Logo of Phnom Penh Post newspaper Phnom Penh Post - Phnom Penh’s northwest poised for growth

Phnom Penh’s northwest poised for growth

An artist’s rendition of the new Aeon mall in Russey Keo district's Pong Peay City. Photo supplied
An artist’s rendition of the new Aeon mall in Russey Keo district's Pong Peay City. Photo supplied

Phnom Penh’s northwest poised for growth

After the announcement of the second Aeon mall development to be built inside of the Pong Peay City – a satellite city surrounded by numerous borey developments in the Russey Keo district of Phnom Penh – the area is shaping up to be a driving force for future growth on the capital’s outskirts as land prices continue to rise despite formal infrastructure.

Khom Moniroth, head of Daily Realty Group’s advisory board, said he believes this area has the potential to become the next hot spot in the coming years as the price of land lots in the area has doubled over the last year.

A bullish Moniroth predicts land prices in the area could even triple after construction of the second Aeon mall is completed next year.

However, Moniroth acknowledged that while the area was still in “rice-field” status, and some parts are still lakes, incoming investment could spur a dramatic overhaul.

“The price of land per square metre in this area ranges from $400 to $500, while for small land plots the range is from $700 to $1000 per square metres,” he said.

But with plenty of projects supposedly in the pipeline, in just a few years Moniroth believes prices could shoot up from between $2,300 and $2,500 per square metre, bringing it in line with the current price of land of the well-established and largely affluent enclave of Toul Kork.

“The reason for this increase is because of the existence of huge boreys, satellite cities, new investments, and the Aeon mall,” he added.

According to Moniroth, in the future, the precinct will be flooded with condominium and office building investments.

“As a matter of act, we now already have the Camko satellite city.”

Ann Channy, sales manager for World City, which has invested in Camko City – a development that has long been snared in real estate volatility since it first broke ground in 2005 – said it was currently undergoing phase 2 of construction and earmarked a commercial zone following the trace of TK Avenue on three hectares of land this year.

Van Chanthorn, CEO of Towncity Real Estate, said he had witnessed Russey Keo district’s price growth first-hand, but was more cautious in his projections for the future of the area.

“[The price increase] won’t be that high as the price per square metre for three to five hectares of land would only range from $400 to $500 and the small ones would only be at around $700 per meter square,” he said.

“Even so, no one has purchased any land at that price yet.”

He added that while the area lacks solid development, buyers looking to cash in on projects are faced with a tough call as he said they would hardly be able to turn a profit, yet. Normally, he said, investors and land dealers aim to buy low at around $200 to $250 per square metre in places speculated for substantial growth.

“I think after the second Aeon mall is built, the price of land in this area would still continue to increase. However, I don’t know how much it’s going to be,” he added.

Long Dimanche, City Hall spokesman, said infrastructure development in the area would follow the master plan of Phnom Penh.

The second Aeon mall is tipped to be completed in the middle of 2018.

The Pong Peay City project is being spearheaded by prominent tycoon and CPP Senator Ly Yong Phat.


  • Negotiations on EBA being held

    In an effort to defuse tensions, a senior government official said Cambodia is negotiating with the European Union (EU) on the Everything But Arms (EBA) trade deal, which allows the Kingdom to export goods to the 28-member bloc tariff-free. The EU notified Cambodia on October 5

  • Ministers to tackle sea pollutants

    Preah Sihanouk provincial authorities and members of local communities have collected 77 tonnes of water hyacinth at a Sihanoukville beach, Preah Sihanouk Provincial Hall spokesperson Or Saroeun said. He told The Post yesterday that the aquatic weeds had been floating along some of the province’s

  • Chinese police escort deported scam suspects

    Ninety-one Chinese nationals accused of extorting money from victims in a Voice over Internet Protocol (VoIP) scam were deported from Phnom Penh International Airport on Monday under the escort of 182 Chinese police personnel. General Department of Immigration head of investigations Ouk Hay Seila told reporters

  • Sam Rainsy, government group set to clash at IPU Geneva meet?

    Opposition figure Sam Rainsy has been invited to speak at the General Assembly of the Inter-Parliamentary Union (IPU) in Geneva, according to a former Cambodia National Rescue Party (CNRP) lawmaker. A government delegation is also set to attend the meeting, a National Assembly press release