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.