Villa resorts set on private islands have seen a growing trend in the Asia Pacific, especially the Maldives. This has now reached Cambodia with last year’s opening of Song Saa.
The first of its kind in the country, the US$22 million (S$28 million) development managed by Song Saa Hotels and Resorts, entitles owners to a maximum stay of 30 days per year. It is open at all other times, with rents at US$1,336 (S$1,695) to US$5,153 (S$6,538.56) per night, reported The New York Times.
Some villas acquired prior to construction yield a guaranteed return of 10 percent for the first three years, while the other properties yield a guaranteed return of eight percent for five years starting from the date of acquisition.
According to Song Saa Hotels and Resorts Chairman Rory Hunter, the villas are a promising investment considering they are less expensive than comparable units in the Maldives, and because the country’s luxury property market is less developed compared to nearby Thailand.
“As the country grows and tourism grows and becomes more developed, the value of those properties should only increase,” noted Hunter.
Meanwhile, all 27 villas have been completed, with 20 already sold since sales began in December 2009. The remaining seven comprise a mix of one- and two-bedroom villas.
Located 29 kilometres from the mainland, Song Saa consists of two islands, of which one is uninhabited, and can be reached by guests via a 35-minute speedboat ride from Sihanoukville, a port city about 180 kilometres from Phnom Penh. Others come by helicopter which lands on nearby Koh Rong Island.
Leases for the villas fall under Brocon Investment’s 99-year master lease.
Image: Song Saa Private Island resort in Cambodia.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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