Land prices along one of Cambodia’s main highways have seen a slight increase in the first half of 2017, thanks to road improvements and residential developments, insiders say.
National Highway 1, or National Road No. 1, is one of the main highways in Cambodia. It is 167 kilometres long and connects the capital of Phnom Penh to Prey Veng province and Bavet, the capital of Svay Rieng province, and the border with Vietnam.
Van Chanthorn, the CEO of Town Real Estate, said land prices along the road have seen a change in the first six months after improvements to the road were fully completed.
Land along the road from the Chbar Ampov Bridge to Borey Peng Huoth is now priced from $1,200 to $1,800 per square metre, based on the location and size, and from Borey Peng Huoth to the Prek Eng market prices are about $700 per square metre, according to Mr. Chanthorn.
“If compared to national roads 6, 5 and 4, National Road 1 is not better than them because those roads have been developed and the sides of those roads are full of factories and warehouses, He said.
“However, now that Road 1 has been transformed from agricultural land to residential land, a lot of developers are eying the road for Borey and residential investments.
“I think in the future the land along the road will be developed into residential and commercial areas rather than industrial ones,” he added.
Dith Channa, the CEO of Lucky Realty, said the land prices along National Road 1 have seen a slight increase so far this year because prices reached a peak in 2016. But he is still optimistic about development and land prices rising along the road.
“In the first half of this year there were residential developments and road improvements, which are some of the factors to help boost the price,” Mr Channa said.
“There are many developers that are going to set their investment along National Road 1, like The Palm and many other residential developments,” he added.
According to his assessment, land prices along the road from the Chbar Ampov Bridge to Borey Peng Huoth range from $1,000 to $1,500 per square metre on average, and from Borey Peng Huoth to the Prek Eng Market they start from $250 to $500 and from the Prek Eng Market on the prices are lower.
“In the future, all the areas in Phnom Penh will see an increase. If compared to the neighboring countries, our land prices are lower than them,” he added.
WorldBridge Land, a subsidiary of WorldBridge Group, has joined hands with Singapore-based Oxley Holdings to invest in a new luxurious resort-like project called The Palm, which will be opposite the Cho Ray Phnom Penh Hospital along National Road 1.
Sear Rithy, the chairman of WorldBridge Land, a subsidiary of the WorldBridge Group, told Khmer Times recently that the reason for investing in the new project was because of political stability and economic growth.
“For us, before such an investment, we clearly study the market, but if we don’t study the market clearly we will not invest,” he added.