Are Tall Skyscraper Towers or Buildings Necessary in Phnom Penh?

The world has seen the rapid development of super-tall buildings over the past few decades and this trend is particularly noticeable in Asia thanks to the economic booms in the key markets.

Building high-rises or skyscrapers is a good indicator of economic prosperity. A skyscraper will usually contain one or more of the following: cultural venues, entertainment, hotel, retail, world-class offices and 360-degree views of the city, but such developments can also signal property bubbles.

“It is a yes-and-no answer whether it is necessary for Phnom Penh to build skyscrapers. It really depends on the concept of the development. In certain areas, it is logical to build high-rise buildings whereas it is not in some areas,” according to Chhayleang Nguon, CEO of Ratanaka Realty.

The Council on Tall Buildings and Urban Habitat (CTBUH), an international body in the field of tall buildings and sustainable urban design, defines the term ‘tall building’ as one higher than 150 metres. Today, the Phnom Penh skyline is filled with buildings of 8-15 floors and these buildings are spread out across the city.

To date, the city has not seen a completed super-tall building. However, there are two super-tall buildings being proposed: a 78-floor mixed-use development which is 300 metres high; and the plans for the 133-floor Thai Boon Roong Twin Trade Center, situated on 5 hectares of prime real estate opposite the NagaWorld Entertainment Complex.

In general, condominium buildings over 20 floors are popular and can command higher prices per square metre. This also applies to offices which can achieve relatively higher rentals. At the same time, the buyers or tenants will also weigh between the increased price/rental against the development. When it comes to height, the preference will be somewhere from 12 floors up to 50 floors, or 200 metres.

To build a high-rise or skyscraper, it certainly commands high quality in terms of designing, planning and other specifications. The taller it gets, the more demanding the construction criteria because it must meet the challenges of earthquakes and wind resistance. Other factors also need to be taken into accounts such as elevator connectivity or fire separation. The standards for the air-conditioning systems and power supply are generally much higher than low-rise buildings.

“Most of the high-rise buildings are constructed for the investors. For the general population, they still prefer to live in a low-rise and low-density building,” said Chan Mlop Sokha from Sokha Law Firm.

Phnom Penh is seeing a new trend here where some high-rise developments paired with top hotel brands to strengthen the image of these buildings, for example, Rosewood Hotels & Resorts with the Vattanac Capital Tower and Shang-ri La Hotel with The Peak. This boosts the confidence of the tenants in terms of operation and design and the quality standards by these operators.

However, the prospects for high-rise/skyscraper office buildings may not be so impressive in Phnom Penh considering the cost of development against the achievable rentals. There is definitely not enough demand from the types of tenants who are willing to pay a rental premium, and the existing office buildings have satisfied the current requirements of tenants in the office market.

In other key markets such as Hong Kong and Singapore, office skyscrapers can command a rental premium way over the market average. Similarly for residential condominiums, a developer should consider how much of a premium it can achieve before making the decision to proceed with a high-rise/skyscraper project, as the market will favourably perceive quality over height.

 

 

- Video Advertisement -

Related Post

Special Installment Payment Offer from Borey Peng Huoth

You do not need to worry about high-interest instalment payments if you want to buy a new house in any Borey Peng Huoth project. In celebration of the upcoming Water Festival, Borey Peng Huot offers a special interest rate of just 9% per year on direct instalment payments for up to 19 years without requiring […]

Cambodia has 122 factories and enterprises that have signed contracts to install automatic systems for controlling liquid waste discharge

Currently, these 122 factories and enterprises are preparing to install self-monitoring equipment and waste management data systems in compliance with Cambodian laws. The Ministry of Environment shared this information on October 23, 2024. According to the Ministry of Environment, five factories have already been equipped with and are operating automatic control equipment and a liquid […]

ADB demonstrates support for clean water development in Cambodia through a USD 400 million large-scale financing project by 2025

The Asian Development Bank (ADB) is committed to further strengthening urban development in Cambodia through the USD400 million Large-Scale Financing (MFF) project, which is scheduled for approval by the end of 2025. The initiative comes after the success of an ongoing USD119 million project in the Battambang and Kampong Cham provinces. This was stated in […]

ADB Provides USD80 Million to Build Climate-Resistant School Buildings in Cambodia

The Asian Development Bank (ADB) has approved a USD80 million loan aimed at enhancing secondary education in Cambodia by increasing the number of climate-resilient school buildings. This information was released in a press statement on October 31, 2024. Currently, the high school enrollment rate in Cambodia is low, standing at only 35.5%. This is attributed […]

The 250 km Cambodia Border Ring Road is starting the construction under FBID’s Nearly USD 27 Million

The Government of Cambodia opened the construction of a 250 km border ring road under the Foundation for Border Infrastructure Development (FBID) of USD 26,967.609 million on November 1, 2024, and is scheduled to be completed by the end of April 2027.a This was confirmed by HE Kim Bunthan, Chairman of the Working Group for […]

Blyncsy Publishes Map of U.S. Interstate Highways Showing Roadway Assets to Enhance Safety, Maintenance, and Accelerate the Digital Infrastructure Movement Nationally

Blyncsy empowers state DOTs with the ability to monitor and compare—in near real-time—the status of any major highway in the continental U.S. with their existing data for more informed decision-making. PHILADELPHIA — 2024 AASHTO Annual Meeting & Expo — October 29, 2024 — Blyncsy, a Bentley Systems Inc. (Nasdaq: BSY) company, today announced it published a comprehensive public […]