The northern part of Phnom Penh has been attracting many residential and commercial developers – the reason being that the area is still relatively quiet and has no traffic congestion problems compared to its big city neighbor.
The northern areas along National Road 6 are seeing fast development now that Chroy Chongvar II Bridge is available for public use. Many new projects are appearing, such as Chroy Chongvar City, Borey Peng Hout, Borey River Town, and Borey Mekong River. In addition, the government has been building Morodok Decho Stadium to host the ASIAN Games in 2023. Meanwhile, Ly Yong Phat, Director of the Ly Yong Phat Group, is planning to move a Safari Zone from Koh Kong to the area along National Road 6.
A group of real estate experts said the property situation at the northern part of National Road 6 shows huge potential, and growth in residential projects appears to continue unabated.
Kek Narin, an independent real estate analyst, said the area along National Road 6 has great potential for residential and commercial development, mainly because the area is sandwiched by rivers. Consequently, if there is a company investing in building and infrastructure along the river bank, it will become a great satellite city in the future.
“Personally, I also want to move to this area because the area has fresh air and a good environment. If we travel along that road, we feel fresher and better than we do along National Road 4 - which is very noisy,” he said. “The area will be developed very fast because land is very attainable here.”
The area has Prek Leab, Prek Ta Sek, and Backeng communes, and is altogether known as Chroy Chongvar district, Phnom Penh.
Po Eavkong, General Manager of Asia Real Estate, said that after the National Road 6 expansion, provided by a loan from the Chinese government, the area from the Chroy Chongvar Bridge to Prek Ta Meak Bridge saw big changes, very quickly - such as Boreys, and small, medium, and even big businesses popping up along the road. Due to the favorable qualities and potential of the area, land prices are set to increase between 10 and 15 percent per annum, says Eavkong.
Land prices along the National Road 6 from Chroy Chongvar Bridge to Borey Mekong Royal start from $400 to $800 per square meter, and sub road prices range from $100 to $150. Land that stretches from The Mekong Royal to Ly Yong Phat’s land ranges from $200 to $400 per square meter, and land from Ly Yong Phat’s land to Prek Ta Meak Bridge is priced from $100 to $200 per square meter, he said.
“The area has become a residential-developed zone which is seeing huge interest from investors. It not only has residences, but also high-rise buildings,” Eavkong said. “If we talk about environment and fresh air, and infrastructure, they are all good enough, but I observe that one negative point is that the Phnom Penh municipality has not yet built the sewage system along the Road 6.”
Mr. Ly Yong Phat said he planned to inject about $1 million into the area to build his safari zone, which he plans to move from Koh Kong to Phnom Penh. The Phnom Penh based safari is slated to open in early 2016. The size of the safari in Phnom Penh is about the same as Koh Kong’s, but it will be of an improved quality, says Phat.
In regards to the Decho Satellite City, Mr. Phat said, “We need a partner to build this satellite city because we cannot do it alone as its size is about 1700 hectares - so big.” The satellite city project is aimed at all strata of people, but he did not confirm when the project will start or finish.
Hor Vandy, co-President of the Tourism Group, said the safari zone in Phnom Penh would be a tourism product which international tourists will demand. This will mean some will stay longer in Cambodia than previously - and in Phnom Penh in particular.
If the safari zone is connected with Ta Mao Zoo, tourism companies can prepare a good tour package for tourists, and the tourists will not hesitate to travel more around Cambodia, he said.
“Moving the safari from Koh Kong to Phnom Penh is a good decision, for there are not many people in Koh Kong and tourism penetration is low. Phnom Penh has about 2 million people and about 2 million tourists, and tourists are increasing from 7 to 8 million per annum,” Vandy said.
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