What are the current trends in Cambodia property market?

Authored by the expert who managed and guided the team behind the Cambodia Property Pack

Everything you need to know before buying real estate is included in our Cambodia Property Pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Cambodia. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Cambodian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Phnom Penh, Siem Reap, and Sihanoukville. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What are the current average sale prices per square metre for condos in Phnom Penh, Siem Reap and Sihanoukville, and how have they changed over the past year?

Condo prices across Cambodia's major cities show different patterns as we reach mid-2025.

City	Average Price per sqm (2025)	Change vs. 2024
Phnom Penh	$1,800 (avg), $800–$2,550 range	Flat to slight increase; stabilized after correction
Siem Reap	$2,000–$3,000 (prime areas)	Up 8% year-over-year in prime locations
Sihanoukville	$2,500–$2,850 (beachfront)	Up 3–7% year-over-year, but market subdued
Phnom Penh (Fringe areas)	$800–$1,200	Minimal change, value opportunities
Phnom Penh (Prime districts)	$2,200–$2,550	Slight appreciation in BKK1, Tonle Bassac
Siem Reap (Secondary areas)	$1,500–$2,000	Steady 3-5% growth
Sihanoukville (Non-beachfront)	$1,800–$2,200	Limited movement due to oversupply

What rental yields can investors expect today for condos, villas and shophouses compared with 12 months ago?

Rental yields in Cambodia remain attractive for investors, with condos delivering the strongest returns across all major cities.

Phnom Penh condos generate the most consistent yields at 6-8% gross, particularly in established expat neighborhoods like BKK1, Russian Market, and the rapidly developing Chroy Changvar district. These areas benefit from steady tenant demand and lower vacancy rates compared to other property types.

Villas deliver more modest returns at 4-5% net yield in Phnom Penh, while Siem Reap villa yields drop to just 1.8-2% net due to high operational costs and seasonal demand fluctuations. Villa investments require more hands-on management and typically attract longer-term tenants, which can provide stability but limits yield optimization.

Shophouses offer middle-ground returns of 5-7% gross across all three cities, with the best opportunities in emerging districts like Sen Sok and Dangkao where commercial activity is expanding. However, shophouse investments carry higher vacancy risk as they depend on local business conditions and foot traffic patterns.

It's something we develop in our Cambodia property pack.

How much new residential supply is scheduled to hit the market in the next six months versus the next three years?

Cambodia's residential pipeline shows significant supply coming online, particularly in the condo segment.

Phnom Penh will see over 6,000 new condo units completed by end-2025, bringing the total condo supply to approximately 78,000 units. This represents a substantial addition to the market in a concentrated timeframe, primarily focused in mid-tier and emerging districts.

The landed housing segment follows a more measured pace with 1,120 new units in 2025, followed by 930 units in 2026, and approximately 7,600 additional units through 2028. This steady supply growth aligns better with absorption rates and demographic demand patterns.

Serviced apartments represent a growing segment, projected to reach 10,259 units by 2027, marking a 22% increase from current levels. This growth reflects increasing business travel and expatriate housing demand in Phnom Penh's expanding commercial districts.

The immediate impact means mild downward pressure on prices, especially for mid-tier units in fringe locations where much of the new supply is concentrated. However, well-located projects in established districts should maintain pricing power due to location premiums and limited land availability in prime areas.

What percentage of new project launches sold out this quarter and which property types are absorbing fastest?

The Cambodia condo market shows selective absorption patterns with clear preferences for specific unit types and locations.

Approximately 75% of newly completed condo units in the second half of 2024 were absorbed in the mid-tier and core market segments, while prime and high-end units experienced slower sales velocity. This trend continues into 2025 as buyers focus on value propositions rather than luxury features.

One-bedroom condos dominate sales activity, accounting for 61% of all transactions in central Phnom Penh districts including BKK1, Toul Kork, and Tonle Bassac. These units appeal to both investors seeking rental properties and young professionals purchasing their first homes.

Villas and shophouses in emerging suburbs like Sen Sok and Dangkao show steady absorption rates, particularly for units priced between $150,000-$300,000. These properties attract families and small business owners looking for space and growth potential outside the urban core.

The fastest absorption occurs for properties offering strong value propositions: well-located condos under $150,000, completed projects with immediate occupancy, and units in developments with established amenities and management systems.

Which neighborhoods are posting the quickest land-price gains right now and what infrastructure projects are fueling that growth?

