Russei Kaev district saw the growth of both residential supply and demand which helped transform the district into a housing hub in 2016. This was while the urban expansion of many different suburban parts of the capital accommodated the rapid growth of the population in the city.
2016 saw the rise of 1,174 units at the Russei Kaev district. The majority of them were link-houses. They account for 96.7 per cent or 1,135 units of the housing market supply, according to VTrust Appraisal’s report released recently. The report also showed that semi-detached houses accounted for 10.2 per cent (279 units), whereas single-detached houses accounted for 2 per cent (54 units) of the total housing completion the same year.
The report shows that as of 2016, Chrang Chamreh Ti Muoy takes 21 per cent or about 2,544 units of the total cumulative housing market supply; Chrang Chamreh Ti Pir with 4 per cent or 465 units; Kilomaetr Lekh Prammuoy with 25 per cent or 3,085 units; the Russei Kaev commune with up to 29 per cent or 3,574 units; Svay Pak with 5 per cent or 597 units; and Tuol Sangkae with 16 per cent or 2,004 units.
“As of today, the Russei Kaev district is home to a cumulative supply of 12,200 landed housing units – with 86 per cent complete, while some are under construction – clustering in different communes of the district,” the report stated.
Hoem Seiha, director of Research for VTrust Appraisal Co., Ltd., said that the total number of units that had been sold is at 84 per cent and the rest of the units had just come into the market. So, they need time to sell. Seiha says the reason they chose the Russei Kaev district was because their study showed that it has a good housing market.
“The landed cluster housing market in Russei Kaev district grew strongly within the past five-year period. There has been an average of 1,600 launches of new units coming into the market yearly from 2012 to 2016. There’s also going to be around 2,800 and 3,380 units that will be come to completion by 2016 and 2017, respectively,” Seiha said.
VTrust Appraisal’s research also found that the average list price for purpose-built shop houses across Russei Kaev district is $161,100 per unit and sold at an average of $155,600 per unit. Link-houses were listed on average at $109,800 per unit and sold at an average of $105,400 per unit. Semi-detached houses were listed on average at $195,700 per unit and sold at an average of $178,800 per unit. Single-detached houses were listed on average at $643,000 and sold at an average of $595,500 per unit.
Chrek Soknim, CEO of Century 21 Mekong, said the reason the housing market is still seeing growth is because it is supported by the banking sector. The housing demand saw an increase of interest from newlywed couples and middle-income earners as well.
“Because the district of Russei Kaev is adjacent to the capital’s central business districts, it has now become a residential hub where residents can access the business centers easily and immediately, compared to the far west districts of the capital,” Soknim said.
Borey Peng Huoth, Borey New World, and Borey Rith shared the second largest market share in the district, reaching up to 9.1 per cent, 8.9 per cent, and 8.4 per cent – approximately 1,120 units, 1,102 units, and 1,035 units – respectively. Nevertheless, there were also various projects that had fewer than 400 units, collectively sharing up to 39 per cent or 4,787 units of the total cumulative market supply. 84 of which were totally completed as of the date of reporting
Russei Kaev district is one of Phnom Penh’s 12 districts. It is administratively subdivided into 6 communes. Namely, Chrang Chamreh Ti Muoy, Chrang Chamreh Ti Pir, Kilomaetr Lekh Prammuoy, Ruessei Kaev, Svay Pak, and Tuol Sangkae.
In total, the Russei Kaev district is currently home to an estimated 180,000 residents.
This story was featured in the January 2017 print edition of PROPERTY VIEW magazine, produced by the CVEA.
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