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Cambodia's property market is experiencing a significant transformation in 2025, shifting from speculative activity to real end-user demand.
Property prices in key urban areas like Phnom Penh have stabilized after years of correction, with prime locations showing modest growth of 5-10% year-to-date while maintaining attractive rental yields of 6-10% in emerging districts.
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Cambodia's property market in 2025 shows stabilization after previous corrections, with Phnom Penh leading at $2,650-$2,924 per sqm and 5-10% growth.
Foreign buyers dominate condo purchases while locals prefer landed houses, creating a balanced market with strong rental yields in emerging districts.
| Market Aspect | Current Status | Best Opportunities |
|---|---|---|
| Average Price (Phnom Penh) | $2,650-$2,924/sqm | Suburban borey houses |
| Price Growth (2025) | 5-10% in prime areas | Wat Bo, Otres Beach |
| Rental Yields | 6-10% market-wide | Emerging tourist districts |
| New Supply (by 2026) | 20,000 new condo units | Mid-range condos |
| Foreign Ownership | Up to 82% in prime condos | Upper floor condos |
| Best Entry Price | Under $2,500/sqm | Infrastructure-linked suburbs |
| Market Direction | End-user driven | Real demand growth |
What's the current average price per square meter in Cambodia right now and how has it changed over the past year?
As of September 2025, Cambodia's average property price per square meter ranges between $2,650 and $2,924 in prime Phnom Penh locations.
Property prices have risen 5-10% year-to-date in key urban districts since mid-2024, marking a significant recovery from previous market corrections. This growth is concentrated in Phnom Penh's prime areas, while other major cities show more modest increases.
Secondary cities like Siem Reap, Sihanoukville, and provincial centers display notably lower price points and varied growth rates. The national average shows a modest 0.45% growth over the past 12 months, reflecting the market's transition from speculative activity to genuine end-user demand.
The price recovery represents a stabilization after years of market correction, with foreign buyers returning to selective prime locations while local demand strengthens in affordable segments.
How do short-term price movements compare to medium-term and long-term trends?
Cambodia's property market shows distinct patterns across different time horizons, with recent stabilization following years of significant corrections.
Short-term movements over the last 12 months reveal market stabilization with modest national growth of 0.45% and stronger 5-10% increases in key urban districts since mid-2024. This represents a clear turnaround from previous declining trends.
Medium-term trends spanning 2-3 years show substantial price corrections during 2020-2023, with annual drops ranging from 2.95% to 8.10% before turning slightly positive in 2024. This correction period effectively eliminated speculative excess from the market.
Long-term patterns over 5-10 years demonstrate how high-end Phnom Penh prices have declined from $3,050 per square meter in 2020 to current levels of $2,650 per square meter, representing approximately 13% decline over five years. This long-term correction reflects the market's shift from speculative growth to sustainable end-user demand.
It's something we develop in our Cambodia property pack.
Which areas of Cambodia are seeing the fastest price growth, and which ones are slowing down?
Cambodia's regional property markets show clear winners and laggards based on infrastructure development and employment opportunities.
The fastest-growing areas include Phnom Penh's new suburbs, driven by expanding infrastructure and employment centers. Wat Bo in Siem Reap is experiencing strong growth due to tourism recovery and expat demand, while Otres Beach in Sihanoukville benefits from coastal development and tourism investment.
Emerging industrial centers like Bavet and Poipet are showing significant price appreciation, fueled by cross-border trade and manufacturing expansion. These locations offer entry points with strong growth potential for investors seeking capital appreciation.
Areas experiencing slower growth or price corrections include Sihanoukville's luxury segment, which faces oversupply issues and continued price adjustments. Older urban centers in Phnom Penh and luxury markets throughout the country show slower absorption rates and price stagnation.
The growth pattern clearly favors locations with genuine economic activity over purely speculative developments that characterized the previous market cycle.
