Logo of Phnom Penh Post newspaper Phnom Penh Post - Schools add value to property, but developers remain indifferent

Schools add value to property, but developers remain indifferent

The Internatioanl School of Phnom Penh is somewhat of a rarity in its location, given it is in proximity to boreys and villas.
The Internatioanl School of Phnom Penh is somewhat of a rarity in its location, given it is in proximity to boreys and villas. Moeun Nhean

Schools add value to property, but developers remain indifferent

Although schools and hospitals help add value to borey projects and major residential developments, many new dwellings in Cambodia neglect these community services, reflecting the sales-orientated mentality of many development companies.

There are more than 100 borey projects in Phnom Penh, but few have schools in or near the borey.

Seventy-year-old school teacher Touch Vat said previous authorities had made an effort to construct schools in proximity to residential neighbourhoods.

“In the old days, circa 1970-1980, when there were dozens to hundreds of families in a community, the government would draft plans to build schools nearby because the children needed a place for education,” he said.

“But in this day and age, because residential development projects are placed in the hands of investors, they only concentrate on building as many houses as they can to maximise profits.

“They do not think about the long-term future of the residents,” Vat said.

Chrek Soknim, CEO of Century 21 Mekong, said there has yet to be a borey project in Cambodia that promises to build or leave space to build schools or hospitals within the borey compound.

“Developers only care to build houses to sell,” he said. However, Soknim acknowledged that ING City was a large-scale project that was in proximity to the International School of Phnom Penh (ISPP).

He said that in general, schools and other community infrastructure, such as hospitals, add to the value of a nearby property.

“Properties around or close to schools are generally more expensive than other places, and they are more coveted too because customers always think of the future of their children,” he said.

Chantha, a senior staff member at a private company, said his friend told him to buy a house close to ISPP because they believed the property value would increase substantially in the near future.

“Houses around ISPP include villas, which cost $1 million each and mixed villas, which cost $300,000 each,” he said.

Meanwhile, Sorn Seap, vice president of the Cambodian Valuers and Estate Agents Association, said among the many borey projects on the outskirts of Phnom Penh, only two include schools.

According to Seap, accessible education facilities should be a key factor for residential developers as it can add to the value of the overall project.

“To ensure that all the residential houses are sustainable, developers ought to think about four main aspects of infrastructure: roads and public space, schools and hospitals, supermarkets which includes traditional markets and malls, and an administrative service centre,” Seap said.

“All these four foundations play a part in determining the success and support given to the development project. I think, at the very least, all borey project developers should consider leaving some land to develop a school, hospital or market,” he said.

Soknim said general year-on-year property value increases in Cambodia were high, but noted that having a school or other facilities nearby can further boost a property’s appeal.

“If you’re talking about the overall property value increase [in Cambodia], it can be from seven to 10 percent a year which is higher than the GDP of Cambodia,” he said.

“On the other hand, the property value increase for areas around schools can be higher than the overall rate or even significantly much, much higher, depending on how well the school is operating.”

MOST VIEWED

  • US imposes sanctions on Oknha Pheap and Kun Kim

    The Ministry of Foreign Affairs and International Cooperation expressed strong dismay on Monday over the designation of Cambodian tycoon Oknha Try Pheap and General Kun Kim under the US’ Global Magnitsky Act. “It is very disturbing when the public figures of a country become the

  • Mother, daughter killed in hotel fire

    The bodies of a mother and daughter were found locked in an embrace after they were killed in a hotel fire in Phnom Penh at around 3:30am on Wednesday at the Phkar Chhouk Tep 2 Hotel and Restaurant in Phsar Doeum Kor commune, in the capital’

  • EBA withdrawal a destruction of EU achievements, PM says

    Prime Minister Hun Sen said the EU’s possible suspension of its Everything But Arms (EBA) agreement amounted to a destruction of its achievements in the Kingdom and the demise of the opposition group. Hun Sen made the remarks while addressing more than 6,700 students during

  • Rights Day forum denied in Sihanoukville

    The Preah Sihanouk provincial administration last Saturday denied the request of land communities for a public location in the province to celebrate International Human Rights Day 2019 as the administration had already held forums to discuss land issues. However, the land community representatives said they would

  • Kingdom calls on Japan to increase number of direct flights to Siem Reap, Phnom Penh

    Cambodia is requesting Japan to increase the number of direct flights from Japanese cities and provinces to Phnom Penh and Siem Reap, so as to contribute to increasing cooperation and tourist numbers between the two countries. During the opening ceremony of 3rd Japan Travel Fair

  • Sri Lanka’s LOLC Holdings plans to sell Cambodian unit

    LOLC Holdings Plc, Sri Lanka’s second-largest publicly traded company by revenue, plans to sell its 70 per cent stake in Prasac Microfinance Institution Ltd, which also counts Hong Kong’s Bank of East Asia Ltd. as a shareholder, LOLC deputy chairman Ishara Nanayakkara said. Nanayakkara