What is the outlook for the real estate market in Cambodia?

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, Cambodia, 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 property prices per square meter in major Cambodian cities?

As of June 2025, property prices in Cambodia vary significantly across cities and property types, with Phnom Penh commanding the highest values.

In Phnom Penh, residential condominiums average $1,800-$2,900 per square meter, with prime areas like BKK1 reaching $2,650-$2,924 per square meter. Land prices in prestigious districts like BKK1 and 7 Makara range from $4,500-$8,500 per square meter, while emerging areas like Sen Sok offer more affordable options at $300-$2,500 per square meter.

Siem Reap presents more accessible pricing with residential condos averaging $1,200-$1,500 per square meter and residential land priced at $100-$150 per square meter. Complete villas in the area typically range from $200,000-$300,000, making it attractive for both investors and residents seeking tourism-linked properties.

Sihanoukville falls in the middle range with condos priced at $1,200-$1,700 per square meter, though the market faces challenges from oversupply. Commercial properties across all three cities range from $1,000-$6,000 per square meter depending on location and quality.

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

How have property prices changed over the past year and what's expected next?

Property prices across Cambodia have shown varied performance over the past 12 months, with most major cities experiencing moderate growth.

Phnom Penh has led the growth with residential prices rising 5-10% over the past year, particularly in mid-range and prime condominium segments. The capital's land prices in prime locations have increased 3-5%, driven by continued urbanization and infrastructure development projects.

Siem Reap has performed exceptionally well with an 8-10% price increase in 2025, primarily driven by tourism recovery and the new airport infrastructure that has improved accessibility. This growth reflects renewed confidence in the tourism sector and increased demand from both domestic and international buyers.

Sihanoukville has struggled with flat to slightly declining prices due to oversupply issues and economic headwinds affecting the coastal city. If prices do rise, experts expect modest growth of 3-7% in 2025, though risks of further correction remain significant.

For the next 6-12 months, Phnom Penh and Siem Reap are expected to maintain moderate price growth of 5-10%, especially in areas benefiting from infrastructure upgrades. Sihanoukville may remain flat or see small gains only if tourism rebounds significantly.

What's the long-term outlook for Cambodia's real estate market?

The 3-5 year outlook for Cambodia's real estate market shows cautious optimism supported by several growth drivers but tempered by specific risks.

Key growth drivers include continued urbanization and robust economic growth, with GDP forecasted at 4.9-6.4% for 2025. Major infrastructure projects such as new airports, expressways, and port expansions are expected to boost property values in connected areas. Government support for affordable housing through tax exemptions for properties under $70,000 will continue supporting first-time buyers.

However, significant risks include oversupply in luxury condominiums and commercial segments, particularly in Phnom Penh and Sihanoukville where over 30,000 high-end units are in the pipeline. Global economic uncertainty and challenges in the export sector could impact overall market sentiment and foreign investment flows.

Regulatory changes around foreign ownership and lending practices remain potential wildcards that could affect market dynamics. The market is also vulnerable to changes in tourism patterns, especially in Siem Reap and coastal areas.

Overall, experts forecast moderate price appreciation in urban and tourism-driven areas over the next 3-5 years, while potential corrections may occur in oversupplied luxury segments. Rental yields are expected to remain attractive compared to regional peers, supporting investment appeal.

Which property types are in highest demand across different regions?

Demand patterns vary significantly across Cambodia's regions, reflecting local economic drivers and buyer preferences.

Region	Most Demanded Property Type	Price Range	Key Drivers
Phnom Penh	Mid-range condos	$80,000-$150,000	Urban professionals, expats
Phnom Penh	Affordable landed homes	Under $210,000	Local families, first-time buyers
Siem Reap	Villas and boutique hotels	$200,000-$300,000	Tourism, hospitality investment
Siem Reap	Land near tourist zones	$100-$150/sqm	Development potential
Sihanoukville	Beachfront condos	$1,200-$1,700/sqm	Tourism, high risk/reward
Coastal (Kep/Kampot)	Villas and land	$800-$1,200/sqm	Emerging tourism, lifestyle

What are the current rental yields and how is rental demand trending?

Rental yields in Cambodia remain attractive compared to regional markets, with significant variation based on location and property type.

