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Cambodia's real estate market in 2025 shows strong regional variations with Phnom Penh leading in pricing, Siem Reap experiencing rapid growth, and Sihanoukville stabilizing after previous corrections.
Property prices range from $800-7,500 per square meter depending on location and type, with residential properties showing 5-15% growth over the past 18 months while commercial segments face oversupply challenges. The market offers attractive rental yields averaging 7.68% nationwide, with secondary cities like Kep and Kampot delivering yields above 8%.
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 real estate market shows strong regional price variations with Phnom Penh leading at $2,650-3,000/sqm for prime residential properties.
Rental yields average 7.68% nationwide, with secondary cities like Sihanoukville offering yields up to 12% for coastal properties.
| City | Residential Price ($/sqm) | Average Rental Yield |
|---|---|---|
| Phnom Penh | $2,650-3,000 (prime areas) | 6.55% |
| Siem Reap | $1,900-2,800 (condos) | 7.9-8.5% |
| Sihanoukville | $2,500-4,500 (coastal) | 8-12% |
| Secondary Cities | $800-2,000 | 8.28% (Kep/Kampot) |
| Commercial Office | $27/sqm/month rent | 65% occupancy |
| Land (Phnom Penh) | $2,500-7,500 | Development potential |
| Land (Kampot) | $50-100 | High growth potential |
What are the current average prices per square meter for residential, commercial, and land properties in Cambodia?
Cambodia's property prices vary dramatically by location and property type as of September 2025.
For residential properties, Phnom Penh's prime areas command the highest prices at $2,650-3,000 per square meter, particularly in BKK1 district. Siem Reap follows with condo prices ranging from $1,900-2,800 per square meter, while complete villa prices range from $89,000 to $950,000 depending on size and location.
Sihanoukville coastal properties fetch $2,500-4,500 per square meter for premium locations, though budget segments can be found for around $1,700 per square meter. Secondary cities like Kampot, Battambang, and Kep offer the most affordable options at $800-2,000 per square meter.
Commercial properties follow a different pricing structure, with Phnom Penh office spaces renting for $27 per square meter per month and retail spaces at $22.6 per square meter per month. Commercial property sale prices typically range from $85,000 to $2.1 million per property.
Land prices show the widest variation, with central Phnom Penh commanding $2,500-7,500 per square meter, while Kampot offers development opportunities starting at just $50-100 per square meter.
How do property prices compare between Phnom Penh, Siem Reap, Sihanoukville, and secondary cities?
| Location | Residential ($/sqm) | Land ($/sqm) |
|---|---|---|
| Phnom Penh Prime | $2,650-3,000 | $2,500-7,500 |
| Siem Reap | $1,900-2,800 | Variable by project |
| Sihanoukville Coastal | $2,500-4,500 | $200-3,000 |
| Sihanoukville Budget | $1,700 | $200-500 |
| Kampot | $800-1,500 | $50-100 |
| Battambang | $1,000-2,000 | $120-1,200 |
| Kep | $800-1,800 | $60-150 |
What has been the short-term price trend over the past 12-18 months across different property types?
Cambodia's real estate market has shown mixed but generally positive performance over the past 18 months, with clear winners and challenges.
Phnom Penh residential properties have gained 5-10% year-to-date in 2025, with prime condos rebounding strongly after experiencing a slowdown in 2024. This recovery reflects renewed confidence in the capital's property market and increased end-user demand.
Siem Reap has been the star performer, with overall property prices rising 8-10% and luxury villas seeing exceptional gains of 15-20%. This growth is directly linked to tourism recovery and the new Siem Reap International Airport opening, which has boosted investor confidence.
Sihanoukville is finally stabilizing after years of correction following the Chinese investment boom and bust. Coastal areas have seen modest growth of 3-7%, suggesting the market is finding its footing again.
Secondary cities have shown robust growth across the board, particularly for landed homes and development land, as investors seek value opportunities outside major urban centers.
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What are the medium-term projections for the next 2-3 years, and how reliable are they?
Medium-term projections for Cambodia's real estate market over the next 2-3 years show cautious optimism but with significant segment polarization.
Phnom Penh and Siem Reap are expected to maintain steady growth, but market polarization will continue to define performance. The luxury and Grade-A segments face ongoing oversupply issues that may limit price gains, while affordable and mid-range segments along with strategically located land are expected to see stronger demand and better returns.
The reliability of these forecasts is moderately high for urban centers and established growth corridors, particularly where infrastructure development is confirmed. Siem Reap's projections are especially reliable given the new airport and confirmed tourism infrastructure investments.
However, several risk factors could impact these projections, including potential excess supply in luxury resort and office segments, and the possible implementation of capital gains taxes that could dampen speculative demand. The market's shift toward end-user demand rather than speculative investment makes forecasts more stable but potentially more modest.
