Boom Times in Preah Sihanouk

KHMER TIMES
SUM MANET 

One Preah Sihanouk province’s greatest asset is its hub for sea transportation which makes it attractive for businesses. Supplied

The property sector in Preah Sihanouk province seems to be booming, thanks to new project developments, the growth in tourism and a twinning program between the province and Zhencheng district in China’s Guangdong province.

“The government plans to build a strategic location to link Cambodia with China in the ‘One Belt One Road’ economic corridor. For that reason, we have chosen to link Preah Sihanouk province with China’s Zhencheng district,” said Minister of Commerce Pan Sorasak when he met with Donica Pottie, the Canadian ambassador to Cambodia last week.

“This cooperation in the twinning program will enable us to build more vocational educational centers, using Chinese expertise, and also more infrastructure for development projects in the near future,” said Mr. Sorasak.

Since 2013, the “One Belt One Road” initiative has become the centerpiece of China’s economic diplomacy. The essence of the initiative is to promote regional and cross-continental connectivity between China and Eurasia.

Sorn Seap, founder and director of Key Real Estate and executive vice president of the Cambodian Valuers and Estate Agents Association, said Preah Sihanouk province has a very strong potential to be a powerhouse in the regional property sector.

“It’s got a special economic zone, a light industrial area, a deep-sea port, coastal tourism and healthy property development,” said Mr. Seap. “These are all the right ingredients for the province’s development.”

Mr. Seap said he expected the population of Preah Sihanouk province to grow, and as such there would be more demand for private properties, warehouses and industries.

“In the property sector, investors can more or less gain profits – depending on the location of the projects and what competition they face from other developers,” he said.

Mr. Seap pointed out that the most successful projects in the province would be the development of industries, factories and warehouses.

“Obviously we will see a lot of development [in the province]. One of the greatest assets Preah Sihanouk has is a hub for sea transportation, that makes it attractive for businesses. Also, it is a boost to the property sector,” he said.

Recently the Ministry of Public Works and Transport announced a new highway from Phnom Penh to Sihanoukville, which will cost $1.9 billion. The funds are from China’s concessional loan and the road construction is due to begin next year. On June 18, HLH Group announced its entry into the Cambodian property market with the launch of Camhomes, a property development firm targeting the mid-income market in Phnom Penh, Sihanoukville and other major cities.

A representative of HLH Group, told Khmer Times yesterday the project is underway and 80 percent of homes in the Sihanoukville project had already been sold.

According to Lucky Realty’s research, industrial land prices in Preah Sihanouk province, along National Road 4 ranged from $1,000 to $1,500 per square meter, while land prices along the beach with property titles were between $1,000 and $1,200 per square meter. Land prices for residential areas, along the main road, were between $500 and $700 per square meter.