Cambodia has seen strong economic development as a frontier market over the last several decades. Cambodia’s real estate sector has grown tremendously over the previous several years. According to real estate agents, the country’s open-door policy on foreign investment, coupled with attractive returns, has made it a highly alluring destination for regional property investments. Phnom Penh and Siem Reap have seen a barrage of non-stop construction due to a healthy inflow of domestic and external investment. When compared, Cambodia’sCambodia’s properties are often cheaper than their competitors in neighbouring countries. The market has considerably more variety than the Laotian market, and the occupational market is also more developed.
What Makes Siem Reap A Good Real Estate Investment
Robust economy
A robust economy is a critical component of a good property market. Cambodia’s economy has been growing at a quick yet sustainable pace in recent years, ranking as one of the best in Southeast Asia. Its GDP rose by 6.9% on average during the 2010s, placing it second among all countries in Southeast Asia. In addition, Cambodia has experienced strong growth for decades. It has not slowed since the Asian Financial Crisis of the 1990s and missed the tech bubble during the early 2000s, outgrowing the 2008 Global Recession. Cambodia managed this while achieving average GDP growth up to 7% per year. As we all know, there’s no “recession-proof economy.” All countries have problems, and all investments have some risk.
Siem Reap is at the core of Cambodia’s ongoing boom phase. A population with an average age of 25 is rapidly urbanizing, moving from the countryside into Siem Reap and other cities, naturally supporting the demand for real estate in Siem Reap over the long term, where an established middle class is just beginning to form.
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Low Property Values, Great Potential
Siem Reap is one of the few popular cities in South Asia where you can find properties with a significant investment return at meagre prices. We are not referring to new condominiums in Cambodia, which have begun to appear over the past few years. Condo buildings in Cambodia are often large, impressive, and a testament to the nation’s development in the real estate industry. However, they are usually costly and sell at prices approaching those found in Bangkok. Instead, look toward the older colonial-era shophouses in Siem Reap. Although these apartments may not have a pool or gym, they are about 25% less expensive than new condos and are generally in good structural condition overall. Alternatively, if you have a few million dollars to invest, you can set up a land holding company and buy commercial property in Siem Reap.
High Rental Yields in Siem Reap
There are several property markets in Southeast Asia where capital appreciation is high, but the rental yields on those properties are low. For example, real estate in Singapore has relatively high prices compared to its peers in Hong Kong and other financial hubs, but its rental yields are abysmal compared to those in Siem Reap.
The primary real estate markets of Cambodia, including Phnom Penh, Sihanoukville, and Siem Reap, all boast both solid rental returns and potential for appreciation.
Besides attractive valuations, shophouse apartments mentioned above offer yields exceeding 7% on average and are relatively cost-effective for small-to-mid-sized property investors.
Best Areas To Invest In Siem Reap
The demand for real estate has been increasing in Siem Reap as it is a significant tourist destination. Some of the popular places to consider when renting or buying property in Siem Reap are:
Sala Kamreuk is a popular ex-pat area with a high concentration of properties, hotels, and commercial establishments.
- The rent for the apartments can range from $200 – $1500/month, depending on the features of the properties.
- For buying, the price of the land range from $300-$400 sq.m.
Svay Dangkum: There are many lovely villas in Svay Dangkum, primarily a residential area popular with locals and long-term staying ex-pats.
- The rent for the apartments can range from $60 – $900/month, depending on the features of the properties.
- The price of villas can vary from $1000-$2000/month.
- For buying, the cost of the land range from $300-$1500 per sq.m.
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Wat Bo: It is primarily commercial, with a few residential properties and the famous Wat Bo temple. Wat Bo gets the overflow of tourists that Old Market/Pub Street can’t accommodate due to its proximity to Pub Street.
- You will mostly find small shops and other commercial establishments in this area.
- The rent for the apartments can range from $200 – $1500/month, depending on the features of the properties.
- For buying a property on the riverside, the price of the land range from $400-$2,500 per sq.m.
Night Market (Old Market/Pub Street): There are a lot of bars and clubs in this area that are open 24 hours a day, making it a popular tourist destination. The site mostly has restaurants, bars, hotels, guesthouses, and a few residential properties.
- The rent for the apartments can range from $300-$1000/month, depending on the features of the properties.
- For buying, the price of the land range from $600-$2000 per sq.m.
Slor Kram: This area is close to Wat Bo area and gets an overflow of tourists. It is becoming increasingly popular with locals and ex-pats due to its proximity to the city centre.
- The rent for the apartments is a little higher and can range from $250-$700/month, depending on the features of the properties.
- For buying, the price of the land range from $250 – $700 per sq.m.
Wat Damnak: This area is best known for the Wat Damnak temple, making it a popular tourist area. It mostly has commercial establishments, including bars and restaurants, hotels and guesthouses, shopping centres, and apartment buildings for long-term ex-pats.
- Acquiring land in this area can range from $400-$1,200 per sq.m.
- The rent for the apartments can go from $300-$1500
Old French Quarter: Most of the town’s commercial establishments, including restaurants, bars, banks, and hotels, are located in this area.
- The land in this area is generally more expensive, and no apartment buildings are available.
- The land is priced between $1000 – $3000.
Good Time To Invest In Real Estate
The Cambodian real estate market is growing. Government incentives, such as tax exemptions and low-interest rates, make it an ideal time to invest in property. The property market is also expanding as the government seeks to attract foreign investors and businesses. If you want to buy or rent a property in Siem Reap, then IPS Cambodia is your best partner. We are Cambodia’s premier real estate company which provides up-to-date information and advice on real estate. We have been in this business since 2009 and have made our way to the top with our sheer will and determination to help everyone find a property they want at the best prices. We have local solid affinities and knowledge, which helps to cater to your every little requirement. Our agent speaks several languages, including English, French, Filipino, Vietnamese, and Khmer, which has always benefited ex-pats as they never had to face any language barrier. We keep all our trades transparent and do not charge any hidden fees. IPS Cambodia’s knowledge of Phnom Penh and Siem Reap real estate ensures that they can place your business perfectly for success, no matter how small or large.
Conclusion
Not only Cambodia has been surprised by the Swerve in the real estate market in Siem Reap, but the entire world as well. According to the news headlines, it is the best time to invest in properties in Siem Reap, whether for personal or investment purposes.
