As major real estate developments in central Phnom Penh drive up the value of real property, many developers have shifted their attention to new areas with cheaper land. These areas include Dangkao district, which has recently generated interest from local and foreign property developers.
Dangkao is Phnom Penh’s largest suburb with an area of 197.89 square kilometres.
Dr Kim Heang, president of the Cambodian Valuers and Estate Agents Association (CVEA), said, “The potential of Dangkao is similar to Por Sen Chey due to low land price, affordable homes and abundance of factories that have encouraged more people to move into the area.”
The population of Dangkao increased from 92,461 in 1998 to more than 200,000 today.
Dr Heang said that compared to other up-and-coming areas like Chbar Ampov or Chroy Changvar, Dangkao has cheaper land. “Dangkao is ideal for residential and industrial development like building houses or factories,” he stressed.
Mam Sereypanha, CEO at Easy Property Investment, said development in an urban area usually moves towards the suburbs after some time. “Dangkao is still behind Sen Sok in terms of amenities and infrastructure. But it is located very close to the city and has already become a target area for borey and plot land projects,” he said. Dangkao is a mere 10 kilometres away from the city centre.
According to the 2017 Housing Market and Outlook Report by Vtrust Appraisal, Dangkao is the third biggest housing supplier in 2017 after Por Sen Chey and Sen Sok. The area has 26 major developments and 37 smaller projects underway. Once completed, these projects will result in a combined 17,000 available units.
Hay Ravy, marketing and sales manager at Daily Realty Group, said the presence of cheap, readily-available land in Dangkao offers many opportunities.
Mr Ravy identified Prey Sar, Cheung Aek and Sangkat Dangkao as key areas for development in the district. “These areas have existing infrastructure and are the most promising in terms of property and economic development,” he said.
Many garment factories are located in Dangkao. So do many borey projects, including: Borey Chip Mong, Borey Piphup Thmey, and Borey Chamkar Dong.
Dangkao is also host to many ongoing plot land projects that are targeted at local buyers.
Seng Oudom, sales executive at Phnom Penh Home Land (PPHL), said Dangkao has greater potential because of its inclusion in the government’s latest development plan, improved road systems and location.
Mr Oudom said buying land in Dangkao is a good investment, with a return on investment of 40 to 60 percent after one year. A plot of land there fetches between $15,000 to $100,000.
While everyone agrees on Dangkao’s potential, some people think there is more to it.
“The future development of the Dangkao area is unpredictable. No one knows what will happen if a project like Aeon Mall 2 opens in nearby Sen Sok,” Mr Sereypanha said.
Aeon Mall 2 will open sometime this year.
Looking for real estate for rent or sale in Dangkao? Read the The Ultimate Guide To Phnom Penh at Realestate.com.kh