Prices along Monivong Boulevard – the neon-lit commercial artery of the capital – recorded strong growth in 2014, according to local real estate experts.
Sea Chailin, CEO of CL Realty, said prices increased between 10 and 15 per cent in 2014 compared to 2013, and he is bullish about the future.
“Land prices along Preah Monivong Boulevard will keep increasing in 2015, and there is no sign that property prices along the boulevard will decline,” said Chailin.
“I will even say that they will continue to increase for the next three or four years,” he said.
“If you ask me how can I say that, I would respond that the Cambodian economy is solid and so is the global economy.”
But prices along the boulevard are not all the same. The further Monivong stretches north and approaches Phnom Penh’s commercial core, the higher the prices fetched.
Figures from CL Realty show that land prices from Monivong Bridge to the intersection on Mao Tse Toung go for $2,800 and $3,300 per square metre.
Land from the unfinished Gold Tower 42 project on Sihanouk boulevard to Canadia Tower goes from $3,500 to $3,800, while land from Canadia Tower to the Japanese Bridge goes for $3,500 to $4,500.
However, Chailin said land prices along Monivong can reach $6,000 to $7,000 per square metre based on its type. A flat along the boulevard usually goes from $550,000 to $800,000, depending on its size and height, he said.
Monivong Boulevard has been transformed into a commercial artery of the capital, lined with numerous restaurants, banks, offices and shops.
Property prices along the boulevard are slightly lower than land prices, but transactions are infrequent as landowners are reluctant to sell due to their existing businesses being profitable, said Century 21 Vtrust chief executive Chrek Soknim.
High prices could also make buyers look for more affordable options elsewhere in the capital, he added.
From the Japanese bridge to the Central Market, property goes from $3,200 to $4,000 per square metre. From Central Market to the Mao Tse Toung intersection, property goes for $3,500 to $4,500, and from the intersection to Monivong bridge, about $3,000 per square metre, according to Soknim.
“The prices will continue to increase, in spite of the lack of transactions, because the road has high potential and all kinds of businesses can open up along it,” he said.