Find out where land prices in Phnom Penh have risen the most in 10 years and which area has the most potential

The development of Cambodia’s real estate market began around 2013. From 2016 to 2017, it became a "shining star" in the global real estate market, and it became even more popular from 2018 to 2019. After the adjustment period from 2020 to 2022, the Cambodian real estate market is relatively calm today.

After 10 years of ups and downs, the real estate market in Cambodia has undergone tremendous changes, as can be seen from changes in land prices.

In Phnom Penh city, the highest land price has risen from $5,900/㎡ to $13,300/㎡, an increase of 125% in 10 years; the average land price has increased from $1,140/㎡ to $2,297/㎡, an increase of 101%.

So, where is the highest price in Phnom Penh, and which area has the most potential? Let’s find out with Compass Real Estate.

‖ 2013, The First Land Price Survey

According to Cambodian media, in the fourth quarter of 2013, a real estate agency company conducted the first land price survey in Phnom Penh, covering 96 communes in the 9 districts of Phnom Penh. The land surveyed in the report was largely residential, accounting for 64% of the total land.

The survey found the top areas with the highest land prices are located in "deemed to be economically important residential areas'' such as Daun Penh, Chamkarmon, Prampir Makara, Tuol Kouk, and other districts with good infrastructure central to major markets and on bustling streets where prices rank from $4,500 to almost $6,000 per sqm. Especially in Chamkarmon district’s Boeng Keng Kang Mouy (BKK1) commune, which was the area with the highest asking land prices, reaching $5,900 per sqm.

‖ 2015, land prices increased by 10%–30%

In 2015, fast-rising land prices in four central Phnom Penh districts helped drive the capital’s overall real estate prices.

According to the survey, commercial land in Chamkarmon, Daun Penh, 7 Makara, and Tuol Kork districts averaged between $2,000 and $5,000 per square meter in April 2015, up 15 percent compared to the same period one year earlier. Residential land in these four districts ranged from $950 to $3,200 per square meter, a 20% increase on prices in April 2014.

In June 2015, another real estate company announced the results of a land price survey, showing that land prices in Phnom Penh have been rising as Cambodia moves forward with its economy and prepares for ASEAN integration.

The report shows that land prices in Phnom Penh increased by 10% to 30% in the first quarter of 2015. The changes in land prices in several major areas are as follows:

- Chamkarmon: Commercial land along the main road in the district increased from $3500-$5500/㎡ last year (2014) to $3500-$8000/㎡ while sub roads increased from $2500-$3000/㎡ to $2800-$4000/㎡; Residential land along the main road increased from $2500 to $3500/㎡ , while sub roads increased from $700 to $2500/㎡ .

- Toul Kork: Commercial land along the main road in the district increased from $2300-$3500/㎡ to $2500-$4500/㎡  , while sub-roads increased from $1500-2600/㎡ to $1300-$2500/㎡;  and Residential land prices increased from $1500-$2300/㎡ to $1800-$2500/㎡.

- 7 Makara: Commercial land prices along the main road in the district increased from $3000-$3500/㎡ to $3500-$6000/㎡ while sub roads increased from $2300-$3000/㎡ to $2500-$3500/㎡; Residential land prices along the main road in the district increased from $2300-$5000/㎡ to $2500-$5500/㎡ , while sub roads increased from $1300-$2500/㎡ to $1500-$2500/㎡.

- Sen Sok: Commercial land increased prices along the main road in the district increased from $700-$1400/m2 to $600-$1400/㎡; and Residential land prices along the main road increased from $450-$500/㎡ to $500-$600/㎡

In the fourth quarter of 2015, CBRE's data also confirmed that land prices in the four major districts of Phnom Penh increased by an average of 8.4% compared with the third quarter.

At this stage, land prices rose rapidly, mainly in central urban areas. Relatively suburban districts were still undeveloped due to weak infrastructure, so land prices were slow to change.

‖ 2016, Land prices dropped slightly

In 2016, the Cambodian real estate market experienced a temporary slowdown in development. In the land market, the prices were mainly stable, but there were still areas where land prices began to decline. The average land prices in the Tonle Bassac area showed little fluctuation from $3,500 to $4,000/sqm in the first six months of the year; beside that, the average land prices in BKK, Olympic, and other prime areas also stayed stable.

However, land prices in Sen Sok and Tuol Kork districts saw a slight decrease in the second quarter relative to the year’s first quarter.

According to Cambodian media, by the end of 2013, the average market land price in Sen Sok district was $380/sqm. In the first half of 2016, the average price in the district rose to $690/sqm, with an average growth of 27% year-on-year from 2013 to 2015.

Meanwhile, Toul Kork district experienced a slight rise in land prices within the same period, from an average market price of $2,150/sqm in 2013 to $2,530/sqm in early 2016, growing at 6% year-on-year within the same period.

Nevertheless, due to the slowdown in the overall market, land prices in both districts have dropped slightly.

In addition, Phnom Penh's infrastructure has begun to develop at this stage, such as the Dey Huy flyover under construction in 2016, the AEON Mall 2, and the Russey Keo-Chroy Changvar Bridge under construction in 2017, all of which have boosted the regional land markets.

‖ 2018, land prices in suburban areas were growing fast

By 2018, the administrative division of Phnom Penh had become more detailed, forming 14 administrative districts.

