Phnom Penh’s suburbs are swelling with new projects
Phnom Penh’s suburbs are swelling with new projects
There’s not much room left in the Cambodian capital’s city centre
As Phnom Penh increasingly becomes pressed for land, Cambodian developers are favouring the city’s suburban districts over its central core.
The districts of Por Senchey, Sen Sok and Dangkao in Phnom Penh comprised more than half of new housing construction this year, according to the latest Housing Market and Outlook Report by property consultancy Vtrust Appraisal.
“The central [area]has no land to build new houses anymore, so they need to move to build outside, which makes the supply in suburban areas increase,” Hoem Seiha, VTrust’s research director, told The Cambodia Daily.
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Developers are fanning out of central Phnom Penh in search of cheaper parcels. Land price growth in western districts of Phnom Penh, including Por Senchey, has stalled for most of the year.
“In three quarters of 2016, prices have been sluggish due to the overall slump in real estate prices, where the downward spiral began in late 2015,” said Seiha.
More than 7,100 housing units were built every year on average in the city between 2002 and 2016 for a total of 100,278 units, the Daily reported, citing Vtrust data. Around 14,000 units have been built over the past year alone, a record.
Por Senchey, which covers most of Phnom Penh’s western area, is home to 30 percent of the city’s landed housing units completed during this period, Vtrust reported.
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Source: Property Report