Analysts: Skyrocketing Land Prices Along 60-metre Road Makes It Difficult for Residential Developers

• 20 April 2019
• Local News
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The rapid development along the 60-metre road in the southern part of Phnom Penh has caused land prices to skyrocket, making it difficult for residential developers, according to a leading real estate analyst in Cambodia.

Speaking with Construction & Property Magazine in early April, Ms Ann Sothida, director of international real estate agent CBRE Cambodia, said the sharp increase in land prices along the 60-metre road makes it very challenging for residential developers to establish projects around the area.

“What we worry about the 60-metre road is that now there are commercial [projects] and there are not many residential [projects] just yet, and commercial will only work if there is residential. Prices have increased so much!” she said.

“It increases until developers can not develop into resident. As a developer, in order to develop residential can only happen when land prices are reasonable,” she explained.

Mr Sorn Seap, founder of real estate firm Key Real Estate, said that land prices along the 60-metre road have indeed increased a lot.

“The land prices there have now increased a lot, first is the road development and second is the shopping mall that will be built there. Overall, increases in land prices make it difficult for developers to develop it into a good area,” he said.

However, Mr Sorn added that, “normally, if prices are affordable, it is easy to develop, and the result will have more market [affordable]. Most importantly, it depends on the actual development, the market is up and down like this, if no one develops, it [price] will not increase”.

According to Mr Sorn, the land along this 9-kilometre road is divided into three sections with prices ranging differently. At present, prices for the first section from Monivong Boulevard to the Peng Huoth project are between US$1,500 to US$ 2,000 per square metre, and the second section 3 kilometres after Peng Huoth is between US$800 to US$1,200 per square metre. For the last 3 kilometres to National Road No. 2, the price is between US$500 to US$800 per square metre.

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