And it’s calling on international investors
Cambodia’s real estate market has been given an overhaul over the last few years in a bid to become more attractive to foreign and local investors. While most of the attention has been paid to Phnom Penh, the country’s coastal area is newly emerging as a hotbed of property development.
The province of Preah Sihanouk and the shoreline of Sihanoukville and Cambodia’s largest island, Koh Rong, are destined for a number of exciting projects this 2016 and are expected to bring in a new flush of overseas and local investors to the area, the Khmer Times reported.
A luxury villa residential and hotel project, The Royal Sands recently broke ground on the shore of Sok San Beach, which is widely regarded by visitors as the most beautiful beach in Koh Rong.
Developed by the Royal Group in a joint venture with Luzi Matzig, chairman of Thai-based firm Asian Trails Group, the first phase of Royal Sands will cost USD40 million, according to the Phnom Penh Post.
Koh Rong is already relatively popular with tourists visiting Cambodia – January to September of 2015 saw 47,000 tourist arrivals, per the Cambodian Tourism Ministry. It is hoped that this new luxury development, which includes a 148-room five-star hotel, will attract tourists who will then return to the mainland and the popular destinations of Angkor Wat and Phnom Penh.
“(The visitors) will not have to go to Vietnam and Thailand for their beach holiday,” hopes Matzig.
Back on the mainland, the shoreline of Sihanoukville is also proving a hotbed of new residential development, including the luxury condominiums D’Seaview and Sunshine Bay on Sokha and Independence beaches, respectively.
According to Singapore Business Review, more development is anticipated in the area as Singaporean developer HLH Group recently announced the acquisition of a 30 percent interest in two sizeable land plots in Preah Sihanouk for USD2.8 million.
The very limited amount of luxury development in the area at the moment ensures that oversupply will not be an issue, assures Chrek Soknim, CEO of Century 21 VTRUST. He attributes the area’s rise due to the increase in tourists and improvements to infrastructure.
“With a growing number of tourists visiting coastal areas, I don’t think sales of villas, residences or condo there will be a problem,” he concluded.
Watch for our in-depth report on Cambodia’s new frontiers in Property Report magazine’s February-March 2016 edition