Land prices along major roads increase sharply

Land prices along major roads increase sharply

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From the last few year, we see new the increasing of new skyscraper along the Monivong Blv. Photograph: Hong Menea/Phnom Penh Post

The price of land along four major boulevards in Phnom Penh climbed by 16 per cent in early 2013, according to real estate experts, compared to the same period in 2012.

VMC Real Estate chairman Dith Channa said land prices increase because the quality of the real estate on offer has improved, although land prices along Monivong, Norodom, Mao Tse Tung and Russian Federation Boulevards have always been healthy.

“Because of the Kingdom’s political and economic stability, more and more foreign investors are flowing in to Cambodia, so office buildings and real estate are more in demand,” he said.

Land prices along the four major boulevards are different, he said, noting that prices between $3,500 and $4,500 per square metre along Monivong and Norodom Boulevards in 2013 compared to $2,500 and $3,500 last year.

On Mao Tse Tung Boulevard they ranged between $1,500 to $2,500, from $1,500 to $2,000 last year. And on Russian Federation Boulevard they ranged between $1,000 to $1,500, roughly similar to last year.

There are many large buildings currently being constructed along those boulevards, because they are busy economic hubs and in the centre of Phnom Penh, he said.

The growth of land prices is a good sign for Cambodia, while many foreign investors are investing in the country such Japan, China, South Korean, Thai, United States, and France.

“They are really investing, unlike in 2007 and 2008,” he said.

“Land prices increase. We have had good growth of investors and larger numbers of investors this year,” said Channa.

Cheng Kheng, director of the CPL real estate company and president of the Cambodian Valuers and Estate Agents Association, said that those major boulevards have really climbed, with some areas strongly increasing and some gradually increasing.

“It is good for the real estate industry but being investors, they want it to increase gradually, because buyers and sellers are careful and carefully evaluate their decisions before beginning any projects,”​ he said.

However, the current prices are good for investors because it is below the prices of neighbouring countries.

“I think that the prices could be increased more as ASEAN countries will be combined in 2015 so those counties would think that the investment any one country is the same. Our country has a opportunity for them because of its political stability and we have no natural disasters like in neighbouring countries,” Kheng said.

Kim Heang, president of the Khmer Real Estate Company, said that he currently has four or five customers who need real estate along major boulevards, but he has not yet been able to find it for them, and the prices are increasing.

“A flat along Mao Tse Tung Boulevard is $300,000 to $350,000 but is now climbing to $450,000, while it was $400,000 along Monivong Boulevard last year but $550,000 now, so growing about 20 to 30 per cent,” he said.

Prices of real estate will continue to rise from now on to mid year, but it will still gradually increase, and will improve more if political and economic stability continues, he said.

To contact the reporter on this story: Seun Son at [email protected]

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