A NEW luxury property development is under way in Sihanoukville with the US$40 million Hilton Park Villa, set for completion in 2010.

Built on a 13.8-hectare plot, the 324-unit housing project consists of 149 townhouses, 78 twin houses, 78 villas, and 24 hillside homes catering to the high-end segment, said the firm's marketing manager Socheat Yutharo.

The Hilton Park Villa is owned by four local business partners and started construction in May 9. Prices range from $73,000 to $335,000.

As businesses flock to the seaside resort town, demand for executive housing has increased.

The city's poor infrastructure has also helped fuel demand for pre-built residential areas like Hilton Park.

But high construction costs due to soaring steel and cement prices are forcing the project to increase prices.

"We will increase from seven to 10 percent ... by October because of the high price of construction materials," said Socheat Yutharo.

"We have just constructed the internal concrete roads, the gate and some building infrastructure. But we have sold about 60 percent of the units," he said, adding that most customers are from Phnom Penh and overseas Cambodians.

"The hotels and guesthouses cannot meet the demand of tourists in the high season, so what happens when investors, business people and engineers who come to work [in Sihanoukville] and in the economic zones need places to live?"

The company is also planning two condos on three hectares of land near the Hilton Park Villa, but have not yet determined the size of the investment.

Port development is making the town an increasingly important industrial hub.