The real estate industry expects property prices in the Arey Ksat area to be further driven up by construction of a proposed bridge linking the locality across the Mekong River to northeastern Phnom Penh.
This comes as a number of South Korean companies conduct feasibility studies for the project. Last year, the South Korean government decided to provide funding for construction of the bridge, connecting the capital’s Chroy Changvar area to Arey Ksat in Kandal province, at the request of Prime Minister Hun Sen.
While inspecting the progress of the Phnom Penh-Sihanoukville Expressway on June 21, Minister of Public Works and Transport Sun Chanthol noted that the bridge had yet to break ground, voicing hope that the study phase would be completed soon. “The Korean companies are currently studying what kind of bridge to build, and how much would it cost. When the studies are completed, we will open a bid to select a company to build our Svay Chrum bridge,” he said. Located in Kandal’s Khsach Kandal district, Svay Chrum is a village in a commune of the same name, and is just north of Lvea Em district’s Arey Ksat commune. Cambodian ambassador to South Korea Long Dimanche told The Post on June 23 that improvements in diplomatic and trade cooperation had prompted Korea to provide a series of loans and aid to develop the Kingdom, especially the construction of road infrastructure.
Amid growing bilateral trade, the two countries are also preparing to sign a free trade agreement soon, he said. “Helping to build infrastructure is an important part of the cooperative relationship between Cambodia and Korea.“The Arey Ksat area will be a region with high potential in all areas,” he claimed. Global Real Estate Association president Sam Soknoeun told The Post on June 23 that real estate transactions in the Arey Ksat area have gradually begun to recover after a slight slowdown last year, due to two major factors – news of the Korean government’s funding of the bridge’s construction and the long-term outlook of investors. The Arey Ksat area could be said to be “next to Phnom Penh”, separated “only by a river”, he said in jest. “The Arey Ksat area is a potential area that should not be overlooked, because with a bridge across the river, it’d be like the Chroy Changvar area is now,” he said. In the area, land along Street 380 near the Mekong River costs an average of $1,000 per square metre, whereas plots 1-2km from the riverfront go for $100-200 and parcels some 5km inland can cost $20-$100, according to Soknoeun. “I believe that when there is a bridge, prices will go up similar to Chroy Changvar’s. Some big project developers have already bought land ready for housing developments,” he said.
Cambodian Valuers and Estate Agents Association (CVEA) president Chrek Soknim said the real estate market in the Arey Ksat area remained stable despite the spread of Covid-19. Even with construction work on the bridge yet to begin, he said the area’s high strategic future potential in all areas has instilled a sense of positivity, he said. “The Arey Ksat area is a favourable location for investment, in all areas.”