Logo of Phnom Penh Post newspaper Phnom Penh Post - Arey Ksat area property prices stable, but set for bridge boom



Arey Ksat area property prices stable, but set for bridge boom

Content image - Phnom Penh Post
A young woman rides a bicycle along Mekong River Street on the capital’s Chroy Changvar peninsula as two ferries head east to the port in Svay Chrum village of Kandal province’s Khsach Kandal district. Hong Menea

Arey Ksat area property prices stable, but set for bridge boom

Plans to break ground in 2023 on a bridge linking Arey Ksat commune across the Mekong River to northeastern Phnom Penh have not significantly made the real estate market in the Kandal provincial locality more attractive for investors, despite initial optimism, according to industry analysts.

But many believe that transactions could gain real momentum, and prices may skyrocket once construction has commenced.

Minister of Public Works and Transport Sun Chanthol on January 10 said studies associated with the construction of the Cambodia-South Korea Friendship Bridge, also being called the Svay Chrum Bridge, were nearly complete. He confirmed that construction could begin next year.

The minister made the remarks during an inspection of works on the 38-road renovation project in Siem Reap province.

Chanthol said the two main proposals for project are: a single bridge from the capital’s Chroy Changvar peninsula to the Phnom Penh Water Supply Authority’s Svay Chrum pumping station; or a bridge from near the Phsar Chas Market (Old Market) to Chroy Changvar, and another from the peninsula to the Arey Ksat area.

Located in Kandal’s Khsach Kandal district, Svay Chrum is a village in a commune of the same name, just north of Arey Ksat in Lvea Em district.

The ministry is weighing the potential impact and costs involved in either scenario, as well as the forms of the bridge, he said, mentioning as a potential model the cable-stayed Tsubasa Bridge (Neak Loeung Bridge) that connects Kandal province across the Mekong River east to Prey Veng along National Road 1, the minister said.

When the studies are completed, the bidding process for the construction of the bridge will start, he noted.

Global Real Estate Association president Sam Soknoeun told The Post on January 12 that although property prices in Arey Ksat had rocketed to record highs years ago, rates have remained relatively stable in the last two or three years.

But land prices will once again witness sharp rises when bridge construction gets off the ground, he forecast.

“Real estate in Arey Ksat is like an unprocessed diamond – when the bridge connects it from Phnom Penh, it’ll turn the area into a refined specimen much like Chroy Changvar is now, with similar land prices to boot,” he said.

According to Soknoeun, prime land in Arey Ksat – along the riverside – costs some $1,000 per sqm on average, residential plots go for around $100-$300 and large development plots tend to fall from $180-$250.

Noun Rithy, president and CEO of real estate investment agency Khmer Foundation Appraisals Co Ltd, surmised that Phnom Penh’s third ring road which is planned to pass through Arey Ksat, coupled with the new bridge, would shake up the market and transform the locality into an eminent borough that is close to the capital.

Infrastructure construction is highly intertwined with the state of the real estate market, he underlined.

“The government’s ongoing efforts to build infrastructure are creating new opportunities, and are a driving force for Cambodia’s real estate market and economy to swiftly recover to pre-Covid-19 levels,” he said.

Going forward into 2022, Rithy predicts that the Cambodian real estate market will improve over last year, despite the lingering global economic threats posed by Covid.

Prime Minister Hun Sen has also commented on the possibility of Arey Ksat turning into a sort of satellite city down the road.

MOST VIEWED

  • Siem Reap drain canal now ‘mangrove’ promenade

    A more than half a kilometre long stretch of canal in Siem Reap has been covered and turned into a promenade to attract visitors, said Ly Rasmey, secretary of state at the Ministry of Land Management, Urban Planning and Construction, on September 16. The new pedestrianised

  • Angkor wildlife, aquarium park still to open October

    The Angkor Wildlife and Aquarium complex about 30km southeast of Siem Reap town with initial total investment of more than $70 million is reportedly still on track for an end-October opening. The park is located on a 100ha plot along National Road 6 in Kbon village, Khchas

  • Final verdicts for Khmer Rouge leaders ‘vital’ for next generation

    Nearly a decade after the commencement of Case 002/02 against Khieu Samphan back in 2014, the Extraordinary Chambers in the Courts of Cambodia (ECCC) is now set to deliver its final verdict for the former Khmer Rouge head of state. The Supreme Court Chamber of the ECCC,

  • Defence minister reaffirms Kingdom’s staunch support for One-China policy

    Minister of National Defence General Tea Banh has reaffirmed Cambodia’s unwavering support for the One-China policy. Tea Banh was speaking at the September 20 ceremonial handover of 117 vehicles and other military equipment donated by China’s defence ministry, held at Phnom Chumreay International Military Training

  • Deaths due to ‘lifestyle’ diseases rise in Kingdom

    The Ministry of Health has called on people to pay closer attention to their health to protect themselves from non-communicable diseases (NCDs) which it said have caused high rates of deaths in the country. Ministry secretary of state York Sambath made the call at a

  • Textile industry minimum wage now $200

    The official minimum wage for workers in textile-related sectors including garment, footwear, and travel goods for 2023 was pegged at $198, with Prime Minister Hun Sen stepping in to add $2 to the total, making it $200 per month. The Ministry of Labour and Vocational Training made the announcement