Infrastructure improvements and burgeoning tourist numbers have recently illuminated the real estate potential of the traditionally remote provinces of Mondulkiri and Ratanakiri, located in Cambodia’s northeast.
Inn Phirun, a local residing in Mondulkiri, told Post Property that properties and land in Mondulkiri were starting to increase gradually in value, adding that the fertile land in the area made for perfect conditions for pepper farming. As a result, farmers are flocking to Mondulkiri to purchase farming land at between $5,000 and $10,000 per hectare.
“I think that in five to ten years there will be lots of people living in this province,” Phirun said, believing that construction of boreys will also emerge in Mondulkiri in response to buyer demand.
While the province has yet to house any apartments or boreys, hotels and guest houses in the area amount to approximately 1,000 rooms to accommodate locals and tourists.
Mondulkiri provincial governor Svay Sam Eang said the reason as to why there hadn’t been any borey or apartment projects developed to date was due to the lack of private sector investment participation.
Meanwhile, in neighbouring Ratanakiri province, rising land values have already piqued the interest of developers, with construction of several residential properties taking place.
Nget Pitou, director of Ratanakiri province’s tourism department, said apartments in the province had been valued at $50,000 to $60,000 per flat, noting that there had been a flurry of sales activity alongside the new construction.
Sokea Pen, valuation supervisor at Bonna Realty Group, said while both Ratanakiri and Mondulkiri showed promise on the residential real estate fronts, the rate of increase in visitor numbers to the provinces was still limited, making it hard for the areas to develop at a fast rate.
Pen said commercial land in Mondulkiri costs between $250 and $300 per square metre for the zones near the market, while land in the residential areas cost $50 to $100 per square metre.
Pen believes Ratanakiri has greater potential than Mondulkiri as a real estate hub due to the province already making strides with development of hotels and apartments, which was in addition to its more lucrative location given it is bordered by both Vietnam and Laos.