What are the current trends in Cambodia real estate 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 property prices per square meter in Phnom Penh, Siem Reap, and Sihanoukville?

Property prices in Cambodia vary significantly between cities and property types as of June 2025.

In Phnom Penh, residential condos in central areas command $1,500-$3,500 per square meter, with new luxury projects in BKK1 averaging $2,650-$2,924 per square meter. Mid-range condos, which represent the bulk of transactions, typically cost around $2,200 per square meter.

Landed homes in Phnom Penh's suburban borey developments range from $1,000-$2,000 per square meter, while luxury borey properties can exceed $3,000 per square meter. Commercial land in prime districts like 7 Makara ranges from $4,500-$8,500 per square meter, with other districts like Sen Sok offering more affordable options at $300-$2,500 per square meter.

Siem Reap presents more affordable options with residential land at $100-$150 per square meter in 2024. Second-hand villas in the area sold for $200,000-$300,000 with a median of $225,000. Commercial land in emerging zones costs $80-$150 per square meter, while inner-city commercial land can exceed $6,000 per square meter.

Sihanoukville commercial properties have a median price of $1,450,000 with floor areas averaging 3,400 square meters, while coastal residential properties in similar markets like Kep and Kampot range from $1,200-$2,000 per square meter.

How have property prices changed over the past year compared to the previous five years?

Cambodia's property market has experienced a rollercoaster of price movements over the past six years.

In the last 12 months, prices in Phnom Penh and major cities have remained relatively flat with only marginal increases of 0-1% compared to 2024. This stability follows a period of significant volatility during the pandemic and global economic uncertainty.

Looking at the five-year trend reveals a more dramatic story. After experiencing declines of 4-8% annually during 2020-2022, the market began recovering in 2023 with a positive growth of 3.87%. As of 2025, prices are now stabilizing or rising moderately, with select segments showing 5-10% higher year-on-year growth.

Secondary cities like Siem Reap and coastal areas have shown stronger rebounds, particularly in areas benefiting from tourism recovery and infrastructure upgrades. These markets have seen residential prices increase by 8-10% in 2025, outperforming the capital's more modest gains.

The recovery pattern indicates that Cambodia's property market has largely absorbed the pandemic-era shocks and is now entering a period of measured growth rather than the rapid appreciation seen in the mid-2010s.

Which property types are experiencing the fastest growth and highest demand?

Mid-range condos priced between $80,000-$150,000 are experiencing the highest demand among both locals and expatriates.

These properties offer stable rental yields while avoiding the oversupply issues plaguing the luxury segment. The sweet spot for investors appears to be well-located condos that provide modern amenities without premium pricing.

Commercial units, particularly industrial and logistics properties, are seeing increased demand driven by Cambodia's growing economy and new infrastructure developments. Properties near Special Economic Zones (SEZs) and major transportation hubs are particularly sought after.

Coastal and secondary market properties in areas like Kep, Kampot, and Chroy Changvar in Phnom Penh are experiencing strong demand due to tourism recovery and improved connectivity. These markets benefit from both domestic and foreign interest.

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

What are the price forecasts for the next 12 months, 2-3 years, and 5+ years?

Time Period	Expected Price Movement	Key Drivers
Next 12 Months	5-10% increase in key locations	Infrastructure completion, stable economy
2-3 Years	Gradual appreciation	GDP growth 4.9-6.4%, urbanization
5+ Years	Moderate sustained growth	Long-term infrastructure benefits
Luxury Segment	Continued pressure	Oversupply, limited demand
Mid-range Properties	Strongest growth potential	High demand, limited oversupply
Infrastructure Zones	Above-average appreciation	New airport, expressways
Secondary Cities	Higher volatility, strong upside	Tourism, infrastructure improvements

How are rental yields performing across different property types and locations?

Rental yields in Cambodia vary significantly by location and property type, with some areas offering attractive returns for investors.

Phnom Penh condos typically generate gross yields of 6-7%, with the best performance coming from mid-range properties that maintain high occupancy rates. After expenses, net yields typically range from 3-4%, though select projects can achieve higher returns.

Chroy Changvar, driven by new infrastructure development, offers yields around 6.8%, making it one of the more attractive areas in the capital. The upcoming Techo International Airport and improved connectivity are supporting rental demand in this district.

Sihanoukville presents higher yields of 8-11%, but these come with increased risk due to volatile demand patterns and market uncertainty. Coastal properties in Kep and Kampot offer more stable yields around 7.9%, supported by growing tourism and limited supply.

Landed houses generally provide lower yields of 2-4% but offer more stable occupancy in suburban and family-oriented areas. These properties appeal to long-term tenants seeking space and privacy.

What infrastructure projects and government policies will impact real estate values?

Several major infrastructure projects are set to significantly impact Cambodia's real estate landscape in the coming years.

The Techo International Airport, opening in 2025, is expected to boost property values in Kandal and southern Phnom Penh significantly. This new airport will improve connectivity and likely drive development in previously underserved areas.

The Phnom Penh-Sihanoukville expressway, along with new bridges and flyovers, is opening up new development zones and increasing land values along these routes. Properties with improved access to major transportation corridors are seeing immediate appreciation.

Government policy reforms are ongoing to streamline property ownership, particularly for foreigners. These include improvements to strata title processes and tax compliance procedures, which should increase foreign investor confidence and market liquidity.

Special Economic Zones continue to expand, creating demand for both industrial properties and residential housing for workers. These zones represent significant opportunities for both commercial and residential property investors.

How active is foreign investment compared to last year and where are investors focusing?

