Phnom Penh Land Prices Slow Growth

Property prices in Phnom Penh increased by about 15 percent at the end of June compared to the same period in 2011 , according to data released yesterday by local realty firm Asia Real Estate Cambodia (ARC). The average price of commercial property in Phnom Penh reached $2,900 per square meter, up from $2,500 per square meter at the end of June last year, while the market price of residential property grew from about $1,350 to $1,555, according to the data…. During the boom in Cambodia’s property market between 2005 and 2008, prices increased more than 10 times in some areas wit the most expensive land in Phnom Penh going for as much as $5,000 per square meter. That growth was mostly fueled by speculation from people buying up land thinking that pricate developers would start flooding into Cambodia’s capital. Neuk Narin, vice president of ARC, said that property developers are increasingly looking to build office or apartment space since they can get a higher return on them compared to buildings such as villas.