In Cambodia, one of the poorest countries in Asia, a new Haussmann-inspired district reflects the development fever that has gripped the capital Phnom Penh, where luxury thrives on the breeding ground of poverty.
"
That's wonderful!
It’s a source of pride for Cambodia
,” says Heng Sokharith, 49, owner of a Parisian-style block of several floors, housing the headquarters of his furniture company on the ground floor.
With its developed promenades, its cafés and its claimed elegance, a “
mini-Paris
” is sold as a chic enclave intended for the rich, sheltered from traffic jams and noise pollution.
In the heart of the city, a replica of the Arc de Triomphe stands facing an arm of the Mekong River.
The district, called "Élysée", is located on Koh Pich, an island that has become the symbol of the rebirth of Phnom Penh after decades of civil war until the 1990s. Skyscrapers, international school, hospital... This former Maraisage aims to be the showcase of a Cambodia open to globalization.
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The small kingdom has distinguished itself by one of the highest growth rates on the planet over the past twenty years, but at the cost of persistent inequalities and dangers for the environment, underlined the World Bank.
Wealth remains concentrated in the hands of an elite close to former Prime Minister Hun Sen, who ruled the country for nearly forty years before giving way last summer to his son Hun Manet.
Ambitions
At the Élysée, a square meter can cost around $1,300 for large areas, explains Thierry Tea, vice-president of the developer OCIC behind the project - an amount a little lower than the annual GDP per capita.
Despite a prohibitive price for a large majority of Cambodians, more than 80% of the 229 units have been sold, assures the manager, recognizing that not all of them were necessarily inhabited.
With its few pedestrians, the district, launched in 2015 and which is approaching completion of the works, for a total cost of 400 million dollars, seems much less lively than the rest of Phnom Penh.
The country is mainly trying to attract foreign investors, with prices considered competitive in the region.
“
Whether the customer wants to buy, rent, or get a return on investment, they are welcome
,” declares Thierry Tea.
Under Hun Sen, Cambodia rolled out the red carpet for Chinese funds, behind the construction boom, but also the proliferation of casinos and other gray activities, sometimes associated with money laundering.
But in Phnom Penh, behind the city's redevelopment, businesses praise the potential of a young kingdom that Hun Manet would like to transform into a high-income economy by 2050.
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Rejuvenation of the elites
Not far from Koh Pich, a shopping center, which will accommodate up to 75 luxury boutiques, is due to open its doors in the coming months.
Cambodia
is “the new frontier for luxury brands
,” says Pierre Balsan, Cambodia director of Bluebell, who is behind this project.
The development of the “
middle and upper middle
” classes will boost demand, he believes.
“
The main challenge was to change the image of Cambodia among brands.
Since there is a younger prime minister, that helps me a lot
,” he says.
A graduate of American and English universities, Hun Manet, 46, embodies the renewal of the elites at work in recent years.
But he maintains control of a system of corruption inherited from his father, which continues to repress all forms of opposition.
We are witnessing the “
capture of real estate income by big people who make as much money as possible
” thanks to their political connections, explains Gabriel Fauveaud, assistant professor at the University of Montreal.
Several Cambodians involved in the luxury industry refused to be interviewed by AFP out of concern for discretion, they explained.
But for owner Heng Sokharith, it is the right time to invest: “
The neighborhood will become more and more attractive
,” he assures.
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