Foreign investment in Cambodia's real estate market remains robust, with over $1.5 billion invested in 2024.

Chinese investors continue to dominate the foreign investment landscape, focusing primarily on infrastructure projects, industrial developments, and high-end urban properties. This represents a shift from purely residential investments toward more diversified portfolios.

Growing interest is evident in co-owned buildings, industrial zones, and Special Economic Zones, reflecting investors' focus on income-generating assets rather than speculative purchases. The residential and hospitality sectors in Phnom Penh and Siem Reap remain popular but represent a smaller share of total investment.

Compared to previous years, foreign investors are becoming more selective, focusing on properties with clear legal titles and established rental markets. This shift reflects greater market maturity and investor sophistication.

The trend toward infrastructure-linked investments suggests that foreign capital is increasingly aligned with Cambodia's long-term development plans, creating more sustainable investment patterns.

Which neighborhoods offer the best buy-to-rent opportunities?

Several districts in Cambodia offer excellent buy-to-rent opportunities with high occupancy rates and strong rental returns.

In Phnom Penh, BKK1, Tonle Bassac, Toul Kork, and Chroy Changvar consistently deliver high occupancy rates and strong rental returns for condos and serviced apartments. These areas benefit from central locations, good infrastructure, and strong expatriate demand.

Chroy Changvar is particularly attractive due to ongoing infrastructure development and its proximity to both the city center and new development areas. The district offers a good balance of accessibility and growth potential.

In Siem Reap, areas near the new airport and established tourist hotspots are experiencing increased demand for both short-term and long-term rentals. The tourism recovery is driving rental demand in these prime locations.

Sihanoukville remains volatile but potentially offers high returns in central and coastal districts. However, this market carries higher risk due to fluctuating demand and economic uncertainty in the province.

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.

Where are the best opportunities for a $100,000-$250,000 budget?

A budget of $100,000-$250,000 opens up several attractive investment opportunities across Cambodia's property market.

In Phnom Penh, this budget allows for mid-range condos in prime districts like BKK1, Toul Kork, or Chroy Changvar, or suburban landed homes in well-developed borey communities. These properties offer good rental potential and steady appreciation prospects.

Siem Reap presents opportunities for villas and condos near tourist areas, which can benefit from the ongoing tourism recovery. Properties in this price range often offer good rental yields from both short-term and long-term tenants.

Coastal areas like Kep and Kampot offer excellent value, with coastal condos or villas providing high rental yields and strong capital appreciation potential. These markets benefit from growing domestic and international tourism.

Properties under $210,000 qualify for full stamp duty exemption for first-time buyers, making this an attractive threshold for investors. This tax advantage can significantly improve overall returns on investment.

What risks and red flags should buyers watch out for in 2025?

Several important risks require careful consideration when buying property in Cambodia in 2025.

1. **Legal restrictions**: Foreigners can only own above-ground condo units and cannot own land directly. Ensure all titles and permits are properly verified and in order before purchase.2. **Market oversupply**: Luxury condos and some commercial segments face significant oversupply, leading to price pressure and reduced occupancy rates.3. **Regulatory changes**: Ongoing changes in property laws and tax compliance requirements mean buyers should seek current local legal advice before committing.4. **Project completion risks**: Some new developments have experienced delays or been put on hold entirely. Always verify developer reputation and project completion rates.5. **Currency fluctuation**: Property transactions in USD expose buyers to exchange rate risks if their income is in other currencies.

What are developers currently building and what's oversupplied?

Cambodia's development landscape shows clear patterns of oversupply in certain segments while others experience strong demand.

Luxury condos in central Phnom Penh face significant oversupply, with prices and occupancy rates under pressure. Many high-end projects struggle to find buyers, leading to extended marketing periods and price concessions.

In contrast, affordable housing benefits from government incentives and strong demand, particularly among first-time buyers and local purchasers. This segment represents one of the healthiest parts of the residential market.

Commercial and industrial development is growing, with increased focus on logistics facilities, warehouses, and Special Economic Zone properties. These developments align with Cambodia's economic growth and infrastructure improvements.

Developers are increasingly cautious about luxury residential projects, shifting focus toward mid-market properties and commercial developments that offer more predictable returns and faster absorption rates.

What would be a smart property purchase strategy right now?

The optimal property purchase strategy in Cambodia depends on your specific goals and risk tolerance as of June 2025.

For personal living, focus on mid-range condos in central Phnom Penh or well-connected landed homes in established suburbs. These properties offer security, convenience, and reasonable appreciation potential while avoiding the volatility of luxury markets.

For rental income, target high-demand districts like BKK1, Chroy Changvar, and Toul Kork in Phnom Penh, or tourist zones in Siem Reap. Look for properties with proven occupancy histories and strong rental management potential.

For capital appreciation, consider areas benefiting from new infrastructure development, particularly Kandal, southern Phnom Penh, and emerging coastal markets like Kep and Kampot. Avoid oversupplied luxury segments that may take years to recover.

Regardless of purpose, prioritize developers with strong track records, verify all legal documents thoroughly, and consider market liquidity before committing. The Cambodian market rewards careful due diligence and patience over speculative investment approaches.

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. Real Estate Cambodia - Property Prices
2. BambooRoutes - Cambodia Property Guide
3. Global Property Guide - Cambodia Price History
4. BambooRoutes - Siem Reap Real Estate
5. Asia Property Awards - Industrial Real Estate
6. Realting - New Buildings Investment
7. The Wandering Investor - Phnom Penh Guide
8. BambooRoutes - Foreigner Investment Tips