Housing developments in Phnom Penh’s Russey Keo (also known as Ruessei Kaev) district are coming on stream in droves simultaneously with rising inner city property prices which is aiding demand for residential options in the suburban parts of the city.
A study by VTrust Appraisal in conjunction with Century 21 Mekong on the supply and demand of housing in Russey Keo district which has six communes, found the district is home to a cumulative supply of 12,200 landed housing units.
A number of boreys are springing up in the area alongside the district’s urban expansion, including Borey Vimean, Borey Peng Huoth, Borey New World and Borey Rith.
The report noted that while 2016 had marked a decline of new supply within the district, construction completion started to grow gradually, with 2,827 housing units of all types completed in 2016.
Among the six communes of Russey Keo district, Chrang Chamreh Ti Muoy had 1,398 units completed, 247 units nearing completion, and 899 others still under construction.
Overall, the commune achieved up to 94 percent of all units sold, outperforming the other communes within the district.
Hoem Seiha, director of research at VTrust Appraisal, said demand for the housing market in Ruseey Keo district was increasing as rapid growth in population, increasing traffic pressure, and rising property prices in the inner city centre have pushed many to different suburban parts of the capital, including Russey Keo.
“The growth of the middle-income and young newlyweds who are starting a new family are also pushing up the housing growth,” he said.
Century 21 Mekong CEO Chrek Soknim said there are a number of factors contributing to the growth in demand for housing in the said district, including solid financial support from Cambodia’s banks and the increasing number of young families settling down there.
In 2017, VTrust predicts that an additional 3,383 units will be finished in Russey Keo, ready for buyers to move into.