Developers recreate Paris in Phnom Penh for the rich

A replica of the Arc de Triomphe towers over a branch of the Mekong River, flanked by shops and apartments built in the style of the French capital's signature Haussmann blocs.

"This building is beautiful, really beautiful," enthused Heng Sokharith, 49, who bought a unit in the Elysee project -- named after the Champs-Elysees avenue in Paris -- for his furniture business.

"When we have such a building in Cambodia, it is a source of pride."

An aerial photo taken on March 1 shows the Elysee Commercial Center building in the Paris-style development along the Bassac river in the satellite city of Koh Pich in Phnom Penh. Photo by AFP

With its manicured promenades, its cafes and its self-declared elegance, this "mini-Paris" is being sold as a chic enclave for the rich, sheltered from the restless bustle and noise of the city of two million.

Developers OCIC have transformed what was a swamp on an island, throwing up skyscrapers, an international school and a hospital.

OCIC, part of one of the country's largest conglomerates, invested $400 million in Elysee, which was initially launched in 2015 and is now nearing completion.

Koh Pich, the island that houses the Elysee, has become a symbol of Phnom Penh's rebirth after decades of conflict which ended in the early 1990s.

Cambodia has had one of the fastest-growing economies in Asia over the past 20 years.

Prices for the large Elysee units run up to $1,300 a square meter — in a country where the GDP per capita is just over $1,600 and the minimum wage in the garment sector, a major employer, is around $200 a month.

But despite these unpromising conditions, more than 80% of the 229 units have been sold, according to OCIC Vice-President Thierry Tea, although not all are currently occupied.

Thierry Tea, vice president of the Overseas Cambodian Investment Corporation (OCIC) group, on March 1, 2024. Photo by AFP

Phnom Penh is trying to attract foreign investors looking for property with its prices, which are competitive compared to other cities in the region.

"Should the customer want to buy, to rent, to have a yield and return on investment, they are very welcome," Tea told AFP.

"Cambodia has so much to offer. Phnom Penh is a growing city. There is a lot of potential."

Under Hun Sen, Cambodia developed ever-tighter ties with Beijing, and Chinese money has flooded into the country, fueling a construction boom in the capital --but also bringing a mushrooming of casinos and other more unsavory businesses.

'New frontier'

Those backing the Elysee and similar high-end ventures say that in addition to Chinese money, they hope high-end brands will be attracted by the market potential offered by the country's growing middle classes.

Not far from Koh Pich, a shopping mall with up to 75 luxury boutiques will open in the next few months.

Pierre Balsan, the Cambodia managing director for Bluebell, the company behind the mall, said the country was "a new frontier for luxury brands".

The main challenge was "to try to change the perception of the brand managers about Cambodia, and the image of Cambodia", he told AFP.

Several Cambodians working in the luxury goods sector refused to be interviewed by AFP.

But Heng Sokharith is happy with his investment.

"I think there will be more development in the future, so in the future this area will become more attractive."