Chinese real estate developer Jiayuan International Group has purchased five plots of adjoining land along National Highway 6, in Phnom Penh’s Chroy Changvar district, at a cost of $35.6 million.
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The company plans to use the land for residential and commercial projects, according to a company statement. In total, 608,140 square metres were purchased with an option to expand to 350 hectares (3.5 million square metres) in the future.
The purchase was carried out through the company’s local subsidiary, Gang Yuan Development.
“In recent years, Jiayuan International has closely followed the national Belt and Road Initiative to develop quality projects in countries and regions along the route,” the company said.
“We are determined to establish a good reputation in Cambodia and enhance awareness of our brand in the Southeast Asian market.”
Jiayuan International Group is an established property developer of large-scale residential and commercial projects in Jiangsu province, an eastern-central coastal province in China. Some of its main activities are the development and sale of residential and commercial projects, the provision of services for the development of resettlement properties, as well as property refurbishment.
Po Eavkong, CEO and co-founder of Advance Real Estate Company, told Khmer Times that interest in the local real estate sector is growing among Chinese developers.
He said many are now attracted to Chroy Changvar due to the fact that a lot of the surrounding infrastructure has already been completed, including National Road 6 and the Chroy Changvar bridge.
“The price of land in the area has been rising dramatically, and now it stands at $30 to $150 per square metre, depending on the precise location,” Mr Eavkong said. “The area is especially favourable for residential projects, resorts and commercial centres.”
Mr Eavkong said that, as laid out in the master plan for the city, the districts of Khan Dongkao and Posenchey are better suited for the construction of factories and industrial parks, while Chroy Changvar, Russey Keo and Sen Sok work better for residential and commercial projects, as well as supermarkets.