Increasing demands for agriculture and agro-industry land

Thu, 9 August 2012 Siv Meng Cambodia’s development from traditional farming to agro-industry has spurred  a higher-than-expected  demand for land. Leng Oun, president of Leng Oun Real Estate Group told Post Property that the demand for agricultural land this year increased from 20 to 30 per cent compared to 2011, as a result of local and foreign investment in agricultural and industrial crops across Cambodia. Most of the land was given by the government as economic land concessions to local investors. “I am optimistic that in 2013 the price of farm land will increase from 10 to 20 per cent because small-scale, local investors will buy land to be kept or to do farming, they don’t worry because they have land left,” Leng said. He said land prices in three provinces was between US$400 and $500 per hectare, but that most was in state forests with no road access. Land that has road access, namely for timber, can cost from $3,000 to $5,000 per hectare. Land in  Kratie, Kampong Cham, and Battambang ranges from $8,000 to $15,000 per hectare. Cheng Kheng, managing director of CPL Cambodia Properties Limited, said the demand for agriculture and industrial land had seen prices rise sharply, but after the government suspended its economic land concessions, land for agriculture and agro-industry development could not be found in large swathes. The government began the suspension to ensure  concession land was allocated accurately before new grants are implemented. “What area is given to agriculture land and what is needed by foreign investors will have to be studied if they are to receive a concession,” he said. Cheng...