PHNOM PENH: The ring road is not only a vital route for people to travel, transport, and avoid traffic congestion in the city, but it has also become a major driver of land values as development projects have sprung up in the surrounding areas.
The Royal Government is currently responsible for and developing the primary ring road around Phnom Penh, as well as the first, second, third, and fourth ring road projects. The 3rd and 4th ring roads will increase the appeal of investing in the suburbs and stimulate the real estate market.
Mr. Chrek Soknim, President of the Cambodian Association of Appraisers and Realtors, told propertyarea.asia that the Royal Government’s policy of expanding the city by 360 degrees will result in the area around Phnom Penh expanding as well. In addition, the area between the third and fourth ring roads will be a new development zone, giving the real estate sector a boost.
“The delay in the implementation of the Royal Government’s capital gains tax is also a mechanism to help land investors buy land to wait for development and reap the benefits,” he said. “We also anticipate having foreign investors come to Cambodia and seek re-investment in the real estate sector by the end of COVID-19,” he said.
Meanwhile, Phon Soonden, a real estate company’s head of sales, stated that as the city grows, the ring road, also known as Kob Srov Road or Win-Win Boulevard, has become the primary road and has drawn investment in the past. National Roads 4, 5, and 6 are all connected by this main city ring road.
“Now, Street 51 may be called a ring road surrounding Phnom Penh and can be built to the same level as Win-Win Boulevard,” he said. “Currently, the development of the ring road around Phnom Penh has been driving the potential for real estate investment, especially as real estate prices are increasing more often along the ring road,” he said.
However, due to the unfinished settlement of the impact with the people, the construction of the Third Ring Road has been postponed for a year.
The Minister of Public Works and Transport, Senior Minister Sun Chanthol, has previously stated that the construction of the fourth ring road will take longer than the construction of one ring road, and that the construction of one round of the ring road will take longer than the construction of one ring road. The building of two bridges from Kdei Takuy to the Arey Ksat area (the project is under way) and a bridge across Koh Dach to National Road 6A will be the following section.