A property expert and investor in the construction sector says that home prices have increased between 10 and 20 per cent so far this year compared to last year.
Kim Heang, president of Khmer Real Estate, says that demand for property in boreys is healthy. Most homebuyers bought properties for personal use rather than for speculative reasons, he adds.
According to Heang, Cambodia’s demographics – around nine million people are under 35 – mean that demand for residential property will continue to increase as young people marry and have children, thus it makes sense for people to buy early as property prices are going up by 10 to 20 per cent on an annual basis.
“I think residential demand will keep increasing for 10 years because there are so many young people,” he says, adding that the majority of growth in the market will be on the outskirts of Phnom Penh due to more affordable prices.
According to Heang, prices for apartments and villas have increased, while prices for condominiums remained stable or slumped due to oversupply. He adds that newly introduced bus services could boost land prices on the outskirts of town by making commuting easier and more affordable.
VTrust Appraisal CEO Chit Uys Stevexo, however, is more sceptical, suggesting that land prices have been flat due to Cambodia’s adverse political situation. He says land prices are not going up, and the same applies to residential units, even though prices might have rise due to taxes on imported construction materials.
Meanwhile, Van Chanthorn, managing director of Town City Real Estate, argues that residential prices in Borey Mohasethey, Borey Outhean Basak, Borey North Bridge, the BKK 1 area and residential areas on the outskirts of Phnom Penh have increased by around 10 per cent this year.
“Transactions have been steady, both for homebuyers looking for a place to live, and in some cases for speculative reasons,” he says.
Teng Rithy, general manager of Borey River Town, which is close to the Chrouy Chongvar Bridge, says that sales are strong, adding that single and twin-villa shophouses are 80 per cent sold-out.
According to Rithy, prices for units at Borey River Town have seen a year-on-year increase of 5 per cent, with increases in the costs of construction materials, workers’ wages and demand for property combining to boost home prices.