Indicators: Five key drivers boost the land prices in Cambodia


Author: Siv Meng

Phnom Penh: Land prices do not increase everywhere, although the economy grows, but they rise faster or slower depending on a number of important factors that real estate analysts present to you.
When there is peace, there is development and it is the most reasonable factor, but during the peace period, the government requires a clear policy and strategic plan, so the land prices can increase, which can attract local and foreign investors to invest in development projects to boost the economic growth.
This factor of peace, political stability, and social stability is a solid foundation for giving confidence to national and international investors to release money and invest in any country.
The growth of people’s income
People’s income is an important part of attracting both domestic and international investors to Cambodia, especially large companies from abroad, because companies do business, they always make a profit, but if the country is poor, they will not go to invest because the purchasing power of the people in that country does not increase.
Apparently, like AEON MALL Group, before they decided to open the first mall in Cambodia, they came to study and monitor the socio-economic development of Cambodia for more than 10 years, so they decided to open this mall, and when they decided that because they see that the living standards of the Cambodian people have improved; Cambodia has become a low-middle-income country.
Economic growth
Cambodia’s economy is growing rapidly, with more than 7 percent growth over two decades, making it one of the 10 fastest growing economies in the world.
Economic growth, combined with the peace factors mentioned above, has made Cambodia’s economy grow faster and attract billions of dollars in direct investment every year.
It is this economic growth that has pushed up land prices almost everywhere, land prices have skyrocketed, and rice fields and lakes have become residential and commercial centers.
Infrastructure factor
As Cambodia is a developing country, the government has built infrastructure almost everywhere across the country. As a result, we observe that when the government builds infrastructure in an area, land prices often rise in that area and economic activity grows in that area.
For example, in the area of the 3rd, 4th ring road and national roads, when the construction was expanded, the price of land skyrocketed, which made the local people benefit and become rich quickly.
Demographic and urbanization factors
However, land prices will not rise in the wilderness and desert lakes.
But on the other hand, land is always more expensive and increases in densely populated areas because where there are more people living there, there is economic activity that stimulates cash flow.
Human factors or demographic and urbanization factors always go hand in hand, as these two factors always support and depend on each other. When there are people living, urbanization will grow.

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