Cambodia enjoying real estate boom

Friday, February 1, 2008 at 15:11 EST

PHNOM PENH — After decades of war and upheaval, Cambodia is experiencing a real estate boom fueled by South Korean investment. Sung Bonna, president of Bonna Realty Group, the country's leading real estate agency, said land prices in the capital Phnom Penh rose 50 percent to 80 percent in 2007.

Residential land prices in Phnom Penh rose about $700 to $1,600 per square meter in 2007 from the previous year, while commercial land prices rose $1,200 to $2,500 per sq. meter, Sung Bonna said. He predicted that trend will continue, at least in the short term, due to key factors including political stability and a tourism boom.