The government has adjusted Phnom Penh’s land prices for a new registration tax base that is set to commence in July of this year, according to a Ministry of Economy and Finance announcement.
According to the change, average prices are set to increase more than 30 per cent per sqm on current prices.
The price adjustment will help boost state tax income, said a real estate sector insider.
The ministerial announcement, dated March 22, outlined the new registration tax base for ownership transfer and property rights.
The four districts in the capital that will see the greatest changes in prices are Daun Penh, Chamkarmon, Prampi Makara and Tuol Kork.
The announcement said that land located on either side of main roads – such as Monivong Boulevard, Norodom Boulevard and Sihanouk Boulevard – will rise from the current $1,500 per sqm to $4,500. While the price of land along roads parallel to the main streets is set to increase from $1,000 to $2,500 per sqm.
The price of land nearby Central Market, Sorya Center Point, Olympic Market, some parts of Norodom Boulevard, Kampuchea Krom Boulevard, Russian Federation Boulevard and Charles de Gaulle Boulevard will increase from $1,000 per sqm to $4,000.
According to the announcement, some land located along certain roads such as Kampuchea Krom Boulevard, Mao Tse Toung Boulevard, Trasak Pha’em Street, Sisowath Quay, Nehru Boulevard, Russian Federation Boulevard has risen to $3,500 per sqm. Moreover, land in some sections of Monivong Boulevard, Oknha Tep Phan Street, Russian Federation Boulevard is now worth $3,000.
Cambodian Valuers and Estate Agents Association president Chrek Soknim told The Post on Wednesday that the value for the new registration tax base is close to actual market value. He added that the update will boost state revenue for the development of the country.
“The now updated prices are about 70 to 80 per cent of current actual market [prices],” he said.
He continued that updating prices to adjust the market value is necessary, as land prices have dramatically changed over the last 10 years.
In areas such as Phsar Chas Market, Phsar Kandal Market, Russian Market, Sovanna Shopping Centre, Boeung Keng Kang Market, Boeung Trabek Market, Boeung Kak’s main street, Koh Pich and the National Assembly – all places that are seen to have more potential for development – the land price for the registration tax base is $2,500.
At the same time, the announcement said the lowest land price for registration tax base in the capital was $500 per sqm – available in four districts.
In August 2018, the government decided to update the land price for the new registration tax base to adjust it to real estate developments in Cambodia.
General Department of Taxation deputy director-general Ken Sambath said at a seminar last month that the government last year received $97 million in registration tax revenue from ownership transfer and property rights in Phnom Penh alone.
He said in the first three months of this year, the tax income collection amounted to $24 million.