Several Phnom Penh districts are experiencing rapid land value appreciation driven by major infrastructure investments.

Chroy Changvar leads land-price growth due to multiple catalysts including new bridge connections, road network upgrades, and the establishment of international schools. The area's transformation from agricultural land to mixed-use development creates significant value appreciation for early investors.

Sen Sok and Dangkao districts show strong land value increases supported by new shopping malls, private hospitals, and improved connectivity to Phnom Penh International Airport. These areas benefit from planned residential developments and growing commercial activity as the city expands westward.

In Siem Reap, areas surrounding the new Angkor International Airport and along improved highway corridors experience the most rapid land price gains. The airport's enhanced capacity and connectivity boost both tourism infrastructure and residential development potential.

Road infrastructure improvements, particularly the completion of Ring Road segments and expressway connections, create land value premiums along these corridors. Properties within 2-3 kilometers of major infrastructure nodes typically see 15-25% higher appreciation rates than comparable locations without direct access.

How do today's mortgage rates, loan-to-value limits and bank approval times compare with five-year averages?

Cambodia's mortgage lending environment has improved significantly compared to five years ago, enhancing buyer affordability.

Mortgage rates average 8% in 2025, representing a substantial decrease from the 10-11% rates common five years ago. This 2-3 percentage point reduction translates to significantly lower monthly payments and improved purchasing power for qualified borrowers.

Loan-to-value limits remain stable at up to 70% for foreign buyers and 80% for Cambodian nationals, consistent with five-year averages. These ratios reflect conservative lending practices while still providing reasonable leverage for property purchases.

Bank approval times have improved to 2-4 weeks from the 4-6 week process typical five years ago, largely due to digitalization initiatives and streamlined documentation requirements. This efficiency reduces transaction uncertainty and allows faster property closings.

The combination of lower rates and stable LTV ratios improves overall affordability, though rising prices in prime areas offset some of these financing benefits. Buyers with strong credit profiles and steady income documentation can access competitive terms from local and international banks operating in Cambodia.

What new taxes, foreign-ownership rules or other regulations have been announced recently?

Cambodia's property regulatory environment remains relatively stable with no major changes announced in 2025.

No significant new taxes have been introduced, and stamp duty exemptions continue for first-time buyers purchasing units under $210,000. This exemption supports affordable housing access and encourages homeownership among young Cambodians and expatriate residents.

Foreign ownership rules remain unchanged, allowing non-residents to own strata-title condominiums above the ground floor but prohibiting land ownership or landed house purchases. This framework provides clear investment parameters while protecting domestic land ownership rights.

Transaction costs stay consistent with previous years, though potential regulatory changes could emerge in the next 1-3 years. Possible areas of change include tightened anti-money laundering requirements for high-value transactions and potential property taxes on luxury holdings, though no specific proposals have been announced.

The regulatory outlook supports continued foreign investment while maintaining appropriate oversight of the property market. Investors should monitor potential changes but can proceed with confidence under current rules and procedures.

Given current economic indicators, where do analysts forecast residential sale prices and rents by 2027?

Cambodia's economic fundamentals support positive property market projections through 2027.

GDP growth forecasts of 4.9-6.4% for 2025 provide a strong foundation for property demand, driven by continued urbanization, infrastructure development, and tourism recovery. This economic expansion supports both residential sales and rental markets across major cities.

Tourism recovery shows significant momentum with international arrivals up 22.9% year-over-year in 2024, boosting rental demand in Phnom Penh and Siem Reap. Foreign direct investment exceeded $1.5 billion in 2024, with continued inflows expected to support property market activity.

Analysts forecast sale prices in prime districts to rise 6-8% annually through 2027, with rental rates increasing 4-6% per year in high-demand areas. These projections reflect steady demand growth balanced against new supply additions and improved infrastructure connectivity.

The most optimistic scenarios apply to well-located properties in established districts with strong infrastructure and amenity access. Secondary locations may see more modest appreciation but still deliver positive returns for investors focused on long-term value creation.

How are demographics, urbanization and Belt-and-Road infrastructure expected to shape long-term property demand through 2030?

Cambodia's long-term property outlook benefits from powerful demographic and infrastructure trends extending through 2030.

The country's young, rapidly urbanizing population creates sustained demand for affordable and mid-market housing, particularly in Phnom Penh, Siem Reap, and Sihanoukville. As rural populations migrate to cities for employment opportunities, residential demand will continue expanding beyond current supply levels.

