sihanoukville collapse - Real estate prices down 70%

[ThomasThBKK]

 

 

Interesting article about Sihanoukville: https://southeastasiaglobe.com/how-to-restore-sihanoukville/

 

Some key "facts": 

 

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Still, the Chamber’s own estimates show a cratering in demand for space in Sihanoukville. According to their statistics, the city’s once-red-hot casino space was previously selling for as much as $70 per square-metre. Now, the Chamber says, the same space might sell for as little as $5 per square-metre, provided one could find a buyer.

 

Residential real estate rental prices have also tumbled some 70% from their peak, having a mixed impact on Sihanoukville locals. For those who own property, they’ve lost the inflated rates provided by renting to the Chinese newcomers. But for most others, the drop is a return to much-needed normalcy.

 

RE down a lot.

 

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“Casinos often do really bad things to people, and are not in line with our values. Those who have opened casinos here have likely cheated people, promised them fake money, caused a lot of social instability, and caused an array of other problems. So the paths that our businesses and theirs have gone down are very different.”

 

Lol who would have thaught? 

 

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We have already stopped working for two months, but we have not received compensation for four months of work,” reads the message, apparently written by Chinese construction workers. “Please come to help us. [We believe] that the Cambodian and Chinese governments will support us. Please help decide the future for us workers, and our salary, the wages we earned through sweat and blood, and let us go home.”

 

 

Good luck... 

 

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In a past life, Sihanoukville was a seaside holiday town where residents could make a bustling trade on both domestic and Western tourists. A staging area for Cambodia’s islands in the Gulf of Thailand, Sihanoukville also footed traffic for those looking to pass some time before catching a ferry, wiling away sunlit hours in the city’s beachfront bars and restaurants.

 

Ruined by 2 greedy governments. Poor cambodians and expats.

 

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Sihanoukville’s rapid growth buckled the city’s roads and strained its sewage systems under the weight of a population boom estimated to have surpassed 300,000 in 2019. For a city that had counted less than 90,000 residents a decade earlier, this was an incredible turn made largely in just a few years’ time.

But as the casino business lost big under the government online gambling ban, many new Chinese arrivals flooded out of the city, if not the country.

 

Surprise surprise. Rats leaving the sinking ship. 

 

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“We picked up very quickly that it was not your typical market,” he said.

By the time he finished his research, Lee estimated 85-90% of the revenues made in-house at Sihanoukville’s casinos were from online gambling.

Aka money laundering.

 

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Nikkei reported earlier this month the results of a Chinese business association survey that found 800 restaurants have shut down in the aftermath of the ban. At the heart of the contraction, local media cite provincial labour department data revealing 56 of 75 registered casinos have closed since the ban.

 

Tja - if you base your business on a fad, that's what you get. Still sucks for the locals.

 

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While construction on many high-rise buildings has stalled or been abandoned outright, the land below is alive with a crush of activity. As part of a roughly $300 million infrastructure overhaul footed by the Cambodian government, a group of seven construction companies are now at work rebuilding the city’s roads and water drainage systems. 

 

Lol no dude, this will end up as ghosttown, similar to the few bkk buildings that stopped developing in the asia financial crisis - it's way to expensive to get rid of a high rise, abandoning is what will happen in 100% of the cases.

 

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The second part of that overhaul includes a reengineering of Sihanoukville’s canals, a vital system to funnel rainwater – and increasingly sewage and plastic waste – into the sea. 

 

Thank you for destroying our planet and killing our ocean - <deleted>.

 

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The wide-ranging discussion hit topics such as garbage-strewn beaches and a lingering feeling of insecurity on the streets, a holdover from the organised crime outfits that had worked in and around the gaming industry.

 

Chinese and cambodian crime, i don't believe ????

 

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For landowners, Sokheng says the Chamber is asking those who rented to Chinese developers to consider options like forgoing rent for one year to ease the burden of construction.

That’s a big ask, especially for those who relied on that income to pay off their own debt for projects elsewhere. To make that possible, Sokheng is also asking the state to relax taxes on construction materials, in addition to lobbying for extensions to loan repayment periods for those who took on debt to invest in Sihanoukville.

 

DEBT TRAPPPPPP, have fun coming out of their idiots. Kudos to everyone who managed to sell their worthless land to chinese tho, good job.

 

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A neighbour wandered over to lend her own opinion. Though she’d experienced severe flooding, a now common phenomenon in a city where most of the natural water features had been filled in for development, she was now afraid she’d lose her home altogether.

“They’ve already widened the canal,” she said, looking at the sickly river as it wound through dense housing. “Why can’t they just leave it alone?”

 

Governments are truly evil. 

 

TL;DR: This is all clearly the white mans fault, only digital nomads, backpackers and retirees can be blamed for the cambodian demise - not. I hope our overloards take a <deleted> lesson from this, but i have little hope. 

