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The Cambodian property market presents a complex picture as we reach mid-2025.
With prices in Phnom Penh rising 5–10% year-to-date and over 80,000 condo units projected by end-2025, buyers face both opportunities and challenges. This detailed analysis examines whether June 2025 represents an optimal entry point for property investment in Cambodia.
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.
| Factor | Status | Does it make it a good time to buy? |
|---|---|---|
| Market Conditions | Recovery phase | Yes - Moderate opportunity |
| Property Prices | Rising 5-10% YTD | Mixed - Buy before further increases |
| Rental Yields | 6-8% average | Yes - Strong returns |
| Mortgage Rates | 7-10% for foreigners | No - High financing costs |
| Government Policies | Supportive | Yes - Buyer incentives available |
| Supply Levels | High in condos | Yes - Better negotiation power |
| Infrastructure Development | Major projects ongoing | Yes - Future value appreciation |
| Foreign Investment | Recovering | Yes - Market confidence returning |
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.
What are current property prices in Cambodia offering buyers in June 2025?
Property prices in Cambodia show varied trends across different segments, with condominiums in Phnom Penh experiencing notable appreciation.
Luxury units in prime areas like BKK1 now average $2,650–$2,924 per square meter, while mid-range condominiums hover around $2,200 per square meter. This represents a significant 5–10% year-to-date increase from 2024 levels, signaling a recovering market with growing investor confidence.
Coastal properties in emerging destinations like Kep and Kampot offer more affordable entry points at $1,200–$2,000 per square meter, presenting opportunities for investors seeking higher yield potential. The Chroy Changvar peninsula, benefiting from new infrastructure development, has seen prices rise to $1,500–$2,000 per square meter.
If real estate prices in Cambodia continue their current trajectory through 2025, buyers could expect to pay 5% to 10% more by year-end. For perspective, a $150,000 condominium purchased today might cost between $157,500 to $165,000 by December, making immediate purchase decisions potentially advantageous for serious buyers.
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As of today, is there more supply or demand in Cambodia's residential market?
The supply-demand dynamic in Cambodia's residential market varies significantly by property type and location.
In Phnom Penh's luxury segment, oversupply remains evident with over 30,000 units available in 2024 and projections reaching 80,000 by end-2025. This rapid supply increase has created a buyer's market, particularly for high-end condominiums where occupancy rates dropped from 63% in 2023 to 58% in 2024.
However, Prime Minister Hun Manet recently confirmed that the housing market's positive trajectory stems from actual demand rather than speculation. Mid-range properties and affordable housing segments show more balanced conditions, while quality properties in emerging coastal areas face undersupply.
The oversupply in luxury condominiums provides buyers with stronger negotiation positions and more choices. Developers are increasingly offering incentives such as furniture packages, payment plans, and rental guarantees to attract buyers in this competitive environment.
What are the short-term and long-term price forecasts for properties in Cambodia today?
Property price forecasts for Cambodia remain optimistic despite current economic headwinds.
Short-term projections for 2025-2026 indicate condominiums in prime Phnom Penh locations will appreciate 6–8% annually. The market increasingly favors tech-smart, energy-efficient apartments with outdoor spaces, driving demand and supporting price growth in properties meeting these criteria.
| Location | Annual Appreciation Forecast | Key Growth Drivers |
|---|---|---|
| Phnom Penh Prime | 6-8% | Business hub, foreign investment |
| Siem Reap | 8-12% | Tourism recovery, infrastructure |
| Kep/Kampot | 7-10% | Coastal development, expat demand |
| Emerging Areas | 7-10% | New infrastructure projects |
Long-term forecasts through 2030 appear even more promising, with secondary cities and tourist destinations expected to outperform the capital. Cambodia's economy is projected to expand by 27.5% over the next five years, translating to an average GDP growth rate of 5.5% annually.
This economic expansion, combined with ongoing infrastructure development and tourism recovery, positions the property market for sustained appreciation across most segments.
Are the current mortgage rates favorable for property buyers in Cambodia?
Mortgage conditions for foreign buyers in Cambodia remain challenging but show signs of improvement.
Current rates for foreigners range from 7–10% annually through select banks like Cambodia Development Bank or developer financing programs. These rates require substantial down payments of 30–70% and offer loan terms up to 20 years, making cash purchases more common among international buyers.
Local buyers benefit from more favorable conditions, with interest rates averaging 4–8% annually, down from 10–12% five years ago. This improvement reflects increased competition among local banks and government efforts to support homeownership.
