With over $200 million in investment secured, the Sea Gate luxury condo project has started to sell units.
Cheng Kheng, head of the advisory board at the Hutton CPL real estate company, said the real estate market was booming in Cambodia and people were eager to buy coastal properties.
Construction on the project has started and the 43-storey condo will sit along Chey Chomneas beach, an area with a large street and a beautiful view of the sea.
“Sihanoukville holds very strong potential for investment while more international investors, particularly the Chinese, are coming in. Even better, the purchasing methods are very forgiving and easy as well,” he said. “While the hotel fee is being inflated and there is a lack of hotel rooms, condos are a better choice as the buyer can also rent their properties back and receive income of 8% of their invested capital.”
The condos at Sea Gate start at $70,000 while those with higher price tags vary according to size and placement within the building. Buyers are required to pay only 1% in the first year and 2% in the second year. For the third year, investors have to pay 3%.
Cheng added that customers who buy units will be rewarded with a set of kitchen appliances and their units will be equipped with Smart Home technology that allows them to remotely control their electronic devices and equipment from their mobile phones.
There are many condo projects in Sihanoukville, including the Blue Bay, Sunshine Bay, DSeaview, Royal Bay and others.
An Sothida, country director of CBRE Cambodia, said that the condo market in Sihanoukville is growing, with at least 800 units added to the city and a number of projects slated to begin construction.
The number of projects is still limited though, and she said that investors are eager to pool their money for residential properties.
“The residents in Sihanoukville, however, have not understood or shown an interest in investing in condo projects. Most of the investors are those from outside of the project and foreigners,” she said.
“The average price per square meter of a condo unit here ranges between $1,000 and $1,800, which I personally think is a reasonable price for the current conditions and the political economy of this province.”
Nevertheless, Leb Saly, head of the Ocean City Condominium in Sihanoukville, said that the current condo market isn’t doing better, especially since the political tension has risen in recent months. Competitors are making it even more challenging in the condo market and land prices are on the rise.
“Because the land price is going very high, some customers are eyeing investing in land plots instead as it gives a better profit return than investing in condo units,” he said.