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Cambodia's property market in 2025 shows signs of stabilization after years of rapid growth, with foreign buyers still dominating purchases at 82% of total transactions.
Phnom Penh leads pricing with condos averaging $1,500-$2,900 per square meter, while Siem Reap and Sihanoukville offer competitive alternatives for investors seeking higher rental yields of 8-10%. The market benefits from strong tourism recovery and massive infrastructure investments, though supply pipeline concerns loom with over 25,000 new units planned through 2027.
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 residential property market presents attractive investment opportunities with rental yields of 6-10% across major cities, significantly outperforming regional neighbors like Thailand and Vietnam.
Foreign investment dominates the market, with Chinese buyers leading at 27% of purchases, while infrastructure development and tourism recovery support long-term growth prospects despite concerns about oversupply in the condo segment.
| City | Average Price per sqm | Rental Yield | Key Market Driver |
|---|---|---|---|
| Phnom Penh | $1,500-$2,900 | 6-8% | Business district demand |
| Siem Reap | $1,900-$2,800 | 7-8% | Tourism recovery |
| Sihanoukville | $1,000-$2,500 | 8-10% | Coastal development |
| Annual Price Growth | 3-4% (5-year average) | - | Inflation-adjusted |
| New Supply Pipeline | 25,000+ units (2025-2027) | - | Mostly Phnom Penh |
| Foreign Buyer Share | 82% of total purchases | - | China leads at 27% |
| Mortgage Rates | 7.5-10% | - | 10-25 year terms |
What's the current average price per square meter for residential property in Phnom Penh compared to Siem Reap and Sihanoukville?
Phnom Penh commands the highest residential property prices in Cambodia, with modern condos averaging $1,500-$2,900 per square meter in central locations.
Luxury projects in Phnom Penh's business districts reach up to $3,000 per square meter, reflecting strong demand from international businesses and expatriate professionals. The capital's pricing reflects its status as the economic hub, with superior infrastructure and employment opportunities driving premium valuations.
Siem Reap condos average $1,900-$2,800 per square meter, positioning the city as a premium destination due to its tourism appeal and UNESCO World Heritage proximity. The city's property market benefits from consistent international visitor flow and growing expatriate community seeking long-term residence near Angkor Wat.
Sihanoukville offers the most affordable entry point with prices ranging from $1,000-$2,500 per square meter, though premium beachfront locations and luxury developments command higher prices. The coastal city presents opportunities for investors seeking lower acquisition costs with potential for capital appreciation as infrastructure development continues.
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How much have property prices in Cambodia risen or fallen over the past 12 months, and what's the annual growth rate over the past five years?
Cambodia's residential property market experienced modest growth over the past 12 months, with Phnom Penh prices rising by 1.7% nominally between 2024-2025.
When adjusted for inflation, the price change was minimal, indicating a period of market stabilization rather than the rapid appreciation seen in previous years. This stabilization reflects a maturing market moving away from speculative investment patterns toward fundamental demand drivers.
Over the past five years since 2020, Cambodia's residential property price index increased by approximately 15-20% in Phnom Penh, but growth has moderated significantly from the speculative surges of the previous decade. The annualized average growth rate stands at 3-4% after inflation adjustment, considerably lower than the 2012-2019 era when prices more than doubled.
This moderated growth pattern suggests the Cambodian property market has entered a more sustainable phase, with price increases now more closely aligned with economic fundamentals rather than speculative investment flows.
Current market conditions favor buyers seeking stable investment returns rather than rapid capital gains.
What is the average rental yield in the main cities, and how does it compare with regional neighbors like Thailand and Vietnam?
Cambodia offers some of Southeast Asia's most attractive rental yields, significantly outperforming regional competitors.
| Location | Gross Rental Yield | Market Characteristics |
|---|---|---|
| Phnom Penh | 6-8% | Strong business district demand |
| Siem Reap | 7-8% | Tourism-driven rental market |
| Sihanoukville | 8-10% | Coastal development opportunity |
| Bangkok, Thailand | 4-6% | Mature, competitive market |
| Ho Chi Minh, Vietnam | 4.5-6.5% | High property acquisition costs |
| Hanoi, Vietnam | 4.5-6.5% | Limited foreign ownership |
| Manila, Philippines | 5-7% | Strong rental demand |
How many new housing and condominium units are expected to be completed in Cambodia this year, and what's the total pipeline for the next three years?
Over 9,000 new condominium units are scheduled for delivery in 2025, with the majority concentrated in Phnom Penh's expanding urban core.
This substantial supply injection represents a 15% increase in available condo inventory for the year, primarily targeting mid to high-end market segments. Developers are focusing on mixed-use projects that combine residential units with retail and office spaces to maximize land utilization in prime locations.
