Sihanoukville has been known for its fine sand, beautiful sunsets, and its refreshing waters. It’s the perfect place to escape to, and until recently that was about the only thing that people thought the area was good for. They soon found that the area is also dynamic in more ways than one -- crossing over to different industries for multiple purposes.
Considered to be the Next Boom Town after Phnom Penh, Sihanoukville is gearing up with new developments and projects from key economic pillars -- tourism, oil & gas,and port sectors.
But what are these new developments and why is everybody getting so worked up on moving or investing in Sihanoukville? Realestate.com.kh breaks it down for you.
There’s no doubt that tourism in the country is growing. Sihanoukville is probably one of the areas that’s going to be feeling this the most. In fact, around 1.5 million tourists went to Sihanoukville just last year alone. And with the Sihanoukville airport set to become Cambodia’s largest airport, more regional airlines will be flying directly to Sihanoukville from various international locations too.
Another airport not far from the city will also be built by the Grand Union Group whom just recently received permission for its construction.
With the addition of these new and upcoming flight routes, the number of new luxury hotel developments have also slowly started to increase. Among them is the Six Senses Krabey Island, which is set to open this 2017.
Other than airports contributing to the area’s foot traffic, a new highway from Phnom Penh to Sihanoukville is also underway. The project will be accomplished by a Chinese contractor and is slated to reach completion by 2020. This will become another avenue for travelers to access the humble beach town for relaxation and unwinding.
But even with all the new developments rising, the Department of Tourism is still actively seeking ways to increase visitors volume in the area. That’s why it partnered with the Asian Development Bank to fund a research that would determine socially and environmentally safe ways to enhance and develop the area’s natural resources to attract more tourists.
In relation to the actions that will be brought about by this research, the Department of Tourism expects a rise in the number of yearly visitors to 3 million by the end of 2020 -- 1 million international tourists and 2 million local tourists.
Another positive thing that’s taking place in Sihanoukville is the government’s intervention in order to stabilize prices, especially within the hospitality and transport industry. Part of this process is the continuous discussions with owners and the staff of hotels and other accommodations to prioritize quality and the importance of setting up reasonable rates.
But while tourist accommodations are geared to lower prices to make it more sustainable, the government has ordered operators and owners of servicing ferry boats in the area to increase the ticket prices to $20 from just $15 to promote business growth and stability.
There is a great potential to carryover this tourist traffic into the residential market. This is what forerunners D’Seaview saw earlier on in the area’s development, giving them the advantage to strategically place their condominium just a kilometre away from Sokha Beach, one of Sihanoukville’s most beautiful beaches -- capturing one of the most beautiful views at one of the most convenient locations in the area.
Residents can use the growth of Sihanoukville’s tourism to generate additional income on their own by renting their units out for some great rental return rates: and impressive 30% over 3 years at 10% a year, to be exact. Find out more about D’Seaview Development and your return on investment.
Other than the above-mentioned highway connecting Phnom Penh to Sihanoukville for tourist accessibility, it will also assist a number of companies in terms of logistics and transporting items to and from the sea port more efficiently.
It was announced back in December of 2016 that Cambodia’s only deep water sea port, the Sihanoukville Autonomous Port, already received its first shipment of rubber-tyred gantry cranes from Japan. Its total investment cost was $22 million and will help towards expanding the container throughput capacity of the seaport by 80%.
The Sihanoukville Autonomous Port Chairman Lou Kim Chhun explains, “The new machinery will increase the port’s capacity to 700,000 TEUs.”
Now, because the port’s capacity is expected to increase, the Government has also asked for the assistance of Japan International Cooperation Agency to study the possibility of constructing a new multipurpose seaport. Once approved, the government plans to spend around $300 million on its construction. The government expects this to help make shipping cost-efficient as outbound cargo shipments no longer have to dock in Singapore just to be loaded onto bigger ships.
Oil & Gas
Earlier last year, one of the biggest Cambodian investment conglomerate, the Royal Group, was in discussion with two foreign state-owned petroleum companies -- Indonesia-based Petramina and another unnamed Chinese company -- regarding the possibility for an oil pipeline running the length from Sihanoukville to Phnom Penh.
Though an update is still to be released regarding the project’s fate, the development will aim to utilize Cambodia’s downstream capabilities. This will then allow for the creation of an oil refinery plant and an electricity-generating plant.
But the construction of the first oil refinery plant of the country will come sooner regardless of the oil pipeline, if everything goes well. A $3-billion oil refining plant is being built already in 390 hectares of Sihanoukville land. It is expected to reach completion by the end of 2018. It will be the product of the partnership of the Chinese-owned CNPC Northeast Refining and Chemical Engineering and the Cambodian Petrochemical Company (CPC).
He also said that waste materials produced by the refinery will be utilized for the production of tires, fertilizer, and other products for the Industrial sector. In addition, the Steung Hav SEZ in Sihanouk is also licensed to build another deep sea port in the near future. The said expansions and deep sea port construction is effectively reducing the shipping costs for industrialists in Sihanoukville, and will act as a further boost for its development.
It looks like all the spotlights are on Sihanoukville and that it has all it takes to become the new goldmine for investments.
Luckily, pioneers like D’Seaview Condominium, offer the ideal investment opportunity, and have decorated Sihanoukville’s skyline with their state of the art architecture, amenities, and facilities. Investors would do well to follow suit by getting a piece of their own Sihanoukville property as anticipation for what is about to come. This is because there remains to be an abundance of opportunities in Sihanoukville for key sectors, if not more.
Explore the marvellous design and architecture of D’Seaview condos in details here.
If you are ready to make your dream of owning a luxury development come true, here are some brilliant news: Maybank will allow you to loan up to 70% of the property purchasing price for local Cambodian and up to 50% for international buyers. Read more about your loan options here.
It looks like everything is telling you to go invest in Sihanoukville and nothing is hindering you to do that!
All geared up for the Khmer new year, D’Seaview will be holding an event on 14th, 15th and 16th April 2017 in its Sihanoukville sales office at the 2 Lions roundabout in Ekareach Street, Sihanoukville, Sihanouk province! Everyone is welcome to join the said celebration and may even get a chance to avail of a special promo that will surely make their new year happier!