Although the improvement and expansion of National Road 6 is currently under way, together with the construction of the second Chroy Changvar bridge, land and real estate prices in the area are unlikely to change significantly, as property experts say those areas already have high prices.
Khat Sovann, general manager of the Cam Top Property Group, said land and real estate prices along National Road 6 have hardly changed because the land price in the area had already risen significantly when the prices strongly boomed between 2006 and 2008.
He added that the land prices along the National Road 6 is divided by Cam Top Property into four parts: the first one from Chroy Changvar bridge to Prek Leab is valued between $600 and $1,000 per square metre, and land which is not directly on the road is valued from $200 to $600 per square metre.
The second area, from Preak Leab to Preak Anh Chanh is between $200 and $300 and the land which is not directly on the road is valued from $50 to $100. The third one runs from Preak Anh Chanh to Thnol Keng, from $50 to $100 and from $10 to $50 per square metre for off-road land. The fourth and final division is in Thnol Keng area, where land prices in town are between $20 to $50 per square metre and the land inside is valued from $5 to $10 per square metre.
“Even though the land demand along the National Road 6 had increaed significantly, its price has not followed suit, but I think the land price in that area will incease strongly when Cambodia sees ASEAN economic integration in 2015, as that time there will be a lot of tourists and investors coming to Cambodia. They will actually need places to stay, need factories, restaurants and goods warehouses, but I am not able to predict how many per cent it will increase,” said Sovann.
The land price along National Road 6 is expected to increase significantly in the future because that area has a good environment with large rivers along both sides of the road, the Mekong and the Tonle Sap. And the area will have good infrastructure such as water, electricity, as well as bridges and a lot of roads.
Dith Channa, General Manager of VMC Real Estate Cambodia, said nowadays the buying and selling activities of real estate has increased a lot along the National Road 6, especially from Chroy Changvar bridge to the fifth bridge, but the land price has hardly changed.
He continued that for the National Road 6 land price, he divides it into three: the first from Chroy Changvar bridge to the second bridge is worth from $200 to $400 and for the off-road land it is valued from $150 to $300. The second area, from the second bridge to the fifth is from $150 to $200 per square metre and for lands not on the roads, from $50 to $100, while the third area from the fifth bridge to Thnol Keng is from $50 to $150 for lands along the National Road and $30 to $50 per square metre for lands not on big roads.
Even though the land prices along National Road 6 are not changing much, Channa is optimistic that “when the National Road 6 has been expanded, the land and real estate price in that area will increase by 20 to 30 per cent.”
Currenly a lot of big projects are operating and some are ready for operation along National Road 6 such as the national stadium construction project, the satellite city developing project of OCIC, factory construction projects, goods warehouses, and other housing projects.