House prices soar 20 per cent in first quarter

House prices soar 20 per cent in first quarter

The growth of the Kingdom’s population, a sustainable economy and optimism about real estate has caused the price of housing to grow by between 10 to 20 per cent in the start of 2013, said real estate experts.

 

General manager of VMC Real Estate Cambodia, Dith Channa said the price of flats and villas has increased between 10 to 15 per cent during the first quarter of this year, compared to the same period last year.

The housing on the outskirts of Phnom Penh has risen about 10 per cent, while in more urbanised areas housing has advanced 15 per cent. The price of apartment and condo has not really developed.

“The growth is due to the increasing demand from both locals and foreigners, while the growing population of adults who have got married also need housing,” said Channa. “The economic growth boosts the prices.”

The price of a flat in the outskirts is average $28,000 to $30,000, but is up to $100,000 in the centre of town.

Villa are between $200,000 to $300,000, but this price does not include the villas around Phnom Penh’s Central Market and along the Preah Sisovath-riverside-boulevard area. Dealers are now gradually making these areas more active, but they are very cautious because they think first before purchasing and carefully consider the potential that they can invest, according to Channa.

“The housing price will climb and there will be more demand in 2014 because of Cambodia integrating into ASEAN in 2015,” VMC’s general manager said.

Noun Rithy, the general manager at the Bonna Reality Group says that since the first quarter of 2013 compared to the same period 2012, the housing price has increased by 10 to 15 per cent, due to the growth of urban population, investment and the progress of the country’s economy. However, he added that provincial housing prices have not actively strengthened.

“These trends boost the constructions during the first three months of this year compared to last year,” said Rithy. “Various boreys are being expanded, projects while new boreys began to develop.”

Kim Heang, president of Khmer Real Estate, said that the housing in Phnom Penh had significantly increased and was growing every month by around 20 per cent compared to the same period last year. Housing prices of between $100,000 to $200,000 had increased by about 20 per cent, but housing in the outskirts that is worth under $50,000 hadn’t shown much of an increase.

However, Po Eavkong, managing director of Asia Real Estate Cambodia differs on the subject, saying the housing price has increased about 5 per cent if the demand for housing and the country’s economic growth are really analysed.

“Because of the increasing demands of industry, tourism, and agriculture the concept of real estate is on the increase,” he said.

phnompenh post