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Property prices in Cambodia are experiencing a robust recovery as we reach mid-2025, with prime locations in Phnom Penh seeing 5-10% increases year-to-date.
Foreign investment continues to pour into the Cambodia property market, particularly from China and ASEAN countries, driving demand for both residential and commercial properties. Despite challenges like oversupply in the luxury segment and rising inflation, the overall trajectory remains positive.
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 prices are rising in 2025, with Phnom Penh prime condos up 5-10% year-to-date and coastal areas like Sihanoukville seeing 5-7% annual growth.
Strong fundamentals including 6.1% GDP growth, massive infrastructure investments, and government incentives for homebuyers are supporting price increases across most property segments.
| Location | Price per sqm (USD) | YTD Growth 2025 | Rental Yield |
|---|---|---|---|
| Phnom Penh Prime | $2,650-$2,924 | 5-10% | 6-8% |
| Sihanoukville | $1,800-$2,400 | 5-7% | 7-9% |
| Kep & Kampot | $1,200-$2,000 | 7-10% forecast | 7-10% |
| Siem Reap | $1,500-$2,200 | 4-6% | 6-8% |
| Battambang | $800-$1,200 | 3-5% | 6-7% |
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 the current property price levels in Cambodia as of June 2025?
Property prices in Cambodia's capital Phnom Penh have reached new heights in mid-2025, with prime condominiums commanding $2,650-$2,924 per square meter.
The Cambodia residential market shows significant variation across property types and locations. In Phnom Penh, luxury condominiums average $2,714 per square meter, while mid-range condos sit around $2,200 per square meter. For those looking at landed properties, borey (gated community) houses in the capital cost approximately $2,000 per square meter.
Secondary cities offer more affordable options while still showing strong growth potential. Coastal areas like Kep and Kampot range from $1,200-$2,000 per square meter, attracting investors with their high rental yields. Sihanoukville properties near casinos and beachfront locations command $1,800-$2,400 per square meter.
The average property price in Phnom Penh for a typical unit stands at $114,164 as of June 2025, making it still relatively affordable compared to other Southeast Asian capitals. Apartments in central locations range from $1,500 to $3,500 per square meter, depending on the specific district and building quality.
It's something we develop in our Cambodia property pack.
How much have property prices increased in Cambodia recently?
Cambodia's property market has shown remarkable resilience in the first half of 2025, with Phnom Penh experiencing 5-10% price increases year-to-date in prime condominium segments.
The nationwide Residential Property Price Index rose 0.45% in 2024, marking a recovery after a 2.95% drop in 2023. However, when adjusted for inflation, real prices fell 2.52% in 2024. The momentum has clearly shifted in 2025, with Q1 data showing strong positive growth across most segments.
Luxury properties in Cambodia experienced a 4-6% price increase in 2024 despite global uncertainties, supported by the country's impressive 5.8% GDP growth and the influx of 4.3 million international tourists in just the first eight months of that year.
Regional variations are significant in the Cambodia property market. While Phnom Penh saw a 1.72% increase in 2024 (down 1.29% in real terms), other provinces experienced more volatility with Q4 2024 seeing a 3.79% quarterly increase but an overall yearly decline of 4.65%.
As we reach mid-2025, the recovery has accelerated, particularly in urban centers where demand from both local buyers and foreign investors continues to outpace supply in key segments.
Which areas in Cambodia are seeing the biggest property price surges?
Phnom Penh leads Cambodia's property price growth in 2025, with prime districts like BKK1 experiencing the fastest appreciation at 5-10% year-to-date.
Coastal cities are emerging as hotspots for property investment. Sihanoukville properties near entertainment zones saw 5-7% increases in 2024, with luxury beachfront villas selling for $500,000-$800,000. Sea-view properties command 15-20% premiums over inland locations.
