More than 100 unfinished construction projects in Cambodia’s coastal province of Preah Sihanouk have resumed work as the government’s investment incentives begin to bring stalled developments back into activity, provincial authorities said.
The progress comes under a special investment promotion initiative designed to address Sihanoukville’s large inventory of incomplete buildings and restore investor confidence in one of Cambodia’s most important coastal economic centres.
At a public forum presenting Preah Sihanouk province’s first-half 2026 progress report, Governor Mang Sineth said the initiative has approved 491 investment applications representing approximately $8.42 billion in capital.
Of 216 stalled or incomplete sites identified across the province, more than 100 have restarted construction, while nearly another 100 are completing administrative and regulatory requirements before resuming work.
Key Facts
| Information | Latest figure |
|---|---|
| Investment applications approved | 491 |
| Investment capital represented | About $8.42 billion |
| Stalled/incomplete sites identified | 216 |
| Projects that have restarted | More than 100 |
| Other sites preparing to restart | Nearly 100 |
| Commercial, multifunctional and residential projects | 1,564 |
| Individual structures | 1,908 |
| High-rise developments | 70 |
| High-rise buildings | 108 |
| High-rise range | 20–43 storeys |
Sihanoukville Still Carries a Large Construction Inventory
Preah Sihanouk currently has 1,564 commercial, multifunctional and residential development projects, covering 1,908 individual structures.
Among them, 70 developments contain 108 high-rise buildings ranging from 20 to 43 storeys, highlighting the scale of construction that took place during Sihanoukville’s rapid expansion.
The city experienced an extraordinary property and construction boom from around 2017, driven largely by Chinese investment. The influx transformed Sihanoukville’s skyline but also created a highly concentrated property market that became vulnerable when foreign investment and demand weakened.
The downturn was intensified by Cambodia’s 2019 decision to stop issuing and renewing online gambling licences and subsequently by the COVID-19 pandemic, which disrupted investment and led many foreign investors to leave.
Government Incentives Aim to Unlock Stalled Buildings
The government introduced the Sihanoukville Special Investment Promotion Program to encourage investors to restart unfinished developments, resolve investor and landowner issues and stimulate new business activity.
The programme provides measures including investment incentives, streamlined administrative procedures, construction-permit facilitation and investor matching. It has been extended to give more projects time to benefit from the measures.
Earlier figures showed the programme was already attracting significant investment interest. Between 2024 and February 2026, incentives had been approved for 467 projects worth about $8.18 billion, including 209 projects connected to unfinished structures.
The latest provincial figure of 491 applications and $8.42 billion therefore indicates that the programme has continued to expand.
However, approved investment should not automatically be interpreted as capital already spent or completed construction. The number represents applications receiving investment incentives, while individual projects can take time to secure financing, complete regulatory requirements and resume physical construction.
Why Sihanoukville’s Property Market Remains Challenging?
Real estate analysts say the recovery faces structural challenges because much of Sihanoukville’s previous property boom was built around foreign demand rather than Cambodia’s domestic market.
Chea Kimsia, Senior Research and Advisory Manager at real estate firm Advantage Property Services, told KPT English that many projects were developed with pricing aimed at foreign investors and buyers.
When foreign capital slowed, developers faced difficulty adjusting prices to levels affordable to Cambodian buyers, with a potential domestic entry range of around $30,000 to $40,000 cited in the report.
This mismatch between the existing building stock and current market demand remains one of the key challenges for Sihanoukville’s property sector.
Earlier research from Advantage Property Services also identified the structural quality of some unfinished buildings as an obstacle to attracting new investors, while the downturn in China's property market continues to affect a city that previously depended heavily on Chinese capital.
Recovery Is Moving Beyond Property Alone
The effort to revive stalled buildings is taking place alongside broader plans to reposition Sihanoukville as a more diversified economic and tourism centre.
The province launched its Tourism Development Plan 2026–2030 in September, with objectives including improving tourism products, service quality, safety and cleanliness while developing its beaches, islands and marine tourism sector.
Infrastructure development is also strengthening the province's long-term economic position.
Sihanoukville is home to Cambodia’s deep-sea port, while the Phnom Penh-Sihanoukville Expressway provides a faster connection with the capital. Cambodia and Japan also finalized a $119 million financing agreement in July 2026 for the second phase of the Sihanoukville Port New Container Terminal Development Project.
The government is separately seeking private-sector participation in a proposed Sihanoukville Logistics Complex intended to strengthen the province's role in national supply chains and maritime trade.
These developments suggest that the province's recovery is increasingly being linked to logistics, manufacturing, tourism and legitimate commercial activity rather than relying solely on high-rise property development.
Angkor Times Analysis: From Construction Boom to Market Reset
Sihanoukville's current challenge is not simply how to finish unfinished buildings. It is how to match the existing building stock with a more sustainable source of demand.
The government's incentives can help reduce one major obstacle by making it easier for stalled projects to find new investors, resolve administrative problems and return to construction. The latest figure of more than 100 restarted projects is therefore a meaningful sign of progress.
But completing buildings does not automatically create a healthy property market.
The longer-term recovery will depend on whether completed developments can attract genuine demand from residents, businesses, tourists, manufacturers, logistics operators and investors. Sihanoukville's improving transport infrastructure, port capacity and tourism strategy could help broaden that demand.
The most important transition may therefore be from speculative construction to productive economic use.
If the province can convert unfinished structures into functioning hotels, residences, offices, commercial facilities, logistics-related developments and other productive assets, the current investment programme could become part of a broader economic restructuring of Sihanoukville.
Frequently Asked Questions
Why did so many buildings in Sihanoukville become stalled?
Sihanoukville experienced a rapid construction boom driven heavily by foreign, particularly Chinese, investment. The market was subsequently hit by Cambodia's 2019 online gambling policy, the COVID-19 pandemic and weaker foreign investment, leaving many developments incomplete.
How much investment has the government's Sihanoukville programme approved?
According to the latest provincial report supplied for this article, 491 applications representing approximately $8.42 billion have been approved under the investment promotion initiative.
How many stalled projects have restarted?
More than 100 of the 216 identified stalled or incomplete sites have resumed construction, while nearly 100 others are working through administrative and regulatory requirements.
Does $8.42 billion mean that amount has already been invested?
Not necessarily. The figure represents capital associated with approved investment applications. Approval and actual deployment of capital are different stages, and projects may require additional financing, permits and other steps before construction or operations fully resume.
What could support Sihanoukville's longer-term recovery?
Beyond property, the province has opportunities in tourism, logistics, manufacturing and maritime trade. The deep-sea port, expressway, tourism development strategy and planned logistics infrastructure are among the developments that could support broader economic activity.