PHNOM PENH: Phnom Penh, the bustling capital city of Cambodia, reigns not only as the largest urban center but also as a hub for security, politics, economics, cultural heritage, and diplomacy.
Positioned in the heart of Cambodia’s south-central region, Phnom Penh resides at the convergence of the Tonlé Sap, Mekong, and Bassac rivers. These majestic waterways serve as invaluable resources, nurturing freshwater and river ecosystems, adorning the city with nature’s beauty, and fostering a prosperous cultural tapestry cherished by the people of Phnom Penh, both past and present.
The city is divided into 14 districts, locally known as Khans. These include Khan Boeng Keng Kang, Khan Doun Penh, Khan Kamboul, Khan Chamkar Mon, Khan Chbar Ampov, Khan Chroy Changvar, Khan Dangkao, Khan Mean Chey, Khan Pou Senchey, Khan Prampir Makara, Khan Russey Keo, Khan Sen Sok, Khan Tuol Kouk, and Khan Prek Pnov.
Of all the districts, Khan Daun Penh, located at the heart of the city, stands out as a prime prospect for land investment and real estate opportunities, albeit with sky-high prices.
Recent findings from a study conducted by CVEA for the first half of the year reveal a range of prices within Khan Daun Penh. The lowest recorded price per square meter stands at $2100 per sqm, while the highest goes as far as $13000 per sqm. These rates vary based on location, whether the land is situated on a main road or a sub-main road.
Within the boundaries of Daun Penh, three specific areas or “sangkat” boast the maximum land prices (main road). In descending order, these are sangkat Chamkarmon, sangkat Phsar Kanal, and sangkat Phsar Thmey, fetching prices of $9200, $12000, and $13000 per square meter, respectively.
For land situated on the sub-main roads, the maximum prices across all sangkats in Khan Daun Penh range from $4000 to $5400 per square meter, representing a slight difference from the main road rates.
The real estate industry is currently facing several challenges. Market instability, and oversupplies of properties, including condominiums, commercial buildings, and offices, both within and outside the city, are growing and evolving too rapidly, causing saturation in the market.
During a recent roundtable discussion on the “Real Estate Market Situation in Cambodia,” Mr. Sorn Sieb, President of the Cambodian Valuers and Estate Agents Association (CVEA) advised that investors looking to invest in the real estate sector should have their own budget and consider long-term investments upwards of five years to maximize profits.
According to Mr. Sorn Sieb, investments can be categorized as short-term (one year or less), medium-term (3-5 years), or long-term (five years or more). He encourages long-term investments that are funded by one’s own budget as this offers more options to purchase properties at a reasonable price.