Authored by the expert who managed and guided the team behind the Cambodia Property Pack
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Why is Sihanoukville emerging as a prime location for property investment in 2025? Is it the attractive rental returns, the rapid development of infrastructure, or the competitive pricing compared to other Southeast Asian markets? What makes it a compelling choice for investors?
We often encounter these questions because we're actively engaged with local developers, real estate professionals, and investors like you. Given the growing interest in this market, we've decided to compile our insights into a detailed article for everyone's benefit.
Our aim is to present a clear argument for investing in Sihanoukville's real estate market, supported by our direct experience and in-depth market understanding.
If you feel we've overlooked an important aspect or want more information, please reach out (we respond very quickly). Your feedback enhances our content.
Finally, please remember that this is not financial or investment advice. Real estate investment involves inherent risks, and market conditions can change unexpectedly. We strongly recommend conducting thorough research and consulting with a qualified financial advisor before making any investment decisions.
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1) Sihanoukville’s natural resources are drawing industries, increasing housing demand for workers
Sihanoukville's natural resources are drawing industries that need housing for their workers.
Since 2023, there's been a noticeable uptick in Foreign Direct Investment (FDI) in Sihanoukville, especially in sectors tied to natural resources. In just the first quarter of 2024, FDI projects hit $455 million, a massive jump of 149.8% from the previous year.
The Sihanoukville Special Economic Zone (SSEZ) is a big part of this boom. It's a major project under China's Belt and Road Initiative, and by early 2024, it had attracted eight new enterprises, creating over 30,000 jobs. The zone is set to keep expanding, with room for up to 300 enterprises and potentially 100,000 jobs in the future.
Infrastructure is also getting a boost. The Cambodian Ministry of Public Works and Transport is upgrading railway and deep seaport facilities, which is crucial for industries that depend on Sihanoukville's resources. This makes it easier to move goods efficiently.
With industrial growth comes a need for more housing. The property market in Sihanoukville has been slow, but there's a growing demand for beachfront condos, eco-friendly resorts, and ocean-view properties. Both locals and international buyers are showing interest.
Sources: World Bank, Belt and Road Portal, Khmer Times
2) Sihanoukville’s warm climate makes it ideal for vacation or retirement homes
Sihanoukville's warm climate is a magnet for those eyeing vacation homes or retirement spots.
With average highs between 87°F and 91°F and lows from 73°F to 78°F, the region offers a cozy atmosphere all year. This means you can enjoy a comfortable lifestyle without the hassle of extreme weather changes.
Imagine waking up to plenty of sunny days, perfect for beach outings or exploring the local scenery. The abundant sunshine is a big reason why international retirees and tourists are flocking to Sihanoukville.
It's not just the weather; the low cost of living and friendly expat community make it even more appealing. Many find it an ideal place to enjoy a relaxed and affordable retirement.
As more international retirees choose Cambodia, Sihanoukville stands out for its welcoming atmosphere and vibrant lifestyle. The combination of these factors is hard to resist for those seeking a new home abroad.
Sources: Time and Date, Trade.gov, Weather Spark
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.
3) In Sihanoukville, you can find affordable properties with great growth potential compared to other Cambodian cities
Sihanoukville's real estate prices are still quite affordable compared to bustling Cambodian cities like Phnom Penh and Siem Reap.
In popular spots like Ochheuteal Beach to Otres, you can find properties priced between $2,500 and $3,500 per square meter, while in the suburbs, prices start from just $150 per square meter. This is a bargain compared to more developed areas.
Although there was a slight dip in prices earlier in 2023 due to more sellers than buyers, the rental market is showing promise. Rental demand is expected to grow, which could eventually push property values higher.
Infrastructure is a game-changer here. The Phnom Penh - Sihanoukville Expressway, completed in 2022, has made travel easier, and upcoming projects like the Korea - Cambodia Friendship Bridge and the Phnom Penh - Ho Chi Minh City High-Speed Rail will boost connectivity even more.
Foreign investments, particularly from China, have sparked a construction boom. New office buildings, hotels, and residential projects are popping up, reshaping Sihanoukville into a promising market.
Sources: Phnom Penh Post, Atlas Invest Group, Hausples
4) Sihanoukville’s location on the Belt and Road Initiative is drawing Chinese investment and infrastructure development
The city's prime spot on the Belt and Road Initiative (BRI) map is drawing in Chinese investment and infrastructure projects.
In 2023, the Sihanoukville Special Economic Zone (SSEZ) saw a trade volume of $2.22 billion, a jump of 27.3% from the previous year. This surge shows how crucial the city is for trade between Cambodia and the global market. The SSEZ's proximity to the Sihanoukville Autonomous Port makes it a key player in the trade game, attracting 175 companies from around the world, including China, and creating nearly 30,000 jobs.
These companies are a testament to the city's growing reputation as a hub for industrial and economic activity. The SSEZ isn't stopping there; plans are in place to expand and host up to 300 enterprises, employing between 80,000 to 100,000 industrial workers. This ambitious growth is in line with the BRI's mission to boost connectivity and economic integration across the region.
Urban planning in Sihanoukville is also getting a makeover, with visions of turning the city into a modern metropolis akin to Shenzhen. This transformation is part of a broader strategy to enhance the city's infrastructure and appeal to investors and businesses alike.
