Real estate prices in Kampong Chhang province have increased by around 10 per cent over the last 12 months, according to experts.

Dith Chana, general manager of VMC Real Estate Cambodia, said that Kampong Chhnang is only 91 kilometres from Phnom Penh, but the development of its real estate has not risen “significantly,” he said.

The most obvious activities of investment are around five to six garment factories, while housing development is slow.

“Land prices and the demand of buyers for real estate in the province in 2012 is climbing around 10 per cent if compared to the same period in 2011,” he said.

“The price of land goes from $300 to $350 per square metre within the town, but only $3 to $5 per square metre to farming fields that are far from the town, while $5 to $15 per square metre for lands that are near National Road 5,” said Channa.

The development of garment and beverage factories as well as private schools has begun to build gradually in the province, that could increase the demand of investment areas.

In general, wherever big investment projects start, those areas will get more and more investments and the price of real estate will also climb, he said.

However, the price of real estate in Siem Reap, Battambang and Preah Sihanouk provinces is more attractive to investors than Kampong Chhnang, but it has potential for investment compared to smaller provinces.

“The demand for real estate, and prices, will increase when the international airport is established and infrastructures are expanded in the province,” said Channa.

In October Prime Minister Hun Sen announced that Phnom Penh’s new international airport would be built in Kampong Chhnang in 2025.

Kampong Chhnang governor Tuch Marim said that the activities of investment in Kampong Chhnang are not different to last year but there are 10 new factories that have been built, while the buying and selling of real estate have followed the global financial crisis.

When the international airport is operational, infrastructure such as roads will be expanded which will cause real estate prices to climb, he said.

Tuch Marim said he hoped that investment in Kampong Chhnang would increase when the international airport is operational, and that good infrastructure will attract investors, including hotels and bakers.

“I think that Kampong Chhnang will become a place that investors are interested in in the future,” said Marim.

To contact the reporter on this story: Seun Son at [email protected]