Developers Eye Preah Sihanouk

Sum Manet / Khmer Times No Comments Share:
The huge influx of tourists to Preah

The property sector in Preah Sihanouk province has changed dramatically over the past few years due to new project developments and the growth of tourism in the province, said real estate agents.
“Developers will have no problems investing long-term in Sihanoukville and several factors are in their favor, like affordable land prices, healthy growth in the tourism sector, and a burgeoning manufacturing sector. All these factors will create demand,” said Dith Channa, managing director of Lucky Realty Co. Ltd.
“As it is, right now, we have many property developers investing in the province,” said Mr. Channa.
According to Lucky Realty’s research, industrial land prices along the main road ranged from $1,000 to $1,500 per square meter, while land prices along the beach with property titles were between $1,000 and $1,200 per square meter. The real estate agent added that land prices for residential areas, along the main road, were between $500 and $700 per square meter.
“Land prices have not changed much recently because prices already peaked earlier,” said Mr. Channa.
“If compared to neighboring countries, coastal land prices in Preah Sihanouk are a bargain. Because of this, developers should take advantage of the current situation and flock to the province,” he said.
Chrek Soknim, CEO of realtor Century 21 VTrust, said the huge influx of tourists to Preah Sihanouk’s coastal areas, improved infrastructure and a provincial airport all contributed to a boom in new housing projects in the province.
He described the emergence of luxury residential projects on the coast as a new niche in Cambodia’s real estate market. However, Mr. Soknim added, that developers needed to do proper market research so that the right kind of buyers are targeted.
“Foreign nationals would be looking for vacation homes, so they would be the first to snap up such housing,” he said.
“If this goes smoothly, local buyers will then follow suit.”
“Though it might be time consuming, with the growing number of tourists visiting the coastal areas, I don’t think sales of villas, residences or condo units there will be a problem,” he added.
In late June, a group of Chinese investors plan announced that they planned to establish a $3 billion international resort center in Preah Sihanouk to tap into the Kingdom’s burgeoning tourism industry.
The $3 billion investment comes from a China-based consortium in the Cambodia Golden Silver Gulf Resort project. A representative of East Union Silk Road, one of the joint-venture investment companies in the project said the resort would cover 337 hectares of land with $3 billion worth of investments in a large tourism area.
On June 18, HLH Group announced its entry into the Cambodian property market with the launch of Camhomes, a property development firm targeting the mid-income market in Phnom Penh, Sihanoukville and other major cities.
HLH’s 737-unit D’Seaview is being marketed to young Cambodian families who demand “high quality” homes, sales agents say. Prices start from $86,000 per unit, with potential buyers required to follow a registration process similar to Singapore’s public housing application procedures, the company said.

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