The announcement of a road and bridge that will cross the Tonle Sap River and connect Kampong Chhnang and Kampong Thom provinces, which is set to see a concentration of major logistics infrastructure, will bring to light the potential of the province’s real estate sector, insiders have said.
Khmer Foundation Appraisals Co Ltd president and CEO Noun Rithy told The Post on Wednesday that the geographical potential of Kampong Chhnang province has long been overlooked, and that it is the optimal location for investment in all sectors, including roads, railways, waterways and airways.
The announcement of the new road link project will heighten momentum in the province’s real estate sector, bringing a steady influx of people to settle in. “The flow of people will increase population density, and when this increases, real estate will boom,” he said.
Rithy said the province’s commercial land currently costs an average of between $500 and $600 per sqm, while Kampong Chhnang town’s residential land currently ranges between $100 and $200.
“Land for factory construction can cost between $15 and $20, while agricultural land averages from $2 to $5 per sqm. Vast reaches of large farmland can range between $0.20 and $0.50 – or between $2,000 and $3,000 per ha.
Homes in prime locations can cost between $200,000 and $300,000 per unit. In Kampong Chhnang town there are currently a number of gated-community construction projects– locally known as borei.
Compared to the same time last year, land prices have risen up to 50 per cent, with more distant locations rising by around 15 per cent, he said.
“Kampong Chhnang is also said to be a place with a high potential for industrial investment.”
Minister of Public Works and Transport Sun Chanthol said on Tuesday that the construction of the road and bridge linking Kampong Chhnang and Kampong Thom provinces may soon begin.
He said he will discuss with the Ministry of Economy and Finance to push the project despite it not currently being in the government’s five-year plan.
“The study has been completed 100 per cent, and we will negotiate and insert this project into government’s five-year plan to ask China for loans,” he said.
According to the minister, the project might require a concessional loan from China of around $200 million.
“I would like to ask the private sector to consider [Kampong Chhnang province] as a logistics service area for the Greater Mekong Subregion,” he said.