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How do property values differ between Phnom Penh, Siem Reap, Sihanoukville, and secondary cities?
| City | Prime Condo Price (USD/sqm) | Recent Growth Rate | Rental Yield Range |
|---|---|---|---|
| Phnom Penh | $2,650–$2,924 | 5–10% | 6–8% |
| Siem Reap | $1,500–$3,000 | 4–6% | 6–8% |
| Sihanoukville | $1,000–$3,000 | 5–7% | 7–9% |
| Battambang | $800–$1,200 | 3–5% | 6–7% |
| Kampot | $900–$1,400 | 4–6% | 7–9% |
| Kep | $1,100–$1,600 | 5–7% | 8–10% |
| Poipet/Bavet | $700–$1,100 | 6–8% | 7–8% |
What are the key differences in price trends between condos, landed houses, villas, and commercial properties?
Different property types in Cambodia show distinct market behaviors based on buyer preferences and supply dynamics.
Condominiums dominate foreign demand, especially in Phnom Penh and Siem Reap, but face volatility due to oversupply in the luxury segment. Prime condo prices range from $2,650-$2,924 per square meter in Phnom Penh, with foreign buyers comprising up to 82% of purchases in premium developments.
Landed houses and borey developments are strongly favored by local buyers, showing consistent growth in affordable and mid-tier segments. Suburban and satellite Phnom Penh locations demonstrate particularly strong performance, with entry prices around $1,200-$2,000 per square meter.
Luxury villas continue experiencing price corrections in prime areas due to limited local demand and oversupply from previous speculative development. Sales remain slow with low absorption rates, making this segment challenging for investors.
Commercial properties show mixed performance, with mixed-use developments and retail/industrial properties near new infrastructure commanding price premiums. However, older business districts experience slower growth due to changing commercial patterns and remote work trends.
How is the rental yield evolving in prime areas compared to emerging districts?
Cambodia's rental yield landscape strongly favors emerging districts over established prime locations as of September 2025.
Emerging districts including Kep, Kampot, Otres Beach, and Wat Bo consistently deliver higher rental yields ranging from 7-10%, driven by growing tourism, expat communities, and limited rental supply. Mid-tier borey developments in suburban Phnom Penh also achieve strong yields due to local demand.
Prime central locations, particularly luxury condos in established Phnom Penh districts, show somewhat lower yields of 6-8% due to higher purchase prices and oversupply issues. Central luxury properties face increased competition from new developments, pressuring rental rates.
The yield differential reflects the market's maturation, where emerging areas with genuine demand fundamentals outperform previously speculative prime locations. Tourist-oriented areas show seasonal yield variations but maintain strong annual averages.
Industrial and border cities like Bavet and Poipet offer consistent yields of 7-8% driven by employment-based rental demand from manufacturing and trade workers.
What is the current level of foreign vs. local buyer activity, and how is that shaping demand?
Foreign and local buyers create distinct market segments in Cambodia's property landscape, fundamentally shaping demand patterns.
Foreign buyers, particularly Chinese and ASEAN nationals, dominate prime condominium purchases with up to 82% market share in luxury developments. This concentration creates price stability in premium condo segments while making them vulnerable to foreign investment policy changes.
Local buyers focus heavily on landed housing and affordable segments, driving growth in borey developments and suburban areas. This domestic demand provides market stability and supports sustainable price growth based on actual housing needs rather than speculation.
The buyer mix has shifted the market from speculative to end-user orientation, with foreign buyers increasingly seeking properties for personal use or established rental markets rather than pure speculation. This change supports more sustainable price growth and reduces volatility.
Government regulations allowing foreigners to purchase up to 80% of condominium units on upper floors maintain foreign accessibility while protecting local housing supply through land ownership restrictions.
How much new supply is expected to enter the market in the next 1–3 years, and in which property segments?
Cambodia expects significant new property supply through 2026, concentrated in specific segments and locations.
Phnom Penh anticipates approximately 20,000 new condominium units by end of 2026, pushing total condo supply to 85,000 units citywide. This substantial increase will primarily consist of mid-range developments rather than luxury properties, addressing broader market demand.
Landed property supply will also expand significantly, mainly in suburban Phnom Penh and satellite cities. New borey developments focus on affordable and mid-tier housing segments where local demand remains strong.
The luxury segment remains saturated with existing oversupply, leading developers to focus on mid-range and affordable categories. Most new condo developments target the $1,500-$2,500 per square meter price range rather than premium segments.
Supply growth in secondary cities remains more measured, with developments concentrated around infrastructure projects and employment centers. This controlled expansion helps maintain price stability in emerging markets.
It's something we develop in our Cambodia property pack.
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.
