Saturday, February 9, 2008

Building Boom Revisited – Are these the first signs?

A comment by an observer in Phnom Penh:

The investment and building construction companies didnt count on Khmer culture when starting this building spree. Khmers have commented that living in apartment buildings, crammed in with other families, reminds them of the Pol Pot times and its not their culture to live like that. As such, no one has been buying these properties. Two Korean companies building on separate locations in Toul Kok have had to stop construction halfway through because they have no advance sales of their properties to provide the funds for further work. The government has bailed one of these companies out by injecting the cash they need to continue building, in exchange for a share of the company.

If the government wants to continue doing this it will soon run out of money.

1 comment:

Anonymous said...

Could you tell me the names of those two companies.

A friend of my friend, who is a speculator, said that most houses of Gold Tower were sold.