Overall, demand-driven markets focusing on affordable housing, strategic land positions, and tourism-related properties offer the most reliable growth prospects for the next 2-3 years.
What are the long-term forecasts for the Cambodian real estate market over the next 5-10 years?
Cambodia's long-term real estate outlook over the next 5-10 years is built on strong fundamental drivers but faces several structural challenges.
The primary growth drivers include continued urbanization as Cambodia's population shifts from rural to urban areas, major infrastructure development including new airports and highways, and tourism recovery to pre-pandemic levels and beyond. These factors create a solid foundation for sustained demand, particularly in Phnom Penh, Siem Reap, and emerging secondary cities.
However, the market faces significant headwinds from oversupply in luxury segments, resort properties, and office spaces that will take years to absorb. The approximately 400+ abandoned buildings in Sihanoukville alone highlight the scale of this challenge. Additionally, potential future implementation of capital gains taxes could reduce speculative demand that has historically driven price appreciation.
The most promising long-term opportunities lie in affordable housing segments, strategic land holdings in growth corridors, and properties directly benefiting from infrastructure development. Secondary cities like Kampot and Battambang may offer the best risk-adjusted returns as they develop without the oversupply issues plaguing established luxury markets.
Political stability and continued foreign investment will be crucial factors determining whether these positive fundamentals translate into sustained market growth over the decade ahead.
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Which property types are seeing the highest demand right now?
Current demand in Cambodia's real estate market is concentrated in specific property segments that serve end-users rather than speculators.
- Affordable and mid-range condominiums in Phnom Penh, Siem Reap, and Sihanoukville are seeing the strongest demand, particularly units priced below $150,000 that qualify for government tax exemptions for first-time buyers.
- Landed homes and Borey houses remain highly sought after by Cambodian end-users who prefer ground-level living and the security of land ownership rather than strata titles.
- Well-located development land in growth corridors continues to attract both local developers and foreign investors looking for long-term appreciation as urban areas expand.
- Select retail and office spaces in new business districts are finding tenants, but only projects with solid tenant profiles and strategic locations are succeeding in the current oversupplied commercial market.
- Tourism-related properties in Siem Reap are experiencing renewed interest as visitor numbers recover and the new airport drives accessibility improvements.
The shift toward end-user demand rather than speculative investment has created a healthier but more selective market where location, pricing, and practical utility drive purchase decisions.
How do rental yields vary across major cities and property types?
Rental yields in Cambodia vary significantly by location and property type, with secondary cities generally offering higher returns than major urban centers.
Cambodia's national average rental yield stands at 7.68%, which is competitive compared to many regional markets. Phnom Penh, despite being the capital, offers relatively modest yields at 6.55% due to higher property prices, though larger properties (4+ bedrooms) can achieve yields of 7.79%.
Siem Reap provides more attractive yields ranging from 7.9-8.5%, benefiting from strong tourism demand and more reasonable property prices. The city's 3-bedroom properties perform particularly well at 8.28% yields.
Sihanoukville offers the highest potential yields at 8-12% for coastal properties, though these come with higher risk given the market's volatility and oversupply issues in certain segments.
Secondary cities like Kep and Kampot deliver solid yields of 8.28%, offering an attractive balance of returns and stability for investors seeking income-generating properties.
Property size also affects yields, with larger properties (4+ bedrooms) achieving the highest average yields at 9.34% nationwide, while 2-bedroom properties typically offer the most modest returns at around 5-7%.
What's the current supply situation regarding new projects, completion timelines, and vacancy rates?
Cambodia's property supply situation in 2025 shows a market still working through previous oversupply while new development continues at a measured pace.
Approximately 3,900 new condominium units were launched in the first half of 2025, indicating continued but controlled development activity. However, many large projects, particularly in the luxury segment, are experiencing delays as developers reassess market conditions and adjust project scopes.
The commercial sector faces more significant challenges with office occupancy rates at just 65% and retail occupancy at 61.8% in Phnom Penh, indicating substantial excess supply that will take time to absorb. This oversupply is putting downward pressure on commercial rents and limiting new commercial development.
Sihanoukville represents the extreme end of oversupply issues, with over 400 abandoned buildings highlighting the scale of previous speculative overbuilding. While coastal areas are showing signs of recovery, the province will need years to work through excess inventory.
The residential market shows healthier supply-demand balance in affordable and mid-range segments, particularly for landed homes and smaller condominiums that serve end-user demand rather than speculative investment.
Completion timelines have become more realistic as developers focus on pre-sales and confirmed demand rather than speculative building, leading to more stable project delivery schedules.
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 drivers behind current demand?
Several key factors are driving current demand in Cambodia's real estate market, representing a shift from speculative to fundamental demand drivers.