Phnom Penh offers gross rental yields of 6.0-7.0% on average, with prime BKK1 condominiums achieving 6-7% net yields after expenses. The Chroy Changvar area stands out with yields of 6.8%, benefiting from its emerging status and lower entry prices. Rental demand is particularly strong in established districts like BKK1, Russian Market, and Toul Kork due to expat and professional demand.

Sihanoukville presents the highest yields at 8-11% gross, though this comes with higher risk due to market volatility and oversupply concerns. The coastal city benefits from seasonal tourism demand but faces challenges with year-round occupancy.

Emerging coastal areas like Kep and Kampot offer attractive yields of around 7.9%, supported by growing tourism and relatively affordable entry prices. These areas benefit from increasing domestic and international visitor numbers seeking alternatives to crowded destinations.

Short-term and mid-term rental demand trends are positive in Phnom Penh and Siem Reap, driven by economic growth and tourism recovery. Siem Reap particularly benefits from tourist rental demand, while coastal towns see strong seasonal performance. Net yields typically run 1.5-2% below gross yields after accounting for management, maintenance, and vacancy costs.

Which districts show the best potential for capital appreciation?

Several districts across Cambodia's major cities show strong potential for capital appreciation over the next 1-3 years, driven by infrastructure development and growing demand.

In Phnom Penh, BKK1 remains the top choice for appreciation potential due to its established status, expat demand, and continued infrastructure improvements. Toul Kork offers excellent growth prospects with new developments and improving connectivity, while Chroy Changvar benefits from its emerging status and proximity to the city center with significant development planned.

Sen Sok represents an excellent opportunity for appreciation as it transitions from suburban to urban, with new infrastructure projects and more affordable entry points attracting both developers and buyers seeking value.

Siem Reap's top districts for appreciation include Wat Bo, which benefits from its central location and tourism infrastructure, Sala Kamreuk with its proximity to the new airport, and Sla Kram offering development potential near tourist zones.

Among coastal areas, Otres Beach in Sihanoukville shows potential despite overall market challenges, while Kep and Kampot offer more stable growth prospects with rising tourism and infrastructure development at lower risk levels.

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

How does financing availability affect real estate investment opportunities?

Financing accessibility significantly impacts real estate investment opportunities in Cambodia, with notable differences between local and foreign buyers.

Foreign buyers face more restrictive financing conditions, typically requiring 30-70% down payments and paying interest rates of 7-10%. Banks impose stricter requirements on foreigners, including higher income verification and more extensive documentation. However, some developers offer alternative financing arrangements with more flexible terms, though these often come at higher costs.

Local buyers enjoy wider access to bank loans with lower interest rates and reduced down payment requirements, giving them a competitive advantage in the market. This financing gap affects foreign investment returns by requiring higher initial capital commitments and reducing leverage opportunities.

The limited financing options for foreigners impact investment strategies, often pushing investors toward cash purchases or developer-financed deals. This constraint particularly affects mid-range investors who might otherwise leverage financing to build larger portfolios.

Despite these challenges, financing is available for foreign investors willing to meet stricter requirements, and the strong rental yields in many segments can still provide attractive returns even with higher initial capital requirements. Some investors work around financing limitations by partnering with local buyers or focusing on markets where developer financing is more readily available.

What government policies and infrastructure developments will impact the market?

Several key government policies and infrastructure projects are set to influence Cambodia's real estate market in the coming months and years.

The government's registration tax exemption for first-time homebuyers purchasing properties under $70,000 continues to support affordable housing demand and market accessibility. Cambodia maintains a relatively straightforward property purchase process for foreigners, requiring no visa for property transactions, though foreign ownership remains restricted to condominiums above ground floor level, with a maximum of 70% foreign ownership per building.

Major infrastructure developments include the Phnom Penh-Bavet expressway, which will improve connectivity to Vietnam and boost property values along the route. New airports in both Phnom Penh and Siem Reap are enhancing accessibility and supporting tourism-driven real estate demand. Port upgrades in Sihanoukville, despite current market challenges, are expected to provide long-term economic benefits.

These infrastructure projects are creating new growth corridors and affecting property values in connected areas. The improved accessibility from airport developments particularly benefits tourism-related real estate in Siem Reap and surrounding areas.

However, the market continues to face oversupply risks in luxury segments, and any future regulatory changes regarding foreign ownership or lending practices could significantly impact market dynamics. The government's continued support for affordable housing suggests policy stability in this segment, while luxury and commercial properties may face additional scrutiny if oversupply issues persist.

