Logo of Phnom Penh Post newspaper Phnom Penh Post - ‘Rental prices in Sihanoukville at highest rate’

‘Rental prices in Sihanoukville at highest rate’

Content image - Phnom Penh Post
A construction building constructed in Sihanoukville earlier this year. Heng Chivoan

‘Rental prices in Sihanoukville at highest rate’

Property rental in Sihanoukville, which has been skyrocketing due to the influx of Chinese investors, may fall in the next few years when major construction projects are completed, say real estate insiders.

Most houses, guesthouses, restaurants and hotels in the city’s main locations have been leased to the Chinese.

Two or three years ago, the rental was between $500 and $1,000 per month. Now, owners get $5,000 to $7000 per month, if they rent to Chinese nationals.

Khmer Foundation Appraisals president and CEO Noun Rithy said the increase of Chinese investors and residents made real estate prices in Sihanoukville rise faster than expected.

However, he said, in the next two or three years rental is unlikely to be as high as it is now, even if the number of Chinese remains the same.

“The construction of big buildings takes two to three years, so there will be lots of supply by then, and rental will not be so high anymore,” he said.

However, Rithy stressed that when supplies slow down or construction work is not completed on time, rental prices will be affected upwards.

The Asian giant has become the leading source of foreign funds in Cambodia, fuelling the construction sector with huge casinos and hotel projects.

Preah Sihanouk province, which has become a hotbed for Chinese investment in the country, has seen huge leaps in the manufacturing, tourism and gambling industries.

Lucky Realty Co Ltd CEO Dith Channa sees a similar trend. “I think rent will continue to increase at least for another three years,” he said.

However, he said, Sihanoukville will continue to receive more investors, causing rental to increase for a long time to come. “For now, it seems too early to evaluate the evolution of the property market in Sihanoukville,” he said.

Channa said generally, the real estate sector in Preah Sihanouk will have higher potential in the future because of many development projects such as deepwater ports, airports, special economic zones and a plan for a highway to Phnom Penh.

Besides, Cambodia, he said, was politically stable.

Meas Vichet, who rents his coffee shop near Phsar Leu to Chinese nationals said they pay him $2,500 a month whereas before he used to get $500.

“Since the Chinese pay high rental, I leased my shop to them,” he said, adding that it was a better alternative to running his own business as the Chinese preferred using their own services.

MOST VIEWED

  • Investors’ $14.4M projects approved

    New investments from local and foreign sources continue to pour into Cambodia despite the Covid-19 pandemic remaining a lingering threat to regional and global economies. This comes as the Kingdom’s gross domestic product (GDP) is expected to contract between one and 2.9 per cent this

  • NagaWorld casinos set to reopen, schools to follow

    NAGACORP Ltd has requested that it be allowed to reopen its NagaWorld integrated resorts in Phnom Penh after the government recently approved casinos to operate again, provided they follow Covid-19 prevention measures set by the Ministry of Health. Mey Vann, the director-general of the Ministry

  • Rubber exports stretch 17%

    Cambodia exported 97,175 tonnes of natural rubber in the first five months of this year, surging 17 per cent compared to the same period last year as the Covid-19 pandemic stretches on, Ministry of Agriculture, Forestry and Fisheries official Khuong Phalla told The Post on Thursday. Phalla,

  • ASEM supports Kingdom’s proposal to postpone meeting amid Covid

    The 13th Asia-Europe Meeting (ASEM13) scheduled to be held in Cambodia in November has been postponed until mid-2021 due to the Covid-19 pandemic, a Ministry of Foreign Affairs and International Cooperation press statement released on Saturday said. The decision was made during a two-day meeting

  • Coffee maker roasted for producing fake product

    The Ministry of Interior’s Counter Counterfeit Committee will send a suspect to court on Monday after she allegedly roasted coffee mixed with soybeans and other ingredients, creating a product which could pose a high risk to consumers’ health. On the afternoon of July 2, the

  • Cash handout programme 80% complete

    Minister of Social Affairs, Veterans and Youth Rehabilitation Vong Soth confirmed on Thursday that the implementation of the Cash Transfer Programme For Poor and Vulnerable Households During Covid-19 had been implemented for more than 80% of the over 560,000 families. The programme was introduced one week ago.

  • Cambodia armed with money laundering laws

    Money laundering will now carry a penalty of up to five years in prison while those convicted of financing terrorists will be jailed for up to 20 years, according to new laws promulgated by King Norodom Sihamoni and seen by The Post on Thursday. Comprising nine

  • Where is Cambodia’s exit strategy that can save the economy?

    With the prospect of being slammed by a double whammy, the government is working on an economic recovery plan to deliver it from Covid-19 and the EU’s partial withdrawal of the Everything But Arms scheme in the next two to three years Cambodia is

  • Schools to be reopened in ‘three stages’

    With guidance from Prime Minister Hun Sen, the Ministry of Education, Youth and Sport, is in the process of reopening schools in three stages. But no timeline has been set, ministry spokesperson Ros Soveacha said on Thursday. Soveacha said the first stage will be to

  • Thai border crossings eased

    The Cambodian Embassy in Thailand said in an announcement on Wednesday that Thailand’s government has allowed certain passengers from several countries to enter its borders. The visitors must go back to their country immediately after their duties in Thailand are fulfilled, the embassy said.