The increasing income and the growth of demand from both local and international investors has caused prices of villa rentals to rise remarkably in first quarter of this year in Phnom Penh.
Most people highly value living in villas that have gardens, swimming pools, and entertainment areas. The villa is considered to be housing for wealthier families in Cambodia.
Chailin Sear, CEO of CL Realty Co, said that the price and demand of rental villa in the first quarter of this year has grown significantly, particularly in the districts of Chamkarmon, Daun Penh and Toul Kork. This growth is due to Cambodia’s investment growth, which means new arrivals need houses for either staying in or for their offices.
“The price of rental house at the first six months this year has climbed up about 20 to 30 per cent while the demand has stepped up as well,” said Sear. “The factor that causes to be accession is the growth of people here, as well as them looking for more business places or offices.”
Chailin continued that a villa with four to five bedrooms now in the districts of Chamkarmon and Daun Penh rent for $2,500 to $4,000 per month, and at $1,800 to $2,500 for the same size in Toul Kork.
Dith Channa, the general manager of VMC Real Estate Cambodia, said that the price of rental villas has risen more then 20 per cent this year in Chamkarmon and Daun Penh, but about 10 per cent in Toul Kork, while other areas had slightly increases compared to the same period last year.
Regarding the increase in rentals and demand, Dith Channa said, “the villa rentals will rise because Cambodia is about to be economically integrated into Asean at the end of 2015.”
The rentals for villas in Chamkar Mon and Daun Penh district are high, because those areas are right in central Phnom Penh, with many people, business centers, entertainment areas, shops, restaurants and safety. “Villas in Tuol Kork district are special because they are spacious with good environment.”
Po Eavkong, managing director of Asia Real Estate Cambodia said that the price and demand for villas is increasing, but not too much. In Chamkar Mon and Daun Penh district, a villa with four or five bedrooms rents for $2,000 to $4,000 per month, whereas in Tuol Kork the same is $2,000 to $3,000.
Khat Sovann, general manager of Cam Top Property Group, said that the price and demand have increased, depending on the location; however, the increase is not too much. He added that currently he finds it difficult to find villas for his customers in Chamkar Mon and Daun Penh, because it is too expensive.
He said: “Currently, I have six customers wanting to rent villas in Beung Keng Kang quarter, but I cannot find villas for them. A villa can be rented at $2,000 to $3,500 for a villa with four to six bedrooms”.
He added that the villas in Tuol Kork can easily be found, unlike Chamkar Mon and Daun Penh, because in Tuol Kork the price is so cheap. Many villas are for rent and the villas with four to six rooms is rented at $1,000 to $4,000 per month.
Today, there are not many villas built in Chamkar Mon and Daun Penh. whereas villas are mushrooming in Tuol Kork, where there is much empty space. Villas in Chamkar Mon and Daun Penh are decreasing, because investors are knocking down old villas to build apartments or condominiums. The construction of apartments or condos earns money easily, and is better than renting the villa to a family.