Located in the northern part of Phnom Penh, Tuol Kork is increasingly attracting both expats and locals, largely because land prices in Boeung Keng Kang (BKK) have skyrocketed in recent years.
The mindset of those entering the property market is changing, with more choosing to move to cheaper, but higher potential locations such as Tuol Kork.
Now this area is rapidly growing into a residential hub – especially for foreigners seeking permanent residence in Cambodia.
Sorn Seap, the founder and director of Key Real Estate, said: “Tuol Kork has been regarded as a great residential area for a long time with many special characteristics.
“It is considered as the second best residential area after BKK – the most popular location in Phnom Penh.
“There are new projects underway among commercial and residential sectors such as The Gateway, The Parkway Project and Phnom Penh City Centre Project, which contributes to Tuol Kork’s attractiveness.”
Tuol Kork is also becoming renowned for its vibrancy and youthful spirit. With an abundance of outdoor dance performances and bicycle and running tracks, the area provides a hub of culture for current and prospective residents.
The district is also diversifying in terms of the types of boutique buildings that are taking shape.
One example of this is the Boss apartment building on Street 592. With a striking exterior made to look like a passenger ship, this is an example of how Tuol Kork is developing its own personality as a district, through its buildings, and competing with areas like BKK.
Mr Seap said the development process with regards to residential and commercial operations in Tuol Kork is quite similar to the BKK area. Therefore, how BKK has developed will apply to Tuol Kork, he said.
He anticipates that Tuol Kork will be a mirror image of the booming BKK area in the years to come.
Houses for rent and sale in Tuol Kork vary in price based on location, size and functions. Villa houses – in particular single villa houses – are are also a viable option for office spaces.
However for more commercial and retail ventures, flat houses have been used as a shophouses.
“Prices of villa house range from $700,000 to $2 million,” said Mr Seap. “Prices of flat houses along the main road of Tuol Kork range from $300,000 to $600,000, while prices of those along the small roads range from $100,000 to $200,000.
“Renting prices of villa house range from $2,000 to $5,000 per month, while the renting price of flat house or shophouses ranges between $1,500 to $2,500 and $350 to $650 per month for the main roads and small roads respectively.”
A report released by VTrust Appraisal says there was a slight increase in land prices in the area from 2013 to early 2016, which moved average rates from $2,150 to $2,530 per square metre. Prime commercial streets have also been reported to reach up to $5,750 per square metre in central Tuol Kork.
The lowest land price average comes from the Boeung Kak Ti Muoy Sangkat, at $1,820 per square metre. The highest land price average comes from the Phsar Depou Ti Bei Sangkat, at $3,630.
Ultimately, with a diverse range of residential, office and commercial projects taking shape in Tuol Kork, as well as affordable land and rental prices in comparison to surrounding city centre areas, it is likely the Tuol Kork will continue to increase in popularity for locals and expats alike and retain its vibrant characteristics.