost and traffic accidents, and at the same time help expand trade and investment in the city," he said. "The real estate sector, in particular, will benefit from the city's expanded trade and investment, especially with Thailand when there is influx of people coming to work in the city and seeking accommodation."

He added that his office was prioritising infrastructure projects in the city to support an ongoing property boom. All roads in the city are being repaired and new circles are in the plan to turn Poipet into a beautiful city.

The city currently has 10 borey (gated residential community) projects and at least 50 companies sub-dividing residential plots for resale.

Sean Ho said he believes Poipet's improved connectivity and rapid development will lead to a spike in property prices in the entire city, especially properties adjacent to casinos, with prices reaching as high as $1,000 per square metre.

According to a recent report by Phnom Penh-based real estate firm CL Realty, commercial-zoned land located along main roads in Poipet was selling last year for between $500 and $1,000 per square metre. Undeveloped residential land, as well as industrial plots, were fetching between $100 and $500 per square metre.

Sorn Seap, CEO of Key Real Estate, said he does not expect the rail link between Poipet and Serey Sophorn to have an immediate impact on property prices or development in the city. That will happen once the rail connection to Phnom Penh is completed at the end of the year.

He said Poipet has "huge potential for real estate investment" due to the city's location and the government's plan to turn it into an industrial hub and open more border crossings to neighbouring Thailand.

Located opposite Aranyaprathet in Thailand's Sa Kaeo province, Poipet's casinos attract Thai gamers forbidden from gambling on their own soil, while its industrial parks appeal to manufacturers seeking to utilise the city's cheap labour and proximity to the Thai market.

Experts say the real prize in railway development is not Poipet's imminent railway connection to Phnom Penh, but rather the planned linkage to Thailand's rail network, which would enable passengers and cargo to travel from Phnom Penh to Bangkok and Singapore.

The State Railway of Thailand (SRT) has completed the rehabilitation of the 6 kilometre section between Aranyaphrathet station and the border crossing at Ban Khlong Luek. Work on the 1.3-kilometre section from the Cambodian side of the border to Poipet station is also reportedly finished.

However, state-level discussions regarding border arrangements have not yet been finalised, and it remains unclear when cross-border service between Cambodia and Thailand will resume.

Local residents, especially land owners, are optimistic that the new rail connection will bring more trade and investment to Poipet, and see more factories opened in the city's special economic zones.

Sok Vutha, who owns a one hectare plot of undeveloped land about two kilometres from the city center, said he expects to start receiving offers on his property now that the railway line has been restored.

"I am very happy that the government finished the rail link in Poipet this month," he said. "I believe that this will attract more factories and people to come and work in Poipet, and as a result my property will increase further in value."