Logo of Phnom Penh Post newspaper Phnom Penh Post - Residential price index will control property prices, reduce risk of crisis

Residential price index will control property prices, reduce risk of crisis

Content image - Phnom Penh Post
In 2021, there were 4,303 construction projects nationwide representing a floor area of nearly 13 million square metres. Heng Chivoan

Residential price index will control property prices, reduce risk of crisis

Real estate experts welcomed the Residential Property Price Index (RPPI), saying it will help Cambodia control the rise in housing prices to a certain extent and reduce the risk of a crisis in the industry.

PropNex Cambodia Real Estate managing director Ann Sothida said transactions and pricing of homes or properties in Cambodia are currently “not clear” and there is no official record.

As such, the implementation of RPPI is considered a “good start” as it would serve as a basis for measuring the fluctuation of housing prices in accordance to a standard.

In a sense, RPPI would enable the authorities to intervene or manage the property sector better and keep the situation in check, she said.

“Not only does rising housing or real estate pricing lead to inflation but declining investments in the housing sector and the low number of home ownerships could also lead to an economic crisis.

“Thus, RPPI is very important for the government [as it can] monitor the fluctuation of housing prices and intervene so that people can afford to buy their own homes,” Sothida explained.

According to Century 21 Cambodia executive director Grace Rachny Fong, RPPI is a collection of “government-sponsored news and statistics” based on accurate data collection and formal analysis that is “acceptable” by all quarters.

The index will make it easier for those seeking information on housing or land prices, and help the government develop master plans.

In addition, Grace said, the government would be able to monitor all transactions in the sector and collect taxes accordingly.

The index will also encourage the buying and selling of properties and make it easier for people, including foreign investors to assess market prices, thereby attracting them to invest in Cambodia.

“It will be easy to find information on housing and property prices in the areas they want. This way we build the confidence for foreign investors who wish to invest in Cambodia,” she told The Post on June 8.

Cambodian Valuers and Estate Agents Association president Chrek Soknim said RPPI will become a tool for real estate professionals to make “accurate” housing appraisals.

“When there is information on the housing price index, it not only facilitates local trading transactions, but also attracts locals to invest in Cambodia,” he added.

At the launch of the RPPI on June 6, NBC assistant governor Chea Serey said it was a new step and achievement in compiling economic statistics and finance to analyse and evaluate the real estate and construction sectors.

The growth of the sectors is also part of the economic diversification process which can increase resilience to any economic impact as well as absorb some of the labour force to serve the construction sector in supporting the economy growth.

Prior to the Covid-19 outbreak in Cambodia, the construction and real estate sectors were key growth sectors, employing nearly 500,000 workers, according to a 2019 survey.

“The sectors have become important pillars of economic growth. Information and data related to the sectors are even more important for economic and monetary policy makers to monitor macroeconomic imbalances and assess the risks that can occur in related sectors, especially the financial sector.

“The introduction of the housing price index will make a significant contribution to monitoring, evaluating and formulating development policies as well as measures to minimise risks in order to maintain macroeconomic stability,” Serey said.

In 2021, the Ministry of Land Management, Urban Planning and Construction showed that there were 4,303 construction projects nationwide representing a floor area of nearly 13 million square metres.

Total capital investment approved stood over $5.33 billion, down 31.21 per cent from 2020.


  • Ice cream, noodles flagged over carcinogen

    The General Department of Customs and Excise of Cambodia (GDCE) has identified three types of instant noodles and ice cream trademarks originating from Thailand, Vietnam and France that are suspected to contain ethylene oxide, which poses a cancer risk to consumers. The general department has

  • Angkor lifetime pass, special Siem Reap travel offers planned

    The Ministry of Tourism plans to introduce a convenient, single lifetime pass for foreign travellers to visit Angkor Archaeological Park and potentially other areas. The move is designed to stimulate tourism to the culturally rich province of Siem Reap as the start of the “Visit

  • Exclusive interview with Josep Borrell Fontelles, High Representative of the EU

    CAMBODIA is hosting the 55th ASEAN Foreign Ministers’ Meeting (AMM) and Related Meetings this week with top officials from the US, China, and Russia and other countries in the region slated to attend and to meet with face-to-face with their counterparts on the sidelines. In

  • Rise in Thai air routes to Siem Reap fuels travel hopes

    Local tourism industry players are eager for regional airline Bangkok Airways Pcl’s resumption of direct flight services between the Thai capital and Siem Reap town on August 1 – home of Cambodia’s awe-inspiring Angkor Archaeological Park – which is expected to boost the growth rate of

  • ASEAN Foreign Ministers’ meet commences, Taiwan issue possibly on table

    The 55th ASEAN Foreign Ministers’ Meeting (AMM) and related meetings hosted by Cambodia kicks off in Phnom Penh on August 3, with progress, challenges, and the way forward for the ASEAN Community-building on the table. Issues on Taiwan, sparked by the visit of US House Speaker

  • Recap of this year’s ASEAN FM meet and look ahead

    This year’s edition of the ASEAN Foreign Ministers’ Meeting (AMM) hosted by Cambodia comes against the backdrop of heightened global tensions and increasing rivalry between major powers that have been compared to the animosity of the Cold War era. The following is The Post’