Phnom Penh has earned one of the top spots in a new report tracking prices of residential and commercial real estate across the region.

The Knight Frank Asia Pacific Prime Asia Development Land Index, which the global real estate consultancy has hailed as a market first, has determined prices of prime residential – both apartments and condominiums – and commercial (office) development land in 13 major cities across Asia. Knight Frank sees Southeast Asian cities experiencing strong price growth, with Phnom Penh among the leaders of the pack.

Southeast Asian markets are seeing the fastest price growth for prime development land, with Bangkok, Jakarta, Kuala Lumpur and Phnom Penh accounting for four of the top five cities in terms of price growth, Knight Frank said in a press release timed with the release of the index.

The mature markets of Hong Kong, Singapore and Tokyo saw the lowest price growth, the index found.

“As the first-ever index on development land prices of its size and scope, this will become an important resource for developers, investors, financers and policymakers,” said Nicholas Holt, Knight Frank’s head of research for Asia Pacific. “A key observation from our findings points to the fact that in developing Asia we are seeing low liquidity and rapid land-price appreciation, whilst in developed Asia such as Hong Kong, Singapore and Tokyo, we see the highest land prices and redevelopment opportunities.”

Phnom Penh ranked fifth overall in the region – placed after Beijing – in terms of both increases in price for residential and office space, averaging an increase of around 35 per cent over the past 24 months, according to the index’s findings.

“Phnom Penh, the . . . [fifth] Southeast Asian market in the top grouping saw both its indices increase rapidly, driven by increasing demand from domestic and international players,” the report said.

Over the past 12 months, the report added, “Knight Frank’s Prime Residential Development Land Index registered an increase of 20.7% over 2013 in Cambodia’s capital city, whilst the Prime Office Development Land Index registered an increase of 19.9% over the same period.”