Why Phnom Penh’s centre is shifting northwest
Why Phnom Penh’s centre is shifting northwest
While commerce and real estate developments have given Phnom Penh’s south a central role in city life, location, infrastructure projects, available space and affordable home ownership opportunities indicate that the centre of Cambodia’s capital is moving towards the northwest, with districts such as Russei Keo leading the shift.
With the construction of new roads and the widening of existing roads such as Street 105, in conjunction with new development projects along Sangkat Toul Sangke Street, the area will become easily accessible to those choosing to own a house or condo in the areas of Phnom Penh’s northwest.
Ross Wheble, country manager of Knight Frank Cambodia, sees great potential in the current and planned infrastructure developments slated for the capital’s north and northwest.
“There is a definite trend of development spreading to the north and northwest of the city which is largely being driven by improvements in infrastructure,” he says.
“With the improvement of Street 598 and Hanoi Road, we have witnessed significant growth in the number of borey developments under construction, in addition to the announcement of Aeon mall 2 near Camko City,” Wheble adds.
Furthermore, superior infrastructure will make the north and northwest attractive locations for supporting industries of retail outlets such as Parkson Mall and Aeon Mall 2.
With the financial sector growing, and more multinational corporations moving to Cambodia, high-grade office space is becoming increasingly attractive, raising the question of whether or not there will be a new financial and business district in Phnom Penh.
Earlier this year, Sharon Liew, CEO of Huttons CPL, said the financial and business district would be around Canadia Tower and Vattanac Capital Tower.
“As of now there are already more than 15 banks clustered in the area, which makes it likely that this area will be the financial district,” she said.
Within direct vicinity of the area is the former Boeung Kak Lake, which offers the ideal space for infrastructure developments to facilitate future expansion.
With retail and financial businesses emerging, it is becoming clear that many jobs will be created in the north.
The future of Phnom Penh’s north and northwest remains bright, providing an emerging opportunity for local buyers seeking to fulfill their dream of home ownership. Because investors and developers have long focused on the south, land and property prices in the north are up to three times more affordable right now, according to recent data published by the CVEA.
J&L Property Development has taken an early foothold in the northwest with its Sky Tree Condo project in Toul Sangke, of the Russei Keo District. Prime units are available for only $1,300 per net square metre, providing potential buyers with a sound investment opportunity. “As infrastructure continues to improve to the north of the city, there is good potential for this location to outperform the market average,” Wheble concludes.
