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Everything you need to know before buying real estate is included in our Cambodia Property Pack
Cambodia's property market in 2025 offers diverse investment opportunities with attractive rental yields ranging from 6-8% and relatively affordable entry points compared to neighboring countries. As of June 2025, the market is showing signs of recovery after a correction period, with Phnom Penh condos stabilizing around $2,650 per square meter and coastal properties continuing their steady growth trajectory.
If you want to go deeper, you can check our pack of documents related to the real estate market in Cambodia, based on reliable facts and data, not opinions or rumors.
Cambodia's property market offers foreigners direct ownership of strata-titled condominiums above ground floor, with rental yields averaging 6-8% in prime locations like Phnom Penh and coastal tourism hubs.
Property prices have stabilized after a market correction, creating opportunities for long-term investors seeking affordable entry points and steady rental income in Southeast Asia's emerging market.
| Investment Aspect | Key Details | 2025 Status |
|---|---|---|
| Foreign Ownership | Strata-titled condos only (above ground floor) | Up to 70% of building units |
| Rental Yields | 6-8% gross in prime areas | Phnom Penh: 6.96%, Coastal: 7.9% |
| Entry Budget | Studio condos from $50K | 1BR: ~$94K, 2BR: ~$239K |
| Price Trends | Stabilizing after correction | Phnom Penh: $2,650/sqm, flat growth |
| Best Locations | BKK1, Russian Market, Siem Reap | High expat demand, tourism recovery |
| Legal Process | 2-4 weeks completion | 4% transfer tax, 0.1% annual property tax |
| Market Outlook | Gradual recovery phase | Long-term growth potential, policy support |
What property types can you buy or invest in across Cambodia?
Cambodia offers several distinct property types for investment, with clear restrictions for foreign ownership that you need to understand before making any decisions.
Condominiums represent your main option as a foreign investor since they're the only property type you can directly own through strata titles. These high-rise units, typically located above ground floor levels, come with modern amenities and are concentrated in Phnom Penh and major tourist destinations. Foreigners can own up to 70% of units in any given condominium building.
Apartments differ from condominiums in that they're often found in older converted shophouses or smaller buildings without strata titles. While you can rent these properties, direct ownership requires Cambodian citizenship or indirect ownership structures. Serviced apartments represent a growing segment, particularly popular among expatriates and business travelers.
Villas and standalone houses with gardens appeal to families and higher-end buyers, but foreigners cannot directly own the land underneath. These properties require either a Cambodian majority-owned company structure or long-term lease arrangements, both carrying additional legal complexities and costs.
Shophouses combine commercial ground floors with residential upper levels, making them popular investment vehicles in urban areas. Borey developments, which are gated communities featuring townhouses and villas, have gained significant traction with Cambodia's rising middle class but remain off-limits for direct foreign ownership due to land restrictions.
It's something we develop in our Cambodia property pack.
Does it make more sense financially to buy or to rent right now in Cambodia?
The rent versus buy decision in Cambodia depends heavily on your timeline, residency status, and investment goals, with current market conditions favoring different strategies for different situations.
Renting offers significant advantages for most expatriates and short-term residents. Monthly rental costs remain relatively low compared to Western standards, with decent one-bedroom apartments in Phnom Penh's expat areas available for $400-600 per month. This flexibility becomes particularly valuable given Cambodia's evolving visa regulations and the uncertainty many foreigners face regarding long-term residency status.
Buying makes financial sense if you plan to stay in Cambodia for more than five years or want to generate rental income. With property prices having stabilized after the 2019-2023 correction period, you're entering the market at more reasonable valuations rather than peak prices. Gross rental yields of 6-8% in prime locations provide attractive income streams compared to many developed markets.
The financial calculation shifts significantly based on your intended use. For personal residence, buying eliminates ongoing rental payments and provides stability, but ties up capital that might generate better returns elsewhere. For investment purposes, the current market offers opportunities since many developers and sellers are motivated after the recent price corrections.
Transaction costs include a 4% transfer tax and various legal fees, meaning you need several years of ownership to offset these initial expenses through saved rent or rental income. Given these factors, renting remains the better choice for stays under three years, while buying becomes increasingly attractive for longer commitments.
How much do different types of properties cost — in the past, today, and what's the price trend forecast?
