Strong economic growth and an increase in tourism had driven Siem Reap land prices, according to an industry expert.
Sorn Seap, general manager of Key Real Estate who had studied land prices in Siem Reap town, said land prices in Siem Reap town increased about 15 per cent in the first half of 2013 to $950 per square metre compared with $825 per square metre in the same period last year.
“The land prices increased because this city is small in size and land demand is still high, amid increasing number of tourists year on year. Although the land market in Siem Reap is small, I think it is the second market after Phnom Penh, because Siem Reap province has investment projects, such as those for a new airport, new hotels, golf course. Particularly, the influx of tourists into this great ancient temple province has increased demand.”
The study on real estate prices divided Siem Reap town into nine zones: zone A is located on Pub street and land there is priced between $2,300 and $3,000 a square metre; zone B, which is from Phsar Kandal market to National Road 6, is priced between $1,300 and $2,000 along main thoroughfares and between $500 to $1,000 along smaller roads. Zone C is located at Night Market, and along big roads land is priced between $900 and $2,000 and between $300 and $600 near smaller roads. Zone D runs from Damnak pagoda to Reach Bo pagoda near National Road 6, where land is priced between $500 and $2,000 on major roads and between $300 and $800 along smaller roads.
For zone E, which is set from Reach Bo pagoda to Phsar Leu market, land along big roads is priced between $800 and $3,000 a square metre and along small road at between $100 and $300, while zone F, which is set from national road 6 off Samaki market to Angkor Kyung Yu, prices land between $800 and $3,000 along main roads and on small road between $100 to $250; zone G which runs from Sokha Hotel to Kralanh market is priced between $800 to $1500 and on small road priced from $100 to $300. Zone H, which runs Phsar Krom market to the western outskirts, sees land go for between $400 to $800 and on small roads between $70 to $200. Finally, in zone I, located in the southern part of town near Angkor high school, along big roads land is priced at between $400 and $500 and along small roads at $50 to $300 per square meter.
Sieb said he remains optimistic that land prices will continue to climb in 2014 as investors learn their lessons from the 2008 economic crisis.