How is the property market forecast in Sihanoukville?

Authored by the expert who managed and guided the team behind the Cambodia Property Pack

Yes, the analysis of Sihanoukville's property market is included in our pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Sihanoukville. If you'd like to learn more about us, you can check our presentation page.

What's the current average price per square meter for residential property in Sihanoukville?

Residential property prices in Sihanoukville currently range from $1,000 to $2,500 per square meter as of September 2025.

Budget inland properties start around $1,000 per square meter, while standard developments in central areas typically cost $1,500-$2,000 per square meter. Premium coastal locations, particularly around Otres Beach and high-end developments, can reach up to $4,500 per square meter.

Over the past five years, Sihanoukville's property market has experienced significant volatility. Prices peaked near $4,000 per square meter in 2019 during the Chinese investment boom, then declined substantially due to oversupply and regulatory changes. The market bottomed out around 2021-2022 and has since recovered slowly, with current prices stabilizing and showing annual growth of 3-7%.

It's something we develop in our Cambodia property pack.

This recovery represents a more sustainable pricing level compared to the speculative highs of 2019, making current prices attractive for long-term investors.

How do rental yields compare for different property types in Sihanoukville?

Sihanoukville offers strong rental yields across property types, with apartments, condos, and houses typically generating 8-12% gross annual returns.

Condominiums in well-managed buildings with amenities tend to achieve the higher end of this range, particularly those with beach access or sea views. Standard apartments in central areas typically yield 8-10%, while houses can vary significantly based on location and condition.

These yields are notably higher than Cambodia's capital city, where Phnom Penh properties typically generate 6-8% rental yields. Siem Reap, another tourist destination, offers 7-9% yields, making Sihanoukville particularly attractive for rental income investors.

However, actual net returns depend heavily on occupancy rates, which vary dramatically by property quality and location. The median occupancy rate for short-term rentals sits at just 19%, though best-performing units achieve 60% or higher occupancy.

Realistic annual investor returns range from 8-10% gross on well-located and well-managed units, with net returns decreasing after accounting for management fees, maintenance, and vacancy periods.

What percentage of property buyers are foreign versus local in Sihanoukville?

Foreign buyers dominate Sihanoukville's property market, accounting for approximately 82% of property transactions in the past year.

Chinese investors remain the largest foreign buyer group, followed by other Southeast Asian nationals and Russian investors. This high foreign participation reflects ongoing international interest despite market challenges and regulatory changes.

Local Cambodian buyers make up the remaining 18% of transactions, primarily purchasing lower-priced inland properties or investing in commercial real estate. The foreign buyer dominance is particularly pronounced in the condominium segment, where foreign ownership above ground floor is legally permitted.

Foreign buyers typically purchase condominiums above ground floor level or use creative legal structures for houses and land purchases, due to Cambodia's restrictions on direct foreign ownership of land. This has led to the development of specialized legal services and ownership structures catering to international investors.

The sustained high level of foreign investment indicates continued confidence in Sihanoukville's long-term potential, despite short-term market challenges.

How many new construction projects are currently underway in Sihanoukville?

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What are the current occupancy rates for rental properties in Sihanoukville?

Occupancy rates for rental properties in Sihanoukville vary dramatically based on property quality, location, and management.

The median occupancy rate for short-term rentals across the city sits at approximately 19%, which reflects the ongoing oversupply challenges. However, top-performing units with prime locations, good amenities, and professional management achieve occupancy rates of 43-64%.

Condominiums in well-managed buildings with beach access or sea views typically experience higher occupancy rates than inland properties. Properties near Otres Beach and premium developments generally outperform the city average.

Standard apartment units without special features can experience vacancy rates as high as 90%, particularly in oversupplied areas with many competing units. This wide variation underscores the importance of location, amenities, and property management in achieving successful rental returns.

Hotel occupancy rates vary by tier, with luxury and beachfront hotels experiencing higher rates thanks to rising tourism recovery, while budget accommodations face more challenging occupancy levels.

How have property sales volumes changed in Sihanoukville recently?

Property sales volumes in Sihanoukville have increased significantly, with transaction volume up 15-20% year-on-year as of September 2025.

Real estate platforms report a 300% increase in market activity since 2023, indicating substantial recovery from the market's low point. This surge in activity reflects renewed investor confidence and improving market conditions.

However, the average time it takes for properties to sell remains extended compared to more liquid markets like Phnom Penh. The oversupply situation means that while transaction volume is increasing, properties still take longer to move from listing to closing.

Prime properties in desirable locations sell relatively faster than the market average, while entry-level and poorly located properties face longer selling periods. The market shows clear differentiation between high-quality assets and standard inventory.

This sales volume growth suggests that the market has likely passed its bottom and is in a recovery phase, though full normalization of selling timeframes may take additional time as oversupply gradually absorbs.

What is the typical timeframe for selling property in Sihanoukville?

The average time for properties to sell in Sihanoukville varies significantly based on property quality, location, and pricing strategy.

