Tourism pushing up prices in Siem Reap
Land prices in Siem Reap town continued to increase in the first half of 2017, thanks to the growing strength of the tourism industry, realtors told Khmer Times. The provincial capital saw prices rise about five percent in residential areas in the first half of the year and five to six percent in commercial areas, said Po Eavkong, the CEO and co-founder of Advance Real Estate Company.
“Siem Reap land prices rose last year because of the increasing number of tourists. As a result, hotels, entertainment venues, shops and services saw rising demand. The tourism industry is invigorating the property market,” Mr. Eavkong said.
Asking prices for land from Psar Leu market to the Royal Palace on National Road 6 range from $1,000 to $1,500 per square metre and can be higher, depending on the land size and location of the property, he said.
From Psar Leu market to Helistar they range from $1,000, while from Helistar to the cultural village they range from $500 to $800, Mr. Eavkong said. Asking prices fall to between $300 and $600 along National Road 6 from the cultural village to the airport, he added.
“When we talk about the property in Siem Reap town, we focus on four communes – Sla Kram, Svay Dankum, Sala Kanraeuk and Kouk Chak – because they see the most transactions,” Mr. Eavkong said, adding that the property market in the tourist town is the most active in the country, after Phnom Penh.
Mr. Eavkong said the tourism sector creates many jobs for local people and also makes more income for the national budget and as well as invigorates the economy.
CL Realty CEO Sear Chailin agreed that the tourism industry was driving the property market in Siem Reap town.
“Not only residential but also commercial areas saw remarkable development this year, due to the flow of tourists into the town,” he said.
“Demand for tourist venues like hotels, guesthouses, shops and restaurants is driving the property market in Siem Reap,” he added.
He is also optimistic about the future of the property market in Siem Reap, saying: “My company was authorised to sell a project which covers 26 hectares and features villas, flats and land subdivision.”
The project is 14 kilometers from Siem Reap city’s centre.
“We started to sell the project in 2016 and finished our cooperation in early 2017, but we are still involved in the project,” he said.
“For land subdivision in the project, land which covers 100 square metres per plot was $4,000 per plot before, but it has increased to $7,800 per plot now,” he said.
“The land price increased, thanks to demand for land and property transactions, not only for hotels, guesthouses or restaurants, but also for residential projects,” Mr. Chailin added.
In the first half of 2017, revenue totals reached $52.1 million, a 67 percent rise compared with the first six months of 2016. Tourist arrivals also rose by 13 percent, according to a recent report released by Angkor Enterprise.
There were 186 hotels in Siem Reap with a total of 12,053 rooms as of the end of September in 2015, according to the provincial tourism department. Of these, 14 were five-star hotels and 25 were four-star hotels, according to the department.