Sihanoukville’s property sector saw strong growth during the first few months of the year due to a favorable investment environment that has attracted new investors and projects, insiders say.
Yun Min, the governor of Preah Sihanouk province, said he has noted a robust buildup in business activity in the local construction sector from the end of last year to the first few months of 2018.
“At the end of 2017 and beginning of 2018, a significant number of national and international investors came to the province to study investment opportunities and inject money into the tourism industry and the construction sector, particularly with high-rise buildings, and as well as smaller buildings,” Mr Min said.
“I would say there have been two major factors at play. First, there is peace in the country which increases business confidence.
“Secondly, there are now strict regulations protecting investors in the province and in the country,” he added.
Mr Min said one of the many benefits of a bullish construction sector is a noticeable rise in people’s living standards. “For example, people’s incomes have increased steadily; a citizen can now earn from $1,000 to $2,000 a year.”
According to a local real estate expert, Chinese investors continue to fuel growth in the market.
Dith Channa, managing director at Lucky Realty Co., Ltd., said in the last few years Chinese investment has boosted the local economy, with Japanese and Korean investors also contributing in a significant way.
“China has a huge population, but the real reason they continue to top all charts when it comes to investment in the area is that the Chinese and Cambodian governments enjoy excellent relations,” he said.
In 2017, the Land Management Department in Sihanoukville approved 51 construction projects, amounting to more than 775,000 square metres and $48 million in investment.
Last year the province welcomed nearly 2 million tourists, including 470,000 foreigners. Of total foreign arrivals, nearly 120,000 were Chinese, an increase of 126 percent year-on-year.