why Borey home prices are up 10 to 20 per cent

A villa in a borey. Prices have increased despite them being a hard sell.
A villa in a borey. Prices have increased despite them being a hard sell. Hong Menea

why Borey home prices are up 10 to 20 per cent

Prices for borey homes have increased around 10 to 20 per cent in the first quarter of this year compared to the same period of last year, according to a study conducted by World Trust Estate.

Up until the first trimester of this year, the study included houses that where at least two-stories high. The price of those houses was based on the type of housing such as flats, shop houses, twin villas and single villas.

As the reason to why single villas sold slowly, the study cited that the price range exceeded the majority of potential homeowner’s financial capability.

Yet, despite slow villa sales, prices picked up 10-20 per cent on average.

But why is that so? Post Property asked borey developers and property experts about what caused the increase.

Love
Dr Penghong Socheat Kemro, general director of the housing department of the Ministry of Land Management Urban Planning and Construction, said that last year’s demand for new housing in Cambodia was around 10,000 to 20,000 units. This increase was due mostly to young, newlywed couples who started families in their own homes.

Quality
Chhay Sina, head of marketing and sales in Borey Vimean Phnom Penh, said prices went up because designs were more attractive while developers grew a reputation for quality.

She continued that “trusted and better infrastructure helps increase the sales gradually,” while “paying attention to good quality of building and house design also share a part in [the increase].”

Despite higher prices Chhay’s company increased sales 15 to 20 per cent in the first quarter of this year compared to the same period of last year.

Land prices
Nget Piseth, a director’s assistant at Borey New World, added that it was not only new couples, but a growing economy that added to the price increase. He repeated the notion that boreys have faced problems keeping prices stable. “I cannot expand into new projects because land prices have increased,” he said.

Content image - Phnom Penh Post
Source: Post Property/ World Trust Estate

Construction material more expensive
Teng Rithy, a general manager of Borey Town said the sale prices in Borey Town slightly increased this year because the company faced some problems as sand prices surged (Post Property reported), as well as the prices for stone and steel.

Easier money
En Sitha, deputy general director of World Trust Estate, told BTV, that prices for housing were also picking up because getting a bank loan had become much easier (Post Property reported). Sitha also added the financial sector was greatly encouraging the development of real estate.

He added that people’s increasing income obviously had an effect on borey homes becoming more expensive as well.

Despite all the reasons that allowed prices to go up, Seng Bunna, general director of Bunna Realty Group, agreed with the statement that the growing economy and easier access to finance affected borey prices. He pointed out, however, that borey projects mostly focus on higher middle class citizens and the actual number of those who could afford borey housing was still much lower than perceived. Wishing for a downshift in the market, he told Post Property that constructing housing for lower- middle class and even lower class citizens would be a good idea because many more people actually fell into that category.

MOST VIEWED

  • Kingdom may hire Turkish power ship

    Cambodia is considering negotiating with Turkey to hire a 200MW-capacity power ship to meet electricity demands as the country faces an ongoing electrical shortage, according to the prime minister. Speaking to garment workers in Pursat province on Wednesday, Prime Minister Hun Sen said Electricite du

  • ‘Kingdom lacks up to 400MW in available electricity’

    Prime Minister Hun Sen has called on the general public, hoteliers and businesspeople with generators to use them as back-up as the Electricity Authority of Cambodia cannot generate enough electricity to meet needs due to low water levels in power station reservoirs. On Saturday evening

  • EDC tackles power shortfall

    Electrcite Du Cambodge (EDC) on Monday issued a statement updating the public on its efforts to tackle insufficient electricity supplies during the ongoing dry season. Reductions in electricity prices have resulted in a steady increase in consumers in the Kingdom, while local and international investors

  • African swine fever spreads to VN-Cambodia border

    African swine fever has spread to parts of Vietnam that border Cambodia’s Ratanakkiri and Kratie provinces, a Ministry of Agriculture, Forestry and Fisheries official said on Friday. Tan Phannara, the General Directorate of Animal Health and Production director-general, told a Phnom Penh workshop that