By CHRIS HORTON
The New York Times
Cambodia Courts Chinese Buyers
Luc Forsyth for The New York Times
MAY 6, 2014
PHNOM PENH, Cambodia — There is an island in Cambodia that, unlike others in Southeast Asia, is not the object of an ownership dispute. But it is equally clear whom its current owners would like to land there: Chinese property buyers.
If all goes according to plan, Koh Pich — Diamond Island in English — a 100-hectare, or about 250-acre, spit of land hugging downtown Phnom Penh’s shoreline, will be home to more than 1,000 condominiums, hundreds of villas, two international schools, a replica of the Arc de Triomphe, a near-clone of Singapore’s Marina Bay Sands Hotel and one of the world’s tallest buildings.
But in a city with a history of stalled real estate projects, the future of the island, in the Mekong River, is far from certain.
Phnom Penh, Cambodia’s capital, is coming into its own as a regional business destination, and investment in its property market totaled $1.9 billion in the first half of 2013, compared with $1.2 billion in 2011, according to Leng Vandy, senior associate at the financial services company SBI Royal Securities. Even as mainland Chinese property investors have pushed prices up in Hong Kong, London and Vancouver, they are also injecting piles of cash into smaller cities, including Yangon, Myanmar; Chiang Mai, Thailand; and Vientiane, Laos.
Phnom Penh, a city of nearly two million, is no different.
“Mainland Chinese, especially Shanghainese, are very impressive,” said Um Bun An, sales manager at Casa Meridian, a development that, when completed in 2017, will feature two 33-story condominium towers. “They don’t need loans. They make their purchases in cash.”
With street signs featuring the simplified Chinese characters used on China’s mainland (elsewhere in Phnom Penh street signs are in Khmer and English only) and sales executives fluent in Mandarin, Diamond Island seems ripe for Chinese investment.
Eight years ago, the entire island was handed over to the local conglomerate, the Overseas Cambodia Investment Corporation, which in Mandarin calls itself the Cambodia Overseas Chinese-Cambodian Investment Corporation. Phnom Penh’s municipal spokesman, Long Dimanche, declined to disclose terms of the deal; there is no public information available about the corporation. The island’s previous residents, small-scale farmers, were either bought out or evicted.
Touch Samnang, the corporation’s deputy chief executive, also declined to discuss terms of the deal. The group has sold several plots on the island to developers for projects, including Casa Meridian, the gated villa development Elite Town, the pedestrian mall La Seine and The Élysée, a proposed mixed-use project that is to include a replica of the Arc de Triomphe.
After Cambodia passed a law in 2010 allowing foreigners to buy condominiums in towers above the first floor of approved buildings, developers in Phnom Penh have begun catering to growing foreign demand. A report in March by the Phnom Penh office of the property consultancy CBRE noted that 20 condominium projects had been completed or were under construction in the city.



