Northern Areas Starting to Open Up
The northern part of Phnom Penh has seen strong growth in housing development, thanks to the area’s favorable geography and the city’s growing population, while the municipal development plan for 2035 is pushing for growth in the northern property sector.
Chrek Soknim, the CEO of Century 21 Mekong, said the northern part of Phnom Penh has great potential because of its location and there are many housing development projects popping up in the area as well as the infrastructure is being built.
“The northern part of the city is one of main attractive areas because the area is connected with big roads into Phnom Penh such as national roads 5, 6, 7 and 8 as well as arterial roads into Phnom Penh,” Mr. Soknim said.
“The infrastructure and topographic is good, there are favorable weather conditions, a friendly environment away from the smoke of factories and enterprises will make the northern area become increasingly popular in the future.
“I believe that this area will become an economic, commercial and housing hub and an attractive area for Phnom Penh in the future.
“Housing prices like an apartment start from $40,000 to $70,000 per unit and the prices are based on the quality of the construction and location,” he added.
Mean Chanyada, a Phnom Penh municipality spokesman, said that in the master plan of Phnom Penh development from 2015 to 2035, the city’s goal is to expand its development in four directions out of Phnom Penh.
“Previously the city development has grown stronger in the west and north of Phnom Penh, which has made more of the population move into those areas, so municipal authorities have expanded the development to the south and east of Phnom Penh to allow people to not live in a single area that could cause environmental and social issues and be difficult to manage,” he said.
“If you look north of the capital, the area will be developed actively in the commercial housing sector in the future.”
In the early stages of this month, Cambodian-owned LYP Group and the China Minsheng Investment Group (CMIG) – the largest privately owned investment group in China – signed a $1.5 billion deal to build the Cambodia-China Friendship City, which is about 10 kilometers north of the capital.
China is the largest foreign investor in Cambodia, having invested $833 million in the first 10 months of the year, followed by $40 million from Japan, $32 million from South Korea and $23 million from Singapore, according to a report from the Land Management Ministry.
The report said that total investment in the construction sector until October was $7.86 billion, an increase of 300 percent from the same period in 2015.
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