Cambodia's property prices have undergone significant changes over the past few years, with the market now entering a stabilization phase that creates different opportunities across property segments.
| Property Type/Location | 2021 Price | 2025 Current Price | 2027 Forecast |
|---|---|---|---|
| Phnom Penh Condo (per sqm) | $2,700 | $2,650 | $2,922 |
| Coastal Condo (per sqm) | $1,500 | $1,600 | $1,750 |
| 1BR Condo Phnom Penh | $95,000 | $94,000 | $105,000 |
| 2BR Condo Phnom Penh | $240,000 | $239,000 | $265,000 |
| 3BR Condo Phnom Penh | $254,000 | $254,000 | $280,000 |
| Land Kampot (per sqm) | $80-200 | $50-150 | $70-180 |
| Siem Reap Villa | $180,000 | $175,000 | $195,000 |
The historical context shows Cambodia experienced a property boom from 2016-2019, driven primarily by Chinese investment and speculation. Prices peaked in 2019-2020 before entering a correction phase that lasted through 2023, with some segments seeing 10-15% price reductions from their peaks.
As of June 2025, the market has largely stabilized with prices showing minimal movement in most segments. Phnom Penh condominiums have plateaued around $2,650 per square meter, while coastal properties in Siem Reap and Sihanoukville continue showing modest growth due to tourism recovery and infrastructure improvements.
The forecast through 2027 suggests gradual price appreciation of 2-4% annually, driven by Cambodia's economic growth, infrastructure development, and recovering tourism sector. However, this growth will likely be more sustainable and less speculative than the previous boom period, making it more suitable for long-term investors rather than short-term speculators.
What are the current real estate market trends in Cambodia, and how have they changed over the last few years?
Cambodia's real estate market has undergone a dramatic transformation since 2021, shifting from a speculative boom to a more mature, fundamentally-driven market that offers different opportunities and challenges.
The 2021-2023 period marked a significant correction phase following the pre-pandemic speculation bubble. Chinese investment, which had driven much of the previous growth, decreased substantially due to capital controls and shifting investment priorities. This led to an oversupply of condominiums, particularly in Phnom Penh, causing prices to drop 5-15% from their 2019-2020 peaks.
Market recovery began in 2024 with renewed government support for affordable housing initiatives and first-time buyer programs. The investor profile has diversified significantly, with increased participation from Japanese, Western, and regional ASEAN buyers replacing the previously dominant Chinese investment. This diversification has created more stable demand patterns and reduced vulnerability to single-country policy changes.
Rental markets have shown resilience throughout this period, with gross yields remaining attractive at 6-8% in prime locations. Tourism recovery in Siem Reap and coastal areas has particularly benefited short-term rental investments, while Phnom Penh continues attracting long-term expat tenants despite some ongoing vacancy issues in oversupplied buildings.
Current trends as of mid-2025 include increased focus on sustainable development, infrastructure-linked investments along major transportation corridors, and growing interest in secondary cities like Kampot and Battambang. The market now favors quality over quantity, with buyers becoming more selective about location, developer reputation, and actual rental potential rather than speculative appreciation.
What are the exact steps and legal process to buy property in Cambodia, especially as a foreigner?
The legal process for foreigners buying property in Cambodia involves specific steps and restrictions that require careful attention to documentation and compliance with ownership laws.
Foreign ownership is limited to strata-titled condominiums located above the ground floor, with foreigners collectively allowed to own up to 70% of units in any building. You cannot directly own land, houses, or ground-floor commercial properties, though indirect ownership through Cambodian companies or long-term leases remains possible with additional legal complexities.
The purchase process begins with property identification and due diligence, including verification of the developer's credentials, building permits, and clear strata title documentation. This research phase typically takes 1-2 weeks and prevents costly mistakes with disputed titles or unreliable developers.
Once you've selected a property, you'll sign a reservation agreement with a deposit of $1,000-5,000 to secure the unit while finalizing arrangements. The formal Sale and Purchase Agreement follows, requiring a deposit of 10-30% of the purchase price and outlining payment schedules, completion timelines, and penalty clauses.
Legal completion involves paying the 4% transfer tax, registering the transaction with local authorities, and obtaining your strata title deed. This process typically takes 2-4 weeks for cash purchases or 4-8 weeks if financing is involved. You'll also need to register for annual property tax, calculated at 0.1% of property value above $25,000.
