Phnom Penh’s Tuol Kork district is projected to see a threefold increase in the supply of apartments for rent, which is predicted to reach a total of 5,000 units in the early 2030s, according to a study.
A study by VTrust Appraisal, which The Post obtained on Wednesday, projects that by the end of this year, the number of apartments in Tuol Kork will reach about 1,400 units and 5,000 units in the early 2030s.
Vtrust Appraisal Co Ltd director of research, Hoem Seiha, said Tuol Kork had gradually become more attractive thanks to a number of new developments such as schools, hospitals, malls, villas, boreys, condominiums and apartments.
An increase in the number of residents has gradually increased the demand for accommodations. The reasoning behind the projection is that the Toul Kork area has attracted many big and famous institutions in the last 10 years and this trend will only continue.
“The high prices of land in the capital’s centre and the rapid development of the Tuol Kork area prompted many people to move there,” said Seiha.
He said Toul Kork brings a high demand for residences, as it is between the centre and the developing Phnom Penh Thmey commune.
The district, he said, had been adding about 100 new apartment units every year, but the number will rise further next year.
“According to 2019 estimates, at least 200 apartment units will be launched in the market.”
In its report, CBRE Cambodia said 218 condominium units were put on sale in the third quarter of this year, bringing their total number in Phnom Penh to 12,048 units.
The report shows that 80 per cent of Chamkarmon district’s luxury condominiums has completed construction.
Key Real Estate Co Ltd’s land price research report for the first half of this year found that the cheapest land in Tuol Kork is in Boeung Kak I and Boeung Salang communes, with prices ranging from $1,700 to $4,700 per square metre.
The most expensive is in Phsar Depot, Teuk La’ak and Phsar Doeum Kor communes, with prices between $2,500 and $5,000.
The company’s founder and director Sorn Seap said land in Tuol Kork is already highly priced and will not increase much.
“The price at the end of the first semester increased only five to 10 per cent compared to the end of last year,” he said.
A Ministry of Land Management, Urban Planning and Construction report said Cambodia’s construction investment capital in the first nine months of this year was $4.82 billion – down 14.47 per cent from the same period last year.