The price of real estate in central Phnom Penh skyrocketed in 2006 and will continue
to climb for several years, real estate agents and local officials say.
An increase in demand is driving the trend, and the trendy riverside district has
been the most affected, the Post was told.
Sung Bonna, director of Bonna Realty Company, said this year the price of a four
or five-story building along Sisowath Quay averages between $300,000 and $400,000.
For the ground floor, the price is $120,000 to $180,000 and upper floors are being
marketed between $50,000 and $70,000.
"It's going to increase from year to year because it is a significant place
with a river view and has lots of tourists," Bonna said. "It's different
from a normal place. It is the same as other countries: the price of buildings along
the riverfront always increase from year to year."
One house owner, who asked not to be named, said his relatives asked him to sell
a 4.8m-by-10m first floor flat along the riverfront near Psar Kandal for $60,000.
The same relatives bought it for $20,000 two years ago.
Kong Rith, chief of Sangkat Psar Kandal 1 in Daun Penh district, said the price of
real estate in the commune had rocketed in recent years. He ascribes the boom to
business opportunities, demand and foreign investment.
According to Rith, two years ago the price of a building was about $150,000. Last
year it was more than $200,000, and early this year it is more than $300,000. Buildings
just built along the river are now worth significantly more than $300,000, he said.
Rith's commune contains more than 70 buildings along Sisowath Quay.
He said the ground floors of most of the buildings are rented for restaurants, clothing
shops, internet cafes and other businesses. About 70 percent of the restaurants along
the riverfront are owned by foreigners, but the majority of clothes or Internet shops
The cost of renting depends on the place and the kind of business that can be operated
- a clothing shop or Internet will cost $500 to $600 per month; other businesses
are $1,000 to $3,000. A flat on an upper floor will cost from $200 to $400 a month,
Chack Puthsophea, 25, who runs a ground-floor clothing and shoe shop, said she pays
$400 a month in rent.
Puthsophea said she has sold clothes and shoes along Sisowath Quay for eight years.
She said her rent had not increased because her house owner is very kind, but other
house owners would raise the price when they saw that their tenants were doing good
Bunna said there were two areas in central Phnom Penh where building prices were
escalating even faster than on the river front: along Monivong Boulevard and around
Psar Thmei a building would sell for between $350,000 and $450,000 because this was
the main commercial district..
The price of buildings keeps going higher because they are in a place of high demand,
Across the Tonle Sap in Chruoy Changvar prices are also rising. Nan Keang, architect
for the Happiness City Company, said his company is putting up 618 buildings there,
with prices ranging from $58,000 to $250,000.
However the price of a building in Chruoy Changvar is lower than in central Phnom
Penh, which is the main commercial area and also has a lot of foreigners, Keang said.