Logo of Phnom Penh Post newspaper Phnom Penh Post - Outbreak wracks land lot market

Outbreak wracks land lot market

Content image - Phnom Penh Post
Prior to the pandemic, rapid economic growth and rising incomes had spurred the creation of land division projects outside of the Kingdom’s urban centres. Photo supplied

Outbreak wracks land lot market

The land division market has plummeted in the wake of the February 20 community transmission, dashing hopes that a brief recovery early this year could be sustained, according to industry insiders.

Prior to the pandemic, rapid economic growth and rising incomes had spurred the creation of land division projects outside of the Kingdom’s urban centres.

Land division refers to the process in which developers create new allotments by splitting land into smaller parcels with separate lot titles. This is done to boost the value of their land holding by leveraging the development potential of their property.

Ven Chhunheat, chairman of Dey Thmey Real Estate Co Ltd, which manages land division projects along national roads 3 and 4, told The Post on March 17 that the latest outbreak had eroded company sales by 30-50 per cent.

He ascribed the slump to fear – of losing jobs and income, or contracting Covid-19 when going out.

And with the amount of cash required to carry out a lump-sum payment on a subdivided plot or reliable source of income needed to pay in instalments, things are only made worse with potential customers tightening their budgets, he noted.

“Before Covid-19 broke out in a third community transmission, many customers had made appointments to see the lots. But as soon as the outbreak struck, almost all were cancelled,” Chhunheat said.

Still, he said, the current situation provides a unique opportunity for prospective investors to buy up lots at a discount with better terms.

An anonymous salesman for Savuth Real Estate, which owns more than 30ha of land split into lots along National Road 51 near Canadia Industrial Park, said daily sales had plunged from 20 lots to just three or four, with weekends not faring much better.

“Sales are not so hot right now and there aren’t as many visitors per day as there used to be, with almost all potential customers who had scheduled to visit the land cancelling,” he said.

To make matters worse, there have been mounting requests from customers to delay payments, he lamented. “At the moment, about 50 per cent of customers have asked the company to ease the terms of payment agreements, and it’s complied with some of them.”

However, he is optimistic that subdivided-lot trading could avert a major disruption if the current outbreak is controlled soon.

Koemsoeun, an employee of a private company in Phnom Penh who bought a lot in the capital’s outskirts on an instalment plan, said that with income sources drying up for the moment, he is starting to run out of money to pay.

He said the outbreak had temporarily shuttered a relative’s shop where he would work to earn some spare cash on the side.

“Before, I was able to earn extra money while working at the company, but now it is over – I dare not go anywhere other than to work. If this situation persists much longer, I may go to the [owner of the lot] to ask it to ease payment terms or delay them for a bit,” Koemsoeun said.


  • 12th Cambodia int’l film festival to see return of Hollywood star

    Phnom Penh is set to come alive with the magic of cinema as the highly anticipated 12th Cambodia International Film Festival (CIFF) takes centre stage. Boasting an impressive line-up of 188 films from 23 countries, including captivating shorts, feature films, documentaries and animation, the festival promises an

  • Bareknuckle champion wants Kun Khmer fighter

    Dave Leduc, who is the current openweight Lethwei boxing champion in Myanmar, has announced that he will travel to Cambodia this year to challenge SEA Games gold medallist Prum Samnang any time that is convenient, after their planned match later this month in Slovakia was

  • Fresh Covid warnings as Thai hospital fills

    A senior health official reminds the public to remain vigilant, as neighbouring countries experience an increase in Covid-19 cases, with the latest surge appearing to be a result of the Omicron XBB.1.5 sub-variant. Or Vandine, secretary of state and spokeswoman for the Ministry of Health,

  • Struggling Battambang artist dreams of staging full-scale gallery exhibition

    Leav Kimchhoth, a 55-year-old artist from Battambang province, is a familiar face to locals and tourists alike on the streets of the riverside in Phnom Penh. The one-armed painter and illustrator often hawks his work near the night market on weekends and public holidays. He

  • 1.4 billion dollar Phnom Penh-Bavet expressway due in four years

    The Government, through the Ministry of Public Works and Transport, has officially signed a public-private partnership agreement with a private company for the construction of a Phnom Penh-Bavet Expressway project that will connect the capital to Svay Rieng province. The budget for the project is

  • New Law on Taxation comes into effect

    Cambodia has enacted the eagerly-awaited new Law on Taxation, which aims to improve the national tax regime’s compliance with present and future international standards and economic conditions; encourage accountability, effectiveness and transparency in the collection process; and promote investment in the Kingdom. King Norodom