Property developers are gearing up to construct housing projects in Dangkor district, located south of the capital’s city centre, for middle-class families. More developers are also planning such undertakings in the near future.
Yen Soklin, marketing manager for VIP City Development Company, which has invested in the construction of residential property on 20 hectares in the area, said Dangkor is booming and that there are now between 20 and 30 companies building houses.
“I think that Dangkor will grow further in the future because of its good location and suitable conditions for residential areas,” he said. “The reason we are building these houses is to cater to middle-class and lower-middle-class families”, he said.
The units in the apartment building VIP is constructing will cost between $30,000 and $50,000, according to Soklin. The company has already sold out three projects, while the fourth project is under development, with more than 1,000 units planned.
Hoem Seiha, director of research at Vtrust Appraisal, confirmed that the district has seen a profusion of residential construction, especially on the part of local investors.
“These aren’t luxury houses, but the kind of houses that allow for middle-income and lower-middle-income people to become property owners,” he said.
However, he added, the area is not ready for commercial development or to be a major business hub yet.
“It needs another five to 10 years,” Seiha said.
Nget Piseth, assistant to the executive director of Borey New World, one of the leading residential developers in Dangkor, said the development in the district has increased significantly, as the price of land continues to climb. “The construction of affordable housing is becoming a good market in Dangkor”, he said.
Phnom Penh City Hall spokesman Meas Metpheakdey said authorities from Paris, in cooperation with counterparts in Phnom Penh, have studied the area in the southern part of the capital to assess the feasibility of improving the area’s infrastructure, including roads, sewage systems, drainage basins and the like, along with projecting the number of people living there.
“The study was to help us plan ahead for the construction of infrastructure to respond to the development of population growth to ensure sustainable development,” he said.