Investment in Resort Properties in Sihanoukville

• Proeksa Meas
• 3 April 2019
• Local News
• 2643 Views

In today’s condominium market, buyer focus on location, price and product quality.

The ongoing growth of tourism to Sihanoukville has driven a demand for changes in the condominium market, from holiday homes to income-producing properties over a period of time. Until now, the majority of buyers for most developments including villas and condominiums were foreigners, particular mainland Chinese, looking to buy properties to produce either short term or long term incomes.

Ultimately, the condominium market will continue to evolve in line with the surge of mainland Chinese arrivals. The crucial point for developers is that they must truly understand and pinpoint their buyers’ requirements and also match them in terms of product quality. The typical buyers of properties in Sihanoukville are looking at yields or resale of the properties later on at a higher price.

To attract more buyers turning these properties into a vacation home, developers should focus on properties offering sea view units because they are easier to rent out and are more attractive for end users seeking a vacation home in Sihanoukville. On the other end, a buyer’s point of view for achieving a reasonable yield also comes down to purchasing the right property, with optimal sizing, layout, and an achievable room rate, thereby resulting in reasonable rental income.

Many developers in the market are offering guaranteed yields. For buyers looking to hold the properties for the long term, a guaranteed yield can only promise a fixed income for these buyers for a certain period of time. The ability to operate the property and to produce income over the long term is important, not just during the guarantee period. After all, only over the next couple of years will it become clear if the property is able to provide a sustainable income stream and quality management. Therefore, it is then up to the buyer to carefully look if the property they invested in will generate the most income and how they will achieve it.

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