Compass Real Estate > Cambodia Real Estate Information > Topics > Phnom Penh-Bavet Expressway will start next year, real estate market expects more activity

Phnom Penh-Bavet Expressway will start next year, real estate market expects more activity

2022-10-14
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Summary:Let's get to know in detail about the process and construction of new highways and real estate activities in the area.

At present, Cambodia is striving to develop itself into a modern industrial country, in order to achieve the desired results, the government is working to develop all sectors, especially infrastructure, including roads and waterways. In fact, after completing the construction and opening of the first expressway and the first expressway line in Cambodia, the Phnom Penh-Sihanoukville Expressway, the Cambodian government has continued its vision to establish a second expressway which starting from Phnom Penh to Bavet City, Svay Rieng province. This news made local people as well as investors who have invested in the industry in the area happy. Let's get to know in detail about the process and construction of new highways and real estate activities in the area.

* Phnom Penh-Bavet Expressway Construction Project

In 2021, the Ministry of Public Works revealed that the Phnom Penh-Bavet Expressway project has been completed, with a total of about 135 km of new roads costing more than 2 billion Dollars. This road will start from Phnom Penh at the third ring road through Kandal, Prey Veng and Svay Rieng provinces to Bavet on the Cambodia-Vietnam border. In connection with this project, the Ministry of Public Works and Transport of Cambodia and the Ministry of Transport of Vietnam also signed a Memorandum of Understanding on the promotion and study of the Phnom Penh-Bavet Expressway and the Ho Chi Minh-Mok Bai Expressway.

The Ministry has already signed a Memorandum of Understanding (MoU) with CRBC, we will be ready to sign the agreement this November and the company will study with the preparation of the concession agreement before the end of this year to open the groundbreaking the middle of 2023.

Please note that the construction of the expressway network (Expressway) is the biggest factor for strengthening the capacity of the road network in Cambodia, because the expressway can provide better transportation services than normal roads and is considered the basis for modern industry as well.

* Real estate market in the area along the expressway

The Phnom Penh-Bavet Expressway will pass through three provinces, including parts of Kandal, Prey Veng and Svay Rieng. Simultaneously with the construction of the expressway, real estate experts said that it will boost investment potential to further increase land prices in two provinces, Prey Veng and Svay Rieng.

According to an interview with local media, Mr. Tha Theng, President of Century 21 Zillion Holding in Svay Rieng province, said that the Phnom Penh-Bavet Expressway development project in Svay Rieng will help boost investment potential in Svay Rieng. There will be further growth because when this road is completed, it will reduce travel from Phnom Penh and Svay Rieng and Svay Rieng, as well as Bavet-Phnom Penh closer.

He added that Bavet is a city in Svay Rieng province and this city is also a potential area in the Kingdom of Cambodia, especially it is on the border between Cambodia and Vietnam, so most trade between Cambodia and Vietnam is going through this one gate, is Bavet. In developing this expressway, it will encourage investment and increase the value of land in this city or in Svay Rieng province.

At the same time, Lok Oknha Nuon Rithy, Chairman of the Board of Directors of KFA Group, said that in fact, Prey Veng and Svay Rieng are not far from Phnom Penh, but due to the lack of roads and good infrastructure, investors have not decided to invest in these two provinces.

When the Phnom Penh-Bavet Expressway project comes to fruition, it will increase the attractiveness of both national and international investors to invest in these two provinces, which could push up land prices higher than now absolutely, he said.

He added, “Bavet potential area is a multi-developed industrial zone with the largest number of special economic zones in Cambodia. But in terms of real estate, it is stagnant due to the small population and the large size of the land. Land prices in the city range from $ 350 to $ 550 per square meter for commercial areas, but we hope that when the expressway project starts in the near future, the real estate sector in Bavet will change."

For the vice president of the Cambodian Association of Real Estate Professionals and an international real estate expert, Mr. Som Keo Malida said recently that the current situation in Bavet is the same as in Sihanoukville three years ago. Land in Sihanoukville is not expensive, but now land prices in Sihanoukville have risen almost unbelievably.

"I think the price of land in Bavet will be the same for the next three to five years, as the price of land in the city has already risen to a certain level, but at a price that can be invested in," he continued.

"The price of land off the national road last year was between $4 and $7, but now it has risen to between $25 and $40 per square meter."

Housing prices in the Bavet area have also risen in line with land prices, but experts say prices are also on the rise, not in all areas.

        Many economists and real estate experts expect that after the completion of the Phnom Penh-Bavet Expressway, the economy in the region as well as Cambodia will grow and be able to attract more investors.

(Reference៖ MPWT, Z1 news, property area asia, Phnom Penh post and AMS)


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