Thursday, January 6, 2011

Cambodia land prices drop 15% in 2010

Jan 05, 2011
Byron Perry
Property-report.com

Cambodia’s land prices fell up to 15 per cent year-on-year in 2010, according to to the National Valuers Association of Cambodia (NVAC), but analysts say the property market should even out this year.

“Our research showed that commercial and residential land prices continued to drop between 10 percent and 15 percent in 2010, compared to 2009,” Sung Bonna, NVAC president, told the Phnom Penh Post.

The NVAC estimated commercial and residential land prices averaged about US$2,000 to $4,000 per square metre for 2010, down from $2,500 to $4,500 for 2009. The rate of property transactions, however, increased in 2010 compared to 2009. 

“The market has already hit the bottom – it will stablise this year. I hope that it will start to increase again for the next two years, but it is not likely to be a boom like in 2007 and mid-2008,” he said, adding land values in the capital were 40 percent to 50 percent lower than their peak in mid-2008.

Seng Sopheak, a valuation manager at Cambodia Properties Ltd, also said land and house prices had fallen about 10 percent during 2010, affecting his business as transactions fell. He said his trade volume dropped around 10 to 20 percent from 2009, but believed it would recover this year.

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