Development on the Chroy Changvar peninsula is rapidly growing as investors pour big bucks into new developments, although prices have stabilised after they reached new heights, industry insiders say.
Century 21 VTrust CEO Chrek Soknim said property transactions increased significantly at the end of last year, even though there was not much activity from early 2014 to August.
Research from Century 21 VTrust showed that land prices along National Road 6 started around $2,000 per square metre, and on side roads prices range from $800 to $1,000.
“Land prices in the area aren’t causing any problems for development. Our country’s property prices are lower compared to other countries,” Soknim said.
“The property situation over there is doing well as the area is sandwiched by rivers and near the centre of the city.”
Many large-scale projects have been planned for the peninsula. Among the largest are the Overseas Cambodia Investment Company’s $1.6 billion Chroy Changvar Satellite City, along with The Bay, a recently-announced $500 million Singaporean hotel and residential complex.
According to Sear Chailin, CEO of CL Realty, prices have increased around 20 to 25 per cent in Chroy Changvar, although they seem to have stabilised of late as prices have reached their “highest level.”
“Property prices in Chroy Changvar in early 2015 saw little increase because of the increases at the end of 2014,” said Chailin.
Chailin added that the increase was due to the classic factors of economic growth, higher demand, and political stability.
CL Realty research showed that land prices along National Road 6 from the Chroy Changvar bridge to Prek Leap range from $1,100 to $1,800 per square metre, while prices from the bridge to the Sokha Hotel start between $1,100 and $1,300 per square metre.
“I think transactions in the area in the first quarter of 2015 will continue to increase, based on the growth of residential projects and the coming 2015 ASEAN economic integration,” Chailin predicted.
However, Po Eavkong, managing director of Asia Real Estate Cambodia, said higher prices had dampened demand and urged caution.
“High prices may be touted in the press or from companies that have not done a clear study and analysis about supply and demand. They must have a clear method to evaluate prices.”
Eavkong estimated land from the Chroy Changvar bridge to the Mekong Royal Project in Prek Leap was between $700 to $1,000 per square metre, while land from the Mekong Royal to the National College of Agriculture stood at about $400 to $700 per square metre.
Eavkong added that land from the National College of Agriculture to the Ly Yong Phat bridge ranged from $200 to $400, depending on the land type and condition.