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Everything you need to know before buying real estate is included in our Cambodia Property Pack
Thinking about buying a 3-bedroom apartment in Phnom Penh? It’s a vibrant city, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other areas like Siem Reap or Sihanoukville where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Cambodia Property Pack.
Will property prices increase in Cambodia in 2025?
Yes, property prices in Cambodia are expected to rise in 2025, driven by a combination of economic growth and increasing foreign investment.
Backed by our fresh, in-depth market analysis, we’re confident that Cambodia remains an attractive destination for both local and international investors.
While there are challenges such as inflation and regulatory changes, the main drivers behind Cambodia’s property price growth are strong and persistent.
The demand for real estate, particularly in urban areas like Phnom Penh and Siem Reap, continues to outpace supply, making significant price drops unlikely. Additionally, Cambodia's strategic location and economic development initiatives continue to attract investors.
Signals pointing to a property price increase in Cambodia
Here are some factors suggesting prices could increase:
Cambodia's economy is projected to grow steadily in 2025, driven by sectors such as tourism, manufacturing, and agriculture. Economic growth typically boosts real estate demand as more people move to urban areas for job opportunities.
Foreign direct investment in Cambodia is expected to rise, particularly from China and other Asian countries. This influx of capital often leads to increased demand for commercial and residential properties.
The Cambodian government is investing in infrastructure projects, including roads and public transportation, which are likely to enhance property values in connected areas.
Urbanization trends continue, with more people moving to cities like Phnom Penh, increasing the demand for housing and commercial spaces.
The tourism sector is recovering and expected to grow, leading to increased demand for hospitality-related real estate, particularly in tourist hotspots like Siem Reap.
Cambodia's young and growing population is driving demand for housing, as more young families seek to purchase homes.
The real estate market is becoming more transparent and regulated, which can increase investor confidence and drive up property prices.
Signals pointing to a property price decrease in Cambodia
Here are some factors suggesting prices could fall:
Inflationary pressures could lead to higher costs of living, reducing disposable income and potentially dampening demand for real estate.
Regulatory changes or increased taxes on property transactions could deter investment and slow down market activity.
Global economic uncertainties, such as trade tensions or financial market volatility, could impact foreign investment flows into Cambodia, affecting the real estate market.
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If property prices go up in Cambodia, how much would they increase by?
If real estate prices in Cambodia were to rise in 2025, the increase would likely be between 5% to 10% of their 2024 values.
Typically, real estate in emerging markets like Cambodia appreciates by approximately 5% to 10% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Phnom Penh for $150,000 today, don't be surprised if it's priced between $157,500 and $165,000 this time next year.
To give you a better understanding, here is a table that shows 7 types of Cambodian real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 5%, 7%, and 10%.
| Type of Property | Average Price in 2024 ($) | Price in 2025 (5% increase) | Price in 2025 (7% increase) | Price in 2025 (10% increase) |
|---|---|---|---|---|
| Condominium (60 sqm / 646 sqft) | $100,000 | $105,000 | $107,000 | $110,000 |
| Modern Apartment (75 sqm / 807 sqft) | $150,000 | $157,500 | $160,500 | $165,000 |
| Luxury Villa (100 sqm / 1,076 sqft) | $300,000 | $315,000 | $321,000 | $330,000 |
| Studio (30 sqm / 323 sqft) | $50,000 | $52,500 | $53,500 | $55,000 |
| Loft (80 sqm / 861 sqft) | $200,000 | $210,000 | $214,000 | $220,000 |
| Townhouse (150 sqm / 1,615 sqft) | $400,000 | $420,000 | $428,000 | $440,000 |
| Investment Property (50 sqm / 538 sqft) | $75,000 | $78,750 | $80,250 | $82,500 |
Everything you need to know is included in our Property Pack for Cambodia
If real estate prices go up in Cambodia, which areas are likely to see the biggest increases?
Today, people who want to move to Cambodia are looking for a blend of cultural heritage and modern amenities, which Siem Reap offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Phnom Penh's Riverside has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Cambodian market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Siem Reap | High | Recent development of luxury resorts and its increasing appeal to international tourists as travel normalizes post-pandemic, driving demand. |
| Phnom Penh's Riverside | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Phnom Penh. |
| Boeung Keng Kang 1 | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Toul Kork | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Kampot | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Battambang | Medium | Investment in local infrastructure, such as the extension of road networks and renovation of historic areas, is boosting long-term value. |
| Sihanoukville | Medium-High | With new cultural and commercial spaces being developed, this coastal city is seeing increased demand from both residents and investors. |
| Phnom Penh's Central Market Area | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Koh Pich (Diamond Island) | Medium-High | Its proximity to Phnom Penh, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Chroy Changvar | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Tonle Bassac | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Angkor Archaeological Park Area | High | Upcoming restoration projects and high-profile cultural initiatives are driving a renewed focus on this historic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Cambodia?
In 2025, Cambodia's real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025, especially in urban centers like Phnom Penh.
- Family-Sized Homes in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Phnom Penh and Siem Reap are seeing increased interest. Proximity to green spaces, schools, and cultural sites is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In bustling cities like Phnom Penh, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Cambodia's growing commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
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