The connection of the 60-metre wide and nine-kilometre long Samdech Techo Hun Sen Street, with the expansion of the city belt towards National Road 2 and National Road 3, are the main catalysts in attracting developers to southern Phnom Penh.
Factories and enterprises at the area make it convenient for developers to find labourers, leeching on the back of the government’s plans to build a 60-metre wide city belt – leading from Prey Torteng, in Kampong Cham, along National Road 3 towards National Road 2, heading to the Vietnamese border.
Mom Sokhern, district chief and commune clerk at Prek Rorka commune in Kandal province’s Kandal Steung district, said there are currently about 20 factories operating in the area, and new land is being developed already.
According to Sokhern, many more factories will be setting up their stakes in that area in the near future.
Sokhern added that prior to this, the land prices in Kandal Steung and Bati districts were stable up until the last few years, when the prices spiked.
The land prices along National Road 2, about two to three kilometres from the city border, are between $75 and $80 per square metre, whereas land prices for areas four to five kilometres from the city range from $40 to $50 per square metre. Pen Sokhom, a resident in Prek Rorka village in Kandal Steung district, affirmed the land prices in his area have gone up. He had recently sold his 10-acre land at $5 per square metre.
He added, “I believe the land price will continue to increase in the future, so anyone who can afford to buy land in this area will be able to make huge profits.”
Prek Rorka is located along National Road 2, seven kilometres from Phnom Penh’s Sangkat Tropeng Tleng in Dangkor commune.
Sokhern expressed hope, saying, “Within the next couple of years, the land prices in Kandal Steung district and other parts of Bati district, Takeo province, will skyrocket, and the people’s economic situation will improve.”
“People in this area have many pieces of land. In each family, there are at least two children working in factories or enterprises, which will push their livelihood even further up.”
He explained that this area is not usually affected by flooding, especially areas along National Road 2, compared to areas along National Road 38 leading to Kompong Toul, around National Road 3, that are often the subject of flooding because of their proximity with the Steung Prek Thnot creek.
Peng Song, a sand-pumping business owner in Kandal Steung district along National Road 2, said land prices in this area have definitely shown increment.
Land next to National Road 2 now cost at least $100 per square metre. Even farm lands that are not accessible by roads cost $4 to $5 per square metre. Land estimated to be two to three kilometres from National Road 2 can sell for $10 to $20 per square metre.
“This area will experience a swift development in the future because the City Hall is planning to build a 60-metre road from Prey Torteng, along National Road 3 to National Road 2, leading to Sa-ang Vietnam Border, in the near future,” Song said. He added that large empty lands in this area have been sold to the rich and powerful because they got wind of the development plan before others did.
Ngoun Chhayleang, CEO of Ratanaka Realty, said the southern part of the city was a high growth potential area because of the government’s infrastructure development plan, especially the connecting road from Samdech Techo Road.
“The development of Kerry World Bridge Special Economic Zone (KW-SEZ) has created jobs for more than 26,000 people, as well as created many factories and enterprises along National Road 2 in Kandal Steung district in Kandal province, and Takeo province’s Bati district, which is adding to the area’s potential.”
He added, “The land prices in the southern part of the city are still affordable and can be invested in, compared to the northern part of the city, which is too expensive to develop.”
Sear Rithy, CEO of World Bridge Land – the company responsible for developing the 63-hectare KW-SEZ along National Road 2 – told Post Property on Monday that the KW-SEZ is a strategic area that makes it easier to connect National Roads 3 and 4, and the Phnom Penh International Airport.
He continued, “The area along National Road 2 is a high ground area. I have never seen the area flooded. In the future, the area will become a residential area because of its proximity to Phnom Penh.”
“Once Samdech Techo Hun Sen Street is opened, this area will quickly develop,” Rithy confidently said.
In true pragmatic style, with his last reminder in 2014, veteran Cambodian architect Vann Molyvann had suggested the government develop the southern part of the city because of the region’s high ground, which would make it less susceptible to flooding in the future.