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Sihanoukville land prices largely flat

Sihanoukville land prices largely flat

130314 02
The beautiful view of Sihanoukville seashore. Photo Supplied

Land prices in Preah Siahnouk province have risen slightly, by 5 to 10 per cent in early 2013, despite increasing numbers of tourists who have visited Cambodia and travelled to the province.

Cheng Kheng, director of the CPL real estate company and president of Cambodian Valuers and Estate Agents Association, said that land trading in Preah Sihanouk in early 2013 has grown between 5 to 10 per cent this year, but some areas have advanced and some have only slightly increased.

“I recently opened a company that provides real estate services in Preah Sihanouk,” said Kheng. “Many investors have invested there but it doesn’t have condos or apartments yet but it will have soon, due to some companies who are studying the market.”

Preah Sihanouk attracts visitors with its beautiful sea with golden sand and fine blue water. The more tourists who go there, the more investors invest, while land prices go up as well.

Mao Polin, CEO of Great Home Real Estate, agreed with Kheng’s assessment, saying that Preah Sihanouk has the potential of the beautiful seaside location that draws local and international visitors. The number of foreign investors in hotels and bungalows recently have significantly increased. However, land prices have only grown 5 to 10 per cent compared the same period in 2012, he said.

Related to investment, he said that some companies that invested in villas and flats had not succeeded in making money because of poor sales, and many rich buyers only purchase the sites for entertainment.

Cheng Keng believes that condos or apartments will succeed eventually because buyers will come to buy gradually, despite currently poor sales.

VMC Real Estate Chairman Dith Channa is optimistic related to the potential of Preah Sihanouk land prices, saying that the growth is 10 to 20 per cent this year, but admits not all areas have significantly enlarged. Hotels, guesthouse, and bungalows have grown there and are full of guests, which pushes the land prices up.

Someone can buy land at $1,000 to $1,500 per square metre along major roads and $300 to $400 along the seaside, he said. It can be $100 to $150 per square metre for housing land and $15 to $20 per square metre at the Sihanoukville Special Economic Zone.