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Cambodia's property market in September 2025 shows promising recovery signs with moderate price growth expected over the next few years. The market is stabilizing after previous corrections, with strong fundamentals supporting steady expansion, particularly in affordable housing segments and rapidly developing districts around Phnom Penh.
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Cambodia's residential property market is experiencing modest growth with prices rising 1.72% in Phnom Penh during 2024, while rental yields remain attractive at 6-8% for condos in the capital.
The best opportunities lie in affordable condos and borey houses in emerging neighborhoods, while luxury segments face oversupply challenges and slower resale prospects.
| Market Indicator | Current Status (Sept 2025) | Forecast 2025-2027 |
|---|---|---|
| Phnom Penh Average Price | $203,500 residential properties | 5-10% annual growth expected |
| Condo Prices (New Launch) | $1,500-$2,200 per sqm entry-level | Gradual increase, rebound by 2026-2027 |
| Rental Yields Phnom Penh | 6-8% gross for condos | Stable, most attractive in prime districts |
| Best Growth Areas | BKK1, Chroy Changvar, Sen Sok | Infrastructure-driven appreciation |
| Risk Areas | Luxury oversupply, distant provinces | Continued pressure, slower recovery |
| Medium-term Growth | Market stabilizing | 6-8% annually through 2027 |
| Investment Strategy | Focus on affordable segments | Target well-located, reasonably priced properties |
What are the latest figures on property prices in Cambodia right now?
As of September 2025, residential property prices in Cambodia show significant variation between urban centers and different property segments.
In Phnom Penh, the average price for residential properties stands at approximately $203,500. High-end condos in prime locations average $2,650 per square meter, while new condo launches in 2025 offer more competitive pricing ranging from $1,500 to $2,200 per square meter for entry-level units.
Outside the capital, prices are considerably lower. In Siem Reap and Kampot, borey (gated community) properties typically range from $1,000 to $1,500 per square meter. These provincial markets offer more affordable entry points but with different growth dynamics compared to Phnom Penh.
The pricing structure reflects a clear tier system where central Phnom Penh commands premium rates, emerging districts offer mid-range opportunities, and provincial areas provide budget-friendly options with varying appreciation potential.
How have these prices changed over the past 12 months and what's the short-term trend?
Cambodia's property market experienced modest recovery in 2024 after experiencing corrections in 2023.
Nationwide, residential prices rose 0.45% year-on-year in 2024, representing a stabilization after the previous year's decline. However, when adjusted for inflation, real prices still showed a decline, indicating the market is still working through previous overheating.
Phnom Penh outperformed the national average with 1.72% nominal growth in 2024. This growth was primarily driven by increased domestic demand, ongoing infrastructure projects, and supportive government policies targeting the housing sector.
The short-term trend for the remainder of 2025 points toward continued moderate growth, with analysts forecasting a 5-10% price increase for Phnom Penh properties. This growth is expected to concentrate in affordable and mid-range segments rather than luxury properties.
It's something we develop in our Cambodia property pack.
What's the outlook for the next 1-2 years in terms of price growth or decline?
The 1-2 year outlook for Cambodia's property market shows cautious optimism with gradual price increases expected.
Analysts expect a more substantial rebound by 2026-2027, particularly for well-located and reasonably priced properties. This recovery timeline aligns with anticipated improvements in tourism recovery and potential easing of mortgage rates.
The growth will likely be uneven across different segments. Affordable housing and mid-range condos are expected to lead the recovery, supported by strong domestic demand and government initiatives to increase homeownership among middle-income Cambodians.
Geographic variations will be significant, with Phnom Penh and its satellite districts expected to see the strongest performance. Properties near major infrastructure developments, including new roads, bridges, and commercial centers, are positioned for above-average appreciation.
Luxury segments and distant provincial markets may continue to lag, with slower recovery timelines extending into 2027 or beyond depending on broader economic conditions.
How do analysts see the market evolving over the medium term, say 3-5 years?
Medium-term forecasts for Cambodia's property market show sustained growth driven by fundamental economic improvements.
Market growth is projected at 6-8% annually through 2027, backed by substantial infrastructure investment, rising foreign interest, and continued economic expansion. This growth rate would represent a healthy appreciation above inflation while avoiding the speculative bubbles of previous cycles.
Infrastructure development will be the primary growth driver, with major projects like new expressways, the Phnom Penh-Sihanoukville railway, and urban development initiatives creating new property hotspots. These developments are expected to shift demand patterns and create new high-growth corridors.
