Time to buy land, say experts

Time to buy land, say experts

110714_pt12
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.

MOST VIEWED

  • New US bill ‘is a violation of Cambodian independence’

    After a US congressmen introduced bipartisan legislation that will enact sanctions on Cambodian officials responsible for “undermining democracy” in the Kingdom, government officials and the ruling Cambodian People’s Party on Sunday said they regarded the potential action as the “violation of independence and sovereignty

  • Long way to go before Cambodia gets a ‘smart city’

    Phnom Penh, Siem Reap and Battambang will struggle to attain smart city status without adopting far reaching master plans, according to officials tasked with implementing the program. The brainchild of the Association of Southeast Asian Nations (Asean), the smart city program seeks to link up

  • Ministry’s plan for net sparks fears

    The government has ordered all domestic and international internet traffic in the Kingdom to pass through a Data Management Centre (DMC) that has been newly created by the state-owned Telecom Cambodia, in a move some have claimed is an attempt to censor government critics. Spokesman

  • China-Cambodia tourism forum held

    The Cambodian tourism sector must be prepared to welcome a growing number of Chinese tourists, as they lead the globe in the number of outbound travellers and were responsible for the most visitors to the Kingdom last year, the country’s tourism minister said on