Is there a risk of oversupply in the current market?

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 are resale values performing and what's the typical resale timeframe?

Resale values in Cambodia's real estate market show mixed performance depending on segment and location, with varying liquidity across different property types.

Prime condominiums and mid-range homes in high-demand areas like BKK1, Toul Kork, and Chroy Changvar maintain stable resale values and demonstrate good market resilience. However, luxury segments face downward pressure due to oversupply issues, with longer resale periods typically ranging from 12-18 months for high-end properties.

Villas and land in Siem Reap generally hold their value well due to sustained tourism demand and limited supply in prime tourist zones. Properties near major attractions and with good access to infrastructure tend to maintain stronger resale values.

Sihanoukville and other oversupplied segments may experience price drops and significantly slower sales cycles. Properties in these areas often require longer holding periods and may need price adjustments to attract buyers.

Market liquidity varies considerably, with smaller buyer pools and seasonal demand patterns affecting resale timelines. Properties outside prime areas typically require longer holding periods for resale, especially during off-peak tourism seasons.

Successful resale strategies often involve pricing competitively for market conditions, maintaining properties well, and timing sales to coincide with peak demand periods. Properties with unique features or in emerging high-growth districts tend to achieve better resale performance.

What budget ranges and property types should I target for different investment goals?

Investment strategies and budget allocations vary significantly depending on your primary objective in the Cambodian real estate market.

For those planning to live in Cambodia, target budgets of $100,000-$250,000 for mid-range condominiums or landed homes in Phnom Penh, focusing on established districts like BKK1, Toul Kork, or Chroy Changvar that offer good amenities and expat communities. In Siem Reap or coastal towns, $80,000-$150,000 provides access to quality properties with good lifestyle amenities.

Rental investment strategies should focus on $80,000-$150,000 for mid-range condominiums that can achieve 6-7% net yields, particularly in areas with strong expat and professional demand. For villa or tourist rental investments in Siem Reap or coastal areas, budgets of $120,000-$200,000 can achieve gross yields of 7-9% with proper management.

Flipping and resale strategies require careful market timing and location selection. Consider budgets of $100,000-$200,000 in emerging districts with growth potential or $200,000-$300,000 for prime units in established areas like BKK1 or Toul Kork. Focus on new or under-construction condominiums in growth districts or land in areas benefiting from infrastructure upgrades.

Each strategy requires different risk tolerances and market knowledge, with rental investments generally offering more predictable returns while flipping strategies offer higher potential returns but greater market risk.

Where are the smartest investment locations for medium-to-long-term growth?

Strategic investment locations for medium-to-long-term growth in Cambodia center on areas benefiting from infrastructure development, economic growth, and sustainable demand drivers.

1. **Phnom Penh Priority Districts**: BKK1 remains the top choice for its established market, strong rental demand, and continued infrastructure improvements. Toul Kork offers excellent growth prospects with new developments and expanding commercial areas. Chroy Changvar provides emerging market opportunities with significant development planned and more affordable entry points.2. **Siem Reap Growth Areas**: Properties near the new airport benefit from improved accessibility and tourism growth. Wat Bo and Sala Kamreuk districts offer proximity to major attractions with development potential, while maintaining authentic character attractive to tourists.3. **Coastal Opportunities**: Kep and Kampot represent lower-risk coastal investments with growing domestic and international tourism. These areas offer attractive yields of around 7.9% with more stable market conditions than Sihanoukville.4. **Emerging Suburban Areas**: Sen Sok in Phnom Penh offers excellent value propositions as infrastructure develops and the area transitions from suburban to urban. Properties near new expressways, airports, and industrial zones provide future appreciation potential.5. **Infrastructure-Linked Investments**: Areas along the Phnom Penh-Bavet expressway route will benefit from improved connectivity to Vietnam and economic development.

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. Global Property Guide - Cambodia Price History
2. RealEstate.com.kh - Cambodia Condominium Report
3. BambooRoutes - Cambodia Buy Property Guide
4. BambooRoutes - Siem Reap Real Estate Market
5. BambooRoutes - Sihanoukville Price Forecasts
6. BambooRoutes - Cambodia Real Estate Market
7. Asia Property Awards - Cambodia Market Building Back
8. Statista - Cambodia Real Estate Outlook