By Kong Soriya
Phnom Penh: A new study by CBRE Cambodia found that land prices in the suburbs will increase this year and the issue of removal of EBA will not affect the sector significantly.
Ann Sothida, director of CBRE Cambodia, said by telephone on the evening of February 15 that so far, the price of suburban land is one of three areas of the real estate sector that will improve this year. She said that the increasing price of land in the suburbs is due to the development of the government’s infrastructure, and the expansion of the city, and investors turned to investing in suburban areas as the price of land in the city increased so that they cannot invest in construction of Borey and residentials for profit.
“The rise in demographics in the suburbs and building infrastructure is really important that makes the suburbs of Phnom Penh develop faster and make land prices higher,” she said.
Meanwhile, Kang Sothy, general manager of Century21 Land station Real Estate, said that the price of suburban areas has increased, but some areas are quite affordable but some areas have increased higher than expectations that can not be invested for profit.
He continued by indicating that land prices on the outskirts of Phnom Penh in the Kombol area and along National Road No. 6A saw the higher land prices.
Meanwhile, Dr. Kim Heang, former president of the Cambodian of Valuers and Estate Agents Association, said most of the land prices were worth more than 30 to 50 percent of the market, which is not a real market value, because sellers always want high prices as the land is not as high as they want.
“The real land price on the market is not the selling price of the seller, but the price that the buyer can buy,” he said.