High mortgage rates for foreigners make financing less appealing compared to neighboring markets like Vietnam or Thailand. However, strong rental yields of 6–8% can offset higher borrowing costs for investors with sufficient capital for larger down payments.
Buyers should carefully compare bank and developer financing options, as some developers offer more flexible terms including lower down payments and interest-only periods during construction.
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Are Cambodia condos regarded as a safe investment today?
Cambodian condominiums present a relatively safe investment option with several protective factors in place.
Foreigners can legally own up to 70% of units above ground floor in strata-titled buildings, with hard title systems providing strong legal protection. The strata title system, applicable to buildings constructed from 2010 onwards, offers clear ownership rights comparable to developed markets.
Investment returns remain attractive with gross rental yields averaging 7.4% nationally in Q1 2025. Phnom Penh's rental yields, particularly for older shophouse apartments, rank second highest in Asia after Jakarta at above 6%, providing steady income streams for investors.
Liquidity presents the main concern, with resale timelines typically spanning 6–12 months depending on district and building reputation. The oversupply in luxury segments may also impact capital appreciation potential, requiring careful property selection.
Despite these challenges, the combination of legal protections, strong yields, and growing foreign investment creates a reasonably secure investment environment for well-researched purchases.
What types of properties offer the best value in Cambodia today?
Current market dynamics favor specific property types that balance affordability with strong rental demand.
Mid-range condominiums priced between $80,000–$150,000 offer optimal value, attracting both local professionals and expatriates while maintaining rental yields of 6–7%. These properties avoid the oversupply issues plaguing luxury segments while meeting genuine housing demand.
Coastal properties in Kep and Kampot deliver exceptional yields averaging 7.9%, driven by growing tourist arrivals and limited quality supply. These markets benefit from lower entry prices and strong seasonal rental potential.
Properties under $210,000 qualify for full stamp duty exemption for first-time buyers, enhancing their investment appeal. The government's focus on affordable housing creates additional opportunities in this segment, with prices stabilized through policy support.
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How do current economic conditions affect property investment viability in Cambodia?
Cambodia's economy presents mixed signals that impact property investment decisions.
GDP growth forecasts for 2025 range from 4.9% (World Bank) to 6.4% (ADB), indicating continued expansion despite global headwinds. The tourism sector's robust recovery, with 6.7 million international arrivals in 2024 representing a 22.9% increase, directly benefits property markets in key destinations.
Inflation concerns emerged with rates jumping to 6% in January 2025 from 3.05% previously, though core inflation remains stable at 3.2–3.7%. This inflationary pressure makes real estate attractive as a hedge, particularly given rental yields exceeding inflation rates.
New US tariffs pose challenges for Cambodia's export-driven economy, particularly affecting garment manufacturing. However, property markets typically show resilience during economic transitions, with foreign investment exceeding $1.5 billion in 2024 demonstrating continued confidence.
The economic environment supports property investment for buyers seeking inflation protection and yield generation, though export-dependent sectors may face near-term pressures.
What government incentives are available for property buyers in Cambodia today?
The Cambodian government has implemented substantial buyer-friendly policies to stimulate property market activity.
First-time buyers of condominiums and borey homes benefit from full stamp duty exemption on properties valued up to $210,000, representing significant savings of 4% on purchase prices. This incentive particularly supports young professionals and middle-income families entering the property market.
Property tax holidays extend through 2026, eliminating annual holding costs for investors. The delayed implementation of capital gains tax until end-2025 provides additional breathing room for investors considering exit strategies.
| Incentive | Benefit | Eligibility |
|---|---|---|
| Stamp Duty Exemption | Save 4% on purchase | First-time buyers, properties under $210,000 |
| Property Tax Holiday | 0% annual tax | All property owners until 2026 |
| Capital Gains Tax Delay | No tax on profits | All sellers until end-2025 |
| Mortgage Support | Easier repayment terms | Various programs available |
New initiatives include establishing a Technical Working Group to support affordable housing development and measures to increase market liquidity for both buyers and developers.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Cambodia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
How does foreign investment currently impact Cambodia's property market?
Foreign investment demonstrates strong recovery patterns that positively influence market dynamics.
Chinese buyers remain dominant but have shifted from speculative purchases to personal-use properties, creating more stable demand patterns. This transition reduces market volatility while maintaining consistent transaction volumes in prime areas.
Growing diversification sees increased interest from Japan, UK, Australia, Italy, and ASEAN nations, particularly in urban condominiums and coastal vacation homes. This broader investor base enhances market resilience and reduces dependence on single-source demand.
