Expert Insights from ‘2024 One Vision, One Siem Reap’
Siem Reap, Cambodia – On July 12, 2024, Rose Apple Square played host to ‘One Vision, One Siem Reap,’ an event teeming with insightful discussions across different sectors shaping the city’s future. Among the plethora of topics, real estate and investment emerged as critical focal points, with David Granger, Siem Reap Branch Director of IPS Cambodia, providing a deep dive into the current real estate market and future investment opportunities.
Market Retrospective and Impact of COVID-19
. pandemic brought unparalleled challenges to Siem Reap’s real estate sector. David Granger highlighted that during the pandemic’s peak, monthly inquiries at IPS Cambodia’s Siem Reap branch plummeted from 100-200 to just 20. This dramatic reduction illustrated the market’s paralysis, where both buyers and sellers hesitated to engage.
“Many property owners exhausted their savings during Covid and are now selling their property to re-establish those savings,”
Granger noted, pointing towards the urgent need for liquidity among sellers.
Current Market Dynamics
Siem Reap currently finds itself in a buyer’s market, with an oversupply of properties coupled with reduced buyer activity. According to Granger,
“[…] buyers coming to us now DO have cash and are ready to buy, but are only looking to buy under-market priced properties, with the aim to flip these properties in 4 or 5 years, for a profit.”
However, a notable increase in rental transactions over the past year indicates a promising market revival. High-budget individuals looking for rental properties suggests a rebound in market confidence.
Projections and Investment Opportunities
Rose Apple Square & Angkor Grace Residence & Wellness Resort
Strata-Title Condominiums
Strata-title condos have shown exceptional resilience and promise. Granger highlighted the success of Rose Apple Square and Angkor Grace Residence and Wellness Resort, which collectively sold 210 condo units over the past three years. These condos offer strata-title units, allowing foreigners to own the properties in their own names, thus catering to the growing demand in this niche market.
“This is a testament to the strength of the strata-title condo market in Siem Reap,” Granger emphasized.
Western-Style Luxury Villa in Siem Reap
Western-Style Villas
Western-style villas present another promising investment avenue. These villas, designed and constructed to Western standards, meet the growing demand from expatriates and retirees relocating to Siem Reap. The market also sees interest from residents moving from Phnom Penh due to urbanization challenges. Granger noted,
“We also see people relocating from Phnom Penh as the urbanization of Phnom Penh continues, problems of traffic congestion, crime, and pollution getting worse.”
Those investing in western-style villas are enjoying significant rental returns (7-9%) and sales profits (20-30%). Areas near parklands and golf courses offer strategic advantages due to their natural buffer zones from undesirable developments.
Future Growth Corridors
Siem Reap’s future expansion is poised to align with ambitious infrastructure developments, marking the eastern and western corridors as future growth hubs. These developments include the new Siem Reap airport, expressways, and the proposed smart city ‘Grand Siem Reap’. Infrastructure upgrades such as the ring roads, are expected to ease traffic and promote development in peripheral areas.
“The growth corridors of Siem Reap are the East and the West of the city. The city will grow out this way,” Granger pointed out.
Moving Forward
Siem Reap’s real estate market has experienced daunting challenges, but signs of recovery and growth are evident. Investors are presented with unique opportunities in strata-title condos and Western-style villas, buoyed by Siem Reap’s expected urban sprawl and infrastructure upgrades.
David Granger expressed optimism for the future, stating: “I believe Siem Reap’s real estate market is poised for a vibrant resurgence. The combination of strategic infrastructure investments and renewed investor confidence will drive our next phase of growth.”
Siem Reap stands on the cusp of a transformative journey. As the market stabilizes and progresses, the collective vision and efforts of investors and stakeholders will shape the future of this historic yet continually evolving city.
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