Average land value in Phnom Penh stabilised to $4,500/sq metre in 2023
Average land value in Phnom Penh stabilised to $4,500/sq metre in 2023
While there was a slump in the real estate market post-Covid-19, 2022 and 2023 have shown signs of recovery. Land prices have gone up and the average land value in Phnom Penh stabilised to $4,500/sq metre in 2023, as per a report by the Cambodian Valuers And Estate Agents Association (CVEA).
Industry players said that the rise in land value and property development in the region is due to initiatives from the government. Initiatives such as the new rules allowing for easier expat ownership and infrastructure development. “The Cambodian real estate market has seen an annual growth of seven percent. We have an expanding middle class and increasing demand for quality housing and commercial projects,” said Sorn Seap, President of CVEA.
Condominiums continue to be a big driver of growth with units going for anywhere between $50,000 and $3 million. Aquarii in a report said that the net cost per square metre for completed units range from $1,500-4,500 in Phnom Penh, Siem Reap, or Sihanoukville. “In 2023, the leader in the land and property sector in Cambodia remains undisputed – land. Its popularity as a preferred investment type was 36 percent among respondents in a survey. Coming in second was investing in condominiums and apartments – with 22 percent favouring it,” said the Aquarii report.
As per a report by Realestate.com.kh 2023, property prices in Cambodia continued to surge up. In its report ‘Why Cambodia Guide, Introduction to Asia’s Emerging Real Estate Economy,’ Realestate.com.kh, said property prices in Daun Penh are between $2,200/m2 -$13,300/m2, Chamkarmon $1,600/m2 – $7,300/m2, Russey Keo $500/m2 – $3,900/m2, Chbar Ampov $20/m2 – $3,700/m2, Prek Pnov $20/m2 – $1,790/m2, Makara $2,300/m2 – $8,000/m2 and Toul Kork $1,900/m2 – $6,100/m2. Property prices in other areas like Sen Sok range between $400/m2 – $4,400/m2, Por Sen Chey $100/m2 – $3,600/m2, Kambol $30/m2 – $1,890/m2, Boeung Keng Kang $2,800/m2 – $10,000/m2, Meanchey $600/m2 – $4,600/m2, Chroy Changvar $20/m2 – $,3,500/m2 and Dangkor $50/m2 – $2,780/m2.
At a recent event, Realestate.com.kh CEO Tom O’Sullivan said, “The real estate sector has faced its fair share of uncertainties and challenges in the last three years. But we’ve seen the market rebound. In the last two years, we’ve had more than 15 million visitors on our site, who’ve brought in millions of sales for property in the country. And we see such growth reflected across the industry.”
CBRE Cambodia in its first quarter report for 2024 attributed infrastructure development to be among the reasons for land value increase. The report pointed to construction of the Phnom Penh-Bavet Expressway, Moradok Techo Flyover, Chak Angre-Prek Pra Bridge, Techno International Airport. It also listed other projects like PP-SR-Poipet Expressway, K-Chhnang-K-Thom Bridge, CAM-ROK Friendship Bridge, Ring Road 4 and the Funan Techno Canal among reasons for the increase in mobility, easier commute and upward momentum in the real estate market.
Another reason is the change in laws for expat ownership by the government. Under earlier norms, foreigners had to use a nominee arrangement via a land holding company to manage assets like land. But with the new Trust Law, foreigners and foreign entities get to register their fixed assets with a trust company.
When it comes to valuations for land, Acquarii in its report said that it can vastly defer. “Land can cost as low as a mere few dollars per square meter for distant agricultural expanses or rugged terrains acquired in bulk, as high as $8,000/sq metre in downtown urban hotspots such as BKK1 in Phnom Penh,” said Acquarii.
