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Challenges And Opportunities For Cambodia's High-rise Developments

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Challenges And Opportunities For Cambodia's High-rise Developments
Challenges And Opportunities For Cambodia's High-rise Developments./EuroCham Cambodia.

Cambodia's growing high-rise buildings pose both opportunities and challenges that the Kingdom has to adapt to, with experts saying tall buildings project economic growth, while others say it is important to integrate or preserve Cambodian identity and offer affordable housing. 

These were some of the themes  discussed during the third edition of the ‘Tall Building Forum 2024’ organised on May 30, 2024 in Phnom Penh, organised by Eurocham Cambodia’s Real Estate and Construction Committee and Eurocham Vietnam. 

H.E. Say Samal, Deputy Prime Minister and Minister of Land, Construction, Urban Planning (MLMUPC) expressed that Cambodian cities need to be resilient and sustainable.

He noted that the diversity of Cambodia's economy is important for urban planning and he asked how tall buildings should be developed, adding it also depended on Cambodia’s relevance, especially if it is seen as an economic centre with global trade. 

Samal added that Phnom Penh currently has 40 per cent of unused land, so space is not an issue, but the appropriate land prices need consensus. 

Opportunities For Tall Buildings In Cambodian Cities

Vannak Seng, Deputy-Chief Urban Management Division at Municipality of Phnom Penh, highlighted during the panel the potential of high-rise buildings which can alter the city landscape and urban quality of life.

He added that the city of Phnom Penh is an old city and has been rehabilitated and developed into a high-rise city due to the economic growth. Therefore, the public infrastructure needs to be improved and maintained to keep up with the demands of the increasing number of high-rises.

"One high-rise sometimes has more people than one traditional commune. Imagine how City Hall has to adapt our work to these changes because the city has changed very rapidly," he emphasised. Seng confirmed that the number of high-rise buildings over 10 storeys tall in the capital, now exceeds 1,800 developments.

One of the panellists who spoke to B2B Cambodia during the event, Chien-Jou (CJ) Chen, Country Manager & Project Director Turner International in Malaysia, recalled that in the 1990s, there was competition globally for tall buildings to be the tallest, but nowadays, it is no longer a priority.

He explained that this is because countries are considering the context of culture and the pace of economic development as well as the concept of sustainability now forming part of the planning picture.

When asked whether Cambodia should pursue tall buildings, Chen explained that in Cambodia, a 300-metre tall building may already be considered tall. He said Cambodians should find the ideal size by putting it into context and perspective, and which path best suits the country's developmental path.

Chen added that one of the perceived positives of tall buildings in Cambodia is attracting investment, as seen in countries like Taiwan, Singapore, Malaysia, Thailand, and Vietnam. "They all followed this path, and it did reflect the economic growth of the country," he said.

So tall buildings can imply that this country is on the right path to growth, and it offers confidence (not only to Cambodia), but to other countries who are planning to invest in Cambodia. It is a good sign that it is worth the investment here.

Challenges And Opportunities For Cambodia's High-rise Developments./B2B Cambodia

Challenges To High-Rise Building Development In Cambodia 

Despite positive benefits to Cambodia from high rise buildings, the event’s experts discussed the issues of identity as well as culture as a barrier to these developments. 

Seng highlighted that Phnom Penh needs to focus on high-rise living tailored for Cambodians. Living in a high-rise may be a cultural shock for some Cambodians. 

"They used to live in a house with a green garden, and one day, they live between four really narrow walls, and they are lost," he said. 

Seng said issues also arise when people live in homes farther away from the city. "We will never create a reliable urban transportation system if people keep spreading out and living in houses farther and farther away.”

He added, "You have to take into account those needs, all those quality-of-life aspects of the buildings. If you want people to change their minds and live in high-rises, we have to adapt the designs."

Cambodian Identity And High Rise Building

Martin Aerne, Founding Director and Principal Architect of Aerne Architects & Associates and professor at the Cambodian Royal University of Fine Arts, explained that tall buildings are increasing in Cambodia, however, tall buildings are not always affordable. He suggested more semi-high-rise buildings (mid-rise buildings) when considering affordability.

"If we go higher, it's maybe not affordable. But we could still make it much more connected to Khmer identity, to a way of life that reflects how we have lived here for hundreds of years, where we actually create almost like a village-style setting," he said.

Aerne explained that owning land is at the heart of Cambodian culture, and having the freedom to do whatever they want on the land, such as modifying houses. However, once they're in a high rise building, that will really depend on the management of the whole building and neighbourhood.

"So we lose in a sense, our sense of belonging, a sense of community, even though we might have great views. But as I said, it depends on how we build those highest structures," he emphasised.

Lessons Learnt From Marina Bay Sands Singapore - Sihanoukville's Potential

Serge Pak, CEO of Beton Block and Pave, highlighted the potential benefits of tall-buildings to Cambodia's economy with lessons that can be learned from Singapore.

"I see many opportunities in developing high rise buildings," he said. However, he cautioned on balancing the grid between the high rise development and with the participation of the community, in order to make it a successful project.

"If you look at the development in Singapore and the Marina Bay Sands, the investment was huge at USD $7 billion but it has an estimated USD $3 billion revenue and 45 million visitors every year. It contributed 1.5 per cent of Singaporean GDP - which is a success story when it is well-planned. Hopefully, Cambodia will use this kind of example,” he said.

Lawrence Lennon, outgoing Managing Director of CBRE Cambodia, discussed the opportunities that tall buildings can provide, saying that they could potentially be hospitals, education centres and universities, or used for retirement living. 

He added that affordable housing should be a big opportunity for the Cambodian coastal city of Sihanoukville’s future.

“I think Cambodia needs to open its doors and try and get international universities into Sihanoukville to try and stem its rebirth for this new chapter,” he concluded.
 

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