Essential documentation includes your passport, proof of funds, and in some cases, a letter from your bank confirming the source of purchase funds. Working with a reputable local lawyer throughout this process costs approximately $500-1,500 but provides crucial protection against legal issues and ensures proper title transfer.
Who typically invests in Cambodian property — locals, expats, retirees, speculators?
The investor landscape in Cambodia's property market has evolved significantly, with a diverse mix of local and international buyers pursuing different investment strategies and goals.
Local Cambodians represent the largest segment, purchasing primarily for family homes and as a store of wealth in a country with limited investment alternatives. Middle-class families often buy condominiums in Phnom Penh or villas in borey developments, while wealthy locals invest in multiple properties for rental income and capital preservation against currency fluctuations.
Expatriate investors fall into several categories, including long-term residents like teachers, NGO workers, and business professionals who buy for personal use, and international investors seeking rental income and diversification. The expat community particularly favors areas like BKK1, Russian Market, and riverside locations in Phnom Penh due to established infrastructure and expatriate-friendly amenities.
The foreign investor profile has shifted dramatically since 2019, moving from predominantly Chinese buyers to a more diverse mix including Japanese, Australian, European, and other Asian investors. This diversification has created more stable demand patterns and reduced the market's vulnerability to single-country policy changes or economic conditions.
Retirees represent a growing segment, particularly those seeking affordable living costs and warm weather. Many purchase condominiums in Phnom Penh or coastal areas, attracted by lower property prices compared to Thailand or Malaysia and Cambodia's relatively relaxed visa policies for long-term stays.
Speculative investors have largely retreated from the market following the 2019-2023 correction period, leaving more room for genuine investors focused on rental yields and long-term appreciation rather than quick capital gains.
What are the most common and smart reasons people invest in property in Cambodia — and what are the bad or risky motivations?
Understanding the motivations behind Cambodia property investment helps distinguish between sound strategies and potentially costly mistakes that could impact your financial future.
Smart investment reasons center on long-term rental income generation, with gross yields of 6-8% significantly exceeding returns available in most developed markets. Investors targeting established expat areas in Phnom Penh or tourism-dependent regions like Siem Reap can build steady cash flow streams while benefiting from Cambodia's economic growth and infrastructure development.
Capital appreciation in emerging areas represents another sound strategy, particularly in locations benefiting from major infrastructure projects like new airports, highways, or urban development initiatives. Areas like Chroy Changvar in Phnom Penh or developing coastal zones offer potential for long-term value growth as Cambodia's economy continues expanding.
Portfolio diversification appeals to investors seeking exposure to Southeast Asian growth markets while reducing dependence on Western property markets. Cambodia's lower entry costs and different economic cycles can balance portfolios concentrated in more expensive developed markets.
Personal use motivations, including retirement homes or vacation properties, make sense for investors planning significant time in Cambodia. The combination of low living costs, warm climate, and improving infrastructure attracts many seeking lifestyle changes or retirement destinations.
Risky motivations include short-term speculation expecting rapid price appreciation, which the recent market correction has shown to be unreliable. Buying without proper due diligence on titles, developer reputation, or actual rental demand leads to expensive mistakes. Overpaying in oversupplied condominium segments, particularly those lacking clear tenant demand, results in poor returns and potential capital losses.
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What kind of properties can you expect based on your budget — say $50K, $100K, $200K, $500K?
Your budget determines the type and location of properties available in Cambodia, with each price range offering distinct options and investment characteristics.
| Budget Range | Phnom Penh Options | Coastal/Tourism Areas | Land/Alternative Options |
|---|---|---|---|
| $50,000 | Studio or small 1BR condo in secondary areas | Small 1BR condo in Siem Reap or Sihanoukville | Small land plot in Kampot or rural areas |
| $100,000 | 1BR in prime areas or 2BR in secondary locations | 1-2BR condo with good amenities | Larger land parcel or small villa plot |
| $200,000 | 2BR in premium buildings or small villa | 2-3BR condo or small beachfront villa | Substantial land holding or development plot |
| $500,000 | Luxury penthouse or high-end villa | Luxury beachfront villa or boutique hotel | Large development site or commercial land |
| $1,000,000+ | Multiple properties or premium commercial | Resort-style compound or hotel property | Major development opportunities |
The $50,000 budget represents entry-level investment, typically limiting you to studio apartments or small one-bedroom condominiums in developing areas of Phnom Penh or smaller units in tourist destinations. While rental yields can be attractive, these properties may have limited appreciation potential and require careful tenant management.
