Land prices in the vicinity of Central Market in the heart of Phnom Penh – an increasingly actively commercial zone – have continued to rise in 2013, despite ongoing political unrest.
CL Realty manager Sear Chailin said property prices around Central Market increased by 20-30 per cent in 2013 compared to the same period in 2012.
Land prices in the area currently range from $7,000 to $10,000 per square metre, with properties ranging on average from $700,000 to more than $1 million, he added.
“As I see it, land prices are reaching the point that make it difficult for some property buyers to buy in,” he said.
Khat Sovann, general manager of CamTop Property Group, said 2013 land prices in the area were up around 20 per cent year-on-year. Factors in the increases included high rentals and property being put to premium commercial and business uses, he said.
The property expert said that land prices around the market were between $5,000 and $8,000 per square metre for house-shops, adding that apartments in the area had reached $1 million and more.
With ASEAN economic integration around in the corner in 2015, Sovann said he is optimistic about property in the Central Market area.
The Kingdom is scheduled to enter the ASEAN Economic Community (AEC) in 2015. The move involves 10 Asian nations forming a single market, with the aim of achieving regional competitiveness with other regional markets such as the European Union.
“ASEAN economic integration will attract more visitors, leading to a more active market and stronger property prices,” he said.
Meanwhile, Po Eavkong, general manager of Asia Real Estate Cambodia, said Central Market was a central area with commercial potential.
But he added that while land prices in the area remained strong and ASEAN economic integration was a good thing, the current political instability was an issue that shouldn’t be discounted.
“The political and economic situation are closely interrelated, and if we end up in a political deadlock, it will affect the property sector,” he said.
Central Market was erected in 1937 during the French colonial period.
In its earlier days it was one of the biggest markets in Asia.