Phnom Penh land prices predicted to drop slightly in 2018

• Me Wathana
• 2 March 2018
• Local News
• 1558 Views

According to a survey conducted by Key Real Estate Co Ltd, land prices in Phnom Penh are likely to drop by between 2 to 5 percent in 2018 due to both economic and political factors.

“As it’s generally known, during the pre-election period, investors do not really want to take much action. They prefer to wait and see what will happen after the election,” said Mr Sorn Seap, founder and CEO of Key Estate Co., Ltd. and one of the leading real estate analysts in Cambodia.

“However, after the election, land prices and real estate values as a whole will rise again and will be even better,” he added.

The upcoming national election is not the only factor as regional and world economic issues are also factors influencing this slight drop.

“Cambodia’s economy itself is great following the prediction of 7 percent GDP growth for this year. However, the regional economy and also the western economy are factors,” explained Mr Seap. “As their economies are not really good at the moment, investors are quite picky when it comes to investment, or they prefer to postpone their investment first during this period,”

Regarding current land prices in Phnom Penh, a survey showed that in 2017 Duan Penh is the district with the highest land price, followed by 7 Makara, Chamkarmon, Toul Kork, Meanchey, Russey Keo, Sen Sok, Chroy Changvar, Chbar Ampov, Por Senchey, Dangkor, and Prek Pnov.

The highest price is up to USD 6,000 per square metre for commercial usage and USD 4,000 for residential usage.