Sources: Trade through BRI project in Cambodia up 27.3 pct in Jan-Aug, Sihanoukville Special Economic Zone Sees Robust Import-Export Growth, About SSEZ - Sihanoukville Special Economy Zone in Cambodia
5) With the casino industry booming, Sihanoukville attracts tourists and workers needing places to stay
Sihanoukville's casino scene is a magnet for tourists and workers, sparking a need for more places to stay.
With up to 80 casinos in the city, Sihanoukville is a major gaming hub, even after the iGaming ban. This bustling casino environment draws in crowds eager for gaming and entertainment, making it a lively spot for visitors. In 2023, Cambodia experienced a tourism boom, with 2.28 million foreign tourists arriving, marking a staggering 1,058 percent increase from previous years. This surge is expected to continue, with nearly 7 million tourists projected by 2025, further boosting the demand for accommodation.
The influx of foreign workers, especially from China, is another factor driving the need for housing. By 2019, 250,000 Chinese nationals were in Cambodia, many working in the casino industry. This creates a demand for both short-term and long-term housing solutions, as these workers settle in Sihanoukville.
The Cambodian government is also playing a role by transforming Sihanoukville into a special economic zone. This initiative has led to new residential projects aimed at accommodating the growing number of expatriates and workers. As the city evolves, the expansion of related industries like hospitality and retail supports the increasing demand for accommodations, growing alongside the casino industry.
Sources: GGB Magazine, Khmer Times, The Diplomat
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7) Sihanoukville’s location near the Gulf of Thailand is perfect for maritime activities and housing needs
Sihanoukville is perfectly positioned by the Gulf of Thailand, making it a hotspot for maritime activities.
In 2024, the Sihanoukville Port hit a milestone with 1,000,000 TEUs in container traffic, marking a significant 29% jump from the previous year. This surge highlights the port's growing role in regional trade and shipping. The ongoing expansion of the Sihanoukville Autonomous Port, set to wrap up by 2026, is poised to transform it into Cambodia's largest deep-water port.
This expansion will enable the port to accommodate 93% of large ships traversing the Asia-Pacific, boosting its strategic value. As maritime activities ramp up, there's a noticeable uptick in housing demand from maritime industry workers. This trend is fueling the growth of residential properties in Sihanoukville, positioning it as a prime spot for real estate development.
With the port's expansion, Sihanoukville is becoming a magnet for those involved in maritime trades, driving a need for more housing options. The city's proximity to the Gulf of Thailand not only enhances its appeal for maritime activities but also underscores the necessity for related housing developments.
As the port continues to grow, so does the demand for homes, making Sihanoukville a key player in the real estate market. The city's strategic location and booming port activities are reshaping its landscape, attracting both investors and workers alike.
Sources: Sihanoukville Port Hits Record 1 Million TEUs Amid Booming Trade, Sihanoukville Autonomous Port officially started expansion
9) With the port expansion, Sihanoukville is seeing more trade and a higher demand for housing
The expansion of Sihanoukville's deep-water port is transforming trade in the region.
In 2023, the port experienced an 11.34% increase in transit goods volume, underscoring its growing role in global trade. By 2024, it handled 240,000 TEUs in the first quarter alone, marking a 23% rise from the previous year. The port hit a milestone with 1 million TEUs, a 29% increase compared to 2023.
This boom is fueled by major infrastructure investments. The first phase of the deep-water container terminal project, with a price tag of US$243 million, is on track for completion by 2026. The Japanese government is backing the expansion with a preferential loan exceeding US$500 million for future phases, aiming to ramp up the port's capacity to 2.5 million containers annually.
As the port's capacity expands, shipping costs are expected to drop by about US$200 per container, making trade more efficient and cost-effective. This efficiency is drawing more businesses and investors to the area, sparking a strong demand for housing.
The real estate market in Sihanoukville is booming, with median property prices at $160,000. This surge is driven by foreign investment and the city's allure as a tourist hotspot.
Sources: Construction Property, Construction Property, Construction Property, China Rubber Fender
10) Sihanoukville is becoming more livable thanks to the local government's focus on better public services
The local government's focus on improving public services is enhancing Sihanoukville's livability.
One major upgrade is the Phnom Penh-Sihanoukville Expressway, completed in 2022. This expressway has slashed travel time from Phnom Penh to Sihanoukville from about six hours to just two, making it a breeze for people to visit and for businesses to move goods efficiently.
Waste management has also seen a boost. At the start of a solid waste management project, 175 tons of accumulated waste were collected and properly disposed of, significantly improving cleanliness and sanitation in public areas. This effort has even inspired locals to get involved in keeping the city clean.
Public parks and recreational areas are popping up, like The Bay of Lights, offering residents and visitors new places to relax and enjoy. This development spans a large area and includes accommodations, clinics, and education centers, all of which enhance the quality of life for everyone.
These improvements are not just about aesthetics; they are about making Sihanoukville a more attractive place to live and invest. The local government's initiatives are clearly paying off, with better infrastructure and community facilities leading the way.
As the city continues to grow, these enhancements are setting the stage for a vibrant future, making it a prime spot for potential property buyers. The focus on public services is not just a plan on paper; it's a reality that's transforming the city.
Sources: Khmer Times, Atlas Invest Group, PEMSEA
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.
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