Time to buy land, say experts

Time to buy land, say experts

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Land is advertised for sale in Chroy Changvar commune in Phnom Penh’s Russey Keo district earlier this year.

The current situation is a golden opportunity for those who want to buy land at a low cost and sell it for a high price
in the future

The low cost of residential land currently available in the Kingdom provides a prime investment opportunity for those looking to make a profit, according industry experts.

The number of plots put on the market, especially in more rural areas, has continued to increase since land prices plummeted amid the economic recession, VMC Real Estate General Manager Dit Channa said.

“The current situation is a golden opportunity for those who want to buy land at a low cost and sell it for a high price in the future, and especially for those involved in residential construction.”
Compared to land prices between 2005 and 2007, the current costs are extremely cheap, he added.

Data released by VMC Real Estate shows prices in suburban areas such as Phnom Penh Thmey, Northbridge and Boeung Tompon, hit around US$200 to $250 per square metre for residential land in 2006, however, similar plots are now selling for around $100 to $150.  “Economic growth in the second half of the year, social stability and financial support from the banking sector will all contribute towards the recovery of the real estate sector,” according to Dit Channa.

He added that in 2 to 3 years, people will struggle buying land at the current prices.

Other insiders also believe prices will recover in the coming couple of years.

“At present, land and house values are very low, but I think these prices will be hard to find, even in a years time,” said Lay Bun Hak, a contractor for selling apartments, based in Boeung Tompon and Cham Pou Voan.

Phnom Penh Thmey based construction material wholesaler Sok Sorith Sak expressed his eagerness to buy land while prices remain at a standstill.

“I am looking for a small piece of land on which to construct a villa, but I want to purchase it this year, as many believe land prices are recovering.”

Previous figures from Cambodia’s National Valuers Association placed average prices for residential land in Phnom Penh at an estimated $1,600 per square metre.

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