Prime properties with beach access, modern amenities, and competitive pricing can sell within 3-6 months of listing. These include well-located condominiums in established developments and houses in desirable areas near the coast.

Standard properties in central areas typically take 6-12 months to sell, depending on market conditions and seller flexibility on pricing. Properties requiring significant updates or in less desirable locations may remain on the market for 12-18 months or longer.

The extended selling timeframes reflect the ongoing oversupply situation, with buyers having numerous options and the ability to be selective. This contrasts with more liquid markets like Phnom Penh, where well-priced properties move more quickly.

Sellers who price competitively and invest in property presentation tend to achieve faster sales, while those who maintain unrealistic pricing expectations face extended marketing periods.

How much infrastructure investment has Sihanoukville received recently?

Sihanoukville has benefited from substantial infrastructure investment totaling over $500 million in the past decade, with major projects continuing through 2025-2026.

The Phnom Penh-Sihanoukville Expressway, completed in 2022, represents one of the most significant infrastructure improvements, reducing travel time to the capital and improving connectivity. The deep-water port has received ongoing expansion investments exceeding $500 million to boost trade capacity.

The Sihanoukville Special Economic Zone continues expanding toward accommodating 300 enterprises by 2028, with associated infrastructure development including roads, utilities, and residential areas. Port upgrades and expanded industrial facilities support both trade and employment growth.

Planned projects include continued development around Otres Beach, urban redevelopment initiatives, and utility infrastructure improvements. Government incentives support real estate and urban development through 2026.

It's something we develop in our Cambodia property pack.

This infrastructure investment directly supports property values by improving accessibility, employment opportunities, and overall livability in Sihanoukville.

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.

What is Sihanoukville's projected population growth and housing demand?

Sihanoukville's population is expected to grow significantly over the next decade, driven by employment opportunities in tourism, manufacturing, and port industries.

The expansion of the Special Economic Zone to accommodate 300 enterprises by 2028 will create substantial employment opportunities, attracting workers from other provinces. Port expansion and increased trade activity will generate additional job creation requiring workforce expansion.

Tourism recovery and infrastructure development will also drive population growth as service sector employment increases. The improved connectivity via the expressway makes Sihanoukville more accessible for workers and residents.

Housing demand will rise in tandem with population growth, particularly for affordable to mid-range housing near employment centers. Demand will be strongest in areas around the Special Economic Zone, port facilities, and coastal areas where tourism employment concentrates.

This demographic growth provides fundamental support for residential property demand, though the timeline for absorption of current oversupply will depend on the pace of population and employment growth.

How many unsold or unoccupied properties exist in Sihanoukville currently?

Sihanoukville faces a significant oversupply situation with an estimated 400+ abandoned or unfinished buildings citywide as of September 2025.

This oversupply may represent as much as 25-30% of the total condominium and commercial property stock, reflecting the aftermath of the rapid construction boom that peaked in 2019. Many of these properties were left incomplete when developers faced financial difficulties or regulatory changes.

Entry-level properties in some areas experience vacancy rates of up to 90%, while well-managed units with desirable locations and amenities experience much lower vacancy rates. The quality and location of properties strongly determine occupancy success.

The oversupply situation creates challenges for new investors, as it increases competition for tenants and puts downward pressure on rental rates. However, it also creates opportunities for investors who can identify well-located properties at attractive prices.

The gradual absorption of this oversupply will likely take several years, with the timeline dependent on population growth, tourism recovery, and overall economic development in the region.

What are current construction costs per square meter in Sihanoukville?

Construction costs in Sihanoukville currently range from $700-$1,200 per square meter for basic residential construction, with costs varying based on materials, finishes, and building specifications.

Basic construction with standard finishes costs approximately $700-$900 per square meter, while mid-range construction with better materials and finishes ranges $900-$1,100 per square meter. Premium construction with high-end materials and finishes can exceed $1,200 per square meter.

Construction costs have increased 10-15% over the last three years due to inflation in both labor and material prices. Steel, cement, and imported materials have experienced particular price increases, affecting overall construction economics.

Labor costs have also risen as the construction industry competes with other growing sectors for workers. Skilled tradespeople command higher wages than in previous years, contributing to overall cost increases.

These construction cost levels influence both new development feasibility and property pricing, as developers must factor higher costs into their project economics and sales prices.

How do Sihanoukville property prices compare to other Cambodian cities?

It's something we develop in our Cambodia property pack.

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.

Sources

1. BambooRoutes - Sihanoukville Property Market Analysis
2. IPS Cambodia - Sihanoukville Condo Market Trends 2025
3. Dabest Properties - Cambodia Condo Trends
4. BambooRoutes - Sihanoukville Price Forecasts
5. AirROI - Sihanoukville Market Report
6. BambooRoutes - Average House Prices in Cambodia
7. Global Property Guide - Cambodia Price History
8. IPS Cambodia - Time Square 10 Development
9. B2B Cambodia - Business Developments in Sihanoukville
10. BambooRoutes - Sihanoukville Real Estate Market