The three-year pipeline through 2027 adds over 25,000 units to Cambodia's residential supply, pushing the country's cumulative condo inventory toward 80,000+ units across all market tiers and regions. This massive supply increase raises concerns about potential oversupply in certain market segments, particularly luxury condos targeting foreign investors.
Most new developments concentrate in Phnom Penh's central business district and emerging satellite towns, with limited new supply planned for Siem Reap and Sihanoukville. The pipeline includes both local and international developers, with Chinese and Southeast Asian companies leading major projects.
Investors should carefully evaluate location and developer reputation, as this supply wave may pressure rental rates and resale values in oversupplied segments.
What percentage of property buyers are foreign investors versus local buyers, and which nationalities dominate the foreign segment?
Foreign buyers dominate Cambodia's condominium market, representing 82% of all condo purchases as of 2025 data.
Chinese investors lead the foreign buyer segment at 27% of total purchases, followed by Singaporeans at 18%, Malaysians at 15%, Thai buyers at 12%, and Vietnamese investors at 10%. The remaining 18% consists of investors from various other Asian countries, with minimal participation from Western buyers.
Local Cambodian demand is gradually increasing in affordable and mid-range segments, particularly among urban professionals and returning diaspora. However, local buyers remain constrained by limited mortgage accessibility and lower income levels compared to property prices in prime locations.
The heavy foreign buyer concentration creates market vulnerability to external economic shocks and policy changes in source countries. Chinese investment flows, in particular, significantly influence market cycles and pricing trends across all major Cambodian cities.
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What is the current mortgage interest rate range in Cambodia, and how affordable are loans compared to household income levels?
Mortgage interest rates in Cambodia typically range from 7.5% to 10% for residential real estate purchases, with both local and foreign banks offering financing options.
Banks generally require stricter loan-to-value ratios and income assessment criteria for foreign borrowers compared to local applicants. Standard repayment periods range from 10 to 25 years, with most lenders preferring shorter terms for non-resident investors to minimize risk exposure.
Loan affordability remains challenging for lower-income households, with banks favoring salaried employees for approval processes. The median mortgage rate of 8% creates significant payment obligations relative to average Cambodian household incomes, limiting local buyer participation in higher-priced segments.
Foreign investors typically access mortgage financing more easily due to stronger income documentation and collateral requirements. However, currency risk remains a consideration as most loans are denominated in US dollars while rental income may be collected in Cambodian Riel.
Down payment requirements typically range from 30-40% of property value, with some premium lenders requiring up to 50% for foreign borrowers investing in luxury developments.
How is the tourism sector recovering in terms of international arrivals, and what impact does that have on property demand in Siem Reap and coastal areas?
Cambodia's tourism sector is experiencing strong recovery in 2025, with international arrivals rebounding toward pre-pandemic levels across key destinations.
Siem Reap benefits from renewed tourist confidence in visiting Angkor Wat and surrounding temples, driving demand for both short-term rental properties and residential purchases targeting expatriate service providers. The city's hospitality sector recovery supports property investment opportunities in tourist-adjacent neighborhoods and service apartment developments.
Coastal areas, particularly Sihanoukville, experience growing tourism interest as infrastructure improvements enhance accessibility and service quality. Beach resort development and casino tourism contribute to property demand, though investors should note the market's sensitivity to tourism policy changes and regional competition.
Tourism recovery directly supports property rental markets through increased demand for serviced apartments, vacation rentals, and expatriate housing for tourism industry workers. Property investors in tourist-dependent areas benefit from higher occupancy rates and rental pricing power during peak travel seasons.
The sector's recovery also attracts international businesses and entrepreneurs seeking to establish tourism-related ventures, creating additional demand for commercial and residential properties in strategic locations.
What is the current occupancy rate of commercial real estate, such as office buildings and retail spaces, and how has that changed since last year?
Phnom Penh's office occupancy rates have improved to 82-85% in core business districts as of mid-2025, recovering from pandemic-era lows experienced in 2023.
The commercial real estate sector benefits from returning international businesses, expanding local companies, and new foreign investment establishing regional operations. Grade A office buildings in central business districts command premium rents and maintain higher occupancy rates compared to secondary locations.
Retail occupancy remains under pressure in oversupplied shopping malls, though recovery signs emerge gradually as consumer spending patterns normalize. Traditional street-level retail performs better than enclosed mall concepts, particularly in areas with strong pedestrian traffic and tourist activity.
Commercial property investment opportunities exist primarily in office developments serving growing business sectors, including financial services, technology, and export manufacturing support services. Retail investment requires careful location analysis given varying performance across different shopping formats and neighborhoods.
Mixed-use developments combining office, retail, and residential components show stronger performance metrics compared to single-use commercial properties, benefiting from diversified tenant bases and revenue streams.
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.
How many major infrastructure projects are under construction or planned, and how are they expected to influence property values?
Cambodia has numerous major infrastructure projects underway that will significantly impact property values across the country.
