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
Are you considering investing in a rapidly growing real estate market? Curious about the potential returns on property investments in emerging coastal cities? Wondering why Sihanoukville is becoming a hotspot for property buyers in 2025?
We will lay down recent insights, providing you with compelling reasons to consider this vibrant city. Ici no guesswork, we rely only on solid data to guide your investment decisions.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Cambodia Property Pack
1) Sihanoukville's natural resources draw industries needing housing for their 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 attracts buyers for vacation homes and retirement properties
Sihanoukville's warm climate is a big attraction for those eyeing vacation homes or retirement spots.
With average temperatures ranging from 87°F to 91°F during the day and 73°F to 78°F at night, the region offers a consistently warm environment. This makes it perfect for those who want to enjoy the sun all year round.
In recent years, Cambodia has become a hotspot for international retirees. The combination of a warm climate, affordable living costs, and a growing expat community is drawing many to the area. The Ministry of Tourism anticipated five million foreign visitors in 2023, with a good number being retirees.
Sihanoukville's tourism is booming, with over three million international tourists visiting in just the first half of 2023. This surge in visitors is pushing up demand for vacation homes and retirement properties, especially along the coast where property values are climbing.
For those considering a move, the coastal areas of Sihanoukville are particularly appealing. The rising property values in these areas reflect the growing interest and investment in vacation and retirement homes.
Sources: Time and Date, Trade.gov, Sihanoukville Price Forecasts
Everything you need to know is included in our Real Estate Pack for Sihanoukville
3) Sihanoukville real estate prices are low compared to other Cambodian cities offering strong growth potential
Sihanoukville's real estate prices are still relatively low compared to other Cambodian cities like Phnom Penh and Siem Reap.
In prime spots like Ochheuteal Beach to Otres, you can find prices ranging from $2,500 to $3,500 per square meter, while in the suburbs, they start from just $150 upwards. This is a bargain compared to more developed cities. Despite a slight dip in prices since early 2023, due to more sellers than buyers, there's a buzz about potential growth. The rental market is expected to keep expanding, which might eventually push property values up.
Infrastructure is a game-changer here. The Phnom Penh - Sihanoukville Expressway, completed in 2022, has made getting around a breeze, boosting the city's accessibility. Plus, the upcoming Korea - Cambodia Friendship Bridge and the Phnom Penh - Ho Chi Minh City High-Speed Rail are set to make connectivity even better.
Foreign investments, especially from Chinese investors, have sparked a construction boom. This wave of investment has led to the rise of new office buildings, hotels, and residential projects, reshaping the city's skyline and making it more attractive to potential investors.
Sources: Phnom Penh Post, Atlas Invest Group, Hausples, Sihanoukville Real Estate Market, Sihanoukville Price Forecasts
4) Sihanoukville's prime spot on the Belt and Road is drawing major Chinese investment and infrastructure growth
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) Sihanoukville's booming casino industry is attracting tourists and workers needing accommodation
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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6) Sihanoukville's economic zones are driving business growth and increasing housing demand for workers
Sihanoukville's special economic zones are drawing in businesses like never before.
In 2023, the Sihanoukville Special Economic Zone (SSEZ) experienced a trade boom, with volumes soaring to over $3.3 billion, a remarkable 33% jump from the previous year. This upward trend didn't stop there; by 2024, trade had climbed to $628 million, marking a 38.3% increase from 2023. The Cambodian government has been instrumental in this growth, implementing strategic initiatives to attract foreign direct investment (FDI). Their vision is to transform Preah Sihanouk province into a bustling hub like Shenzhen, and they're doing this by cutting logistics costs and offering enticing investment incentives.
These efforts have paid off, with the first quarter of 2024 alone seeing over $2 billion in FDI. As a result, the SSEZ is buzzing with activity, welcoming eight new enterprises in 2024, which brings the total to 188 companies. This influx of businesses has created a significant number of jobs, with over 30,000 positions now available. Naturally, this has led to a surge in housing demand as employees look for places to live near their work.
For those considering buying property in the area, this is a golden opportunity. The growing number of businesses and jobs means there's a constant need for housing, making it a potentially lucrative investment. The local real estate market is responding to this demand, with new developments springing up to accommodate the influx of workers. This trend is expected to continue as more companies set up shop in the SSEZ.
Investors and potential homeowners should keep an eye on Sihanoukville's real estate market. With the government's ongoing efforts to enhance the region's appeal to businesses, the demand for housing is likely to remain strong. This could mean steady appreciation in property values, offering a promising return on investment.
Sources: Phnom Penh Post, Khmer Times, Greater Mekong
7) Sihanoukville's location by the Gulf of Thailand makes it ideal 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
8) New roads and highways are boosting connectivity and access to Sihanoukville
The new roads and highways are making city access a breeze.
Take the Phnom Penh-Sihanoukville Expressway, for instance. Completed in 2022, it has slashed travel time between these two bustling cities. What used to be a grueling five-hour drive is now a quick 90-minute trip. This expressway is a game-changer for anyone looking to zip between these urban hubs.
In its first year, the expressway saw a whopping 5.19 million vehicles cruising along its lanes. On a typical day, about 13,000 vehicles make the journey, and this number jumps to 17,000 during weekends and holidays. This surge in traffic shows just how much easier it is for people to reach the city, whether they're commuting for work, exploring as tourists, or just visiting friends and family.
The expressway isn't just about convenience; it's also a boon for the local economy. Businesses are thriving, and tourism is on the rise, thanks to this improved connectivity. The Sihanoukville Special Economic Zone, in particular, is experiencing rapid growth, with more companies setting up shop and more tourists flocking to the area.
With these new roads, the region is seeing a ripple effect of economic benefits. It's not just about getting from point A to point B faster; it's about opening up new opportunities for commerce and tourism. The expressway is a vital artery that is pumping life into the local economy, making it easier for businesses to operate and for tourists to explore.
So, if you're considering buying property in the area, know that the infrastructure is only getting better. The ease of access and the economic growth potential make it an attractive option for investors and homebuyers alike.
Sources: Phnom Penh-Sihanoukville Expressway Project, Traffic Volume on the Expressway, Cambodia's Infrastructure Master Plan
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9) Sihanoukville's port expansion is driving trade growth and skyrocketing housing demand
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) The local government is boosting Sihanoukville's livability by improving 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
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
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- Overview of the current state of the real estate market in Sihanoukville