Friday, 6 June 2008

Phnom Penh market has good potential

By Somluck Srimalee
The Nation
June 6, 2008

Strong economy and interest from foreign investors seen fuelling demand

With foreign investors eyeing a piece of Phnom Penh's property pie, the Cambodian capital's real-estate market has potential for growth this year, a survey by Agency for Real Estate Affairs (AREA) shows.

AREA president Sopon Pornchokchai said land prices in Phnom Penh range between Bt200,000 and Bt300,000 per square metre.

By the end of January, 90 new condominium and residential projects comprising 25,596 units were launched.

The total worth of the projects was US$2.09 billion (Bt68.7 billion).

Of these, 66 per cent or 16,823 units were sold at an average price of Bt2.6 million.

With Cambodia's economy growing and investors showing interest in putting their money into the property market, the demand for residential projects in Phnom Penh has seen strong growth since 2005, Sopon said. Condominiums and commercial buildings have continued to attract the most investment.

Out of the 25,596 units constructed by the end of January, 22,985 were commercial buildings, 1,186 were condominiums, 547 were detached houses, 534 were double houses and 231 units were townhouses.

Most property developers homed in on the main city centre, where prices for residential properties start at Bt4.53 million.

The survey was conducted last month.

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