The strongest markets during this period will be well-connected urban districts in Phnom Penh and strategic nodes along key transport and tourist corridors. Satellite towns and suburban developments with good connectivity to the capital are also expected to benefit significantly.
Foreign investment is anticipated to increase gradually as regional economic integration deepens and Cambodia's investment climate continues to improve, providing additional demand support for the property sector.
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What's the long-term projection for the next decade?
Long-term projections for Cambodia's property market over the next decade remain fundamentally positive, supported by rapid urbanization and major infrastructure development.
Major infrastructure projects, including the development of new cities, expansion of transportation networks, and industrial zone development, position Cambodia for sustained property price appreciation throughout the 2030s. The country's rapid urbanization rate, currently among the highest in Southeast Asia, will continue to drive housing demand.
However, long-term estimates depend significantly on global economic conditions, regional stability, and Cambodia's continued integration into ASEAN economic frameworks. Local fundamentals including population growth, rising incomes, and urban migration patterns remain strongly positive.
The property market structure is expected to mature significantly during this period, with improved regulations, more sophisticated financing options, and greater institutional investment participation. This maturation should provide more stable and predictable growth patterns compared to the volatile cycles of the past decade.
Which areas in Cambodia are currently experiencing the strongest growth in real estate?
Phnom Penh's key districts are experiencing the strongest real estate growth, driven by infrastructure improvements and commercial development.
BKK1 (Chamkar Mon) continues to lead growth due to its central location, established amenities, and ongoing commercial development. The district benefits from proximity to government offices, international schools, and major shopping centers, making it highly attractive to both local and foreign buyers.
Chroy Changvar district is experiencing rapid transformation, with new bridge connections, riverfront developments, and planned commercial projects driving significant property appreciation. The area offers a combination of urban convenience and riverside lifestyle that appeals to affluent buyers.
Sen Sok district has emerged as a major growth area, benefiting from new infrastructure including improved road networks and the development of new commercial centers. The district offers more affordable prices while maintaining good connectivity to central Phnom Penh.
Peripheral districts including Kambol and Prek Pnov offer cheaper land prices with significant potential upside from future development plans. These areas are attracting investors looking for longer-term appreciation as the city expands outward.
Which regions or neighborhoods look riskier or more likely to stagnate?
Several areas in Cambodia's property market present higher risks and potential for stagnation based on current market conditions.
Provinces outside major cities experienced price declines in 2024 and continue to pose greater investment risk due to slower demand growth and weaker infrastructure development. These areas lack the economic drivers necessary to support consistent property appreciation.
High-end segments and luxury condos in central Phnom Penh suffer from significant oversupply, putting both prices and resale values under sustained pressure. Many luxury projects launched during the previous boom cycle remain partially occupied, creating a substantial inventory overhang.
Remote coastal areas, despite tourism potential, face challenges from inconsistent infrastructure development and regulatory uncertainties. Properties in these areas often experience longer sale times and greater price volatility.
Industrial zones in less developed provinces, while offering lower prices, lack the demand drivers needed for residential property appreciation and may face longer development timelines than originally anticipated.
It's something we develop in our Cambodia property pack.
How does the outlook differ between property types such as condos, villas, commercial, and land?
| Property Type | Current Market Status | Growth Outlook |
|---|---|---|
| Entry-Level Condos | High demand, stable prices | Strong growth potential, 6-8% annually |
| Luxury Condos | Oversupply, price pressure | Slow recovery, risk of continued stagnation |
| Suburban Villas/Boreys | Steady demand from families | Moderate growth, 4-6% annually |
| Commercial Properties | Mixed performance, selective recovery | Location-dependent, uneven growth |
| Central District Land | Ultra-premium pricing | Limited supply, steady appreciation |
| Suburban Land | Growth potential but less liquid | Infrastructure-dependent upside |
| Provincial Land | Low prices, speculative | High risk, uncertain timeline |
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 rental yields right now in key markets like Phnom Penh, Siem Reap, and Sihanoukville?
Cambodia's rental markets offer attractive yields compared to many regional markets, with significant variation between property types and locations.
Phnom Penh leads with the strongest rental yields, offering 6-8% gross returns for well-located condos in prime districts. Villa rentals in the capital typically generate 4-5% net returns after management and maintenance costs. The strong yields reflect solid demand from expatriates, business travelers, and affluent locals.
