New city to boost Siem Reap’s real estate sector: experts

The development of a new city in Siem Reap will bolster the province’s real estate sector and help it become a major investment destination, industry insiders said.

Sorn Seap, founder and CEO of Key Real Estate, told Khmer Times yesterday that it is still early to predict the impact that the development of a new city in Siem Reap could have but surmised that it is sure to attract more investors to the area.

“If the new city is developed with a proper master plan, I believe that many people will want to invest in the province, particularly in the areas surrounding the new development,” he said.

Last week, Tourism Minister Thong Khon announced plans to build a new city in Siem Reap province, home to the Kingdom’s top tourist destination, Angkor Archaeological Park. The new development will be located about 60 kilometres east of Siem Reap city, the minister said.

According to the minister, the new city has already been included in the province’s tourism master plan, which is now being drafted and could be finished as early as next year.

Mr Khon said the new city will be an ambitious project that will help diversify the province’s tourism offer beyond the world-famous Angkor Wat temple.

Kinkesa Kim, manager at CBRE Cambodia, said that, if plans for the new city go ahead, it will drive up land prices in surrounding areas.

“If the new city is developed as planned, it will create a two-tier Siem Reap. One will be the cultural Siem Reap, where the preservation of culture is emphasised. The other Siem Reap will be a more modern city,” she said.

“However, the construction of a new city may impact business in the old Siem Reap city and result in lower demand in the real estate sector as well as slower growth in land prices in this side of Siem Reap,” she noted.

Ms Kinkesa said the new development is likely to bring better infrastructure, hotels, and even a new international airport that will improve Siem Reap’s connectivity with the region and the world.

“Besides the hospitality sector, having better infrastructure will create more opportunities for the retail and manufacturing sectors in the province,” she said.

Last year, plans to build a massive resort in the province, just five minutes away from the Banteay Srey temple, were announced. The Song Saa Reserve will cost $250 million and occupy 125 hectares, according to the developer.

For Ms Kinkesa, Song Saa Reserve will serve as an eco-tourism attraction, while the new city announced by Minister Khon will instead focus on giving visitors a taste of the comforts of a modern city.

“Both developments offer something different and will help diversify Siem Reap as a tourist destination,” she added.

Key Real Estate’s Mr Seap noted that Siem Reap city used to be the Kingdom’s second-biggest investment destination, after Phnom Penh. However, with Chinese investors flocking to the coast, Sihanoukville has now overtaken Siem Reap. As a result, Siem Reap has now become a less attractive investment destination, he explained.

“In Siem Reap city the development of high-rise buildings is not allowed as it would hurt the city’s cultural heritage. This is why opportunities for commercial developments in Siem Reap town are quite limited,” he said.

Mr Seap said the new city will help Siem Reap attain its former glory as an investment destination.

According to Mr Seap, a square metre of land in Siem Reap sells for $1,000 to $2,000 depending on the location.(This news came from Khmertimes.com)