Logo of Phnom Penh Post newspaper Phnom Penh Post - First half sees values spike for prime residential areas



First half sees values spike for prime residential areas

First half sees values spike for prime residential areas

Property prices in Phnom Penh’s prime residential locations increased by 13.7 per cent in the first half of 2014, while prime office development land prices increased by 7.6 per cent, according to Knight Frank Prime Asia Development Land Indices.

Ross Wheble, the independent global property consultancy’s country manager, said the main driver was the improving quality of new development projects, which were catering to previously unmet demand.

“The increase in land prices is not so much due to an increase in demand per se, but due to the fact that better-quality developments are being constructed, which are commanding higher prices, thus enabling developers to charge more for land,” he said.

The research showed that Bangkok, Jakarta and Phnom Penh all saw big increases in residential and office property prices. Bangkok had the largest increase in the price of residential sites with 18.2 per cent, followed by Phnom Penh with 13.7 per cent and Jakarta with 11.6 per cent.

The land value was calculated using the “residual method” of valuation, which is based on the gross development value of a project minus construction, finance, legal and marketing costs, and an allowance for developer’s profit, Wheble said.

The main focus for office land is the capital’s emerging central business district around Canadia Tower, which is the main banking and commercial area in Phnom Penh.

For residential land, the focus is on Boeung Keng Kang 1 and Tonle Bassac, he added.

Despite the growth of prime residential and office sites, property prices in Cambodia are still generally lower than in the majority of other Southeast Asian countries, he said.

“Based on the way that we assess land values for the index, growth in prime land prices will moderate during the second half of the year, as it is unlikely that any residential projects will be launched with prices in excess of $3,000 per square metre, whilst Grade A office rental rates are likely to consolidate now that new supply (Vattanac Capital Tower) has entered the existing stock,” he said.

MOST VIEWED

  • Hong Kong firm done buying Coke Cambodia

    Swire Coca-Cola Ltd, a wholly-owned subsidiary of Hong Kong-listed Swire Pacific Ltd, on November 25 announced that it had completed the acquisition of The Coca-Cola Co’s bottling business in Cambodia, as part of its ambitions to expand into the Southeast Asian market. Swire Coca-Cola affirmed

  • Cambodia's Bokator now officially in World Heritage List

    UNESCO has officially inscribed Cambodia’s “Kun Lbokator”, commonly known as Bokator, on the World Heritage List, according to Minister of Culture and Fine Arts Phoeurng Sackona in her brief report to Prime Minister Hun Sen on the night of November 29. Her report, which was

  • NagaWorld union leader arrested at airport after Australia trip

    Chhim Sithar, head of the Labour Rights Supported Union of Khmer Employees at NagaWorld integrated casino resort, was arrested on November 26 at Phnom Penh International Airport and placed in pre-trial detention after returning from a 12-day trip to Australia. Phnom Penh Municipal Court Investigating Judge

  • Takeo hand-woven silk items provide local high-quality alternative to imports

    After graduating from university and beginning her career as a civil servant at the the Ministry of Economy and Finance, Khieu Sina found time to establish a business that aligns with her true passion – quality hand-woven Khmer goods. Her product line, known as Banteay Srei,

  • Two senior GDP officials defect to CPP

    Two senior officials of the Grassroots Democratic Party (GDP) have asked to join the Cambodian People’s Party (CPP), after apparently failing to forge a political alliance in the run-up to the 2023 general election. Yang Saing Koma, chairman of the GDP board, and Lek Sothear,

  • 11th Chaktomuk Short Film Festival draws to close

    Cambodia's 11th Chaktomuk Short Film Festival wrapped up successfully on November 28 after a four-day run, with the film “Voice of the Night” awarded top prize for 2022. Sum Sithen, the organiser of the short film festival, told The Post that the number of attendees to the