Land prices in Phnom Penh’s Prek Pnov, Dangkor and Chbar Ampov districts have seen a sharp increase during the first six months this year, a report issued by Key Real Estate said.
The report showed that land prices in Prek Pnov district grew by more than 27 per cent in the first six months of this year from between $280 and $1,500 per sqm in the beginning of this year to between $300 and $1,700 per sqm.
Some communes in Dangkor district have seen land prices increase to more than $2,000 per sqm.
Key Real Estate founder and CEO Sorn Seap said while land prices in the capital’s outskirts are rapidly growing, prices in the city centre remain unchanged compared to last year.
He said the price increase in Prek Pnov and Dangkor districts is linked to the third ring road project.
“Prek Pnov district is becoming an investment hotspot, as infrastructure in the area currently grows adjacent to the [third] ring road, National Road 51 and the railway station at Bandoeng Market.”
He said Dangkor district has seen recent development adjacent to the third ring road, Hun Sen Boulevard, new residential complexes and the planned Aeon 3 shopping centre.
“I believe the city is expanding. That’s why property values are rising in the outer areas.”
According to the report, a Chbar Ampov district has seen the highest increases among the three, with land prices up nearly 15 per cent in the first six months of this year.
Land in the district’s Prek Pra and Prek Eng communes are currently priced at between $300 and $1,000 per sqm, while average prices in Chbar Ampov I and Chbar Ampov II communes are between $1,300 and $3,200 per sqm.
The report says expansion to the 200ha Borey Peng Hout gated community in Niroth commune has attracted investors’ attention to Chbar Ampov district and is pushing up prices.
Advance Real Estate Co Ltd founder and CEO Po Eavkong told The Post on Sunday that land prices are rising in all of Phnom Penh’s 12 districts, especially along the capital’s three ring roads.
“Economic growth is currently around seven per cent. An increase in foreign real estate investment by Chinese, Korean and Japanese nationals as well as higher local demand for homes and gated communities are the reason behind the increase [of growth],” he said.
Land prices in Phnom Penh’s other districts such as Daun Penh, Prampi Makara, Chamkarmon and Tuol Kork districts currently stand at an average of between $5,000 and $12,000 per sqm, said the report.