At $100,000, your options expand significantly to include one-bedroom condominiums in prime expat areas like BKK1 or Russian Market, offering better rental demand and more stable income streams. In coastal areas, this budget allows access to larger units with better amenities and tourism appeal.
The $200,000 range opens opportunities for two-bedroom condominiums in premium Phnom Penh buildings or entry-level villas in secondary locations. These properties typically offer better capital appreciation potential and can accommodate families or higher-paying tenants, improving rental yields and stability.
With $500,000, you can access luxury properties including penthouses, high-end villas, or even small boutique hotels in prime tourist areas. These properties offer prestige and potentially higher returns but require more sophisticated management and marketing strategies.
Which areas or neighborhoods are best for investment — affordable zones, upcoming districts, and high-end spots — and what are the pros and cons of each depending on your goals?
Location selection in Cambodia requires understanding the distinct characteristics and investment potential of different areas, each offering unique advantages depending on your investment strategy and goals.
Phnom Penh's established expat areas like BKK1 and Russian Market command premium prices but offer the most stable rental demand and lowest vacancy rates. These neighborhoods attract long-term expat tenants willing to pay $800-1,500 monthly for quality accommodations near international schools, restaurants, and business districts. The downside includes higher entry costs and limited appreciation potential due to already-mature pricing.
Emerging Phnom Penh districts like Chroy Changvar and areas along major development corridors offer significant appreciation potential as infrastructure projects progress. These locations typically cost 20-30% less than established areas while positioning for future growth driven by new bridges, commercial developments, and government initiatives. However, rental demand remains uncertain, and development timelines can extend longer than anticipated.
Siem Reap represents Cambodia's premier tourism investment destination, with properties near Angkor Wat and the old market area commanding strong short-term rental returns. Tourism recovery has boosted occupancy rates and daily rates, making this attractive for Airbnb-style investments. The seasonal nature of tourism creates income volatility, and oversupply in some segments has increased competition.
Coastal areas including Sihanoukville and Kampot offer diverse opportunities from beachfront luxury properties to affordable inland developments. Kampot particularly appeals to budget-conscious investors, with land prices significantly below Phnom Penh levels and growing expat and tourism interest. Infrastructure limitations and seasonal tourism patterns affect rental consistency in these areas.
Secondary cities like Battambang and Kep provide the lowest entry costs and potential for significant appreciation as Cambodia's economy develops beyond Phnom Penh. These markets suit investors with longer time horizons and tolerance for illiquidity, as rental markets remain limited and property sales can take longer to execute.
If you want to rent the property out long-term, which areas should you target, what kind of tenants are common, what do they look for, and how much rental income and yield can you expect?
Long-term rental investment in Cambodia centers on understanding tenant demographics, their preferences, and realistic income expectations across different market segments and locations.
Prime rental areas include Phnom Penh's BKK1, Russian Market, and Doun Penh districts, where established expat communities create consistent demand for quality housing. These areas attract international NGO workers, embassy staff, business professionals, and long-term expatriate families who typically sign 6-12 month leases and pay monthly rents of $600-1,500 for well-maintained properties.
Tenant preferences focus heavily on security, reliability, and modern amenities. Successful rental properties feature 24-hour security, backup generators, reliable water and internet, air conditioning, and proximity to international schools, hospitals, and shopping areas. Properties lacking these features struggle with vacancy rates and command lower rents regardless of location.
Expected rental yields vary significantly by location and property type. Phnom Penh condominiums in prime areas generate gross yields averaging 6.96%, with one-bedroom units typically renting for $550-700 monthly and two-bedroom units commanding $800-1,200. After accounting for management fees, maintenance, and vacancy periods, net yields typically range 4.5-5.5%.
Coastal and tourism areas like Siem Reap offer higher gross yields averaging 7.9%, but with greater seasonality and tenant turnover. Properties in these locations often serve tourism workers, restaurant managers, and seasonal business operators, requiring more active management but potentially higher returns during peak seasons.
Tenant management considerations include understanding that most expats prefer furnished properties, expect prompt maintenance responses, and often have employers who assist with housing decisions. Building relationships with international schools, major employers, and relocation services helps maintain occupancy rates and reduces marketing costs for property turnovers.
