Leopalace21 and Nuri Break Ground on Japanese-style Apartment

• 31 December 2015
• Property Focus
• 1423 Views

Image Pers, a Japanese luxury serviced apartment developed by Japanese real estate firm Leopalace21 will be introducing a Japanese living style to Cambodia’s growing accommodation market when construction is complete in two years.

Breaking ground on 10 April, the US$15 million 14-storey fully-serviced apartment development will feature 48 units together with a wide range of amenities set on 802 square meters in Phnom Penh’s Toul Kork district. Developed by Leopalace21(Cambodia) Co., Ltd, a subsidiary of Japan’s largest real estate firm set up in Cambodia early this year, the building construction and property management will be handled by Nuri Development and Construction (D&C) Co., Ltd, the Korean contractor and developer.

Speaking at the ground breaking event, Ryosen Kobayashi, Leopalace21 Cambodia’s Managing Director said there is a big shortage of Japanese-style apartments in Cambodia when compared to supply and demand. “Cambodia can supply only about 50% of Japanese style apartments to the market, and we are seeking more investment opportunities in this sector,” he said.

“We have the conviction for the development of Phnom Penh,” Kobayashi said according to the Khmer Times, adding that an increasing number of Japanese firms are becoming interested in the Phnom Penh market.

He expects Japanese nationals to comprise the first wave of tenants for the building, but thinks that other foreigners and Cambodians will also take interest.

Agreeing with Leopalace21’s representative, Andrew J. Ahn, Vice-President of Nuri D&C has also observed strong growth in the apartment market in Phnom Penh as more and more foreigners arrive in Cambodia, while the local market has also risen gradually.

“If compared to the last five years, there was a need to explain publically to the Cambodian market about what the apartments are, but now things has largely changed as many know what they are,” he said, Hang Meas TV reported. “Now apartment services have been developed to the point where they need to show off their quality to clients which has caused stronger competition in the sector.”

An apartment survey released by Vtrust Group last year indicated that the inflow of foreigners to Cambodia for employment and investment has boosted the nation’s apartment industry, while only 2% of local tenants have rented apartments.

The report also found that apartment construction has boomed recently with 47% of the total current 374 apartments having come on line over the last three years’.

Kobayashi Ryosen, Managing Director LeoPalace21 (Cambodia)