Residents of Dangkor district, which lies west of the city, have been pleasantly surprised to find out that their land prices have jumped from $50 to $100 per square metre after the expansion plans for Tomnob 7 Makara Street came underway.
Chan Chrisna, along with his neighbours, who altogether own large land plots west of Chamkar Dong Market in Dangkor district’s Cherng Ek commune, have had their land up for sale for quite a while now, but had failed to secure any interested buyers despite the asking price being below $50 per square metre.
It was to much surprise when he found out that his neighbour had recently sold their land for two to three times the previous asking price after the Khmer New Year.
“I was shocked. As soon as a Chinese company set up machinery to re-construct Tomnob 7 Makara Street and expand it to 60 metres, the land price per square metre went from $50 to $60, then to over $100,” Chrisna said.
“My neighbour was able to sell their land for $130 per square metre without any bargaining.”
There are many boreys within the Dangkor District, including Borey Piphup Thmey, Borey Chip Mong, Borey Sony, and Borey Lim Chheang Hak. Meanwhile, thousands of residential houses and connecting streets have been constructed in the area.
“What made the land prices go up and gather more interest is because the local authorities have shown plans to expand many big roads after Chea Sophara came into the position of [senior minister] at the Ministry of Land Management, Urban Planning and Construction,” Chrisna said.
Seng Kea, a former landowner, expressed regret after having only just sold his land in Prey Chrey, of Prey Sor commune, before the price hike.
He said that when he sold his land, the price was only $50 per square metre, “but now, even farms in this area can be sold for $100 per square metre.”
A vendor at a factory nearby, who also owns a piece of land in the area, has divided up his land in Taley village in Khan Dangkor into smaller land plots, measuring 105.6 square metres and 105 square metres.
He has put the plots up for sale from $16,100 to $19,500 per plot, or $150 to $180 per square metre. “The prices may increase even further soon after the main roads are constructed. By then, many of the boreys will also be able to connect to this area because in the north of this area, there are a few other borey constructions awaiting completion.”
Kim Heang, president of the CVEA, however, disagreed with the land owner. He said generally, the land in Dangkor district is already ideal for the residential and factory industries. The area “attracts the middle-class” because there is an abundance of factories, he claimed.
He added, “Therefore, the land plot division movement will be a success because factory workers in this area, as well as newlyweds, will be able to purchase a 100 square-metre plot of land at only $100 per square metre.”
“The formula for residential land plots shows that the land prices have to be twice the price of bigger land plots that are at least one hectare in size. But this formula varies, depending on the size and condition of the roads,” Heang explained.
Tomnob 7 Makara Street connects from National Road 2 at Prey Thleng Village, to Cherng Ek Street and to National Road 3.