Notable increase in real estate values in border cities
While Cambodia’s islands and beach towns have commanded much attention among market observers of late, the kingdom’s border towns are also in the ascendant, according to a leading developer.
Land prices in the cities of Poipet and Bavet, bordering Thailand and Vietnam, respectively, have registered fast rises over the last year, according to Dith Channa, CEO of development firm Lucky Realty Co Ltd, via the Phnom Penh Post.
Prices in Poipet and Bavet posted an annual growth of 20 to 30 percent last year, while those in busy trading areas grew nearly two-fold.
Residential sites in Poipet can fetch anywhere between USD200 and 300 per square metre, while commercial locations hover between USD1,500 and USD2,000 per sqm, reported Dith Channa. Suburban sites are valued between USD30 and USD100 per sqm.
Bavet residential locations now command USD100 to USD200 per sqm, while those for commercial use can cost up to USD1,000 or USD1,500 per sqm, with suburban areas fetching prices between USD30 and USD50 per sqm.
“Real estate near the two international border checkpoints has been a good market for a long time, but it notably increased last year, with domestic and foreign investors, especially Chinese nationals, buying land there for investment,” explained Dith Channa in an interview with the Post.
In addition to the Chinese, investors from Japan, Thailand and Vietnam have also explored opportunities in the border towns, which have seen an increasing number of projects such as special economic zones (SEZ), dry ports, factories, hotels and casinos.
“The construction and development situation in the two provincial cities has drastically changed compared to the last two to three years,” said Dith Channa.
Prices are expected to continue rising in the next three to four years if Cambodia maintains political stability and economic growth, he predicted.
Similar up-and-coming investment destinations include the village of Chrey Thom in Kandal province and several border checkpoints along Pailin province, he added.
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