Chinese are still the top property investors in the Sihanoukville market, which is set to change remarkably in the next few years thanks to new developments and the growth of the tourism sector, insiders say.
Ann Sothida, the director of CBRE Cambodia, said the large number of Chinese investors is leading the property market in Sihanoukville and they have brought big investment capital into the construction sector in the country.
“Chinese investors would like to invest in big scale projects because their population is big, but there are some concerns for me, for they bring big scale investments to our country which we are not ready for,” she said.
“Mostly, when they put property on sale, they guarantee a return on the investment in three years, so within the first three years, there are not side effects for investors.
“But within those three years, they discount the unit’s rent, which affects the rent price in the market,” she added.
“However, the good thing is that they brought work skills and foreign direct investment, which benefits our economy.
“When we have proper management and fully implement the regulations of management, I think it is okay for the property market,” she added.
“The Sihanoukville skyline is set to evolve dramatically during the next three years as the supply pipeline of condominiums begins to deliver new stock,” a CBRE report said.
“The first projects are set to be completed in 2018, when two developments will deliver a total of 941 units to the market.”
Dith Channa, the managing director of Lucky Realty Co, Ltd, said China comprises a big population, as well as many investors, while the reason the Chinese investors stay on the top of investor ranking in property here is that the two governments have a good relationship and travelling between the two countries is easy.
“For the last few years Chinese investors have injected a lot of capital into Cambodian property development and that has boosted the sector, while Korean and Japanese investors have also invested more in the property sector. We see development from both countries currently,” Mr Channa said.
“Because Cambodia still has plenty of room for profit, they aim to seize the investment opportunities for profit,” he added.
Sihanoukville’s Land Management Department approved 34 flat houses and 51 construction projects, translating to 776,813 square metres with $48.41 million of investment capital in 2017.
Noun Pok, the director of Sihanoukville’s Land Management Department, said the province has numerous natural resources and an economic advantage with trade, industry and tourism development among the 25 provinces in Cambodia.
“With the combination of islands, sandy beaches, stone beaches and the biodiversity, Sihanoukville has become an attractive tourism destination for both local and international tourists and the source of income that promotes the economy for not only the province itself, but for the whole country,” Mr Pok said.
“Under the Land Management Ministry’s leadership, Sihanoukville saw strong growth in every sector, which helps improve people’s living standards and reduces poverty,” he said.
Last year the province welcomed almost two million tourists, including 470,000 foreigners. Of the total number of foreign arrivals, nearly 120,000 were Chinese, an increase of 126 percent year-on-year.