What about short-term rentals — what areas work well, what's the profile of guests, what kind of income and returns are possible, and are there any rules or restrictions you should know?
Short-term rental investment in Cambodia offers higher income potential than long-term rentals but requires understanding tourism patterns, guest expectations, and evolving regulations across different markets.
Siem Reap dominates Cambodia's short-term rental market due to Angkor Wat tourism, with properties near the temple complex and pub street commanding premium rates. Peak season (November-March) sees daily rates of $40-80 for quality one-bedroom units and $80-150 for larger properties, while low season rates drop 30-40%. Annual occupancy rates typically range 60-75% for well-managed properties.
Guest profiles include international tourists (primarily Asian, European, and American), digital nomads seeking month-long stays, and business travelers requiring temporary accommodation. Successful properties cater to these groups with reliable Wi-Fi, air conditioning, kitchen facilities, and local area information including transportation and dining recommendations.
Phnom Penh's short-term rental market serves business travelers, conference attendees, and tourists exploring Cambodia's capital. Daily rates range $30-60 for budget properties and $60-120 for luxury units, with business travel creating more consistent demand throughout the year compared to leisure tourism seasonality.
Coastal areas including Sihanoukville and Kep attract weekend visitors from Phnom Penh and international beach tourists. These markets show high seasonality with peak earnings during dry season months, but infrastructure challenges and competition from hotels affect profitability in some segments.
Regulatory considerations include varying local restrictions on short-term rentals, particularly in some condominium buildings where management committees prohibit or limit Airbnb-style operations. Property tax implications and business registration requirements also apply to short-term rental income, requiring consultation with local accountants for compliance.
Returns can reach 8.5% gross annually in prime locations with professional management, but expenses including cleaning, maintenance, marketing, and platform fees typically reduce net returns to 5-7%. Success requires active management, quality furnishing, and responsive guest communication to maintain high ratings and occupancy.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Cambodia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Overall, what separates a good property investment in Cambodia from a bad one — and are there other nearby countries or cities that offer better opportunities right now?
Distinguishing successful Cambodia property investments from problematic ones requires understanding market fundamentals, legal structures, and regional comparisons that affect long-term returns and capital preservation.
Good investments prioritize clear legal title documentation, whether strata titles for condominiums or properly structured company ownership for land-based properties. Reputable developers with track records of completed projects and transparent financing reduce construction and delivery risks that have affected numerous Cambodia developments. Location fundamentals including actual rental demand, infrastructure access, and economic drivers create sustainable value rather than speculative appreciation.
Realistic return expectations separate sound investments from speculation. Properties generating 5-8% net rental yields through genuine tenant demand offer sustainable income streams, while investments promising unrealistic returns often mask underlying problems including oversupply, poor locations, or questionable legal structures.
Bad investments typically involve unclear titles, unreliable developers, or properties purchased at inflated prices during market peaks. Oversupplied condominium segments, particularly those lacking clear tenant demographics or competitive advantages, struggle with vacancy and require significant capital for maintenance without generating adequate returns.
Regional comparisons reveal Cambodia's competitive position within Southeast Asia. Vietnam offers more mature markets with stronger legal frameworks but higher entry costs and more restrictive foreign ownership rules. Thailand provides greater market liquidity and tourism infrastructure but commands premium pricing that reduces yields, particularly in popular areas like Bangkok and Phuket.
Malaysia presents attractive financing options and established expat communities but faces political uncertainties and currency volatility. The Philippines offers higher potential returns in emerging areas but with greater infrastructure challenges and complex legal requirements for foreign investment.
Cambodia's advantages include lower entry costs, attractive yields, and improving infrastructure, making it suitable for investors seeking emerging market exposure with patience for longer-term development. However, investors requiring immediate liquidity, established legal frameworks, or premium infrastructure may find better opportunities in more developed regional markets despite higher costs.
It's something we develop in our Cambodia property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Cambodia's property market in 2025 presents a compelling opportunity for investors seeking affordable entry points into Southeast Asian real estate with attractive rental yields ranging from 6-8% in prime locations.
The market's stabilization after recent corrections, combined with diversifying investor demographics and improving infrastructure, creates favorable conditions for long-term investors focused on rental income and gradual capital appreciation rather than speculative gains.