In recent years, Cambodia's real estate sector has experienced remarkable expansion, captivating the interest of both domestic and global investors. The country's rapid urbanization, growing middle class, and resurgence in tourism activity following the pandemic provide excellent opportunities for property investment, particularly in the condominium market.
In this article, we will explore the top three areas for condo investment in Cambodia: Phnom Penh, Siem Reap, and Sihanoukville.
Phnom Penh
As the capital city and economic hub of Cambodia, Phnom Penh hosts the Kingdom’s seat of government and serves as the home to over two million Cambodians and expats.
Over the years, the city has witnessed rapid development in various sectors, including real estate, infrastructure, and tourism. For example, the rapid development of areas such as Koh Pich, the construction of schools/institutions, and the addition of the new airport. All this combined it continues to attract many looking for better opportunities in the capital leading to a strong demand for residential properties. The growing middle class in Phnom Penh is driving a significant increase in consumer demand. As more people move up the economic ladder, there's a surge in demand for a wide range of goods, and services. In the capital city, international brands are increasingly present in the streets of Phnom Penh. In recent years, popular franchises like Starbucks, Papa John’s, 7-Eleven and Zara have entered the market showing interest in the Cambodian market.
In Phnom Penh, the popular residential areas for expats and locals who want to be close to the city centre include BKK, Chamkarmon, and Tonle Bassac. Prime location offers convenient access to commercial centres, schools, and entertainment facilities. Upcoming areas with a growing amount of amenities are Chroy Changvar and Koh Norea.
In Phnom Penh, the average sale price of condo units is as follows:
1-bedroom condominium units cost an average of USD 79,656
2-bedroom counterpart units cost an average of USD 123,728
3-bedroom counterpart units cost an average of USD 312,151
Siem Reap
Renowned for its ancient temples, including the world-famous Angkor Wat, Siem Reap has emerged as a premier tourist destination. The city’s popularity among international visitors has created a strong demand for accommodation and businesses related to the tourism industry.
A distinct feature of Siem Reap’s urban landscape is the absence of towering skyscrapers or high-rise buildings, a result of height restrictions designed to preserve the view and cultural significance of Angkor Wat. This has maintained the city’s unique charm, with low-rise buildings and condominiums contributing to its tranquil atmosphere. Despite this, Siem Reap continues to attract expats with its eclectic mix of culture, tourism, and laid-back Khmer country lifestyle.
Siem Reap is increasingly appealing for starting businesses, particularly in the food and beverage, hospitality, and tourism sectors. In recent years, there has also been a rise in luxury and eco-tourism, with high-end hotels, boutique resorts, and eco-friendly accommodations becoming more prevalent. The Angkor Siem Reap International Airport, completed in 2023, is expected to attract more tourists with its newly enhanced facilities, further boosting the city’s growth.
The city has also benefited from significant infrastructure investments, including improved roads, public transportation, and utilities, enhancing its accessibility and livability. Beyond tourism, Siem Reap is diversifying economically, with emerging interests in real estate development and organic agriculture.
The prime residential areas in Siem Reap include Wat Bo, Sala Kamreuk, and Svay Dangkum, offering proximity to the city centre and major attractions like Pub Street.
In Siem Reap, the average sale price of condo units is as follows:
1-bedroom condominium units cost an average of USD 125,283
2-bedroom counterpart units cost an average of USD 151,002
3-bedroom counterpart units cost an average of USD 188,000
Sihanoukville
Sihanoukville, nestled along Cambodia’s southwestern coast, is a rapidly growing city known for its stunning beaches and proximity to Koh Rong and Koh Rong Sanloem. Once a simple beach town, it has become a vital commercial hub and key driver of Cambodia’s economic growth. The Sihanoukville Autonomous Port (SAP), the country’s largest deep-sea port, plays a crucial role in the import-export sector, attracting foreign investment. The Sihanoukville Special Economic Zone (SSEZ) has become a hub for manufacturing and multinational companies. The new expressway boosts tourism, drawing visitors to its vibrant beaches and nightlife. Popular spots like Ochheuteal, Otres, and Serendipity offer relaxation and water sports, while luxury developments reshape the skyline. With its natural beauty and economic potential, Sihanoukville is Cambodia’s next big destination.
In Sihanoukville, the average sale price of condo units is as follows:
1-bedroom condominium units cost an average of USD 155,000
2-bedroom counterpart units cost an average N/A
3-bedroom counterpart units cost an average of USD 253,650
In conclusion, the three cities in Cambodia with potential for condo investment are Phnom Penh, Siem Reap, and Sihanoukville. Generally speaking, these cities are poised to experience significant growth in the future due to their ties with economic activities such as tourism and trade. Phnom Penh, being the capital, holds a distinct advantage. However, Siem Reap and Sihanoukville are also worth considering due to their high influx of tourists. Overall, it is important to evaluate the dynamics of property demand in each city to ensure a favourable return on investment.
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