Emerging neighborhoods around infrastructure projects are seeing exceptional growth. Chroy Changvar, benefiting from new highway connections, offers properties at $1,500-$2,000 per square meter with strong appreciation potential. Areas near the new Techo International Airport are attracting significant investor interest.
| Location | Key Growth Driver | Price Performance |
|---|---|---|
| Phnom Penh BKK1 | Prime business district | 5-10% YTD increase |
| Sihanoukville | Casino & tourism development | 5-7% annual growth |
| Kep & Kampot | Tourism & infrastructure | 7-10% forecast growth |
| Chroy Changvar | New highway access | Strong appreciation expected |
| Near Techo Airport | Major infrastructure | Early-stage opportunity |
| Battambang | Urban upgrades | 3-5% steady growth |
| Poipet | Cross-border trade | Emerging market potential |
Secondary cities like Battambang are benefiting from major infrastructure upgrades, with over 80% of road and drainage improvements completed and full completion expected by end of 2025.
What property types in Cambodia are experiencing the highest price increases?
Luxury condominiums in Phnom Penh are leading price appreciation in 2025, with 5-10% increases year-to-date in prime locations.
Mid-range condominiums are showing the most sustainable growth trajectory with 6-8% annual appreciation forecasts. These properties benefit from strong rental demand and less oversupply risk compared to the luxury segment. With financing options becoming more accessible, young professionals are driving demand in this segment.
Coastal villas represent another high-growth category, particularly in tourist destinations. Properties in Sihanoukville, Kep, and Kampot are forecasted to appreciate 7-10% annually, with beachfront locations commanding significant premiums. Luxury villas in prime coastal areas sell for $500,000-$800,000.
Urban land plots near infrastructure developments are seeing steady appreciation as investors position for future development. Areas along new expressways and near the upcoming Techo International Airport are particularly sought after.
Affordable housing, while showing more modest price growth, benefits from strong government support including tax exemptions for properties up to $210,000, ensuring stable demand from local buyers.
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How are new infrastructure projects affecting property prices in Cambodia?
Major infrastructure developments are directly boosting property values in connected areas, with properties along new expressways seeing immediate price appreciation.
The new Techo International Airport is creating a ripple effect in surrounding areas, with investors rushing to secure land and properties before completion. Early movers are positioning for significant appreciation as the airport becomes operational and transforms the region into a new economic hub.
The Phnom Penh-Bavet Highway and other expressway projects are opening up previously inaccessible areas for development. Properties in areas like Chroy Changvar and parts of Kandal province are experiencing increased demand due to improved connectivity to the capital.
Sihanoukville and Kampot are benefiting from port expansions and road network improvements. The deepwater port developments are attracting both residential and commercial investment, with property prices in these coastal cities rising 5-7% annually.
The Asian Development Bank's $86.10 million investment in Poipet's infrastructure, including wastewater management and drainage systems, is transforming this border city into an attractive investment destination with completion expected by end of 2025.
What government policies are impacting Cambodia's property market in 2025?
The Cambodian government's tax incentive program for first-time homebuyers is significantly boosting demand, offering transfer tax exemptions for properties up to $210,000.
Post-election stability has restored market confidence, with new policies focusing on supporting end-users rather than speculators. Recent data shows 98% of property purchases are now for actual residence, indicating a healthier, more sustainable market dynamic.
The postponement of capital gains tax implementation until the end of 2025 continues to support market activity. This 20% flat tax on property gains, when eventually implemented, may cool speculative activity but is unlikely to significantly impact genuine homebuyers.
Government-backed affordable housing initiatives are keeping prices stable in the lower market segments. Projects like the Arakawa condominium in Sen Sok district, with nearly 2,000 units completed, demonstrate the commitment to providing options for moderate-income citizens.
Debt restructuring programs for existing homebuyers have helped stabilize the market by reducing defaults and maintaining buyer confidence. These interventions have been crucial in preventing a broader market correction despite global economic uncertainties.
How is foreign investment driving Cambodia property prices?
Chinese investors dominate Cambodia's property market in 2025, accounting for nearly 80% of total foreign investment capital in early 2025, primarily targeting SEZs and luxury developments.
