Siem Reap Hotel & Branded Residences 2023

Overview

Southeast Asia has been making significant strides in the real estate market, particularly in the rise of hotel-branded residences with international hotel brands such as Aman, Four Seasons, and Banyan Tree. These hotel-branded residences span various segments, ranging from midscale to ultra-luxury. However, Cambodia’s residential market is yet to catch up with this trend, as such products are still limited in the market. In recent years, several large-scale property development projects have been observed in Phnom Penh and Sihanoukville, but Siem Reap has lagged behind, primarily due to its heavy reliance on tourism and lack of sector diversification.

CAMBODIA REAL ESTATE MARKET PRICE

The residential market in the city consists mainly of affordable landed properties. This is largely attributed to investment trends leading up to 2017, which saw most funds directed towards boutique hotels and restaurants, leaving larger residential developments on the backburner. The prime residential properties are situated around the hub of Pub Street, Sivutha Boulevard, and along the Siem Reap River. Properties on the outskirts of Siem Reap are not popular due to their remote locations, far from shops, hospitals, and schools.

However, the property market in Siem Reap is undergoing transformation due to political stability, government plans for a new city in the east of Siem Reap, the upcoming international airport, and massive improvements to the road network. These developments are anticipated to broaden the destination’s tourism appeal and energize the local economy, thereby elevating land prices and stimulating growth in the residential market. Notably, the city is witnessing the introduction of an upscale hotel-managed residence (Angkor Grace Residence & Wellness Resort) and mixed-use development projects. Moreover, residential projects are diversifying to include more mid-range options alongside ongoing affordable housing projects.

Despite the COVID-19 pandemic, the launch of new real estate projects continues, though sales performance remains subdued. Both local Khmers and buyers from other Asian countries are showing interest, presumably motivated by the discounts currently available. Cambodian buyers are favoring land investments, while foreigners are typically more attracted to condominiums, largely due to the ease of purchasing these strata-titled developments.

In terms of buyer preferences, the quality of the property has surpassed location and price to become the most crucial consideration. This change indicates that property buyers in Siem Reap are becoming increasingly discerning and financially literate, especially concerning the prerequisites for property purchasing in the Cambodian market. Currently, the majority of buyers are looking for second homes or investment opportunities.

#SiemReapHotelandTourismReport #SiemReapResidences #SiemReapBrandedResidences #CambodiaBrandedResidences