The land division market in Mondulkiri provincial capital Sen Monorom town has begun to sprout in earnest following in the footsteps of Phnom Penh and a handful of provinces.
This, according to industry insiders, comes amid the government push to transform the somnolent town into the Kingdom’s fourth economic pole – after Phnom Penh, Siem Reap town and Sihanoukville – in the northeast corridor.
Land division refers to the process in which developers create new allotments by splitting land into smaller parcels with separate lot titles. This is done to boost the value of their land holding by leveraging the development potential of their property.
Sear Chailin, CEO of Chailin Sear Realty Co Ltd (CL Realty), a company that plans to sell such lots in Mondulkiri, told The Post on February 3 that the market in Sen Monorom has been on a steady upswing since the outbreak of Covid-19.
He attributed the emergence of the real estate sector and land division segment to a range of factors including new policy designed by the government with its transformation goals for the provincial capital in mind and increased attention given by local authorities to land classifications.
Other reasons include the ongoing improvement of the natural environment, a growing number of people living and doing business in town, and an assortment of new investment projects in the tourism sector.
“All these elements only add to the allure of Mondulkiri’s real estate market and land division market,” Chailin said.
With its current development momentum, he voiced optimism that land division in the province would only garner added traction, leading in turn to higher prices.
According to Chailin, land on the market in Sen Monorom’s prime areas is now about $1,500 per square metre, whereas plots of suburban land can go for less than $100.
Noun Rithy, president and CEO of real estate investment agency Khmer Foundation Appraisals Co Ltd, which sells divided parcels of land in Mondulkiri, said the stunning scenery and beautiful nature offered by the province on top of the government development plans had brought in a slew of new projects.
He echoed Chailin’s remark that the market for divided parcels is on a steady growth curve. “While the demand for plots of land at the moment may be high, the sheer amount of mountains and plateaus makes it cumbersome for us to find large enough plots to subdivide and put up for sale.”
With scads of infrastructure development projects in the province, Mondulkiri real estate will see substantial growth in the near future, according to Rithy. “They’re looking at a series of development projects setting up there now, such as hotels, restaurants, bungalows, leisure centres and housing.”
Mondulkiri Provincial Administration spokesman Neang Vannak said the Northeast Regional Development Plan and the airport project in O’Raing district are rebranding the province’s image in every way imaginable.
“The land division movement is gradually forging ahead in Sen Monorom town, and prices in the heart of town are also rising, especially now with the better infrastructure.
“The increase in the number of development projects, coupled with airport construction plans will further boost the market for plots in Mondulkiri province,” he said.
On December 31, the government decided in principle to grant approval for China’s Powerchina International Group Ltd to study and develop a proposal to build a regional-level airport in Mondulkiri province.
This was revealed in a letter issued by the Council of Ministers and addressed to the ministers of Economy and Finance; and Land Management, Urban Planning and Construction, the State Secretariat of Civil Aviation (SSCA) and Mondulkiri provincial governor.
The letter said the company would have to cover the cost of the project’s feasibility study which is to be conducted by SSCA.