Construction of Ring Road No.3 Brings Hope for Land Prices

• Proeksa Meas
• 4 January 2019
• Uncategorized
• 11880 Views

The announcement of the construction of Ring Road No.3 connecting National Road No.4 to National Road No. 1 is bringing higher hope for land prices in those areas.

According to H.E Vasim Sorya, spokesman of the Ministry of Public Works and Transport (MPWT), upon receiving US$259 million concessional loans from EXIM Bank of China, Ring Road No.3 is to officially begin construction on 14 January 2019 with Prime Minister Samdech Techo Hun Sen expected to preside over the ground-breaking ceremony.

H.E Vasim Sorya explained that construction of Ring Road No.3 comes with three objectives, namely to avoid traffic congestion, link ASEAN Highway National Road No.5 to National Road No. 1, and to relocate warehouses from urban areas to Ring Road No.3.

Along with the announcement of the ground breaking, real estate experts also voiced support for the construction of this infrastructure, which will play a major role in real estate development giving a very positive sign for the sector.

Founder of Key Real Estate, Mr Sorn Seap, said that after the announcement of the Ring Road No.3 project, within one year, the value of land in those areas substantially increased from between US$10-US$20 per square metre to US$50-US$60 per square metre currently.

“That area of [Ring Road No.3] is a completely new road, so we do not have prices of homes yet, but we have land prices. Normally, the agricultural land turned into road is going to be expensive…the price increases a lot”, he said, while adding that it will continue to increase especially when construction is announced.

Ring Road No. 3 will be a 25-metre wide four-lane road with a total length of 47.6km and is under a construction contract between MPWT and Shanghai Construction Group. (Read more)

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