Sihanoukville land prices saw an appreciation in the past year, thanks to new project developments and the growth of the tourism sector.
Land prices within Sihanoukville have rapidly appreciated during the past 12 months, driven by rising investment in the coastal city’s hospitality and resort sector, as well as residential-led projects and manufacturing industries, particularly focused on the city’s special economic zones (SEZs), according to a new survey from CBRE Cambodia.
It is worth noting that speculation has been a considerable influence on land prices in Sihanoukville during the past year, fueled by a positive outlook for the city’s future prospects as a driver of Cambodia’s growth.
The CBRE survey undertaken during the first half of 2017 said: “Land within the vicinity of the beach was offered to the market at between $450 and $2,500 per square metre.”
The highest quoting prices were found close to Ochheuteal Beach, where land prices have almost doubled from the corresponding period in 2016.
“Meanwhile, the lowest prices for land were found within the Otres Beach area. For land in the city’s downtown area, prices ranged between $200 and $750 per square metre. Residential land within the town was quoted at between $120 and $300 per square metre,” the report said.
Separately, benefiting from direct access to Cambodia’s only deep-sea port and encouraged by the industrial policies of the government in addition to the China initiated One Belt One Road project, Sihanoukville is home to a number of SEZs and the Kingdom’s largest industrial zone, the Sihanoukville Special Economic Zone (SSEZ).
“One year after announcing its 100th investor in the second quarter of 2016, SSEZ has reported welcoming an additional 30 investors into the zone, recording a total of 130 investors by the second quarter of 2017, with Chinese businesses occupying the majority of units within the zone,” the survey said.
CBRE Cambodia has not witnessed any significant changes in rental prices for industrial units in the city during the past 18 months.
“For an industrial unit within a SEZ and of minimal specifications, rents range between $1.8 and $2.1 per square metre per month and between $1.5 and $1.8 per square metre per month outside the zone,” it said.
“The industrial rental rate is likely to be stable over the next 12 months. As of the first half of 2017, CBRE estimates that average industrial rental yields within SEZs stand at approximately 15 percent,” it added.
Meanwhile, another segment in the Sihanoukville property sector which attracted investors to the province is the condo sector.
During the first half of 2017, two residential-led projects comprising a total of 1,324 condominium units were announced and both are set to commence construction before the end of 2017, the survey showed.
By the close of the first half of 2017, a total of 5,700 units within six residential-led projects have been announced in the market or are under construction across the town.
“The Sihanoukville skyline is set to evolve dramatically during the next three years as the supply pipeline of the condominiums begin to deliver new stock. The first projects are set to complete in 2018, when two developments will deliver a total of 941 units to the market.”