Building Japanese quality properties in Cambodia. The new challenge of Japanese developers.

“We want to build a property of Japan brand in the prime location of Cambodia.”

There is a developer undertaking the challenge of developing Japanese quality properties in the upscale residential area of Phnom Penh. It is the Japanese developer “L’attrait” who handles property development in Japan and Asia.

We interviewed Mr. Amasawa who is responsible for the development of the condominium “L’attrait Boeung Keng Kang”, currently under construction in the Boeung Keng Kang area of Phnom Penh.

Building Japanese quality properties in Cambodia

A high quality property directly supervised by L’attrait

-What are your company’s characteristics and strengths?

Utilizing the experience and expertise unique to a Japanese developer that has worked on various housing developments, we are working with great enthusiasm ready to cause a positive sensation in the housing situation in Cambodia.

We are aiming to achieve Japanese quality that does not yet exist in Cambodia, by keeping key points of condominium development and providing L’attrait’s direct supervision.

The non-negotiable condition is “development of prime location in Phnom Penh”.

-Why did you decide to enter Cambodia?

At the time of project planning, the housing environment was not yet properly sorted in Cambodia, which is the poorest country among other Southeast Asian countries. While conducting research, the fact that the US dollar is the main currency was particularly appealing to us.

Furthermore, the location of Boeung Keng Kang 1, which is the prime location of the capital city of Phnom Penh, and where many of the overseas expatriates live, is an easy area to imagine the target tenants and their requirements, and actualize the ideas in terms of product development.

If it were not that area, we would not have decided to enter Cambodia.

The appeal of the real estate investment in Cambodia

Increase in housing demand for overseas expatriates

-Compared to other countries, what is the unique appeal of Cambodia as a destination for overseas real estate investment?

The nation’s economic growth is definitely a major factor. It is expected that many foreign companies will enter the market and the number of expatriates will rise, simultaneously increasing the country’s appeal.

As Cambodia is still in the process of developing, we believe that we can contribute to the improvement of housing quality.And of course, you cannot forget about the investment environment that is in dollar basis. It is extremely rare to be able to invest in a remarkably growing market in a key currency.In addition, Cambodia’s restrictions on foreign capital are more tolerant compared to neighboring countries due to its historical background. Therefore, foreign companies will have fewer obstacles to enter.

As far as dealing with real estate, the fact that the division ownership and registration system for foreigners are functioning is also a notable feature.

Cambodia’s minimum wage will rise more than threefold in 5 years

-What state do you think Cambodia (Phnom Penh) will be in 2020, when the construction of L’attrait Boeung Keng Kang is completed?

This is only my personal speculation as it is about the future, but I believe Cambodia has high potential to change.

Compared to when we started the project planning just a few years ago, the infrastructure and buildings have improved at tremendous speed. A lot of traffic lights and street lamps are installed everywhere in the city, and city buses and meter taxis are also working.Power outages occurred frequently in the past, but it rarely happens now in Phnom Penh due to the improvement of the self-sufficiency ratio in the energy supply.

I also heard that the planning of large-scale highway and elevated railway in the city is making steady progress.

As an example showing in numbers, it is officially announced that the minimum wage will rise to $170 from 1 January 2018, which used to be $60 about five years ago. Along with the income increase, I feel in real time that consumption is expanding day by day from smartphones, cars, bikes to houses, mainly led by the young generation.

The appeal of L’attrait Boeung Keng Kang

The target resident is “a foreign expatriate living alone”

-What kind of people are you targeting as future residents of L’attrait Boeung Keng Kang?

It was clearly set at the time of planning. Foreign expatriates, male, living alone, around 30 to 50 years old, work-centered lifestyle, mainly eating out and do not cook at home, do not clean nor do laundry themselves.

We decided to target expatriates who live alone as it is the most common situation in Cambodia. Since we are mainly targeting these people, we have carefully studied the floor plan and facilities in the common area considering which part of the house should have importance depending on their rhythm of everyday life.We would especially like to create a stylish swimming pool and sports gym in the common area.

We are also planning to create a reading lounge and a meeting room available for office work or casual meetings. The design will be masculine, simple and modern, and casual but luxurious.

Building Japanese quality properties in upscale residential area

-Please tell us the superior points of L’attrait Boeung Keng Kang compared to the properties built by other companies in Cambodia

The property’s location, quality, are its main points. The fact that it is developed by a Japanese company is also a major factor.

Regarding the location, the property lies in an upscale residential area called Boeung Keng Kang 1 (known as BKK1), known to everyone in Phnom Penh, and where many foreign expatriates live.

However, the prices of land and rent are very high compared to other areas. The rent of luxury condominiums is almost as expensive as Tokyo.

Everything you need for daily life such as embassies, offices of foreign-affiliated companies, restaurants and supermarkets for foreigners, international schools, foreign-affiliated hospitals, luxury salons, and other services are all available.

A rare overseas project supervised by Japanese engineers

-What are some aspects of your company that local developers cannot beat?

As I mentioned earlier, the project is directly supervised by L’attrait, so the quality and know-how of condominium development are exceptional. It is probably rare in overseas projects that Japanese engineers manage from the planning to designing and construction. In terms of design, we would like to propose a layout that is neither too much nor too little according to the lifestyle of the targeted tenants, reducing any unnecessary factors within the limited conditions unique to a housing complex. Regarding housing equipment and construction materials, we pay attention to details by selecting items procurable from local sources and using Japanese brands.

I believe that the phrase “because it is by Japanese company” holds a credibility for Japan as a country created by predecessors. It may be the same for Japanese home electronics and cars. It is often said that even if a new car made in other countries is half price of a used Japanese car, people still want a car made in Japan if the budget allows.

We believe the trust in quality is the strength of Japanese brands. We work hard to keep it.

Dedication to the detail, the Japanese commitment

-Is there a particular point in the structure you pay great attention to?

To be able to enjoy the function that originally exists in architecture. That was the goal we set at the beginning of the project. In developing countries, oftentimes the original functions of a utility or building is lacking, such as water leaks, draft of wind, not closing properly, lack of hot water and water flow, no electricity, and so on.

From the designing stage, we paid attention to structures that do not have these issues and are easy to maintain. We particularly gathered our know-how in areas that cannot be easily seen, such as the position and structure of the piping.

To build a property loved even in the medium to long term

Sales are going well, already 30% of the deals are closed in advance sales.

-Can you tell us the situation of the people who purchased the property?

Sales are going well. About 30% of the deals have closed approximately 2 months from its announcement, although it is advance sales until the official launch on site. We cannot disclose the details of the buyers, but most customers purchased properties for investment purposes. 

-What kind of people would you recommend L’attrait Boeung Keng Kang to?

We are confident that foreign investors who are interested in real estate in Cambodia would consider it as an investment option.

-Do you have any other messages for prospective buyers?

We would appreciate it if you could consider the property as a medium- to long-term investment. I sincerely hope that it will be a long-loved property considering Cambodia’s economic potential and the characteristics of L’attrait Boeung Keng Kang.