Poipet – The latest real estate boomtown
8 August 2018
Cambodia’s northwestern border town of Poipet is fast becoming a rival to Sihanoukville in terms of real estate development.
Poipet, which borders Thailand and hosts an important border crossing between the two neighboring countries, is in the middle of a building boom. Casinos, hotels, commercial buildings, and residential developments are going up in different parts of the town, fueled by massive foreign investments and an economic boom. Property values have gone up in many parts of Poipet as a result.
A part of Banteay Meanchey Province and occupying 2,620,000 square meters, Poipet is divided into three sangkats, namely: Poipet, Phsar Kandal and Nimeth. The town is home to more than 140,000 residents, both Cambodians and foreigners.
Hor Kunthea (Roy), CEO/Chief Executive Officer of Sokha Residences Group, said he was not surprised by the development, noting that the town’s property sector has shown great potential for rapid growth in the last six months. He identified Sangkat Poipet as the area with the best potential.
“The other two sangkats also offer good investment opportunities and property values there are also rising,” Mr Roy stressed.
According to him, many small and large scale developments have entered or are eyeing to enter into the Poipet property market. “Many investors from the outside are eyeing Poipet as a great investment destination,” he said, noting that this has contributed to the continuing increase of property values and prices.
In Poipet, according to Vtrust Appraisal’s 2017 Housing market and Outlook Report, 16 projects were completed last year, releasing 1,694 units into the market. Also, 909 units reached the market in the first half of 2018.
Poipet Governor San Sean Ho said there is no better time to develop real estate in the town. We, in the Government, encourages all investors to put their money into various real estate like hotels, guesthouses, residential houses, restaurants, and other facilities for tourists.
In Poipet, according to him, there are many existing, ongoing, and projects that are in the pipeline or drawing board. The town is currently hosting nearly 30 casinos, 10 boreys (gated residential community) projects and a number of factories in the Special Economic Zone that produce electronic, clothing, and other products. There are also at least 50 companies subdividing residential plots for resale.
Poipet’s first condominium project is now underway. Sokha Residences Group, which will occupy almost four hectares of land, is a combination of condo and boreys. Sokha Residences will have a 21-story building of 543 units with super stores, commercial and office space, sports club, swimming pool, sky bar, penthouses, and 287 borey units.
Condo units are priced from $27,864 to $1,270,000, while borey units have the selling price of between $30,000 and $50,000 per unit. Sokha Residence is located in the Kilo Lekh Boun, Sangkat Phsar Kandal, Poipet.
The government is also eyeing to develop Poipet’s tourism potential. Mr San said they are planning to develop 500 hectares of land into a premier tourism destination complete with a golf course, artificial river, giant garden, and a floating market. He said that once the project will be built, they are expecting thousands more of tourists will visit Poipet.