Land prices in Phnom Penh have seen the slowest growth in a decade due to the Covid-19 pandemic, according to a survey by real estate firm CBRE Cambodia.
The CBRE Cambodia report said land prices in the city centre in the second quarter of this year remained stagnant and increased slightly in suburban areas.
Average land prices in central Phnom Penh’s districts ranged from $5,500 to $5,000 per square metre – $5,000 in Prampi Makara and $5,500 in Daun Penh, Chamkarmon and Boeung Keng Kang.
In Tuol Kork and Sen Sok districts, land prices increased by around two per cent to an average of $3,500 and $1,425 respectively.
Average land prices in Russei Keo and Chroy Changva districts stood at $1,250 and $1,150 per square metre respectively. In the more distant Dangkor, Meanchey, Chbar Ampov, Por Senchey, Prek Phnov and Kambol districts, average prices is between $150 and $500 per square metre.
CBRE Cambodia managing director An Sothida told The Post on Wednesday that the stagnant land prices in the capital was the result of Covid-19.
She said land transactions are stalled because the pandemic has led to a suspension of travel by large foreign investors to Cambodia. She said Covid-19 has also caused delays in some construction projects.
“It’s the slowest incease in land prices in the last 10 years,” she said.
She said land prices in the suburbs have seen a slight increase thanks to booming infrastrcuture develpment in the areas, which have attracted developers to invest there.
“Infrastructure development is gradually turning agricultural land in the suburbs into residential, commercial and industrial areas, where factories and enterprises are concentrated,” she said.
Lucky Realty CEO Dith Channa agreed that land prices in Phnom Penh have not changed significantly since the beginning of this year. He said there were three major factors influencing the market – a drop in Chinese investors, Covid-19 and global economic stagnation.
“Land prices in Phnom Penh did not increase much in the first half of this year, but there may be some growth in the second half as transactions have gradually resumed,” he said.
