Results of a survey released Monday show an increase in the price of land in Phnom Penh since the country’s property boom and bust more than five years ago, but industry experts say a similar bubble is unlikely in the near future.
The findings of the survey by VTRUST Property Co. Ltd. are based on land prices during the fourth quarter of last year in Phnom Penh’s then-nine districts and 96 communes.
The survey found the average asking price for land in Phnom Penh was $1,440 per square meter. The minimum price was at about $10 per square meter in Sen Sok district’s Ponhea Pon commune, while the maximum price was $5,900 per square meter in Chamkar Mon district’s Boeng Keng Kang I commune.
The average prices per square meter of land varied widely between the nine districts, with the most expensive at about $3,630 and the least expensive at $160, according to the survey.
The most expensive districts by average included Daun Penh, Prampi Makara, Chamkar Mon and Tuol Kok.
In Daun Penh, the city’s central district, the average price per square meter was $3,628. The minimum was $1,042 and the maximum was $5,830.
Daun Penh’s highest average price was $4,200 in Chey Chumneah commune.
In Prampi Makara, the average price per square meter was $2,700. The minimum was $1,010 and the maximum was $5,150. The district’s most expensive average price was $3,200 in Monorom commune.
In Chamkar Mon, the average was $2,360. The minimum was $1,010 and the maximum was $5,900. The most expensive average within the district was $3,300 in Boeng Keng Kang I commune.
In Toul Kok, the average was $2,260. The minimum was $1,000 and the maximum was $5,340. The most expensive average within the district was $2,810 in Phsar Depot II commune.
The least expensive districts by average included Dangkao and Pur Senchey.
In Dangkao district, the average was $160 per square meter. The minimum was $20 and the maximum was $920. The most expensive average within the district was $450 in Dangkao commune.
In Pur Senchey, the average was $270. The minimum was $20 and the maximum was $1,810. The most expensive average within the district was $720 in Choam Chao commune.
Factors affecting the prices included size of the land for sale, building types, and location.
While the results reveal a steady increase from the property crash in 2009, VTRUST executives said Monday during a news conference that there is little concern of another property boom and subsequent bust.
“As long as the economic and political situation is good, the prices will increase steadily,” said In Sitha, managing director of VTRUST Realty Co. Ltd. “During the next five, 10, 15 years, the market price will continue to go up, but there won’t be a boom.”
Grant Knuckey, CEO of ANZ Royal, said Monday that while ANZ’s mortgages increased by about 35 percent in monetary volume last year, a property bubble is “years away.”
“We’re not seeing people borrowing money far bigger than a house’s value. They are meeting their mortgage commitments properly. It’s stable…and years away,” he said.
VTRUST’s survey was conducted with a sample of 660 correspondents via telephone and in-person interviews who at the time were selling their properties in the city.
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