The price of land development in Cambodia
Phnom Penh, a city once fabled for its stately colonial buildings and boulevards, and its serene riverside setting, is becoming a city of glaring contrasts.
An economy left in ruins by the years of war and violent revolution in the 1970s and 80s grew at a rate of almost 10% a year from 1998 to 2008. Cheap land, cheap labour and rich natural resources have attracted big inflows of foreign investment, especially from Asian neighbours like China, Vietnam and Thailand. That has ignited a property boom. For the first time in its history Phnom Penh’s skyline is being pierced by modern high-rise towers, offering new office space and luxury apartments. Land prices are soaring, and developers are constantly seeking out new possibilities for construction. One area they targeted was the city’s largest lake, Boeng Kak. A company owned by a senator from the ruling Cambodian People’s Party, Shukaku, was given a 99-year lease to drain and build on the lake in 2007. Another was the centre city neighbourhood of Borei Keila, which another politically-connected company, Phanimex, was given the right to develop in 2003. …
