By: Sophary
Phnom Penh: Property prices in Phnom Penh, its suburbs and major provinces have risen sharply in recent years. At the same time, some provinces are quiet and property prices are not rising.
Why do the prices of real estate in one area increase so differently?
Mr. Va Virak, a trainer at Century21 Zillion Holding and an international real estate expert (CPIS), explained that there are three major factors driving real estate prices. These factors include demand for construction, population growth, and infrastructure.
The first factor is the need to build more buildings to serve various sectors. The sharp rise in property prices depends on the demand in the market of this sector. When there is need, it will increase the demand for real estate and push up the value of real estate. The current demand for real estate is in the commercial real estate sector.
The second factor is population growth in the area, as more people move to one area, the value of land and demand also increases. Land in Phnom Penh, on the outskirts of Phnom Penh, in the surrounding provinces and major provinces has increased due to the influx of people, resulting in the need to build high-rise buildings, houses, factories, warehouses, restaurants and so on.
Another important factor is the road infrastructure, the infrastructure is also a driving force for property prices in an area to increase significantly.
Mr. Virak continued, “Real estate in Cambodia is currently on the rise, with some noticing that in some areas the value of real estate is increasing by about 20 to 30 percent per year, or in other areas can go higher.
For instance, the price of land in Phnom Penh in Sen Sok district, which his family bought during 2008, has increased more than 22 times so far.
