Logo of Phnom Penh Post newspaper Phnom Penh Post - Opportune time to tap growing Chinese market in Sihanoukville



Opportune time to tap growing Chinese market in Sihanoukville

Content image - Phnom Penh Post
Property development is a fast growing sector in Sihanoukville. Vandy Muong

Opportune time to tap growing Chinese market in Sihanoukville

Following the steady rise of tourism in Sihanoukville, property development in the coastal town is heavily targeting the nonstop influx of Chinese flocking to the area.

Although Sihanoukville has, in recent times, been synonymous with a growing number of Chinese tourists, currently it is going through an even more progressive overhaul to accommodate the rapid rise of visitors from the People’s Republic.

Taing Sochet Krisna, director of the Preah Sihanouk provincial tourism department, said when it came to the tourist and investment market in the area, the Chinese outnumbered other nationalities such as Russians and Americans.

“When we talk about tourists, the accommodation is important,” he said.

“A lot of hotels are being required when the Chinese come to Sihanoukville. As such, local people started to build these facilities to cater to the Chinese who come to visit, work and live.”

Nowadays, many hotels, guesthouses and homestays are being booked by the Chinese. According to a 2016 report from the Ministry of Tourism, the number of Chinese visitors to Sihanoukville increased from 39,581 people in 2015 to 53,177 people in 2016.

Content image - Phnom Penh Post
Construction is underway for another new condo project. Vandy Muong

Sochet Krisna said the real estate market in the coastal province was heavily targeting the Chinese, but it comes at a cost to the locals.

“The tourists are fine with the high price of accommodation and rentals, but local people cannot afford to shell out as much as them,” he said.

Sochet Krisna added that the government was welcoming of property and infrastructure investment in Sihanoukville, although the investment had to be impeccably calculated to ensure supply was keeping pace with demand.

“When the number of tourists increase, activity in the property market inevitably increases,” he added.

According to Sihanoukville-based HNH Real Estate owner Seu Kuyhok, the real estate development in the area really began to boom when the Chinese started pouring in in 2014.

“Chinese investment in Sihanoukville is targeting the high-end real estate market, both for foreigners and locals,” he said.

“They come here to build condominiums, casinos, hotels and other real estate projects but the speedy investment is not stable,” he said.

Kuyhok said increasing Chinese investment in Sihanoukville was at times concerning because the investment was sometimes not clear or strategic.

“Local properties are now going up without reason and it will soon affect other investors who want to invest here for the long-term,” he said.

Overall, Kuyhok said condo living is not generally a goal for Cambodians because they aren’t accustomed to high-rise living. This, however, contrasts with the Chinese mindset who prefer living in a condo.

A resident who has lived in Sihanoukville since 2007 said he has noticed a wave of Chinese investors and tourists flocking to the coastal location in recent years.

“I have witnessed more and more investment traffic in the province over the last few years,” the resident said.

“More housing is being built, as well as casinos, hotels and condos. A lot of them are owned by the Chinese.”

“Also, some big projects and property developments near the coast are being built by Chinese companies that other foreigners can’t afford to buy,” the resident added.

MOST VIEWED

  • ‘Education’ a priority traffic-law penalty

    A top National Police official on June 21 neither rejected nor confirmed the authenticity of a leaked audio message, which has gone viral on social media, on a waiver of fines for a number of road traffic-related offences. General Him Yan, deputy National Police chief in

  • Pursat Ford assembly plant opens

    The Kingdom’s first Ford assembly plant was inaugurated on June 16 in Pursat province amid rising demand for brand-new vehicles among Cambodians. The facility is seen as a game changer for the domestic automobile industry, which could bring a wave of investors seeking to cash

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • Siem Reap’s $18M zoo said to educate public, help wildlife

    Angkor Wildlife and Aquarium Co Ltd has invested $18 million in a zoo in Siem Reap province, which will be opened in October to educate and promote animal conservation as well as attract national and international tourists. Currently, the Angkor Wildlife and Aquarium is building the

  • Angkor photo rules clarified

    The Apsara National Authority (ANA) denied that it had banned the use of camera tripods in the Angkor Archaeological Park, explaining that the confusion stemmed from a long-standing rule which required commercial photographers and videographers to apply for permission to film. The explanation followed a

  • $50B infrastructure plan en route

    The government’s upcoming $50 billion,10-year infrastructure master plan will provide tremendous investment opportunities for domestic and foreign entities, transport experts and economists say. Minister of Public Works and Transport Sun Chanthol revealed the plan to Japanese ambassador to Cambodia Masahiro Mikami on June 15. At