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Sihanoukville's property market is showing signs of recovery after a sharp correction from its 2019 peak.
Property prices have stabilized 30-40% below their highs, with selective growth of 3-7% in prime areas during 2025. The market offers high rental yields of 8-12%, driven by tourism recovery and infrastructure development, but investors face challenges from oversupply and regulatory uncertainties.
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Sihanoukville's property market has corrected sharply from 2019 peaks but is stabilizing with selective growth in prime areas.
The market offers attractive rental yields of 8-12% but faces ongoing challenges from oversupply and abandoned projects.
| Market Indicator | Current Status (Sept 2025) | Outlook |
|---|---|---|
| Property Prices | $1,000-$4,500/sqm | Moderate recovery in prime areas |
| Rental Yields | 8-12% | Sustained high returns |
| New Projects | 200+ approved in 2024-2025 | Gradual market absorption |
| Stalled Projects | 400-1,100 abandoned buildings | Slow resolution process |
| Foreign Investment | Moderate recovery | Regulatory barriers persist |
| Infrastructure | Major upgrades underway | Long-term value driver |
| Tourism Impact | 7-8.5M visitors targeted by 2027 | Positive for rental demand |
How have property prices in Sihanoukville changed over the past five years?
Sihanoukville property prices experienced a dramatic boom-bust cycle between 2019 and 2025.
Property prices peaked in 2019 at up to $4,000 per square meter in prime coastal locations, driven by massive Chinese investment flows. The market then crashed 30-40% after the Chinese investment pullback and COVID-19 pandemic impacts, with prices bottoming out in 2023.
As of September 2025, the market has stabilized with selective recovery underway. Prime coastal and premium areas now trade at $2,500-$4,500 per square meter, while inland properties range from $1,000-$1,700 per square meter for budget to mid-tier units. The median residential property price currently sits around $152,600.
The price correction has created opportunities for buyers who missed the initial boom, though careful location selection remains crucial for future appreciation.
What's the current average price per square meter for residential and commercial properties?
Residential property prices in Sihanoukville show significant variation based on location and quality as of September 2025.
Coastal and premium residential areas command $2,500-$4,500 per square meter, while inland properties range from $1,000-$1,700 per square meter. Most condominiums fall within the $1,700-$3,500 per square meter bracket, reflecting the market's recovery from its 2023 lows.
Commercial property listings display a much wider price spread, with median commercial properties ranging from $1.2 million to $2.5 million depending on size, location, and condition. The commercial sector faces greater pricing volatility due to oversupply and varying project completion status.
These price levels represent substantial discounts compared to the 2019 peak, making Sihanoukville more accessible to a broader range of investors.
It's something we develop in our Cambodia property pack.
How many new construction projects are underway, and how many are stalled or abandoned?
The Sihanoukville construction landscape presents a tale of two markets - renewed activity alongside persistent legacy issues.
Over 200 new investment and expansion projects received approval in 2024-2025, spanning real estate, mixed-use developments, hotels, tourism facilities, and manufacturing. This represents a significant uptick in development activity as investor confidence gradually returns to the market.
However, the city still grapples with 400-1,100 incomplete or abandoned buildings, most dating back to the 2018-2020 boom period. These stalled projects create visual blight and market overhang, though government incentives aim to encourage completion or redevelopment.
The absorption of these abandoned projects remains slow, creating both challenges and opportunities for investors willing to take on rehabilitation projects or purchase distressed assets.
What's the current rental yield for apartments, condos, and commercial spaces?
| Property Type | Rental Yield Range | Key Factors |
|---|---|---|
| Standard Apartments | 8-10% | Location and condition dependent |
| Condominiums | 8-10% | Premium developments perform better |
| Tourist Rentals | 10-12%+ | Seasonal occupancy variations |
| Short-term Rentals | Variable | 19% median occupancy rate |
| Prime Tourist Units | Higher yields possible | 40-60% occupancy for best-tier |
| Commercial Spaces | 8-12% | Higher vacancy risk |
| Mixed-use Developments | 8-11% | Diversified income streams |
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How strong is the demand from foreign buyers compared to local buyers right now?
Foreign and local buyer demand in Sihanoukville is recovering but remains below peak levels as of September 2025.
Chinese foreign direct investment, which drove the previous boom, has decreased significantly but shows moderate signs of recovery. New regional investors from neighboring countries and some European interest have emerged, particularly attracted by infrastructure developments and Special Economic Zone investments.
Local Cambodian demand is gradually increasing due to more affordable project prices and government investor incentives that improve market accessibility. However, local purchasing power limitations continue to constrain domestic demand compared to foreign investment flows.
The current buyer mix reflects a more balanced market compared to the Chinese-dominated boom years, though regulatory barriers still affect foreign participation levels.
What are the main infrastructure projects being built, and how are they impacting property values?
Major infrastructure development is transforming Sihanoukville's long-term investment appeal.
The deep-water port expansion project, valued at over $243 million, represents the most significant infrastructure investment. Additional key projects include comprehensive road upgrades, Special Economic Zone enlargement, planned railway connections to Phnom Penh, and new hospitality and tourism facilities.