 

[bkk6060]

A filthy stinking hole of a place way past its good times. Could happen in Thailand if they are not careful.

 

[ExpatOilWorker]

Just now, bkk6060 said:

A filthy stinking hole of a place way past it good times. Could happen in Pattaya if they are not careful.

 

In many ways it is already happening in Pattaya, albeit at a slower pace and also not such a steep decline.

[Destiny1990]

So as of today how much in Sihanoukville for a high floor 35 sqm one bedroom seaview condo then??

[ThomasThBKK]

3 hours ago, Destiny1990 said:

So as of today how much in Sihanoukville for a high floor 35 sqm one bedroom seaview condo then??

i wasn't able to find any english speaking sales that aren't month old and totally overpriced.

 

to rip off poor cambodians we would need to actually go there imo

 

The condos i saw were like 2000 USD per squaremeter, doesn't seem particular cheap at all. 

[Destiny1990]

9 hours ago, ThomasThBKK said:

i wasn't able to find any english speaking sales that aren't month old and totally overpriced.

 

to rip off poor cambodians we would need to actually go there imo

 

The condos i saw were like 2000 USD per squaremeter, doesn't seem particular cheap at all. 

Exactly so they never dropped 70% In value its balony.

[gk10002000]

" 300,000 online gambling workers "! in the article.  eh?  And where were the online gamblers, all in China? 

 

What a mess.   Pattaya as others have mentioned in my mind really got worse not just after the Russian Condo build glut a few years back but also after the bangkok floods.  So many people migrated to Pattaya as one of the nearer cities with some infrastructure in my opinion. 

 

"The second part of that overhaul includes a reengineering of Sihanoukville’s canals, a vital system to funnel rainwater – and increasingly sewage and plastic waste – into the sea. "

 

That is a great summary of the mindset in Thailand too.  Funnel the sewage and waste into the sea. No mentality or desire to treat any problem properly. 

[ThomasThBKK]

10 hours ago, Destiny1990 said:

Exactly so they never dropped 70% In value its balony.

Nah it's more that they were absolutely overpriced, like monaco level of pricing.

 

These RE websites are all absolute <deleted>, https://www.realestate.com.kh/buy/sihanoukville/land/

 

look at their ridicolous prices. 10 mio USD for a 2000 sqm plot of FARMLAND, that's like 1 rai basically for 10 mio usd. You get finest Phuket beachfront land for 10 mio THB per RAI. 

 

These sites and agents are as fake as the whole craphole called cambo. 100% scam.

 

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Still, the Chamber’s own estimates show a cratering in demand for space in Sihanoukville. According to their statistics, the city’s once-red-hot casino space was previously selling for as much as $70 per square-metre. Now, the Chamber says, the same space might sell for as little as $5 per square-metre, provided one could find a buyer.

 

 

They can't even find buyers for their junk. There can sure deals be made if one would actually go there and do his work, you never find good RE deals on the internet. We bought all our land from thais with gambling issues way below market rate here too. Thanks degen thais ❤️

 

On the other hand there have been many places like this before and they NEVER recovered.

Japan for example, and that's not even a <deleted>hole. But since the japanese RE bubble bursted it never recovered and that was decades ago, same will be here, just worse.

 

 

 

According to: https://capitalcambodia.com/massive-fall-in-sihanoukvilles-land-prices-and-property-rents/ 

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Sihanoukville land prices in the two months before the ban, land for development measuring 2,000 square metres (sqm) and above on a beach location cost between $800 and $1,200 per sqm, while land in the city centre was priced at $1,200 to $1,300 per sqm. However, after the ban, it is estimated these prices have dropped from 10 percent to 30 percent, according to the report from CBRE, a commercial real estate services and investment firm.

 

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He points out that the government claims that it collects very little revenues from online gaming. Instead, the value goes to the real estate sector. He adds that for now buildings for rent at $20,000 per month in Sihanoukville have no tenants or are forced to drop it around 50 percent. On top of that, land prices that were $500 per sqm have now fallen to only $150 per sqm – and have no buyers no buyers.

 

Seems to have been absolute overpriced, 20 k USD for rent in that craphole?! A price only criminals would pay for money laundering purposes, so a 70% drop doesn't surprise in the slightest. 

 

CBRE is usually reliable, as they are american and not some made up asian <deleted>: https://en.wikipedia.org/wiki/CBRE_Group

 

 

This article explains it all: https://www.khmertimeskh.com/50672388/property-market-in-sihanoukville-decline-but-no-serious-threat-to-other-provinces

 

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”At its height, rental fees ranged from $200 to $500 per sq m which didn’t reflect the real market value of only $20 to $30 per sq m” he said. Some investors willingly offered these inflated prices as they only wanted short-term gains from reselling, and money laundering.

 

 

Asians love their stupid money games, play stupid games, win stupid prices.