Siem Reap

Siem Reap Real Estate

The real estate market in Siem Reap is currently in a buyer’s market phase, characterized by an oversupply of properties and reduced buyer activity. However, recent trends indicate a revival, with increased rental transactions and growing interest in specific property types like strata-title condominiums and Western-style luxury villas. These developments are supported by the city’s tourism-driven economy and ongoing infrastructure projects, such as the new Siem Reap airport.

Investing in Siem Reap

1. Affordability: Property prices in Siem Reap are more competitive compared to other Southeast Asian markets.
2. Tourism-Driven Demand: The city’s status as a global tourist destination fuels demand for short-term rentals and hospitality-related properties.
3. High Rental Yields: Investors can expect rental returns of 7-9% for luxury villas.
4. Infrastructure Growth: Projects like the new airport and expressways are expected to boost property values.

Properties for sale in Siem Reap

Siem Reap is currently experiencing a buyer’s market, characterized by an oversupply of properties and reduced buyer activity. Property prices have seen a downward trend, with some segments experiencing price reductions of up to 30% and developers are driven to offer more affordable options to attract buyers. Cash-ready buyers have a significant advantage, enabling them to negotiate for properties below market value. Many sellers, having depleted their savings during the pandemic, are more open to accepting lower offers. Investors are acquiring undervalued properties with plans to sell for profit in 4-5 years as signs of market recovery are evident, including a rise in rental transactions over the past year.

Condominiums for sale in Siem Reap

Condominiums are becoming increasingly popular among foreign investors due to their legal ownership structure:

• Freehold Condominium Ownership: Foreigners can own up to 70% of units in a co-owned building (excluding ground floors), making it a secure investment option.

• Popular areas: Siem Reap’s condominium market presents lucrative investment opportunities in some of its most popular areas, each offering unique attractions and advantages. Rose Apple Square, a modern development with 235 luxury units, features Khmer-inspired décor and spacious designs. Slor Kram, near the city center, appeals to locals and expats with its access to attractions and desirable living environment. The Old Market Area stands out for its lively nightlife, shopping, and popular condos like Blossoming Romduol Boutique. Sala Kamreuk, a vibrant hub, offers a mix of residential and commercial properties. Wat Damnak is emerging as a trendy hotspot attracting creative investors with its artsy vibe, local markets, and charming cafes. With its booming tourism and real estate growth, Siem Reap is a prime location for condominium investments in Cambodia.

Villas for sale in Siem Reap

Villas in Siem Reap have become increasingly popular among high-end buyers seeking modern, luxury living spaces with a touch of Cambodian charm. Investors that aim to capitalize on Siem Reap’s tourism industry through rental properties and retirees looking for low cost of living lifestyle.

• Long-Term Leasing Options: Under this arrangement, investors can lease villas or land for extended periods, typically up to 50 years, with the possibility of renewal. This method provides a legal and relatively secure way for non-Cambodians to enjoy the benefits of property ownership while complying with local laws.
• Nominee Structure: In this arrangement, a Cambodian citizen (the nominee) holds the property title on behalf of the foreign investor. The foreign investor and the nominee enter into a series of contracts that aim to give the investor control over the property and protect their interests. These may include loan agreements, lease contracts, and option-to-purchase agreements.

Buy Land in Siem Reap

Land Ownership Restrictions: Foreigners are prohibited from directly owning land in Cambodia, including in Siem Reap. However, there are alternative options for foreign investors interested in gaining control over land. These include forming a Cambodian Land Holding Company, where foreigners can hold up to 49% of shares while Cambodian partners hold the majority 51%.

Dynamic Real Estate Markets in Siem Reap

Siem Reap’s real estate market is evolving rapidly due to urbanization and infrastructure development:

• The city is seeing increased demand for rental properties from expatriates and locals relocating from urbanized areas like Phnom Penh.
• Growth corridors in the eastern and western parts of the city are emerging as hotspots for investment.
• Tourism continues to drive demand for hospitality-related properties, particularly near Angkor Wat and other key attractions.

Offices and commercial spaces in Siem Reap

Siem Reap’s commercial real estate market is evolving, with a growing demand for modern office and retail spaces. As the city expands beyond its tourism roots, several mixed-use developments are emerging to cater to the needs of businesses and urban professionals.

• Rose Apple Square: A vibrant mixed-use development in the heart of Siem Reap, featuring co-working spaces, strata offices, and co-living apartments. It offers modern amenities like a swimming pool and gym, targeting small and medium enterprises, startups, and urban professionals seeking a community atmosphere.
• Borey Bakong Village: Located in the Ampil area, this mixed-use project offers 350 units of commercial spaces suitable for small and medium enterprises and retail shops. It provides essential amenities such as cafes, markets, and 24-hour security, catering to both residential and commercial needs.
• La Maison Plaza: Positioned as Cambodia’s premier shophouse development, this plaza unites various enterprises including shops and services.

Siem Reap real estate challenges

With an oversaturated market, property prices have come under significant strain. Developers are offering lower prices and attractive deals to entice buyers, while some property owners are selling below market value to recover savings depleted during the pandemic. The most significant issue is an oversupply of properties, which has flooded the market and intensified competition among developers and landlords. This surplus has led to pressure on prices and occupancy rates, forcing a slowdown in new property launches, especially in the landed property segment. While challenges remain, signs of stabilization and growth are emerging in specific segments, such as modern condominiums and high-end villas. As infrastructure improvements progress and investor confidence rebuilds, Siem Reap’s real estate market could gradually find its footing again.

Real Estate in Siem Reap

The Siem Reap real estate market offers exciting entry points for investors and buyers, thanks to its diverse property options, competitive pricing, and growing appeal as a tourism and cultural hub. With an oversupply of properties and favorable buyer conditions, it’s an opportune moment to enter the market, especially for those seeking undervalued assets with potential for long-term appreciation.

Growth prospects remain promising, as infrastructure improvements, increased rental demand, and recovering investor confidence signal a positive trajectory for the market. Additionally, Cambodia’s favorable real estate policies, including freehold ownership for foreigners in strata-titled properties, make Siem Reap an accessible and attractive destination for international buyers.

As the market continues to stabilize, Siem Reap stands poised to offer lucrative opportunities for those ready to capitalize on its potential. Whether you’re a seasoned investor or a first-time buyer, the city’s unique blend of culture, development, and policy support provides a compelling case for real estate investment. We provide insights into the major new condominium projects in Siem Reap, catering to a variety of budgets, including off-plan opportunities. Our goal is to help you evaluate potential risks and take proactive steps to minimize them when investing in an off-plan condominium in Siem Reap. Keller Henson stay updated on the latest projects in Siem Reap to guide you toward a secure and rewarding real estate investment journey in this dynamic city.