For years, the fanciest way to shop in Cambodia’s capital Phnom Penh was to go the Central market or small local supermarkets. But this is to change dramatically with the construction of the first contemporary mall…
PHNOM PENH- Built by the French in the 1930s, Phnom Penh Central Market has been freshly renovated in 2011, getting back its pastel colours. But it might look soon old fashioned as competition is taking shape in the retail sector in Cambodia’s capital Phnom Penh. With rising living standards and the obvious presence of a growing middle class in the capital, demand for good shopping is on the rise.
With investor interest consequently growing, new shopping centres are likely to transform dramatically the shopping habits in Cambodia’s capital Phnom Penh. According to various reports from magazines, the Japanese developer Aeon Mall (Cambodia) Co Ltd last week broke ground on the construction of a US$205-million mall in Phnom Penh. The 68,400-square-metre high-end shopping centre is located in Phnom Penh’s newest district of Chamkar Mon, where the five-star Sofitel Phnom Penh Phokeethra is located.
The future shopping mall,will include 150 large retail units, a cinema complex that can seat 1,000 people and 15,000 square metres of entertainment space that will include an arcade and recreation area for children. The Japanese company is due to open more outlets around the country, most probably in Siem Reap as a second operation. Kuniaki Minohara, general manager of Aeon’s leasing department, declared to reporters that when construction finishes in the second half of 2014 he hopes half of the retail units would be occupied with locally established brands, while Japanese brands would account for 30% and other international brands 20%.
Aside from the new Aeon Mall, Malaysia’s Parkson has started construction of the country’s first proper department store in the centre of Phnom Penh. It is due to open by next year. Parkson is getting increasingly involved with countries of the Greater Mekong Sub-region. It has already five stores in Vietnam and opens then its first outlet in Cambodia next year as well as in Yangon in Myanmar.
Still in Phnom Penh, there is also a project for an underground shopping mall at NagaWorld, the capital’s only casino. It will be named “City Walk” and will also comprise a new garden. The investment is estimated at US$ 370 million with completion planned for the end of next year.
If these projects come all to terms, there could be as much as 312,000 square metres worth of shopping venues by the year 2017, up from about 105,000 square metres in June reported recently consulting cabinet in real estate CB Richard Ellis.
Cambodia’s property market is only now recovering from a bust three years ago that saw the construction of several projects come to a grinding halt. Today, developers are finding a demand for high-end retail projects that, according recent data by CB Richard Ellis, will triple in total space in the next five years.
(Partial information and picture source from the Bangkok Post)
Luc Citrinot a French national is a freelance journalist and consultant in tourism and air transport with over 20 years experience. Based in Paris and Bangkok, he works for various travel and air transport trade publications in Europe and Asia.
