Earlier this year, the World Bank reiterated that Cambodia’s GDP growth will stay above 6 percent through 2020. All this growth means that Phnom Penh is becoming more bustling, busy and more international with each passing day. Because of this, land and property prices are also on the rise. The outer districts of the capital, particularly Russey Keo in the north, are becoming some of the most popular areas to live and start a business.
High-rise residences and mixed-use complexes seem to be the focus in central districts like Chamkarmon, Daun Penh and Prampi Makara. In Russey Keo, however, boreys and skyscrapers are being targeted. Indeed developers seem to be using the corridor along National Road 5 and along the river for some major new projects.
Russey Keo, one of Phnom Penh’s 12 district, is partitioned into six communes: Toul Sangkae, Svay Pak, Kilomaetr Lekh Prammuoy, Russey Keo, Chrang Chamreh Ti Muoy, and Chrang Chamreh Ti Pir. According to Vtrust’s Landed Housing Market and Outlook Report 2016, Russey Keo district is home to an estimated number of 180,000 residents.
Va Virak, CEO of Century 21 Fortuna Investment, said that rising property prices in Russey Keo have been concentrated in the more central areas.
“Some sangkats of Russey Keo are priced very low,” he said, adding that there was still a lot of vacant land waiting to be developed.
Toul Sangkae commune, which is adjacent to Toul Kork district, has seen a surge of interest for condominium and apartment complexes. Additionally, borey projects along Chea Sophara road, which cuts right through Russey Keo, are hot spots. These include Borey Peng Hout, Borey Chip Mong, Borey Vimean Phnom Penh and Borey Lim Cheang Hak.
Mr Virak noted that Russey Keo’s proximity to Toul Kork and Sen Sok districts means it’s benefiting from all the new activity there. In particular, he pointed to the new Aeon Mall Sen Sok City and Makro supermarket.
He added that infrastructure was a boon for Russey Keo with National Road 5, a widened road connecting with Boeung Kak, Chea Sophara road and a new bridge across the river to Chroy Changvar.
One interesting new project in Russey Keo is a satellite city along Angkor Boulevard which consists of high-rise houses, villas, townhouses, office and commercial space, leisure facilities, an international school and a hospital. The area was completed this year after 13 years of construction.
Chrek Soknim, CEO of Century 21 Mekong, said Russey Keo has great real estate potential similar to Toul Kork or Chroy Changvar.
“Several communes in the area have been on the rise in regards to new housing developments,” he stressed.
Noting that there was plenty of untapped potential in Russey Keo, Mr Soknim said the district was just waiting for investors to bring a large project to the area. This, in turn, would have a snowball effect and bring the area to new heights.
Pech Socheata, sales representative of the 133-unit Borey Pancier Residence in Svay Pak commune, said that Russey Keo is already turning the heads of potential investors and it’s only a matter of time before the floodgates really open up.
“The presence of Triumph Commercial Center, a $1 billion complex which houses enterprises selling over 100,000 types of products, will impact this entire district,” Ms Socheata said, adding that she expected a new surge of activity within the next five years.
According to a report in the first half of 2018 from Key Real Estate, showed that average prices in Russey Keo stood at $800 per square metre for housing plots and $1,500 per square metre for commercial land.