CBRE: Land prices remain stable in Q2 2020, despite fewer transactions

• 8 July 2020
• Local News
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Land prices across all districts in Phnom Penh in Q2 of 2020 remain robust despite fewer transactions in the market partly due to the COVID-19 pandemic, according to the CBRE Cambodia report published on 07 July.

Speaking at the webinar presenting the report, Senior Director of CBRE Cambodia James Hodge said that the fact that land prices remain robust is due to the stable cash flow of landowners, particularly those in the business districts.

“The fact that other indicators in the market are heading negatively will impact the central district of the city in particular. Given that, property developers are less likely to make the same level of profit, so they would, in turn, reduce their target purchases of land plots. Therefore, what we expect to see is a reduction in the volume of transactions,” said Mr Hodge.

“However, fewer transactions does not lead to price reductions. Many landowners in the centre of the city are wealthy individuals and they own large land plots. They should have enough cash flow. So, we won’t expect to see many sales during time that the price is stable, or when buyers expect to get the price below market,” he added.

However, Mr Hodge expected to see some downward adjustment of land prices in the secondary districts of the city, especially among the small and medium-sized investors.

Despite the COVID-19 crisis, Daun Penh, Chamkarmon, and 7 Makara districts have remained the top three districts with the highest land prices, averaging from US$5,000 to US$6,000 per square metre. This is followed by Toul Kork, Russey Keo, Sen Sok, and Chroy Changvar, ranging from US$1,000 to US$3,500 per square metre, according to the same report.

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