Siem Reap sees strong gains

Siem Reap sees strong gains

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Appraiser Somony Vong says property price increases have been driven by Phnom Penh companies hoping to cash in on increasing tourist numbers. Photograph: Alistair Walsh

Commercial property prices and rents in Siem Reap have increased by 10 to 20 per cent in the last year, according to the town’s newest real estate agency.

Cambodia Properties Limited (CPL) opened its first Siem Reap branch three months ago, recognising a need for sound property valuation data in the temple town.

The firm has been collecting property data in Siem Reap in response to increasing business interest in the town.

Appraiser and current Siem Reap office chief Vong Somony says many Phnom Penh-based companies are opening up branches in Siem Reap to capitalise on the he growing tourist market.

“Companies in Phnom Penh are starting to move here. Many businesses are opening up premises in Siem Reap, and they need information about the property market here and support with lending from banks,” Vong said.

“This demand is mainly focussed on the central business area. There is increased demand because more and more foreigners are coming to visit Siem Reap. Tourist numbers are increasing and companies in Phnom Penh are opening up premises to try and capture that market.”

Somony says Phnom Penh companies such as schools, hotels, restaurant chains and retail outlets are expanding to Siem Reap, and he is in negotiations with a number of banks who are looking to open premises in the city.

According to CPL, the median rental price for commercial property on busy Sivutha Boulevard has increased to $1,300-$1,400 per month.

“These are properties which were renting for $1,200 last year and some of them are going for $1,500 a month now,” Mr Vong said.

Commercial properties that used to sell for $250,000 are now selling for $270,000 to $300,000.

And residential prices and rents are increasing as well, though at a slightly more restrained 5 to 10 per cent per year, according to CPL.

A three bedroom house in the Wat Damnak area will now set buyers back around $1,000 to $1,500 per square metre on an unpaved road.

Paved road house prices are now around $1,500 to $2,000 per square metre.

Median house rents in the area are around $400 per month.

The apartment market is still restrained, with little building activity.

“There are not really that many apartment developments because there just isn’t the demand. They’re generally built to rent to western expats but most expats just rent a house or villa to live in – they’re still quite cheap compared to Phnom Penh,” Vong said.

“There are only really five to 10 apartment complexes completed.”

If buyers are interested in apartments they will generally pay around $400-$500 rental per month for two bedroom apartments. They sell for $1,000 to $1,300 per square metre.

CPL expect the price increases to continue as more and more businesses enter the Siem Reap market.

“I think we will see the same growth as last year for 2013,” Vong said.

 

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