Cambodia's property sector attracted over $1.5 billion in foreign direct investment during 2024, demonstrating sustained international confidence. This capital influx supports new development projects, maintains price stability, and improves market liquidity in key locations.
The sustained foreign interest, combined with Cambodia's straightforward visa regime offering easy long-term residence for property owners, creates favorable conditions for international buyers.
What infrastructure developments are currently driving property values in Cambodia?
Major infrastructure projects are transforming Cambodia's connectivity and creating new investment hotspots.
The $4.2 billion Phnom Penh–Siem Reap–Poipet Expressway represents the most significant project, with feasibility studies completed and construction expected to begin in 2026. This expressway will dramatically reduce travel times between major cities, boosting tourism and increasing property values along the entire corridor.
Sihanoukville's transformation continues with ongoing port expansion, airport upgrades, and the ambitious Bay of Lights coastal city project completing its first phase in 2025. These developments position Sihanoukville as a major economic hub beyond tourism.
Urban infrastructure improvements in Phnom Penh, including new flyovers, drainage systems, and public transportation planning, enhance livability and support property value appreciation. The Chroy Changvar peninsula particularly benefits from new bridge connections and planned commercial developments.
It's something we develop in our Cambodia property pack.
Are current rental yields in Cambodia attractive for investors today?
Cambodia offers some of Southeast Asia's most attractive rental yields, significantly exceeding regional averages.
Phnom Penh properties generate average gross yields of 6.96%, with prime BKK1 locations achieving 6–7% net returns after expenses. These yields compare favorably to Bangkok (3–4%) or Ho Chi Minh City (4–5%), making Cambodia particularly attractive for income-focused investors.
Coastal markets deliver even stronger performance, with Kep and Kampot averaging 7.9% gross yields driven by tourist demand and limited quality supply. Emerging areas like Chroy Changvar (6.8%) and Koh Rong (7.1%) offer additional opportunities for yield-seeking investors.
Net yields typically run 1.5–2% below gross figures after accounting for management fees, maintenance, and vacancy periods. However, even net returns of 5–6% significantly exceed fixed deposit rates and most regional property markets.
The combination of high yields and potential capital appreciation creates compelling total return prospects for patient investors.
What are the risks and opportunities in Cambodia's property market today?
Cambodia's property market presents both significant opportunities and manageable risks for informed investors.
Current opportunities include rental yields exceeding regional averages by 2–3 percentage points, creating strong cash flow potential. Government prioritization of affordable housing and developer introduction of design-forward suburban projects expand market options. Major infrastructure developments promise future value appreciation, while Cambodia's simple visa regime with no border runs required facilitates property management for foreign owners.
Risks require careful consideration, including 13–14% price drops in some villa segments year-on-year indicating market softness in certain areas. Oversupply in luxury condominiums may limit capital appreciation potential. Liquidity challenges mean resale timelines often exceed 12–18 months due to smaller buyer pools and seasonal demand patterns.
Risk mitigation strategies include focusing on mid-range properties with demonstrated rental demand, targeting areas benefiting from infrastructure development, and considering properties under $210,000 to maximize government incentives. Buyers should avoid speculative luxury units without clear rental prospects and maintain realistic expectations regarding resale timelines.
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.
June 2025 presents a reasonably favorable window for property investment in Cambodia despite existing challenges.
The fundamentals supporting investment include strong rental yields averaging 6-8%, government policies offering stamp duty exemptions up to $210,000, and major infrastructure projects positioning the market for continued growth. The shift from speculative to end-user demand creates a healthier, more sustainable market environment. For investors who can navigate foreign ownership regulations and either pay cash or secure favorable developer financing, Cambodia offers compelling opportunities, particularly in mid-range condominiums and emerging coastal markets.
Sources
- Cambodia Residential Real Estate Market Analysis 2025 - Global Property Guide
- Cambodia Real Estate Market Outlook for 2025 - Home Invest Cambodia
- DFDL Cambodia Real Estate Investment Guide 2025 - Cambodia Investment Review
- Cambodia Property Market Statistics 2025 - Bamboo Routes
- Property Price Forecasts Cambodia 2025 - Bamboo Routes
- Cambodia Property Market Trends 2025 - Bamboo Routes
- From Policy to Property: Cambodia's Real Estate Market Building Back Better - Asia Property Awards
- Cambodia Mortgage Rates - Phnom Penh Post
- Cambodia Property Market Recovery 2025 - Khmer Times