Land prices along National Road 1 have climbed between 20 and 30 per cent after the road was extended in response to the increasing amounts of vehicles using it.
Sung Bonna, chairman of the Bonna Realty Group, said the land along National Road 1 has seen a lot of interest in the last two years from local and international investors, because the road is being expanded and there is much building construction along it.
“The land price along National Road 1 has risen between 10 and 20 per cent compared to the same period in 2011, and this price will rise when the road expanding finishes, while the population density in this location is on the increase,” he said.
“The land prices rise or fall depending on the political stability as well.”
The land that surrounds National Road 1 can be divided into three locations according to the price: from Monivong Bridge to the Bayon television tower the land price is between $500 to $1,000 per square metre, from Bayon TV to the Tiger Beer factory gate it's from $100 to $200, and from the factory gate up toward Neak Leoung it's from $50 to $100.
Dith Channa, managing director of VMC Real Estate Co, Ltd, is even more optimistic than Sung Bonna, saying the land prices along National Road 1 have climbed between 20 and 30 per cent because those locations are so interesting for investors in boreys (housing developments), the Preak Samroung bridge construction and the building of the road from Preak Samroung to Tiger Beer factory. Other advantages include its proximity to the river, and the new port for transportation of goods.
“When Preak Samroung Bridge and National Road 1 are completely finished, I think, these land prices will climb up around 50 per cent from the current prices,” he said.
The price between 500 to 700 dollars per/sq from Monivong bridge to Bayon TV, more then 100 dollars per/sq from Bayon to Tiger Beer factory and 30 to 50 dollars per/sq from Korky market to Neak Loeung, and the lands located 200 to 300 metres to National Road 1 cost $15 to $25 per/square metre.
CEA Real Estate chairman Sen Chanreatry said that the land price along National Road 1 is gradually increasing after the road extension was begun, and has climbed between 20 and 30 per cent.
“The price is rising because the road was expanded while there are many borey building investments. But investment in those locations should be taken seriously, because those areas that are lower might be prone to flooding,” he said.
Even if the road offers a great deal of potential it cannot be compared to National Road 6. A few big investment projects in those areas have been suspended because of traffic jams, but if the road was expanded up to 30 metres the price will climb more, he added.
To contact the reporter on this story: Siv Meng at [email protected]