Siem Reap is a prime tourist destination in Cambodia and serves as a doorway to the historical site of Angkor. Each year, visitors from all over the world travel there to explore Angkor which magnificently reflects the 12th century civilization and is listed as a World Heritage site of UNESCO.
Aside from being a top tourist destination, it is also becoming an increasingly important spot for real estate investments. The city is now filled with luxurious hotels, beautiful colonial buildings, impressive handmade crafts, nightlife, and much more.
An increasing number of people are considering purchasing land in this province. What is there to know about this area and why is becoming so attractive?
The city is located around 314 kilometers northwest of Phnom Penh, and is well connected by the National Road 6, which will take you to the city in less than 6 hours. It has a total area of 10,299 square meters and the province has 11 districts, 1 town, 13 Sangkat, 87 communes, and 921 villages. Siem Reap is a true natural beauty: is settled in southern Tonle Sap -- the largest lake in Southeast Asia. The lake serves as a shelter to hundreds of bird and fish species and without any surprise, the lake was recognized as the first Biodiversity Conservation area by UNESCO back in 1997.
The area is also home to the Cham and Vietnamese communities living in floating villages around the lake.
The fascinating Siem Reap city center that includes many luxury hotels, beautiful colonial buildings, a buzzing Pub Street and nightlife, markets, crafts and much more...
The potential of this area is significant with strong growth potential in the tourism and service sectors as well as craft production, fisheries and of course real estate.
Growth of business in Siem Reap:
Pub Street is probably the most famous street of Siem Reap: it has the highest concentration of bars, pubs, karaoke places and restaurants. As a result of a combination of tourism growth, progress, and F&B businesses, pub street and the road nearby, are in high demand for their retail spaces.
Although the real estate sales in the area aren’t that many, the leasing of activities has increased and became one of the major sources of profit for the area.
Real Estate in Siem Reap:
In 2015, the price of Land in Siem Reap increased by 5% to 10% and growth in the ring road area up to 15%. So far, the city center has been the main target for real estate investments; This includes four major Sangkats: Slorkram, Svay Dangkum, Salakamreuk, and Korchak.
Tourism, hotel, entertainment, retail and service sectors have had a positive effect on the area’s economy. Although rental has grown rapidly in the four sangkats in the last 10 years, the real estate market of Siem Reap is said to be developing in a healthy way.
Land prices in Siem Reap:
Year after year Siem Reap is still one of the most attractive destinations for both local and international tourists.
According to Mr. Po Eavkong, General Manager of Asia Real Estate Co., Ltd "Land prices will increase by an average of only 5 to 10 per cent this year, the same percentage points as in 2015.”
Eavkong also explains that because of this “landed property could fetch between $300,000 to $400,000, or equal to $4,000 to $5,000 per square metre. Meanwhile, along Sivutha Boulevard prices could range from around $2,000 to $2,500 per square metre, with land further afield along National Road 6 falling anywhere from $300 to $150 per square metre.”
Sok Sarath, a local estate agent, also believes that Land in Siem Reap is a good investment. He stated that businesses are growing rapidly, the province displays many vacant land and residential project developments along the ring road cities are raising.
Is it good to invest in land?
Kim Heang, president of CVEA said "Investing in Land in Siem Reap, it's suitable for those who have financial means and do not require a loan". He continued, "But if you invest land by borrowing from banks, it might not be the best option if you are looking for quick returns. Although interest rates are only 8 percent a year, it will take approximately 2 to 3 years before you will be able to sell the land and make a profit."
What area in Siem Reap is good for investment?
Areas with potential for quick profits include development projects alongside the ring road. Businesses along that road are also expanding: hotels, restaurants, private clinics, schools, factories and other institutions. Slorkram, Svay Dangkum, Salakamreuk, and Korchak have also showcased the most dramatic growth in recent years.
Why invest in Siem Reap instead of Sihanoukville and Phnom Penh?
As mentioned, Siem Reap has seen an increase in business and tourism. Investments in real estate development can already be noticed, and had influence on the city’s growth figures. The land prices here are still lower compared to the ones in Phnom Penh and Sihanouk Ville. The population is also lower, resulting in a stress free environment with very limited traffic and pollution. Siem Reap is particularly suitable for those looking for tranquility and privacy.
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