Land prices in each district in the year's first quarter are as follows:

At this stage, Daun Penh District stayed at the top of the list of land prices, with the highest price of $12,000/㎡,  and the average land prices of BKK and 7 Makara District both exceeded $4000/㎡.

At the same time, due to the rapid development and construction of satellite cities in Phnom Penh, land prices in various suburbs have increased significantly, such as Dangkao District.

According to Cambodian media, land prices in Dangkao district have surged by 35 percent since 2012, particularly in Dangkao and Cheung Aek communes. It was noted that these areas were home to a raft of new developments, including ING City and the new international airport.

‖ 2019, suburban land prices continued to increase

In 2019, three outer districts of Phnom Penh—Prek Pnov, Dangkor, and Chbar Ampov District—became the areas with the highest land price increases in the first half of the year.

Prek Pnov district rates grew by over 27% in the first six months of the year. Notably, plots in Prek Pnov commune started 2019 at between $280 and $1,500/sqm, in only half a year, the same plots rose to between $300 and $1,700/sqm.

Average land prices in Dangkor district grew by over 26% over the first half of the year. As for Chbar Ampov district, land prices there increased by almost 15%. 

These three suburbs owe their success to the development of infrastructure such as the second and third ring roads, satellite cities, and other national roads.

During the same period, Daun Penh, 7 Makara, Chamkarmon, and Toul Kork districts saw land price increases of 0.4%, 1.6%, 0.8%, and 0.3%, respectively. Daun Penh district remains at the top of the list for land prices in Phnom Penh, with an average land price of $5,000/sqm. 

‖ 2020–2022, land prices rose steadily during COVID-19

In 2020, COVID-19 started, and global economic development was affected. Cambodia’s real estate market has also gone down, but the land market was still rising steadily.

As of the end of 2020, the average land price in Phnom Penh was $2,110/㎡, an increase of 1.9% from $2,070/㎡ in the same period last year. Among them, Dangkao District rose by 17.9%, Sen Sok District rose by 7.3%, and Prek Pnov District rose by 6.5%. As for the average land price in major districts such as Chamkarmon, BKK, Daun Penh, 7 Makara, and Toul Kork District, it remained stable.

According to Cambodian media reports, in 2021, land prices in the southeast of Phnom Penh will have been rising steadily. The land prices from Monivong Bridge to Koh Norea were $1000-$1500/㎡. The land price along the sub-main road was $400-$700/㎡, and the land price of commercial land was $2000-$2500/㎡.

In addition, the land price between Kien Svay and Prince Manor Resort was $200-$500/㎡.

The land price of the Third Ring Road near Phnom Penh Autonomous Port was about $100-$150/㎡, the land price between Phnom Penh Autonomous Port and Koki Thom area was $80-$120/㎡, and the land price along the No. 1 National Road from Koki Thomarea to Neak Loeung Bridge was $40-$60/㎡.

In the same year, land prices in the two satellite cities in Chroy Changva District also increased. Among them, the land price of Chroy Changvar Satellite City developed by OCIC was about $800-$2500/㎡, and the average land price of LY Yong Phat Satellite City was $50-$800/㎡.

In 2022, CVEA released the land prices in Phnom Penh city in the first half of 2022.

According to the data, Daun Penh, BKK, and 7 Makara districts ranked in the top three in Phnom Penh’s land prices, with an average price of $5,000/㎡.

Among them, the land price near the Phsar Thmey commune in Daun Penh District was the highest, ranging from $5,600 to $13,000, followed by Chamkarmon and Toul Kork District, where the average land price both reached $3,800/㎡.

The areas with mid-range prices were Mean Chey, Sen Sok, and Russey Keo District, with average land prices of $2,000/㎡, $1,700/㎡ and $1,400/㎡ respectively.

The average land prices in Chroy Changvar, Chbar Ampov, and Pou Senchey District were not much different, all around $1,000/㎡; and Dangkor District and Prek Pnov District were the areas with the lowest land prices, only $360/㎡.

‖ 2023, land prices dropped slightly

Over half of 2023 has passed; the Cambodian real estate market is still recovering slowly, and Phnom Penh is no exception. This has also had some impact on the land market, as land prices have dropped slightly, but the overall price remains stable, like it was in 2016.

Currently, CVEA's land price data is still being released, and we saw that land prices in Phnom Penh have shown a slight downward trend in both main districts and suburbs, such as:

In Daun Penh District, the average land price is $5,218/㎡, with a highest price of $13,000/㎡ and a lowest price of $2,100/㎡;

In Russey Keo, the average land price is $1,282/㎡, with a highest price of  of $3,700/㎡ and a lowest price of $450/㎡.

The real estate market in Cambodia is relatively calm today,the infrastructure in Phnom Penh and the whole country is developing rapidly,and the economy is gradually recovering. Investors from various countries have returned to the Cambodian market. At the same time, the new government will bring more changes and expectations.

There is a saying that the real estate cycle depends on policy in the short term, land in the medium term, and population in the long term.

Phnom Penh, with the continuous growth of outstanding people and experts from various countries and the development of the city, will also boost the development of the real estate market.

Will land prices in Phnom Penh double again in the next 10 years? Let's wait and see!

* The land price data in the article is for reference only due to differences in sources from Khmer Times, Phnom Penh Post, CBRE, CVEA, etc.