The influx of Chinese capital has been particularly pronounced in Sihanoukville and Kampong Cham, where Special Economic Zones attract manufacturing investments. In 2024, Chinese investments totaled $3.24 billion, representing two-thirds of all foreign investments in Cambodia.
ASEAN investors are increasingly recognizing Cambodia's potential, with the country ranking among the top regional property investment destinations for 2025. The combination of attractive entry prices, high rental yields averaging 7.4%, and supportive foreign ownership policies makes Cambodia particularly appealing.
Foreign investment has fueled significant development in the luxury condominium segment, though this has also contributed to oversupply risks. With plans to expand from 30,000 to 80,000 luxury units in Phnom Penh by end of 2025, the market faces potential price pressures in high-end segments.
It's something we develop in our Cambodia property pack.
What are the property price forecasts for Cambodia beyond 2025?
Property prices in prime Phnom Penh locations are projected to appreciate 6-8% annually through 2026, while secondary cities like Siem Reap, Kep, and Kampot may see even stronger growth at 7-12% per year.
Medium-term forecasts to 2030 suggest secondary cities and tourist areas will outperform the capital as infrastructure improvements unlock previously undervalued locations. The national economy's projected 5.5% annual GDP growth provides a solid foundation for sustained property appreciation.
Long-term projections to 2045 remain optimistic due to Cambodia's young demographics, with an average age of just 25 years. Continued urbanization and the emergence of a growing middle class will drive sustained demand for residential properties, though periodic corrections are expected as supply catches up with demand in certain segments.
| Time Frame | Expected Growth | Key Drivers |
|---|---|---|
| 2025-2026 | 6-8% annually (Phnom Penh) 7-12% (Tourist cities) |
Infrastructure completion, tourism recovery |
| 2026-2030 | 5-7% annually nationwide | Secondary city development, SEZ expansion |
| 2030-2035 | 4-6% annually | Urbanization, middle class growth |
| 2035-2045 | 3-5% annually | Demographic dividend, economic maturation |
The luxury segment may face short-term corrections as supply exceeds demand, but mid-range and affordable housing segments show stronger fundamentals for consistent appreciation.
We made this infographic to show you how property prices in Cambodia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
How do current economic indicators affect Cambodia property prices?
Cambodia's robust 6.1% GDP growth forecast for 2025 provides strong support for property price appreciation across all market segments.
Inflation surged to 6% in January 2025, the highest since June 2022, making real estate an attractive hedge against currency devaluation. Despite this spike, the IMF projects inflation to moderate to 2.1% for the full year, suggesting the current surge may be temporary.
Interest rates remain relatively low at 0.44% benchmark rate, though mortgage rates for foreigners range from 7-10%. The wide availability of developer financing and payment plans continues to support buyer demand despite higher borrowing costs for some segments.
Rental yields averaging 7.4% nationally significantly outpace inflation, making Cambodia property investment particularly attractive. Prime locations in Phnom Penh offer 6-8% yields, while coastal areas like Kep and Kampot can achieve 7-10%.
Tourism recovery with 6.7 million arrivals in 2024 (up 22.9% year-on-year) directly supports property values in key destinations, with continued growth expected as international travel normalizes.
What is driving demand for Cambodia property in 2025?
The Cambodia property market in 2025 is primarily driven by genuine end-users, with 98% of purchases for actual residence rather than speculation.
Young professionals are fueling demand for modern condominiums, particularly in Phnom Penh where over 30,000 units are available with plans to expand to 80,000 by year-end. Improved financing options and government incentives make homeownership more accessible for this demographic.
Foreign buyers, particularly from China and other ASEAN countries, continue to drive demand in specific segments. With nearly 770,000 Chinese tourists visiting in 2024 and e-commerce revenues expected to reach $1.78 billion in 2025, Chinese interest in Cambodian property remains strong.
