Property values in Arey Ksat are expected to continue to rise

Cambodia Compass report, 24th June - The development of a proposed bridge linking Arey Ksat to northeastern Phnom Penh is expected to drive increase property values in the area, according to the real estate sector. A number of South Korean companies are doing feasibility assessments for the project.

On Prime Minister Hun Sen's request, the South Korean government agreed to fund the construction of a bridge connecting the capital's Chroy Changvar neighborhood to Arey Ksat in Kandal province last year.

On June 21, Minister of Public Works and Transport Sun Chanthol inspected the construction of the Phnom Penh-Sihanoukville Expressway and noted that the bridge had yet to break ground, expressing hope that the study phase will be completed soon.

“Korean firms are presently determining what type of bridge to construct and how much it will cost. We will open a bid to select a company to build our Svay Chrum bridge after the studies are completed,” he said.

Svay Chrum is a village in the same-name commune in Kandal's Khsach Kandal district, and lies immediately north of Arey Ksat commune in Lvea Em's Arey Em district.

Long Dimanche, Cambodia's ambassador to South Korea, said on June 23 that advancements in diplomatic and trade cooperation have spurred Korea to contribute a series of loans and aid to Cambodia's development, particularly road infrastructure projects. He added that, as bilateral commerce grows, the two countries are aiming to negotiate a free trade deal soon. “Assisting in the construction of infrastructure is an important component of Cambodia's and Korea's cooperative partnership. He asserted, "The Arey Ksat area will be a location with high potential in all fields."

According to Sam Soknoeun, president of the Global Real Estate Association, real estate transactions in the Arey Ksat area have gradually begun to recover after a slight slowdown last year, thanks to two major factors: news of the Korean government's funding of the bridge's construction and investors' long-term outlook. He joked that the Arey Ksat neighborhood is "close to Phnom Penh" and is separated "only by a river." “The Arey Ksat area is a prospective area that should not be overlooked,” he stated, explaining that with a bridge across the river, it would be similar to the Chroy Changvar area.

According to Soknoeun, land along Street 380 near the Mekong River costs an average of $1,000 per square metre, while plots 1-2 kilometers from the riverfront cost $100-200 and parcels 5 kilometers inland cost $20-100. “I believe that when a bridge is built, prices will rise in the same way that Chroy Changvar's did. He stated that “some large project developers have already purchased property that is ready for house developments.”

Despite the proliferation of Covid-19, according to Cambodian Valuers and Estate Agents Association (CVEA) president Chrek Soknim, the real estate market in the Arey Ksat area remained constant.

Despite the fact that bridge construction has yet to commence, he stated the area's high strategic future potential in all areas has instilled a sense of optimism. “In all aspects, the Arey Ksat area is a favorable site for investment,” Chrek Soknim said. 

Source: Cambodia Compass comprehensive arrangement

Editor: Malinda         Chief Editor: Sunnie         General in Chief/Executive Producer: Nicole

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