Land prices in Phnom Penh on the riverside along Preah Sisowath have increased by 12 per cent in early 2013 compared to the same period in 2012.
Sorn Sieb, executive director of the KY Real Estate Company said his company has assessed lands along Preah Sisowath boulevard separately: from Patriarch Chuon Nat roundabout near Naga World to Phsar Chas ( the old market) park is between $3,000 to $4,500 per square metre, and from Phsar Chas park to Chroy Changvar bridge is between $2,000 to $3,500 per square metre, an increase of 12 per cent.
Sorn Sieb added the land values depend on the location, land frontage and size. He stressed that “the area from Patriarch Chuon Nat roundabout near Naga World to Phsar Chas park has the highest price because there are a lot of investments in building such as shops, hotels, and guesthouses there, for serving foreign guests, and the demand is increasing significantly”.
He added that the land prices along the boulevard had increased slightly because when the prices of other areas declined, this area held steady, but when other places started to increase, this area also increased and had more buying and selling activities than in 2012.
He stressed that “there are a lot of demands for big land and most buyers use it for developments such as shops, restaurants and hotels.”
The reason of the increase is Cambodia good economic and political stability, and the fact that it plans for ASEAN integration in 2015, he said. In addition, there is no threat of natural disasters, and this makes all local investors and property owners believe that its price will increase further.
However, currently there are only two or three locations advertising for sale or rent along the boulevard.
Chreok Soknim, the vice director of V-Trust, said that the land price along the boulevard will experience further increases, because it is almost unable to find land for sale to meet the increasing demand.
He said that “the prices and demand have increased by 10 to 15 per cent compared to the previous year, and I hope that in the future this area will have more development while
Cambodia’s macro economy is booming, particularly the area along the riverside, which usually experiences more rapid development than other areas”.
He added that when the country opens to the ASEAN market, ASEAN members need to be ready to respond to the growing investments.
Po Iv Kong, director of the Asia Real Estate Company, said almost 80 per cent of the properties along Preah Sisovath boulevard are state-owned, and he thinks that it has good potential for foreign investors, as the hospitality market is booming to satisfy the increasing number of tourists, an annual increase of between 15 to 20 per cent.
He emphasized that “the area has good infrastructure, a lot of shopping malls, plenty of ancient buildings, which capture foreign guests’ interest, so that’s why this area always experience an increasing land price.”
To contact the reporter on this story: Seun Son at [email protected]