Logo of Phnom Penh Post newspaper Phnom Penh Post - Arakawa to build affordable housing for public servants and teachers



Arakawa to build affordable housing for public servants and teachers

Land Management Minister Chea Sophara (third from right) and Arakawa executives participate in a groundbreaking ceremony.
Land Management Minister Chea Sophara (third from right) and Arakawa executives participate in a groundbreaking ceremony.

Arakawa to build affordable housing for public servants and teachers

The housing market has been actively expanding in recent years and real estate prices have increased steadily, largely due to outside investment in the sector. To remedy the slowly shrinking market for affordable homes, some companies have made an effort to include reasonably priced units in their development projects.

Japan’s largest real estate investment company, Arakawa, held a groundbreaking ceremony yesterday for the “Arakawa Residence” in Phum Phsar Teuk Thla village, and the event was attended by Chea Sophara, the minister of land management, urban planning and construction, as well as many other guests and stakeholders.

“The project prioritises housing for low-income [residents] to gain experience with ownership and living in a luxury condominium in the city,” he said, adding that the project was the third of its kind in Phnom Penh after an affordable housing development owned by construction magnate Sear Rithy and another project on National Road 5. Sear’s project is more than 40 percent done.

According to a 2015 World Bank report, the population of Phnom Penh has grown to almost 3 million, accounting for 20 percent of the total population of Cambodia. Sophara said he avidly supported the creation of more affordable housing to address the city’s rising population figures and dearth of moderately priced homes.

Arakawa has said they are interested in building affordable housing within their 10-building development, especially during the first phase of the project.

At the groundbreaking ceremony, Dr Alex Yasumoto, the CEO of Arakawa, said that following the decisions they made concerning the White Building, the company was eager to start work on another project, a 23-floor condominium which would be “fairly priced” for the first 19 floors.

Land Management Minister Chea Sophara and Arakawa officials look at renderings of the building.
Land Management Minister Chea Sophara and Arakawa officials look at renderings of the building.

Dr Yasumoto said the units will help civil servants, teachers, students and Cambodia’s economy. Located in Teuk Thla village, the project is being developed on 13,680 square metres of land.

“We will start two phases of the construction, costing about $40 million for the first phase and $30 million for the second phase in 42 months,” he said. “Residences are available for sale between $20,000 and $30,000.”

Ieng Sotheara, a co-founder of Arakawa, said the project will open within three to six months of the inauguration of the ground floor. The event will include a viewing to boost buyer confidence.

“Our company is not affected and requires customers to pay a pre-amortised amount of money, but it is pre-saving their money to get a living house to avoid the risk for each family,” he said.

Arakawa has been operating in Cambodia since 2008 and built the Bellevue Serviced Apartments in Phnom Penh. They recently bought the White Building and the land around it, tearing down the building in June.

MOST VIEWED

  • Massive stingrays may live in Mekong’s deep pools

    US scientists have suggested that unexplored deep pools in the Mekong River in an area of Stung Treng could potentially be home to significant populations of giant freshwater stingrays, one of the world’s largest freshwater fish species. This comes as a fisherman hooked a 180

  • CCC team off on US business trip

    The Kingdom’s leading economists and private sector representatives have called on the US to renew its tax preferential status for Cambodian exports, as a Cambodia Chamber of Commerce (CCC) delegation departed for a weeklong business visit to the US, where they will meet with

  • PM takes time to meet, greet Cambodians living in the US

    After landing in the US ahead of the ASEAN-US Special Summit, Prime Minister Hun Sen was received by over 1,000 Cambodian-Americans including political analysts who welcomed him with greetings, fist bumps and selfies. Hun Sen also met with analyst Mak Hoeun, who had allegedly spoken ill

  • Khmer cinema classics back on big screen for free at WB Arena’s outdoor movies series

    On a recent Saturday evening at WB Arena, Bunsong was enjoying a tasty BBQ meal with his family after work on the long tables that had been arranged out in front of the restaurant as they watched a Khmer action movie on a big outdoor

  • PM heads to Washington for ASEAN-US special summit

    Regional and international issues and how to bring the ASEAN-US partnership to another level will be discussed at length as Prime Minister Hun Sen and his ministers arrive in Washington, DC, for a special summit on May 12-13. During the trip, Hun Sen and ASEAN

  • National Assembly refutes EU resolution

    The National Assembly (NA) has hit back at a European Parliament resolution condemning the political and human rights situation in Cambodia, calling it another display of the Parliament’s “double standards”. Key points of the resolution include a warning that the Parliament could exclude the