New Housing Hub for the City

KHMER TIMES
SUM MANET



Russey Keo district in Phnom Penh is fast transforming itself into a housing hub due to a supply of properties that is meeting the strong demand of the capital’s burgeoning population, according to a VTrust Appraisal report released yesterday.

“As of today, Russey Keo district is home to a cumulative supply of some 12,200 new housing units clustering in different communes of the district. Most of these housing units are more than 80 percent complete,” the VTrust report stated.

Russey Keo district is one of Phnom Penh’s 12 districts and administratively subdivided into six communes, namely Chrang Chamreh Ti Muoy, Chrang Chamreh Ti Pir, Kilomaetr Lekh Prammuoy, Ruessei Kaev, Svay Pak, and Tuol Sangkae. All combined, the district is currently home to an estimated 180,000 residents.

This district consists of the northern and north-western outskirts of the main city of Phnom Penh, stretching from the Dangkor district in the west to the Tonle Sap River in the east.

Hoem Seiha, director of research at VTrust Appraisal, said 84 percent of the new housing units had already been sold, and there will be more listed on the market soon.

“The reason why we are taking a close look at Russey Keo district is because it has a growing housing market,” said Mr. Seiha.

“The cluster-landed housing market in Russey Keo district grew strongly in the past five years with an average of about 1,600 new units listed on the market every year between 2012 and 2016. Between 2,800 and 3,380 units will be completed by the end of the year and next year,” he added.

VTrust Appraisal’s research indicated that the average listed price of purpose-built shop houses in the district was $161,100. However, the research also pointed out that buyers were not willing to pay more than $155,600 for a unit.

According to VTrust Appraisal, link houses were listed at an average price of $109,800 but sold at $105,400. Similarly for semi-detached houses, the property appraiser reported that they were listed at $195,700 and sold at $178,800. For the luxury single bungalow houses, VTrust Appraisal reported their average listed price of $643,000, while the purchase price was an average of $595,500.

Chrek Soknim, CEO of Century 21 Mekong, said the reason why the housing market was still seeing growth was because of support from the banking sector, and demand from newly married couples and middle-income Cambodians.

Commenting on the housing sector growth in Russey Keo district, Mr. Soknim said: “Due to the district’s location just adjacent to the capital’s central business area, it has now become a major residential center. Residents can easily make their way to the city, compared to the far-west districts of the capital.”