Sihanoukville and Siem Reap: Contrasting Outlooks for Cambodian Real Estate in the First Half of 2025

The year 2025 marks a significant development for real estate in Cambodia, where the coastal cities of Sihanoukville and Siem Reap are experiencing distinct but equally promising dynamics, according to the latest report from Knight Frank. While Siem Reap is facing uncertainty due to regional tensions, Sihanoukville is gradually establishing itself as a future strategic hub, driven by major infrastructure development.

Siem Reap

Siem Reap: Tourism in Transition, a Wait-and-See Real Estate Market

The recovery in tourism in Siem Reap, which began in 2024, continued during the first months of 2025 but came to a sudden halt in the second quarter due to the controversial closure of the land border between Cambodia and Thailand.

This forced detour has had a direct impact on international arrivals, which relied heavily on this land and sea corridor. Despite these challenges, new hope has been brought by the launch of the new Techo International Airport in Phnom Penh, which, together with the existing Siem Reap-Angkor Airport, could revitalise the region's appeal.

Various government campaigns and international partnerships, notably the Cambodia-China Tourism Year 2025, illustrate this desire to increase the average length of stay of visitors and create more tourist and cultural attractions. Ticket sales figures for the Angkor Archaeological Park show steady growth since the pandemic, fuelled by visitors from countries such as China, the United States, the United Kingdom, Australia, France and Japan. However, the second half of the year could still be affected by regional tensions.

In terms of residential real estate, Siem Reap presents a mixed picture: a market dominated by condominiums, which are performing better than single-family homes, especially those far from the city centre where absorption is slow. The low local population density, estimated at 250,000, limits demand, with many Cambodians now preferring to purchase land to build their own homes. Prices range from $430 to $1,700 per square metre for houses and $1,100 to $2,700 for condos, with gross rental yields of around 6-7%.

The hotel sector is showing encouraging signs with nearly 9,600 rooms, mainly concentrated in the Svay Dangkum and Sla Kram districts. Nevertheless, there are few hotel projects in the pipeline, with a few developments such as Angsana Siem Reap scheduled for the end of 2025, while others, such as PARKROYAL (2027) and Rosewood, are still uncertain. The retail sector is undergoing an adjustment, marked by the closure of several underperforming shopping centres, while the market is shrinking around areas with high tourist traffic and seeing the emergence of new, more intimate formats tailored to budget travellers.

Sihanoukville: Towards an Industrial and Tourist Hub with a Changing Real Estate Market

Sihanoukville, long perceived as a port and tourist city, is undergoing a profound transformation. A promising gateway to the coastal region, the city is undergoing a major industrial redevelopment phase with 297 projects approved through May 2025, totalling more than $7 billion in investments related to urban beautification and port infrastructure.

Sihanoukville

Unlike Siem Reap, the residential market remains quiet, held back by a less dense local population. With 11,742 property units recorded across 21 projects, the majority of which are condominiums and more than 1,700 detached houses, demand is still subdued.

Only one condominium project was launched in the first half of the year, but the resumption of ongoing projects could bring the total number of units to more than 31,800 by 2029. Faced with uncertainty, developers are focusing on completing and converting existing projects, with an emphasis on affordable housing for the Cambodian population.

In the hotel sector, the transformation is notable, with a current supply of more than 12,200 rooms and the arrival of new international brands, which are expected to bring an additional 10,000 rooms in the coming years.

The majority of hotel capacity is concentrated in the Sangkat Boun and Sangkat Bei districts. This development is supported by a ‘cautiously optimistic’ vision on the part of the Cambodian authorities, who are working to improve connectivity and the urban environment.

Finally, Sihanoukville's industrial and commercial activity is shifting towards greater specialisation in logistics, advanced manufacturing and more sustainable tourism. The office market is breaking records with nearly 192,000 square metres of net leasable space, plus 71,000 square metres in the pipeline, while total retail space is around 92,700 square metres, with an expected expansion of more than 62,000 square metres.