The government is planning to construct two more bridges across the Mekong River, and although feasibility studies are already underway, realtors are unsure as to whether land prices in the areas they connect will rise, they told Khmer Times yesterday.
Plans for the two new bridges were announced by Prime Minister Hun Sen during the inauguration ceremony of Cambodia-China Friendship Chroy Changvar II Bridge last week. One will link Arey Ksat with Kdei Takoy, and the other will link Svay Chrum to Chroy Changvar, Mr. Hun Sen said, adding that the feasibility studies were being conducted by Chinese companies.
Dith Channa, general manager of VMC Real Estate Company, said interest in the areas on both sides of each bridge had been sparked by Mr. Hun Sen’s announcement, but added that many people had already known that the bridges were in the planning stage.
Mr. Channa said Arey Ksat area has potential for residential development, but added that any investment there would only pay off in the long term. Land on main streets in the area is selling for between $100 and $200 per square meter, he said.
“Investors should study carefully before investing in the area,” Mr. Channa said, stressing that it was not a place to make a quick buck. “If they can invest for the long term they will gain a proper return,” he said.
Van Chanthorn, managing director of Town Real Estate, was less optimistic that land prices near the bridges would rise, but said he welcomed both projects because they would lessen traffic congestion and make transport easier.
“The property market in Arey Ksat has not changed much even though the two bridges have been announced and are being studied,” Mr. Chanthorn said. He added that investors had known about the bridges for a long time and had already bought land in the area.
The biggest impact of the bridges will have will be on traffic, not land prices, he said.
“Land prices have increased between 10 and 20 per cent in Arey Ksat area, depending on the location,” he said. Some people had bought land for resale later while others planned to build residential housing in the area, Mr. Chanthorn said, adding that prices ranged from $30 to $250 per square meter.
“The area will become both a recreational and residential center because Phnom Penh is becoming overcrowded,” he said. The realtor also said that he was unsure whether young people would be drawn to the area because they were opting for condominiums rather than houses. The area will likely draw mostly older people wanting to get out of the city’s center, Mr. Chanthorn said.
Khat Sovann, general manager of Cam Top Property Group, said interest had risen in Arey Ksat since Mr. Hun Sen announced the new bridges. “Traffic congestion and overcrowding in city are pushing people to look for homes on the outskirts of Phnom Penh,” Mr. Sovann said. “Investment in the area should be long term because it will take time to develop the area,” he said, adding that most investment in land was not for the long term.