The ‘Bubble,’ revisited
January 29, 2008
Ed Cropley at Reuters writes the definitive “Bubble” piece, putting some figures and expert opinions to recent speculation.
Figures from Bonna Realty, a leading estate agent, suggest the price of prime Phnom Penh land doubled last year to $3,000/sq m — compared to less than $500 in 2000.
By contrast, land in Bangkok’s downtown Silom district is $5,000/sq m, while Ho Chi Minh City, the hub of neighboring Vietnam’s red-hot economy, prices can be as high as $15,000. [...]
At the top of the market, prices are being driven by huge foreign-funded ventures such as “Gold Tower 42,” a $300 million South Korean apartment block which, at 42 storeys, will be three times higher than Phnom Penh’s current tallest building. [...]
But such prestige projects are the tip of the iceberg, and foreign funding accounts for only a fraction of the boom, analysts say.
January 29, 2008 at 1:12 pm
A question,this link (http://www.taxivantha.com/VanthaNet/topic.asp?TOPIC_ID=2411 )refers to the price of Gold Tower 42 being 2.4 billion $US, however the article of Reuters mentions 300 million $US, whereas Phnom Penh Post mention just 240 million $US. Cambodia Daily (Friday 25, 2008) also mentions 2.4 billion $US. So what is true?
Or, as they are selling the apartments locally, are they in fact not investing anything, just picking up local monies? There will be 360 apartments built. A possible median price could be 750,000 $US (min. 460,000 $US, max 1.6 million $US). A simple calculation means that with the sale of apartments 270 million $US would flow in!
February 19, 2008 at 7:13 pm
[...] this is just a promotional mockup, but it just shows how entertaining the property speculation bubble is getting [...]
February 21, 2008 at 2:54 pm
Cambodia Daily, Feb. 21, 2008:
Correction: The story “Three Planned Skyscrapers to Change Phnom Penh Skyline,” (Jan. 17, p 20) should have stated that building Gold Tower 42 will cost $300 million.
February 21, 2008 at 4:02 pm
Thanks, CC, I saw that today too. I wonder took them so long? It’s been a month already.