Belt-and-Road infrastructure investments enhance regional connectivity through major expressways, ports, and airport expansions. These projects increase land values along new corridors and create secondary development nodes beyond traditional city centers.

Urbanization patterns favor mixed-use developments that combine residential, commercial, and recreational facilities, reflecting changing lifestyle preferences among younger demographics. This trend supports higher-density projects with integrated amenities rather than standalone residential complexes.

Infrastructure improvements, including the Phnom Penh-Sihanoukville Expressway and expanded airport capacity, reduce travel times and expand commutable areas. Properties along these corridors will likely experience above-average appreciation as accessibility improves and development spreads outward from urban cores.

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.

If you have up to USD 150,000 to buy a home in Phnom Penh today, which districts offer the best balance of price and future upside?

Several Phnom Penh districts provide excellent value propositions for homebuyers with $150,000 budgets.

1. **Sen Sok District** - New borey developments, strong infrastructure investments, and significant price appreciation potential as the area develops2. **Chroy Changvar** - River views, new bridge connections, rapid growth trajectory, and good value relative to prime districts3. **Toul Kork** - Established expat communities, strong rental demand if needed, and solid long-term upside potential4. **Russian Market Area** - Central location, proven rental demand, and stable property values with growth potential5. **Dangkao District** - Emerging area with new commercial developments and improved airport connectivity

Sen Sok offers the best combination of affordability and growth potential, with new infrastructure projects and planned developments creating significant upside. Chroy Changvar provides unique river access and rapid appreciation potential as bridge connections improve accessibility to central districts.

It's something we develop in our Cambodia property pack.

For buyers focused on rental income, which property type and location currently delivers the highest net yield with manageable vacancy risk?

Mid-range condos in established expat areas provide the optimal balance of yield and vacancy management for rental-focused investors.

Properties priced between $80,000-$150,000 in BKK1, Russian Market, and Chroy Changvar consistently deliver 6-8% gross yields with low vacancy rates. These areas benefit from steady expat and local professional demand, reducing tenant turnover and vacancy periods.

One-bedroom and studio units perform particularly well for rental purposes, appealing to young professionals, expatriate workers, and short-term business travelers. These smaller units also require lower initial investment while generating proportionally higher yields than larger properties.

Shophouses in Sen Sok and Dangkao offer alternative opportunities with 5-6% yields, though they carry higher vacancy risk and require more active management. Villa rentals provide stability with long-term tenants but deliver lower net yields of 4-5% due to higher maintenance costs and slower tenant replacement.

The key to maximizing rental returns lies in selecting properties with strong transportation links, nearby amenities, and established expat communities that ensure consistent tenant demand throughout economic cycles.

For investors aiming to resell within three years, which upcoming projects or secondary-market segments offer the most reliable exit potential?

Several market segments provide strong resale prospects for investors planning three-year exit strategies.

Core and mid-tier condos in BKK1, Chroy Changvar, and Toul Kork with completion dates in 2025-26 offer excellent resale potential as demand recovers and infrastructure improvements enhance location value. These projects benefit from established developers and proven market acceptance.

Secondary market opportunities exist in completed, well-managed buildings in central districts where prices have stabilized and liquidity is improving. Resale units often provide immediate rental income while waiting for appreciation, reducing holding costs during the investment period.

Properties near major infrastructure projects like the Ring Road extensions and new bridge connections should see accelerated appreciation as these improvements near completion. Early positioning in these corridors provides maximum upside potential for medium-term exits.

The most reliable exit strategies focus on properties with strong fundamentals: central locations, quality construction, professional management, and clear value propositions that appeal to both owner-occupiers and investors in Cambodia's evolving market landscape.

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.

Sources

1. Cambodia Condominium Report - Real Estate Cambodia
2. Angkor Times - Phnom Penh Condo Market 2025
3. Dabest Properties - Siem Reap Condo Prices
4. Hunter Estate - Siem Reap Property Demographics
5. BambooRoutes - Sihanoukville Price Forecasts
6. Dabest Properties - Phnom Penh New Projects 2025
7. Global Property Guide - Cambodia Price History
8. BambooRoutes - Siem Reap Real Estate Market
9. Cambodia Property Asia - Best Investment Cities 2025
10. B2B Cambodia - Knight Frank H2 2024 Report