As a frontier economy booms, Cambodia's capital rises

SEBASTIAN STRANGIO, Contributing writer

Phnom Penh’s rising skyline, including its tallest skyscraper, the 188-meter-high Vattanac Capital Tower (Photo by Sebastian Strangio)

PHNOM PENH -- For most of its history, the sleepy Cambodian capital of Phnom Penh was best known for its charming, tree-lined boulevards and Buddhist pagodas. But over the past few years, a construction boom, fueled by a river of foreign cash, has turned this city of 2 million into one of Southeast Asia's fastest-growing urban centers. Its low skyline, once dominated by the golden eaves of the Royal Palace, is now bisected by skyscrapers, office towers and high-rise apartment blocks.

The boom shows few signs of slowing. In 2015, the government authorized 2,305 new construction projects worth $3.34 billion, according to official figures, an increase of a third on the previous year. Chris Hobden, a manager at the local branch of U.S. real estate company CB Richard Ellis, said the strong growth was being driven by investment from within the region -- particularly from China, Singapore, South Korea and Taiwan -- which he predicted would continue over the coming year.

"With sustained gross domestic product growth, attractive returns and the widespread adoption of the U.S. dollar, Cambodia is well placed to attract continued real estate investment from the wider region over the course of 2016," he said.

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