Land Price Update in Phnom Penh, Siem Reap, and Sihanoukville

• 9 February 2021
• Local News
• 15290 Views

According to Key Real Estate data, during the second half of 2020, land prices in Siem Reap and Sihanoukville dropped on average by 11.2% and 7.2% respectively compared to the same period in 2019. Surprisingly, land price across 14 districts in Phnom Penh on average remained robust, seeing a slight increase of 4.4% despite the COVID-19 pandemic.

For Phnom Penh, among all districts, Dangkor district saw the highest increase of 17.9%, followed by Kamboul, Sen Sok, and Prek Pnov district that the prices have risen by 8%, 7.3%, and 6.5% respectively.

2020 was the very first year, at least during the past five years, that land prices in central business districts such as Duan Penh, 7 Makara, and Chamkarmon, remain unchanged. Nevertheless, the land prices in these CBD areas remain the highest compared to other districts.

Meanwhile, land prices in Siem Reap saw the largest decline compared to Phnom Penh and Sihanoukville, due to the heavy downturn in the tourism sector. Land prices in Zone E dropped significantly by 14.3% in H2 of 2020, compared to H2 of 2019. Only the land prices in Zone A and Zone B remained unchanged, while the rest contracted between 0.83% to 14.39%.

On the other hand, land prices in Sihanoukville also fell on average by 7.2%, with Sangkat 4 experiencing the largest decrease of 16.7%, followed by Sangkat 1 and Sangkat 2 as shown in the tables. According to experts, the drop in land prices in Sihanoukville has not been solely caused by the pandemic, but also the lasting impact of the closure of online gambling in 2019.

Though with the slight drop in land prices, local experts are optimistic about 2021 due to the vaccine introduction worldwide. CBRE Cambodia Managing Director Ann Sothida, for instance, has predicted that the real estate market in 2021 will improve by 60% compared to 2020. (Read more)

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