Location is a huge factor in Siem Reap retail real estate and real estate in the city generally.
Siem Reap retail property prices peak in locations around the Old Market/Pub Street area. This is because of the constant stream of tourists that can't help but pass through this hub area. However, the spaces available here are particularly limited, lease conditions are often complex, and prices are increased dramatically every time leases are renewed. Owners of properties in this area are well aware of this value, and tend to try to match prices of neighbouring properties. This is causing a snow ball effect. In this area, land purchase prices lie between $1,700 and $5,000 p/m2. Along the smaller streets of this zone, the land price drops to $1,500 to $2,000 p/m2.
Although rents in high profile areas of Siem Reap have risen rapidly in the last ten years, in a macro/broad sense the Siem Reap market for real estate is developing. By increasing the property prices in the Siem Reap CBD, tourist hot spots and key residential areas in the city, the Siem Reap real estate market is defining itself moreso than it ever has in the past - and it's highest value areas. In future years, this definition will likely increase the value of the overall market, and the potential revenue of properties in these areas. Some tenants coming to the end of long leases in these popular areas have faced over 300 percent rent increases. This, however, is opening up properties for investors with sufficient funds to compete, and enough innovative product ideas to legitimized their rental bills.
As rental agreements expire currently, price hikes are scaring away some tenants in the Siem Reap real estate market – opening the market for new investors with new ideas for making the most out of the property.
As rental agreements expire currently, price hikes are scaring away some tenants in the Siem Reap real estate market – opening the market for new investors with new ideas for making the most out of the property. Competition breeds innovation, after all, and the pockets of many tourists' visiting Siem Reap can certainly afford to support a growing market such as this.
Limited lease lengths, however, may mean higher risk exists for Siem Reap retailers when investing development capital into rented buildings and land for retail or commercial purposes. New businesses siting on a 5-10 year leases, for example, will naturally be reluctant to extend or dramatically refurbish current premises/buildings/infrastructure on that rental property, as they are worried their rent will increase dramatically, or end entirely, after the rental contract expires. This fear will stunt any business venture. When the lease ends, your business will risk losing the value added to the fixed assets of the property. Accordingly, pressure to create revenue to match this risk defines the Siem Reap retail hotspots.
There is all sorts of Siem Reap retail property for sale and rent, Cambodia’s tourism mecca.
Siem Reap's close proximity to the Angkor Wat temple complex has turned the city into one of the world’s premier travel destinations - with over one million visitors every year. Check out our prime retail space listings if you are wanting to join the race for the lucrative tourist dollar in the city center. Or maybe you want to settle down and relax outside central Siem Reap, in which case take a look at the host of affordable apartments, flats, villas and borey houses on offer in and around the city. Siem Reap is also a great place to farm and a variety of agricultural properties are now online. New development is bringing increasing options for serviced and non serviced office space in the city, as well as a growing collection of luxury condominiums and serviced apartments - prime for foreign investors. The city is compact and manageable for a first time buyer, with very encouraging rules for FDI.