These infrastructure improvements are gradually boosting property values in targeted areas, particularly those with improved connectivity and proximity to major projects. Properties near the expanded port and SEZ developments have seen the most pronounced value appreciation.
The infrastructure upgrades are improving Sihanoukville's long-term investment profile by addressing previous connectivity and utility limitations that hindered development.
How is the tourism sector performing, and how does that translate into property demand?
Tourism recovery is driving property rental demand but with continued seasonal volatility.
Visitor numbers are rising steadily, especially from China and regional neighbors, with the government targeting 7-8.5 million annual visitors by 2027. This tourism rebound directly benefits rental yields and demand for short-stay and hospitality real estate.
The tourism recovery particularly benefits properties designed for vacation rentals and hospitality use, though seasonal fluctuations and occupancy volatility persist. Tourism-dependent properties show stronger rental performance during peak seasons but face challenges during low seasons.
Property investors focusing on tourism-related real estate should account for seasonal income variations and occupancy rate fluctuations in their investment calculations.
It's something we develop in our Cambodia property pack.
What's the vacancy rate across different types of properties in the city?
Vacancy rates in Sihanoukville remain elevated due to persistent oversupply challenges.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Cambodia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How accessible is financing for property purchases, both for locals and foreigners?
Property financing accessibility varies significantly between local and foreign buyers in Sihanoukville.
Cambodian banks offer mortgages to local buyers covering 50-80% of property value, with annual interest rates of 7-10% and terms up to 25 years. Local buyers generally have better access to traditional banking financing options.
Foreign buyers face much more limited financing options, typically requiring local partners, residency status, or developer financing arrangements often at higher costs. Many foreign purchases are conducted through cash transactions or alternative financing structures.
Developer lending has become increasingly common, with many projects offering in-house payment plans, though buyers should conduct careful due diligence on developer financial stability and project completion capabilities.
What government policies, restrictions, or incentives are shaping the market today?
Government policies are actively supporting market recovery through targeted incentives and regulatory adjustments.
The 2025-2028 period features expanded stamp duty exemptions for purchases up to $210,000, tax holidays for developers, and targeted support for both buyers and developers, especially for stalled or new projects. These incentives aim to stimulate market activity and project completion.
Foreign ownership regulations allow foreigners to purchase strata title condos above ground floor (up to 70% of building units) but prohibit direct land ownership. Alternative structures include land-holding companies and long-term lease arrangements.
Stricter lending rules have been enacted to curb excessive leverage and speculative buying, while regulations continue evolving as authorities balance growth promotion with financial stability concerns.
How do Sihanoukville's property prices and returns compare with Phnom Penh or Siem Reap?
| City | Price Range (USD/sqm) | Rental Yield | Market Characteristics |
|---|---|---|---|
| Sihanoukville | $1,000-$4,500 | 8-12% | High volatility, oversupply risk |
| Phnom Penh | $1,500-$4,000 | 6-8% | More stable, established market |
| Siem Reap | $834-$1,600 | 8-10% | Tourism dependent, lower prices |
| Market Position | Recovery phase | Highest yields | Highest risk-reward ratio |
| Investment Appeal | Opportunistic buyers | Income-focused investors | Requires careful selection |
It's something we develop in our Cambodia property pack.
What risks—such as oversupply, regulation changes, or economic downturn—could impact the outlook?
Sihanoukville's property market faces several significant risks that investors must carefully consider.
Oversupply remains the most pressing challenge, with a large inventory of unfinished and empty buildings continuing to weigh on price growth and occupancy rates. This excess supply could take years to absorb fully, limiting price appreciation potential.
Regulatory changes pose ongoing risks as property, lending, and foreign ownership laws continue evolving, potentially creating compliance surprises for investors. The regulatory environment remains less predictable than more established markets.
Economic downturns could severely impact Cambodia's property market, particularly in overbuilt areas like Sihanoukville, potentially leading to defaults and banking sector instability. The high rate of project abandonment in past cycles demonstrates the market's vulnerability to economic shocks.
Project quality risks are significant due to the high rate of past project abandonment, making thorough due diligence critical for both off-plan and secondary market purchases.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Sihanoukville presents both significant risk and opportunity for property investors as of September 2025.
Property values remain substantially below their 2019 peak, rental yields are attractively high at 8-12%, and major infrastructure projects are transforming the city's long-term prospects. However, persistent oversupply, regulatory uncertainties, and the slow absorption of abandoned projects mean that careful due diligence and conservative expectations are essential for successful investment outcomes.
Sources
- BambooRoutes - Sihanoukville Price Forecasts
- Construction Property - Government Investment Incentives
- B2B Cambodia - Business Developments 2024-25
- Global China Pulse - Rise and Fall Analysis
- REGR - Cambodia Property Investment Guide
- BambooRoutes - Sihanoukville Property Investment
- DaBest Properties - Market Update
- Kreston Cambodia - Tax Incentives
- Global Property Guide - Cambodia Rental Yields
- The Asset - Property Market Analysis