Logo of Phnom Penh Post newspaper Phnom Penh Post - Property prices stagnant following election



Property prices stagnant following election

New houses sit empty in Phnom Penh as buyers seem hesitant folowing the national election.
New houses sit empty in Phnom Penh as buyers seem hesitant folowing the national election. VIREAK MAI

Property prices stagnant following election

Although house prices increased sharply in early 2013, they have remained stagnant following the national election last month.

Kuy Vat, the President and CEO of VTrust Group, said housing prices in many projects remain unchanged, because most customers are waiting for the formation of the new government.

“Prices and purchasing increased before the election, but since this most customers have seemed hesitant, causing the price to become stagnant,” he said.

Po Eavkong, the Managing Director of Asia Real Estate Cambodia co, Ltd, said house prices during the first half of 2013 increased five to seven per cent compared with the same period last year, but prices have not changed following the election.

However, now many sellers are asking for higher than the market price, which is similar to before 2008, but the increases are not as much as in 2008.

“If the new government is formed and it is peaceful, the price of property, especially housing, will increase, but it should not be too high,” he said.

Noun Rithy, the General Manager at Bunna Reality Group Co, Ltd, disagreed, saying that prices for the first half of 2013 were 10 per cent to 25 per cent higher than during the same period last year.

He added that the rise in price is to the increased demand for housing in Phnom Penh, which is currently 100,000 housing units per year.

“The housing price is stagnant currently, not entirely because of the election, but it is also the arrival of the rainy season. I see that political issues do not change remarkably and this situation has occurred many times before.”

Ouch Pysal, assistant president of Ly Hour Group, said housing prices in Borey Vimean Phnom Penh have not increased because the construction costs have not changed.

In addition, the company has an incentive policy for customers who buy houses in Borey Vimean Phnom Penh and Borey Vimean Phnom Penh’s commercial zone.

Touch Samnang, project manager of Olympia City north of Olympic Stadium, said the price of houses in Olympia City have increased by five per cent in the first three months of the year because the project has attracted a lot of attention.

But he said sales at Olympia City have been stagnant after the election.

MOST VIEWED

  • Siem Reap drain canal now ‘mangrove’ promenade

    A more than half a kilometre long stretch of canal in Siem Reap has been covered and turned into a promenade to attract visitors, said Ly Rasmey, secretary of state at the Ministry of Land Management, Urban Planning and Construction, on September 16. The new pedestrianised

  • Angkor wildlife, aquarium park still to open October

    The Angkor Wildlife and Aquarium complex about 30km southeast of Siem Reap town with initial total investment of more than $70 million is reportedly still on track for an end-October opening. The park is located on a 100ha plot along National Road 6 in Kbon village, Khchas

  • Final verdicts for Khmer Rouge leaders ‘vital’ for next generation

    Nearly a decade after the commencement of Case 002/02 against Khieu Samphan back in 2014, the Extraordinary Chambers in the Courts of Cambodia (ECCC) is now set to deliver its final verdict for the former Khmer Rouge head of state. The Supreme Court Chamber of the ECCC,

  • Defence minister reaffirms Kingdom’s staunch support for One-China policy

    Minister of National Defence General Tea Banh has reaffirmed Cambodia’s unwavering support for the One-China policy. Tea Banh was speaking at the September 20 ceremonial handover of 117 vehicles and other military equipment donated by China’s defence ministry, held at Phnom Chumreay International Military Training

  • Deaths due to ‘lifestyle’ diseases rise in Kingdom

    The Ministry of Health has called on people to pay closer attention to their health to protect themselves from non-communicable diseases (NCDs) which it said have caused high rates of deaths in the country. Ministry secretary of state York Sambath made the call at a

  • Textile industry minimum wage now $200

    The official minimum wage for workers in textile-related sectors including garment, footwear, and travel goods for 2023 was pegged at $198, with Prime Minister Hun Sen stepping in to add $2 to the total, making it $200 per month. The Ministry of Labour and Vocational Training made the announcement