Land exchanges up as prices stagnate

Land exchanges up as prices stagnate

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A man looks at the land for sale panel. Photograph: Hong Menea/Phnom Penh Post

Although the Cambodian economy has improved, the situation for land in provinces with economic potential is not good as values have not increased during the first half of the year.

Sung Bonna, president of Bonna Realty Group and the president of Cambodia Valuers and Estate Agents Association, told the Property Post that price of land in the provinces with potential economic benefits such as Battambang, Siem Reap and Preah Sihanouk did not increase in the first half of the year compared to the same period in 2011, as exchanges increased by 50 per cent.

“Land prices have become stunted because there is not enough demand compared with supply and this is predicted to continue until the end of the year. It should alse be noted that land prices do not usually increase during the rainy season,” he said.  

If political stability is better in 2013, perhaps more land will be purchased he said.

Bonna said that the movement of land purchases in some provinces increased about 5 per cent while Phnom Penh saw an increase in trading of approximately 25 to 30 per cent.

Land prices in areas that have seen economic growth are between US$3,000 and $4,000 per square metre, in Siem Reap it is between $1,000 and $1,500 per square metre, in Preah Sihanouk it is between $800 to $1,500 per square metre, and in Battambang it is from $1,000 to $1,500 per square metre.

Sen Chanreatrey, CEO of Cambodia Real Estate (CEA) company, said that according to his company’s survey, house prices in provinces did not change, though some projects upon completion of construction faced obstacles when it came to being sold.

Battambang, Siem Reap, Preah Sihanouk, Kampot and Kep as well have shown no increase in price although there was an increase in sales, he said.

“The situation is not favourable for an increase in the price of land for Siem Reap if compared with Preah Sihanouk. Provinces close to the sea are in a better the situation, especially in 2013 as Preah Sihanouk will have more investment entering the islands,” he said.

For Preah Sihanouk province, Sen Chanreatrey expressed great optimism, especially for Ream beach, as a Chinese firm is developing the area and it is building a road to the golden-sand beach.

Cheng Kheng, managing director of Cambodia Properties Limited (CPL), said that land prices for the first half of 2012 were better in Phnom Penh as purchases increased but in outlying areas there were not many purchases.

The price in Phnom Penh went up from 5 to 10 per cent if compared to the same period in 2011.

To contact the reporter on this story: Siv Meng at [email protected]

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