PHNOM PENH: Land development projects have become more active in recent years. The purchase of farmland and vacant land to be subdivided into lots for sale to customers, with most developers splitting plots into sizes of 5 x 20 meters, despite real estate experts observing that these lands size are small and do not improve people’s lives.
Oknha Sam Sok Noeun, President of the Global Real Estate Association (GRA), stated with AMS that he has never encouraged people to purchase small plots of land and that the land sector will be lost in the future. However, some people remain optimistic about the plot and believe that purchasing it will be profitable in the future.
The tycoon stated that purchasing plots of land are not a good option for housing expansion because most plots are in the suburbs and do not yet have developed infrastructure. It is making it difficult for those who purchase plots to sell because the plot developers have already made a profit.
“Most buyers of plots do not buy and build houses because most buyers are people who live and work in the city, such as factory workers, construction workers, motorbike taxi drivers, tricycles, and small traders,” the tycoon continued.
“Land developers buy land for $ 1 or $ 3 per square meter and sell it for $ 3,000 or more, resulting in a $ 30 per square meter profit.” That is the selling price in the next 5 years, then the buyer and want to sell will be difficult to sell, and the plot does not know what to do if the development needs to collect more from each plot owner.
At the same time, Oknha Sam Sok Noeun confirmed that the division of some plots did not take into account infrastructure development, such as drainage system, wife, clean water, electricity, and so on, so when people own plots to build houses. Difficulties connecting water, power, and sewer. Overall, despite the area’s progress, the development of infrastructure in the land plot project is difficult.
“Because the plot is a private project when development reaches that area, the state develops only the main road project and the state’s large sewer project, leaving the infrastructure in the plots project to the project owner to develop himself.”