Cambodia builds Paris in the heart of Phnom Penh

A Paris-like luxury real estate project in the heart of Phnom Penh is being sought after by wealthy Cambodians.

A replica of the Arc de Triomphe sits on a branch of the Mekong River, flanked by rows of shops and apartments in the Haussmann style typical of the French capital.

“This building is really beautiful,” said Heng Sokharith, 49, who bought an apartment in the Elysee project, named after the Champs-Elysees in Paris, to start a furniture business. “We are proud to have such a beautiful building in Cambodia.”

Thierry Tea, vice president of OCIC Group, in front of the Elysee Mall building in Koh Pich on March 1. Photo: AFP

With its winding walkways along the riverbank, many cafes and luxury shops, this area is likened to a miniature Paris, a luxurious place for the rich, separating them from the constant hustle and bustle of the city of two million people.

OCIC, one of Cambodia’s largest real estate companies, has turned a swampy island into skyscrapers, an international school and a hospital. It has invested $400 million in the Elysee, which began construction in 2015 and is nearing completion.

Koh Pich, the island where the Elysee project is located, has become a symbol of Phnom Penh’s rebirth after decades of conflict. Cambodia has been one of Asia’s fastest growing economies over the past 20 years.

Home prices in the Elysee are as high as $1,300 per square meter in a country with a per capita GDP of more than $1,600 and a minimum wage of $200 a month in the garment industry, a labor-intensive sector. More than 80 percent of the 229 units have been sold, according to Thiery Tea, vice president of OCIC, although not all are occupied.

Phnom Penh is trying to attract foreign investors looking to buy real estate thanks to its competitive prices compared to other cities in the region.

"If customers want to buy, rent, make profit and return on investment, we welcome them," Mr. Tea said. "Cambodia has a lot of interesting things. Phnom Penh is developing, there is a lot of potential."

The Paris-style Elysee Mall along the Bassac River in Koh Pich, a satellite city in Phnom Penh, March 1. Photo: AFP

Under Mr Hun Sen, Cambodia has tightened ties with China. Chinese money has flowed into the country, fueling a real estate boom in Phnom Penh.

Backers of the Elysee and similar high-end projects say that in addition to Chinese investor money, they hope luxury brands will be attracted by Cambodia's market potential as its middle class grows.

Inside a shopping mall in Phnom Penh on February 29. Photo: AFP

Not far from Koh Pich, a shopping mall with 75 luxury stores is set to open in the next few months. Pierre Balsan, CEO of Bluebell, the company that operates the mall, said Cambodia is “the new frontier for luxury brands”.

He said the biggest challenge now is “changing the perception of brand managers about Cambodia and the image of Cambodia.” The transfer of power to a younger generation from Mr. Hun Sen to his son, Mr. Hun Manet, 46, has promoted Cambodia’s modern image.

Hun Manet, who studied in the US and UK, embodies the reform of the elite after his father ruled the country for nearly 40 years. He has pledged to turn Cambodia into a “high-income country” by 2050.

Heng Sokharith is satisfied with his investment. "I think the country will develop more in the future, so this area will be more attractive," he said.

Hong Hanh (According to AFP )

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