Siem Reap provides competitive yields of 5-7% for condos and 4-6% for villas, with performance heavily dependent on tourism recovery and seasonal variations. Properties near Angkor Wat and the old market area command premium rental rates, particularly for short-term vacation rentals.
Sihanoukville offers yields of 6-8% for condos and 4-5% for villas, though the market remains volatile due to ongoing changes in the local economy and regulatory environment. The coastal location provides appeal for both local and international tenants, but political and economic uncertainties create risk factors.
Rental yields are most attractive in Phnom Penh's established districts where demand remains consistent year-round, supported by a stable expatriate community and growing local affluent class.
How do resale values compare across different areas and property types?
Resale values in Cambodia's property market vary significantly based on location, property type, and market segment positioning.
Central Phnom Penh condos and land maintain the highest resale values, particularly in key districts like BKK1, BKK2, and 7 Makara. These areas benefit from established infrastructure, amenities, and consistent demand from both local and international buyers.
Suburban homes and borey developments hold their value reasonably well, especially those in well-planned communities with good amenities and connectivity. However, sale times may be longer compared to central properties, and buyers often need to be more patient with the sales process.
Luxury segments face significant challenges with resale values, often requiring substantial discounts and extended marketing periods. The oversupply in this segment has created a buyer's market where negotiation is expected and quick sales are uncommon.
Properties in less developed provinces and high-end sectors show stagnation or even decline in resale values. These properties often require significant price reductions to attract buyers and may remain on the market for extended periods.
If you want to buy now, where are the best opportunities depending on your budget?
Current buying opportunities in Cambodia vary significantly based on budget levels and investment objectives.
For budget-conscious buyers ($50,000-$150,000), affordable condos and borey houses in emerging Phnom Penh neighborhoods offer the best prospects for appreciation. Areas like Sen Sok, Prek Pnov, and Kambol provide entry-level opportunities with good growth potential as infrastructure development continues.
Mid-range buyers ($150,000-$300,000) should focus on well-located condos in established districts or quality borey developments in satellite towns. These properties offer a balance of current amenities, rental potential, and future appreciation prospects.
Higher-budget buyers ($300,000+) should target land parcels or villas near infrastructure upgrades while carefully avoiding oversupplied luxury condo projects. Strategic land purchases in developing corridors or high-quality standalone villas in premium locations offer the best risk-adjusted returns.
Buyers should avoid the luxury condo segment regardless of budget due to oversupply conditions that may persist for several years, creating ongoing pressure on both prices and resale prospects.
It's something we develop in our Cambodia property pack.
For each use case—living, renting out, or reselling—what property type and location strategy makes the most sense today?
Different investment objectives require distinct strategies in Cambodia's current property market.
For buyers planning to live in their property, affordable condos or family homes (boreys) in districts with strong amenities, access, and growth potential offer the best combination of lifestyle and investment value. Areas like Sen Sok and Chroy Changvar provide modern amenities while maintaining reasonable prices and good appreciation potential.
Investors focused on rental income should target 1-2 bedroom condos in central Phnom Penh for the most robust yields and consistent demand. Tourist-driven areas in Siem Reap and Sihanoukville can work for short-term rental strategies, but require more active management and carry higher vacancy risks.
Buyers primarily interested in capital appreciation should focus on land in rapidly developing districts or houses near infrastructure hubs. These properties offer the strongest potential for price growth over medium to long-term holding periods.
All investor types should avoid the oversupplied luxury condo sector where resale values face continued pressure. Instead, focusing on undersupplied segments like affordable housing and well-located land offers better risk-adjusted returns across all use cases.
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 September 2025 presents selective opportunities for informed investors willing to focus on the right segments and locations.
While luxury segments face continued challenges, affordable housing and strategically located properties offer compelling prospects for both lifestyle buyers and investors seeking steady returns in one of Southeast Asia's emerging markets.
Sources
- Global Property Guide - Cambodia Price History
- BambooRoutes - Phnom Penh Price Forecasts
- BambooRoutes - Cambodia Property Market Trends
- B2B Cambodia - Real Estate Mid-Year Review 2025
- IPS Cambodia - Phnom Penh Condo Market Trends 2025
- RealEstate.com.kh - Property Prices in Cambodia
- Cambodianess - Real Estate Sector Rebound 2026
- CBRE Cambodia - Property News Roundup August 2025