Tourism recovery is a major catalyst, particularly in Siem Reap and Sihanoukville, as visitor numbers rebound and new infrastructure like Siem Reap's international airport improves accessibility. This recovery is driving demand for both residential properties and tourism-related commercial real estate.
Infrastructure development projects including new airports, roads, and urban expansion initiatives are creating demand in areas that benefit from improved connectivity and accessibility. These projects often generate both immediate construction-related demand and long-term investment interest.
Government policy incentives have been significant, particularly tax exemptions for first-time buyers on properties under $70,000 and various developer incentives that have boosted market activity and made homeownership more accessible to local buyers.
Foreign investment remains active but has evolved, with Chinese, ASEAN, and European investors focusing on specific segments rather than broad speculative buying. This more targeted approach is creating sustainable demand in selected markets.
The most important shift has been toward local end-users and affordable housing segments as speculative demand has cooled. This transition is creating healthier market fundamentals based on actual housing needs rather than investment speculation.
What budget ranges are most active in the market today?
Cambodia's real estate market shows distinct activity levels across different budget segments, with government policy and local demand driving specific price ranges.
The sub-$70,000 segment is extremely active due to government tax exemptions for first-time buyers, making entry-level condominiums particularly attractive to local purchasers seeking affordable homeownership options.
The $90,000-$150,000 range represents the sweet spot for 1-2 bedroom condominiums in mid-range developments across Phnom Penh and Siem Reap. This segment offers good value for both end-users and investors seeking rental income opportunities.
Properties above $200,000 face more selective demand, limited to large villas and luxury condominiums in prime districts that appeal to affluent local buyers and expatriates seeking premium accommodations.
Land investment shows the widest price range activity from $50 per square meter in emerging areas like Kampot up to $7,500 per square meter for prime Phnom Penh locations, with activity levels generally higher in the lower-to-mid price ranges where development economics work better.
The most active commercial budget range falls between $85,000-$500,000 per property, avoiding both entry-level spaces with limited tenant appeal and premium properties facing oversupply issues.
If someone is buying now to live in, which areas and property types make the most sense?
For buyers planning to live in Cambodia, several areas and property types offer the best combination of value, lifestyle, and future prospects.
Phnom Penh's emerging mid-range neighborhoods like Russian Market, Toul Kork, and Chroy Changvar provide excellent value with good amenities, reasonable prices, and strong local communities. These areas offer authentic Cambodian urban living while maintaining convenience and safety.
Siem Reap's new condominium and villa projects, particularly those located near the new international airport, offer compelling opportunities for those seeking a tourism-focused lifestyle with strong potential for property appreciation as the city develops.
Borey houses and landed homes throughout Cambodia remain the preferred choice for families or multi-generational living arrangements, offering space, privacy, and the security that comes with land ownership rather than strata title arrangements.
For expatriates and international residents, mid-range condominiums in established areas of Phnom Penh or Siem Reap provide the best balance of modern amenities, security, and community while avoiding the premium pricing of luxury developments.
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If someone is buying to rent out or resell, where and what should they be targeting for the best returns?
Investment buyers seeking rental income or capital appreciation should focus on specific markets and property types that offer the best risk-adjusted returns in Cambodia's current market.
Sihanoukville coastal condominiums and land represent high-yield opportunities with potential yields reaching 8-12%, though buyers should expect slower capital appreciation as the market continues its recovery from previous oversupply issues.
Kep and Kampot markets offer attractive yields above 8% with strong growth potential as these secondary cities develop their tourism and infrastructure. Land and apartments in these areas provide good diversification from major city markets.
Siem Reap's luxury segment and new developments near the airport offer fast-growing rental demand driven by tourism recovery, making them suitable for both short-term rental income and medium-term capital appreciation.
Affordable apartments in Phnom Penh, particularly smaller units serving local working professionals, provide steady rental income with lower vacancy risks compared to luxury properties targeting expatriate tenants.
Development land in confirmed growth corridors offers the highest long-term appreciation potential, though buyers need patience and market knowledge to identify the right locations and timing for development or resale.
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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 real estate market in 2025 presents clear opportunities for both residents and investors, with distinct regional variations that reward careful market selection.
The shift toward end-user demand and government support for affordable housing has created healthier market fundamentals, while secondary cities offer attractive yields and growth potential for patient investors.
Sources
- Cambodia Price Forecasts
- Average House Price in Cambodia
- Condo Prices Phnom Penh
- Global Property Guide - Cambodia Rental Yields
- Phnom Penh Price Forecasts
- Siem Reap Price Forecasts
- IPS Cambodia - Siem Reap Market Trends
- Sihanoukville Price Forecasts
- Cambodia Investment Review - CBRE Forecast 2025
- B2B Cambodia - Mid Year Review 2025