Experts also anticipate Borey-style housing projects and other large-scale developments to pickup in growth soon
The National Road 5 (NR5) expansion and renovation project expected to complete by 2024 is driving a steady surge in growth for the Borey gated communities and business centres along the project, reported Phnom Penh Post.
Real estate experts postulate a rise in property prices along the road of at least 10 percent between now and 2024.
The 407.45 kilometre NR5 connects Phnom Penh north to Kandal province’s Ponhea Leu district, then extends across the provinces of Kampong Chhnang, Pursat, Battambang, and Banteay Meanchey. The road ends at the Thai border in Poipet town and joins end-on with Route 33 in Thailand’s Aranyaprathet town.
Chrek Soknim, president at Cambodian Valuers and Estate Agents Association, said that the real estate market along NR5 could increase 10-15 percent from now until the project is completed. He argues against a higher rate, mentioning that it is an existing road that moves heavy traffic.
“Property prices along roads that are already open to traffic are not as volatile as those along new roads. But for construction and investment projects, there will be more when road construction is entirely completed,” he said.
However, he emphasised that property prices could jump if the government announces plans to turn an area along the road into a commercial or industrial zone.
Sam Soknoeun, president at Global Real Estate Association, underlined that the NR5 is an invaluable road that will boost Cambodia’s economy, connecting Phnom Penh to Thailand. Yet, land prices along it haven’t changed much for the past three years.
The number of Borey-style housing projects or other large-scale developments isn’t as much as other national roads, but he expects a pickup in growth soon.
“From my standpoint, by when the revamping of the road [is complete], property prices will have increased by about 30 percent, due to a number of factors, including travelling conveniences, as well as growing numbers of developments and diverse investment projects such as factories and warehouses.
“There will be new areas with hosts of large buildings, not unlike those along national roads one and six now,” he said.
The Property Report editors wrote this article. For more information, email: [email protected].
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