Infrastructure improvements are creating new demand in previously overlooked areas. The completion of major road projects and the upcoming Techo International Airport are drawing buyers to emerging neighborhoods with better growth potential.
The shift toward properties with modern amenities, outdoor spaces, and energy-efficient features reflects changing buyer preferences post-pandemic. Tech-smart apartments and homes with terraces or gardens command premium prices in urban centers.
How do Cambodia property prices compare to neighboring countries?
Cambodia offers the most affordable entry point for property investment in Southeast Asia, with Phnom Penh prices at $2,200-$2,900 per square meter compared to $2,800-$4,500 in Bangkok.
While Vietnam's Ho Chi Minh City commands $2,500-$4,000 per square meter for condominiums, Cambodia provides similar urban amenities at 20-30% lower prices. Even Hanoi's leasehold apartments cost more than freehold properties in Phnom Penh.
The rental yield advantage makes Cambodia particularly attractive for investors. While Singapore and Hong Kong offer yields around 2%, and Bangkok provides 4-7%, Cambodia delivers 6-8% in the capital and up to 10% in coastal areas.
Cambodia's property market offers higher growth potential than mature markets like Thailand, though with greater volatility. The combination of lower entry prices, higher yields, and strong growth prospects positions Cambodia as Southeast Asia's value play for property investors.
Foreign ownership rights in Cambodia are more favorable than Vietnam, where foreigners face significant restrictions. This regulatory advantage, combined with attractive pricing, makes Cambodia increasingly competitive for international investors.
What risks could impact Cambodia property price growth?
The luxury condominium segment faces significant oversupply risk, with occupancy rates declining from 63% in 2023 to 58% in 2024 despite continued development.
The planned implementation of 20% capital gains tax by end of 2025 could dampen speculative activity and impact short-term price growth. While repeatedly postponed, this tax remains a potential market disruptor when eventually enforced.
Global economic uncertainties and potential trade tensions could impact foreign investment flows, particularly from China which accounts for 80% of foreign capital. Any significant reduction in Chinese investment would directly affect luxury property demand.
Conflicts between developers and homebuyers in affordable borey projects continue to challenge market confidence. Delays in construction and property seizures require ongoing government intervention to maintain stability.
Rising inflation, which hit 6% in January 2025, could impact affordability for local buyers if wages don't keep pace. However, this also makes real estate more attractive as an inflation hedge, potentially offsetting negative impacts.
Conclusion
Based on comprehensive market data and current trends, property prices in Cambodia are definitively going up in 2025, making the answer: Yes.
The Cambodia property market shows strong fundamentals with 5-10% price increases in prime Phnom Penh locations, supported by 6.1% GDP growth, massive infrastructure investments, and robust foreign investment particularly from China and ASEAN countries.
While challenges exist including luxury segment oversupply and pending capital gains tax implementation, the overall trajectory remains positive with genuine end-user demand, attractive rental yields averaging 7.4%, and continued urbanization driving sustainable growth across most market segments.
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 recovery in 2025 represents an attractive opportunity for both investors and end-users, with prime locations showing strong appreciation potential and secondary cities offering even higher growth prospects.
For those considering property investment in Cambodia, the combination of relatively low entry prices compared to regional peers, high rental yields, and supportive government policies creates a compelling investment case despite inherent risks in this emerging market. It's something we analyze thoroughly in our Cambodia property pack.
Sources
- Yes, property prices will rise in Cambodia in 2025
- 14 statistics for the Cambodia real estate market in 2025
- Cambodia's Residential Real Estate Market Analysis 2025
- Why Real Estate in Cambodia is Asia's Best Value Play
- Is 2025 a good time to buy a property in Cambodia?
- 16 strong forecasts for real estate in Cambodia in 2025
- Phnom Penh Real Estate Market: Investor Guide 2025
- 17 strong trends for 2025 in the Cambodia property market
- Property Market Analysis: Projections for Cambodia in 2024
- Real Estate - Cambodia Market Forecast