Camko City suspended construction works

Camko City, the brand new satellite city of Phnom Penh.

Source: Deum Ampil newspaper
Reported in English by Khmerization

World City who is the owner of Landmark Worlwide Ltd, the builder of Camko City, a satellite city just outside Phnom Penh city, has just announced the temporary suspension of construction works at Camko City.

The company said it is suspending its construction works for one month only. It added that it has the capacity to complete the construction of the city which started in 2005 and is scheduled to be completed in 2018.

Mr. Lee Sang Ho (L) shaking Mr. Soy Sopheap's hand (R).

Mr. Lee Sang Ho, planning director of Landmark Worldwide Ltd, told Deum Ampil in an interview with Mr. Soy Sopheap that in the first phase, 182 houses among many buildings, including the 16-storey building and a number of condominiums, had been completed. On top of this, 182 apartments had been completed and 40 apartments had been occupied.

Mr. Lee Sang Ho said: "The reason for the suspension of constructions is due to the decline in the prices of real estate and the drop in sales (deposits)."

Mr. Lee said currently the company had spent $200 million building the city, out of the budgetted investments of $2,000 million for the construction of the city from 2005 to 2018. He added that the company had just paid $4 million in taxes to the government in 2006, "so the company cannot withdraw from the projects."

Mr. Lee said he supports the Cambodian government's plan to introduce the laws which allow foreigners to own properties in Cambodia. He said if the government approved these laws, the real estate markets in Cambodia will recover sooner because foreigners like the Japanese, Koreans, Europeans or other foreigners will start to buy real estate properties in Cambodia.

The government has flagged the ideas of introducing the laws allowing foreigners to own real estate properties in Cambodia more than a year ago, but the ideas have so far been temporarily shelved.