Cambodian property professionals are advising potential property investors in Siem Reap to look towards retail strips instead of hotels.
While Siem Reap’s hotel industry is well supplied, it is short of an organized retail strip, said Sunny Soo, Cambodia Chief of Knight Frank.
The area has more than enough hotels, making it less appealing to hotel investors, he added.
Hotels also see weak occupancy rate, though few are doing fairly good.
CBRE’s Simon Griffiths shared the same concerns, saying the town currently has an oversupply of hotels.
“Developers have been looking at possible residential developments for expats and the growing middle-class market.”
“So that’s a shift away from tourism and retail is certainly a viable option, catering for people with disposable income. But that’s still a few years away.”
Siem Reap sees an increasing developer interest, he said.
While the area could still cater to additional apartments, investors looking to build for the expat retiree and holiday-home market are more attracted in areas like Phnom Penh and Sihanoukville, Soo of Knight Frank said.