What are the main government policies or regulations affecting property purchases and foreign ownership right now?
Cambodia maintains clear regulations governing property ownership while supporting market development through targeted policies.
Foreign ownership rules allow non-residents to purchase condominiums up to 80% of any building on upper floors, but prohibit outright land ownership. This framework maintains foreign investment access while protecting local land rights.
Property transfer and ownership procedures remain straightforward with established legal frameworks. Recent tax incentives specifically support local first-time buyers and affordable housing developments, strengthening the domestic market foundation.
New regulations focus on discouraging speculative activity while supporting genuine end-user demand. Mediation mechanisms for affordable borey developments help resolve disputes and maintain market confidence.
The government maintains supportive policies for infrastructure development and industrial zones, indirectly benefiting property markets in these areas through job creation and economic activity.
What budget ranges currently offer the best opportunities for living, renting out, and reselling in Cambodia?
Different budget ranges in Cambodia serve distinct investment and lifestyle purposes, with clear opportunities across price segments.
For personal living, suburban Phnom Penh borey houses priced at $1,200-$2,000 per square meter offer excellent value for families and long-term residents. These developments provide modern amenities, community facilities, and good access to urban centers.
Rental investment opportunities perform best in emerging tourist districts and industrial cities where properties under $2,000 per square meter generate rental yields of 7-10%. Locations like Kampot, Kep, Otres Beach, and industrial border cities offer strong rental demand.
For resale potential, properties under $2,500 per square meter in growth areas like Wat Bo (Siem Reap), Otres Beach (Sihanoukville), and new suburban Phnom Penh developments present the best capital appreciation prospects. These areas combine affordable entry prices with strong growth fundamentals.
Premium segments above $2,500 per square meter face continued challenges from oversupply and limited local demand, making them less attractive for most investors seeking reliable returns.
If you want to buy for rental income, which districts and property types are performing best?
Cambodia's rental market shows clear winners based on location fundamentals and property type preferences.
Top-performing districts for rental income include Wat Bo in Siem Reap, benefiting from tourism recovery and expat demand, Otres Beach in Sihanoukville for coastal rental markets, and Phnom Penh's new borey developments serving local families and professionals.
Property types delivering strongest rental performance include affordable condominiums in the $1,500-$2,500 per square meter range, borey houses in suburban locations, and tourist-area serviced apartments. These categories address genuine accommodation needs rather than speculative demand.
Industrial and border cities like Bavet, Poipet, and manufacturing zones offer consistent rental demand from workers, though yields may be slightly lower than tourist areas. These locations provide steady income with less seasonality.
Mid-tier properties consistently outperform luxury segments for rental returns, as they serve broader market demand from locals, expats, and business travelers who form the stable rental base.
If your goal is long-term capital appreciation, where and what type of property should you focus on?
Long-term capital appreciation in Cambodia requires focus on locations with sustainable growth drivers and reasonable entry prices.
Target locations include satellite and infrastructure-linked suburbs of Phnom Penh where urban expansion creates natural appreciation potential. Siem Reap's expat-favored residential areas benefit from continued tourism development and international community growth.
Mixed-use properties near new transport or industrial projects offer appreciation potential based on economic development rather than speculation. Entry prices under $2,500 per square meter provide better risk-adjusted returns than premium segments.
Property types for appreciation should favor borey housing and non-luxury condos that serve genuine demand rather than speculative investment. These categories benefit from population growth, urbanization, and rising local incomes.
The strategy emphasizes locations with real economic activity, infrastructure development, and growing employment rather than purely speculative developments that characterized previous market cycles.
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.
Cambodia's property market transformation in 2025 reflects a fundamental shift from speculative excess to sustainable end-user demand.
The market now offers genuine opportunities for both investors and residents, with clear winners in emerging districts and affordable segments while luxury markets continue their correction phase.
Sources
- Cambodia Price Forecasts - BambooRoutes
- Average House Price in Cambodia - BambooRoutes
- Property Bubble Cambodia - BambooRoutes
- Cambodia Price History - Global Property Guide
- Cambodia Condo Trends - Dabest Properties
- Phnom Penh Condo Market Trends 2025 - IPS Cambodia
- Cambodia Square Meter Prices - Global Property Guide
- CBRE Forecasts Cambodia Real Estate Market - Kiri Post