PHNOM PENH: The condominium sector in Sihanoukville was severely impacted in 2020 as a result of COVID-19’s restrictions on global travel, which resulted in the suspension of some condominium projects and the completion of many condominium units that were scheduled to be completed in 2022.
According to Knight Frank Cambodia, the demand for condominiums in Sihanoukville is higher than that of foreign investors when compared to Phnom Penh. However, with travel restrictions in the last two years and a ban on online gambling in 2019, demand for condominiums in Sihanoukville has dropped significantly, and many projects scheduled to be completed in 2022 have been delayed.
Despite the market’s challenges, two condominium development projects were completed in the second half of 2021, bringing the existing supply to 5,871 units with 12 projects. The 29-story Xingshawan Residence project in District 4 is expected to be completed by the end of 2021. There are 750 units in the project, with an average price of US $1,800 per square meter.
Another completed project is Star Bay, a joint venture between Xing Hui Property and Thai Boon Rong Group. Of the project’s ten buildings, three have been completed, totaling approximately 1,800 units. The project is conveniently located in the coastal province of Sangkat 3. The project starts at $2,200 per square meter.
Sangkat 3 has the highest condominium density in Sihanoukville based on geography. It is the most desired location for condominiums, accounting for 81% of the supply. It is followed by Sangkat 4 (13%) and Sangkat 2 (6%), with Sangkat 1 being the last district to receive condominium investment because it is located outside of town and is surrounded by development and industrial activities.
According to Knight Frank Cambodia, the supply of condominiums in Sihanoukville is expected to increase to 34,353 units by 2025, representing a 485 percent increase over current supply. This figure could rise if many of the postponed projects begin to be rebuilt.