Logo of Phnom Penh Post newspaper Phnom Penh Post - Land prices in Phnom Penh increase by 15 per cent in first quarter




Land prices in Phnom Penh increase by 15 per cent in first quarter

A view of Phnom Penh from Canadia Tower. HENG CHIVOAN
A view of Phnom Penh from Canadia Tower. HENG CHIVOAN

Land prices in Phnom Penh increase by 15 per cent in first quarter

The more Cambodia’s economy grows and the more investors come into Cambodia has had some positive and negative effects, and one of those effects is to push up land prices in Phnom Penh for the first quarter in 2013, an increase of 15 per cent.

Sorn Seap, the general manager at KEY Real Estate Co, Ltd, has studied land prices in four districts in Phnom Penh during the first quarter of the year. He says KEY Real Estate Co, Ltd conducted the study on land prices in four of nine districts in Phnom Penh, such as Chamkar Mon, Daun Penh, 7 Makara and Toul Kork.

The study found that the average land value climbed by 15 per cent during the first quarter of 2013.

His company’s report showed that in the first quarter of 2013, the average land price per square metre was US$2,350, while in the same period last year it was US$2,050.

Meanwhile, land in areas that was valued at between US$1,000 and US$1,600 is now worth from US$1,100 to US$1,700, and the price of land along some of the main roads which was between US$2,100 and US$3,300 in the first quarter of the year have increased to between US$2,400 and US$4,000.

Land prices around the Central Market jumped from about US$6,000 at the end of the first quarter of 2012 to US$8,000 per square metre now.

Land prices in Beoung Keng Kang 1 located along four main streets were previously valued at from US$3,000 to US$5,000 and have increased by between US$3,000 and US$6,000 per square metre. Along the smaller streets land is now worth from US$1,500 to US$3,500 per square metre.

Sorn Seap said: “The factor of increasing the land prices is due to such reasons as the growth of development and the need for new houses (owing to the green light from banks decreasing interest rate and more long-term loans). Another important one is because of more foreigners coming to work and investing in Cambodia.”

When asked if land prices would change after the election, Sor Seap said it depended on the flexibility of market prices. But he added that things would improve after the election because more investors would enter Cambodia, then land prices may increase by approximately 10 per cent during the final months of the year.

“Though the situation after the election will be constrained, it may not be a long, drawn-out period as I believe our politicians can handle things,” he said.

At the same time, a report after research by the Khmer Real Estate Company, which was completed recently, said land prices in Phnom Penh in the first quarter of 2013 increased by about 20 per cent compared with the same period last year.

Kim Heang, the president of Khmer Real Estate Co, Ltd, said the reason for the increasing prices of property in the capital was because our economic growth is healthy, especially the increasing flow of Japanese investors.

“Now we have good products without fearing a lack of buyers. We do not care about the market prices provided that we have good products because we have a lot of buyers needing them,” he said.

MOST VIEWED

  • Body of woman killed in Bangkok returns

    The Cambodian embassy in Thailand is working to repatriate the body of a casino dealer who was shot dead in Bangkok on Monday night. Ministry of Foreign Affairs and International Cooperation spokesman Kuy Kuong told The Post on Wednesday that officials are preparing paperwork to

  • Chikungunya hits 15 provinces, says gov’t

    Ministry of Health spokeswoman Or Vandine said on Thursday that the chikungunya outbreak in the Kingdom has spread to 15 provinces. Some 1,700 people are now suspected to have the disease. Vandine urged people to prevent its further spread by eliminating shelters for the Aedes aegypti mosquitoes

  • Gov’t exempts visa A and B holders from Covid fees

    Airline passengers who are diplomats and officials of international organisations holding Type A and B visas for travel to Cambodia are exempted from paying Covid-19 testing fees, said the Ministry of Health in its latest adjustment of rules on Wednesday. Health Minister Mam Bun Heng

  • Bill covering dress code draws ire

    Ministry of Interior secretary of state Ouk Kim Lek responded on Tuesday to criticism concerning a draft law that would ban women from wearing overly revealing clothing, saying that input from all parties will be considered as the law moves through the promulgation process. Several

  • Passing the test: Is Cambodia’s education system failing its people?

    The Kingdom’s education system needs to grow its people but some flaws might stifle​ this growth Coming from the Khmer Rouge occupation, with the loss of many scholars and academicians and a collapsed government, the education system had to be reconstructed from scratch – one

  • What’s the deal with Cambodia and China’s FTA?

    Cambodia’s Free Trade Agreement (FTA) with China kicks off a series of FTAs in future but for now, critics wonder what else the parties could bring to the table apart from what it already has to date By the end of this year, Cambodia