Real estate booms in riverside areas in Phnom Penh

The price of real estate in the riverside areas in Phnom Penh rose sharply in 2006 and will continue to climb for several years, the Phnom Penh Post reported on Friday.

An increase in demand is driving the trend and the Sisowath Quay area along the Tonle Sap River and the Bassac River has bore the front, the paper said.

In 2006, the price of a four or five-story building in the area averaged between 300,000 U.S. dollars and 400,000 U.S. dollars, Sung Bonna, director of Bonna Realty Company, told the newspaper.

"It's going to increase from year to year because it is a significant place with a river view and has lots of tourists," Bonna said.

Meanwhile, Kong Rith, another real estate agent in the area, attributed the boom to business opportunities, demand and foreign investment.

The ground floor of most of the buildings along the river are rented for restaurants, clothing shops, Internet cafes and other businesses, Rith said.

The cost of renting depends on the place and the kind of business that can be operated, he added.

Cambodia's economy has been on track of fast growth in the past years. Tourism, garment production, infrastructure development and agricultural projects have drawn a lot of foreign investors.

Source: Xinhua