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Improved infrastructure leads to boom in apartments, condos

Kuy Vat, president and CEO of Vtrust Group, is seeing an exodus of apartment and condo buyers to Toul Tompong and Deoum Thkov communes.
Kuy Vat, president and CEO of Vtrust Group, is seeing an exodus of apartment and condo buyers to Toul Tompong and Deoum Thkov communes. Hong Menea

Improved infrastructure leads to boom in apartments, condos

Infrastructure development and new condominium and apartment construction growth are boosting land prices in Toul Tompong and Deoum Thkov communes, and in Chamkarmon district by as much as 30 per cent.

Kuy Vat, president and CEO of Vtrust Group, said that increased land prices in Boeung Keng Kang commune have led to an exodus of buyers to Toul Tompong and Deoum Thkov communes, which are also closer to Phnom Penh than Toul Kork commune, and with the added attraction of more affordable prices. Improved infrastructure in the area is another factor leading to the construction of more apartment and condominium blocks in the communes, despite the fact that the areas are also home to numerous, noisy entertainment venues, such as karaoke clubs, beer gardens and night clubs.

“Land prices in Toul Tompong and Deoum Thkov communes have risen by between 20 and 30 per cent in 2013 compared to 2012,.”Vat said. “The average price in the area now ranges from around $1,800 to $2,000 per square metre. “

He added that apartments and condominiums in both areas were largely grades B and C, but he said fewer foreigners were living in apartments in the areas than in the Beoung Keng Kang area.

According to a VTrust Group report, in Cambodia between 2012 and 2013, 12 condominium blocks were ready for use and another five under the construction, while 220 apartment blocks were in use and 73 under construction.

Dith Channa, the general manager of VMC Real Estate Company, agreed that land prices in both areas increased around 20 per cent at the end of 2013 compared to 2012 and the price would continue going up in 2014 because of the high number of sought-after stores and services in the area, such as Toul Tompong market, NGOs, international schools, banks and supermarkets.

“Toul Tompong and Deoum Thkov communes are more attractive”, because the recent increase in prices for land in Boeung Keng Kang has pushed investors into these two communes, he said.

Plots of land along main roads is going for between $1,000 and $1,500 per square metre. Land prices in the Deoum Thkov area is priced 10 to 15 per cent lower than Toul Tompong.

Po Eavkong, general manager of Asia Real Estate, said that both areas in the future would be good because lots of projects were located in both areas. Also both areas were nearer to the central of Phnom Penh and more attractive than Toul Kork area, while the land price was affordable if compared to Tonle Bassaa and Boeung Keng Kang commune.

He appraised that the average price of the land in Toul Tompong commune was from $1,200 to $1,300 and Deoum Thkov commune was from $800 to $1,000 per square metre.

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