The new Techo Takhmao International Airport in Phnom Penh represents the largest single infrastructure investment, expected to enhance the capital's connectivity and drive development in surrounding areas. Expressway extensions connecting major cities improve transportation efficiency and open new residential development opportunities in previously remote locations.
Sihanoukville port upgrades support the city's role as Cambodia's primary maritime gateway, attracting logistics and manufacturing investments that drive both commercial and residential property demand. Highway and railway investments create development corridors linking Phnom Penh to border crossings and economic zones.
These infrastructure improvements increase property values in previously underserved areas while creating new investment opportunities in satellite towns and logistics hubs. Properties near transportation nodes and economic zones benefit from improved accessibility and business attraction.
The infrastructure pipeline also includes digital connectivity improvements and utility system expansions that enhance livability in emerging residential areas, supporting property value appreciation in suburban and satellite urban developments.
What is the government's current policy on foreign property ownership, and have there been any recent regulatory changes or incentives for investors?
Cambodia maintains a clear policy allowing foreigners to own up to 70% of strata-title units in condominium buildings, while prohibiting direct land ownership by non-citizens.
No significant regulatory changes occurred in 2025, providing stability for foreign investors already active in the market. The government continues streamlining property registration processes and maintaining clear legal frameworks for condominium ownership, reducing bureaucratic obstacles for international buyers.
Tax incentives benefit first-time buyers purchasing homes valued under $70,000, along with reduced registration fees that favor both local and international investors. These incentives primarily target affordable housing segments while supporting government objectives to increase homeownership rates.
The government actively promotes foreign investment attraction through simplified registration procedures and transparent ownership documentation. Special Economic Zone policies provide additional incentives for industrial and commercial property investment, particularly in designated development areas.
It's something we develop in our Cambodia property pack.
What's the expected GDP growth rate in Cambodia over the next three years, and how does it correlate historically with property market performance?
Cambodia's GDP growth is forecast at 5.5-6% annually through 2027, driven by tourism recovery, construction activity, and infrastructure sector expansion.
This growth rate exceeds most regional averages and reflects Cambodia's emerging market dynamics with substantial development potential remaining untapped. The construction and real estate sectors contribute significantly to GDP growth through both direct activity and multiplier effects across related industries.
Historically, Cambodia's property market upswings correlate closely with GDP growth periods, particularly when accompanied by increased foreign direct investment and major infrastructure development. The current economic expansion supports property market fundamentals through employment growth, income increases, and business expansion driving commercial space demand.
Tourism sector recovery contributes approximately 1.5% of projected GDP growth, directly benefiting property markets in Siem Reap and coastal areas through increased rental demand and hospitality-related real estate investment. Manufacturing and export growth support industrial property sectors and worker housing demand.
Strong macroeconomic performance provides confidence for property investors seeking markets with solid fundamental growth drivers rather than speculative appreciation patterns.
How much construction activity is being financed by foreign direct investment, and what sectors are receiving the most capital inflows?
Foreign direct investment finances the majority of large-scale construction activity in Cambodia, with Chinese and Southeast Asian capital leading major residential and commercial developments.
The residential condominium sector receives the highest FDI allocation, as international developers target foreign buyer demand and capitalize on Cambodia's attractive property ownership policies. Mixed-use developments combining residential, office, and retail components attract substantial foreign investment due to diversified revenue potential.
Industrial and logistics park construction experiences rapid FDI growth due to new Special Economic Zone policies and Cambodia's expanding role in regional manufacturing supply chains. Export-oriented manufacturing facilities require substantial infrastructure investment, creating opportunities in industrial real estate and worker housing developments.
Commercial property sectors, including office buildings and retail centers, attract foreign investment particularly in Phnom Penh's central business district where international companies establish regional operations. Hotel and hospitality development receives targeted FDI as tourism recovery creates opportunities for branded international hotel chains.
FDI concentration in construction sectors creates both opportunities and risks for local property markets, as capital flow changes can significantly impact development pipeline timing and market supply dynamics.
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 compelling opportunities for investors seeking high rental yields and exposure to a rapidly developing Southeast Asian economy.
While supply concerns and foreign buyer concentration create risks, the combination of infrastructure development, tourism recovery, and stable GDP growth supports positive long-term fundamentals for carefully selected investments.
Sources
- IPS Cambodia - Phnom Penh Condo Market Trends 2025
- BambooRoutes - Cambodia Price Forecasts
- IPS Cambodia - Siem Reap Condo Market Trends 2025
- BambooRoutes - Sihanoukville Property
- Global Property Guide - Cambodia Price History
- DaBest Properties - Cambodia Condo Trends
- Knight Frank - Cambodia Real Estate Highlights H2 2024
- RealEstate.com.kh - Investment Market Analysis 2025
- Yahoo Finance - Cambodia Construction Industry Report 2025
- RealEstate.com.kh - Cambodia Property Sector 5-Year Forecast