Kampong Cham may no longer be the quiet city it is today if its purported economic potential continues to be realised. Local developers have already taken a keen interest in the town with the development of the first borey underway.
A province that has recently been divided in two during the government’s fifth mandate, Kampong Cham province is seen as one of the potential economic provinces.
Seav Sophal, exclusive sales agent for Borey New World, said on the phone recently that because of the province’s potential and the community’s improving livelihoods, Hong Piv, director of Borey New World, has decided to build the first borey which would act as an entertainment centre in Kampong Cham town.
Since construction begun earlier this year, 20 percent of the residential houses in the project have been completed.
“Such commercial residential houses are sold in phases. They are being sold as they are being built because the residential trade here isn’t the same as in Phnom Penh,” Sophal said.
“In Phnom Penh, we receive deposits, but in Kampong Cham town, we sell them as we build them.”
Borey New World in Kampong Cham sits on a 3.5-hectare piece of land, located in Village 7.
Sophal added that the new borey project will be made up of 270 commercial houses. The starting cost is $68,000, although some of the housing packages are priced at $180,000.
He is confident the project will be successful because the developer, Hong Piv, has a good reputation and is trusted by the community.
Kuy Vat, CEO of Century 21 Cambodia and founder of Park Café, went to the province last week, the purpose of his visit being to look over the project in Kampong Cham while also inspecting sites amid his plans to open a new Park Café in the largely untapped area.
“I’m planning on buying a house in the borey because the area has much economic potential and it will make profits,” Vat said.
“Kampong Cham is an unpolished town. It’s a good province to build a special economic zone because it is only one hour away from Phnom Penh.”
Meanwhile, Noun Rithy, CEO and president of the Khmer Foundation Appraisal, said the borey development in the heart of Kampong Cham town is prospectively successful with limited downside risk.
“It is possible to have a medium-sized borey development in Kampong Cham, but it should not be as big as those in Phnom Penh, because Phnom Penh is a multi-economic zone with a huge population,” Rithy said.
“In terms of borey location, Kampong Cham town is a good location. There isn’t any risk, but they should be thinking about whether or not there will be renters after they buy it, or if they’re buying it to live or do their own business.”
Rithy said borey or real estate developments in provinces other than Phnom Penh help develop the country and the province’s economy, but cautioned that Kampong Cham was not yet ready for a large number of residential property developments.
Land prices in Kampong Cham town for the commercial zone along National Road 7 are $1,500 to $2,500 per square metre while the house and land plot prices in town are $200 to $500 per square metre, according to Rithy.
Van Chanthorn, CEO of Town City Real Estate, said Kampong Cham town, at present, is not the only town that has caught the interest of developers. However, he added that while many local developers were looking at other provinces, Kampong Cham remained a big drawcard. This is namely because of the province’s large and still-growing population.
“If there is a residential development in the province’s commercial zone, that would be alright because there are still many old houses from the previous generations in the province, and they are quite pricey, so opening up more options are good,” Chanthorn said.
Ho Thearith, a resident in Chroy Thmor village in Boeung Kak district of Kampong Cham, said property prices in Kampong Cham town this year have come to a standstill.
Nevertheless, he also said many people have expressed much interest in Borey New World’s new development, but are exercising caution in that they are not committing to purchasing a unit until the houses have finished construction.
He added, “The sales at Borey New World will be a success, although it might be a bit slow because those who are well-off in the province have already bought many houses in Phnom Penh.”