The property market in Sihanoukville remains positive, however it fell

[Compass Real Estate Platform] At the end of last year a restriction on online gambling, and the pandemic of Covid-19, have failed to bode well for the Sihanoukville property market, which is now in its worst.

The market is far from the position of the previously famous coastal town of Chinese real estate investors, just a year ago. But, say real estate specialists in the Kingdom, little has been shown since the beginning of this year. Industry insiders expect, however, that once Covid-19 is contained, money will return.

The high number of Chinese visitors and investors who went to the province of Preah Sihanouk in recent years has drastically increased immobilization and leasing in the region over the year 2018-2019. But on December 31, last year, the government's interdiction of internet gambling led to a mass exode of Chinese people.

Chrek Soknim, President of the Association of Cambodian Valuers and Estate Agents, said to The Post on Wednesday that the decline in Chinese investor activities coupled with the global outbreak of Covid-19 have reduced the vibratory market in the province's property, and prices have dropped sharply since last year.

Overall, since the internet gambling ban, the property market in the province has fallen. "The massive fall in real estate values may be said to be practically synchronized with the general slump in economics. The buyers and sellers desire it not, as they wanted," remarked Soknim.

In some regions, real estate exceeded the actual market price of 150 percent at a high of the previous business cycle. With improved facilities, he indicated that property values are expected to grow once Covid 19 ends in Preah Sihanouk province.

A subsidiary of the Century 21 real-estate agency Century 21 Cambodia's branch manager, Oem Senghou, stated that land in the province's top sites now stands for over $3,500 per sq.m., a dramatic decline from last year's $5,000 valuation.

"I expect to recover after Covid-19 is done, but growth will progress and will not witness any abrupt increases as before," Senghou said. He added that property values have now dropped by 20-30% over the same period last year, while rental prices have dropped by over 50%. The administration said at the end of November it was spending $294 million for construction of the province's 34 new roads and other facilities. 

Speaker Kheang Phearum of Preah Sihanouk Provincial Hall told The Post that the epidemic has slowed economic activity and damaged immobilization markets worldwide and not just in the Province. He was, however, optimistic that all business sectors in the province will revive quickly after Covid 19. He added officials are active in building and repairing infrastructure.

"A lot of building is currently underway so that in the future growth in the province will be increased. The immovable market would then [rebound] as a result," added Phearum. He added that up to 70% destroyed or will be completed by the first quarter of the next year by roads, water supply systems and sewage systems in the province.

Author ៖ Samnang, Editor-in-Chief ៖ Sunnie, Editor-in-Chief / Producer ៖ Nicole

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