Three outer districts of Phnom Penh topped the list of rising land prices for the first half of 2019, according to a report from Key Real Estate.
The document, released earlier this week, stated that Prek Pnov, Dangkor and Chbar Ampov districts were the areas that saw the most significant jump in land prices so far this year.
Prek Pnov district rates grew by over 27 percent in the first six months of the year, according to the report. Notably, plots in Prek Pnov commune started 2019 at between $280 and $1,500 per square metre. Now, the same plots are going for between $300 and $1,700 per square metre.
Dangkor district came up in second place. Located on the south end of the city, Dangkor still has some of the most affordable land in the city. Average prices there grew by over 26 percent over the first half of the year, however.
Prataslang and Sak Sampeou communes remain some of the cheapest areas in Dangkor district. You can buy plots there for as little as $40 per square metre.
Rounding out the top three was Chbar Ampov district. Land prices there increased by almost 15 percent.
Land in that district’s Prek Pra and Prek Eng communes are going for between $300 and $1,000 per square metre. Communes like Chbar Ampov 1 and Chbar Ampov 2, on the other hand, host land that averages between $1,300 and $3,200 per square metre.
Why these three districts?
Sorn Seap, founder and CEO of Key Real Estate, said that while average land prices in central Phnom Penh remain mostly unchanged compared to last year, prices in the suburbs are growing fast.
He added that Prek Pnov is becoming an investment hotspot, as infrastructure in the area grows near the ring road, National Road 51 and the railway station at Bandoeng Market.
“Developments in neighbouring Sen Sok and Chroy Changvar districts have led to increases in land prices as well,” he said.
Reflecting on the growth in Chbar Ampov, Seap mentioned the recent 200-hectare expansion of Borey Peng Hout, which has attracted plenty of attention to the area.
Dangkor district, he said, owes its success to the development of the second and third ring roads, Hun Sen Boulevard, new residential complexes and the upcoming Aeon 3 shopping centre.
“I believe the city is expanding, that’s why property values are rising in the outer areas,” Seap said.
He contrasted this to land prices in the central districts of Phnom Penh. Land prices there are relatively stable.
According to the report, Daun Penh, 7 Makara, Chamkarmon, Toul Kork districts saw land price increases of 0.4%, 1.6%, 0.8%, and 0.3%, respectively.
These districts, however, remain at the top of the list for land prices in Phnom Penh. Daun Penh, for example, has an average land price of $5,000 per square metre. Space in premium locations there can command as much as $12,000 per square metre.
Ky Kosal is a content [email protected]