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What is happening in Cambodia’s real estate market? Are prices on the rise or decline? Is Phnom Penh still a magnet for international investors? How are Cambodia’s government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across the country, from Siem Reap to Sihanoukville and beyond. Maybe you’re curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Cambodian real estate market daily. That’s why we crafted this article: to deliver clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
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1) Eased property ownership rules for foreigners will boost international investments
The easing of property ownership regulations for foreigners in Cambodia is paving the way for a surge in international investments.
In 2023, foreign investors made a significant mark on the Cambodian real estate scene, with 552 out of 683 trust registrations being foreign, totaling USD1.223 billion. This boom is largely thanks to the 2019 Trust Law, which lets foreigners own landed property by appointing local trustees. It's a game-changer for those eyeing Cambodia's growing market.
Phnom Penh is buzzing with new developments, boasting over 53,000 completed condominium units by late 2023. The high supply and dropping condo prices are drawing in international buyers eager for investment opportunities. Experts like Sorn Seap point out that the combination of good locations, properties, and prices makes it an attractive market for foreign investors.
The Cambodian government is sweetening the deal with incentives for investors to revive stalled projects. Between January and November 2023, 3,139 real estate development projects were approved, with a whopping US$5.25 billion in capital investment. This shows a strong interest from international developers, often focusing on mixed-use projects that appeal to foreign residents.
Sources: Asia Real Estate Summit, Knight Frank
2) Chinese investors will dominate the foreign buyer market, especially in Sihanoukville and Phnom Penh
Chinese investors are a dominant force in Cambodia's real estate market, especially in Sihanoukville and Phnom Penh.
In 2023, Chinese investments accounted for over 80% of the fixed asset value in Cambodia, focusing heavily on infrastructure and industrial sectors. This influx of capital has been a major driver of economic growth, reshaping these cities with new developments and opportunities.
Take Sihanoukville, for example. Large Chinese companies have poured money into projects like the Sihanoukville Special Economic Zone and an expressway funded by the Belt and Road Initiative. These investments have transformed the city, making it a bustling hub of activity and growth.
Phnom Penh is seeing a similar trend. Chinese investments have led to a boom in real estate development, with billions of dollars in capital approved by the Ministry of Land Management, Urban Planning, and Construction in 2023. The skyline is changing rapidly, with new buildings and infrastructure popping up all over the city.
Chinese nationals are snapping up a large percentage of new real estate developments, driving up property prices. In Sihanoukville, the presence of Chinese expatriates is particularly noticeable, as many have made the city their home, further boosting its economy.
Media reports often refer to Sihanoukville as the ‘New Macao’ due to its transformation into a major tourist and business hub, highlighting the significant influence of Chinese investors in the region.
Sources: Knight Frank, Chulalongkorn University, Khmer Times
We have made this infographic to give you a quick and clear snapshot of the property market in Cambodia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Foreign buyers will increasingly target Cambodian real estate for its favorable investment conditions over neighboring countries
Foreign buyers are increasingly drawn to Cambodian real estate due to favorable investment conditions.
One key factor is the rising foreign direct investment (FDI) in Cambodia's real estate sector. The government has made it easier for foreigners to invest by allowing property ownership through special tourism zones or trust companies. This approach is a game-changer, making Cambodia more accessible to international investors.
When you compare property prices, Cambodia stands out. Property prices here are generally lower than in neighboring countries like Thailand and Vietnam. This affordability makes Cambodia an attractive option for those seeking cost-effective real estate investments. The government has also introduced policies that favor foreign property ownership, further boosting interest.
Real estate developments in Cambodia are increasingly targeting foreign buyers. These projects often feature mixed-use and sustainable designs that cater to international tastes, offering modern amenities. This trend is reshaping the landscape, making it more appealing to global investors.
Investing in rental properties in Cambodia is particularly enticing due to higher rental yields in its cities. This makes it a lucrative option for those looking to maximize their returns. The combination of affordable prices and high rental yields is hard to resist.
Sources: RFA, Asia Property Awards, Asian Development Bank, Statista
5) Siem Reap's rental yields will gradually recover with the resumption of international travel
In 2023, Cambodia welcomed 5.43 million international tourists, a remarkable increase of 139.5% from the previous year.
Siem Reap, famous for its rich cultural and historical sites, was a top choice for these visitors. This influx of tourists has sparked a surge in demand for short-term rentals, which is great news for property owners. With more travelers looking for places to stay, rental properties are seeing higher occupancy rates. This trend is mirrored by the recovery in hotel and guesthouse bookings, which have significantly contributed to the economy.
The reopening of iconic sites like Angkor Wat has put Siem Reap back on the global map, making it even more attractive to tourists. The introduction of new air routes and better connectivity has made it easier for people to visit, and this is expected to keep tourism numbers climbing.
For those considering investing in property here, the timing couldn't be better. As international travel picks up, rental yields in Siem Reap are poised to recover. The local market is benefiting from the increased tourist activity, and this is likely to continue as more people discover the charm of Siem Reap.
With the tourism sector bouncing back, property investors can look forward to a promising future. The combination of cultural allure and improved travel options makes Siem Reap a compelling choice for both tourists and investors. As the world opens up, Siem Reap's rental market is set to thrive.
Sources: Tourism Cambodia, US-ASEAN Business Council, Phnom Penh Post
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6) New land use policies will open up areas for residential development, especially in Phnom Penh
Phnom Penh is buzzing with changes in land use policies that are reshaping the city.
With the updated Phnom Penh 2035 master plan, the city is set to grow in a more organized way, making land ownership more systematic and efficient. This is a big deal for developing new residential areas, as it ensures district land officials are aligned, opening up new spaces for people to live.
Residential construction is booming, with approved permits reaching $1.3 billion in the first half of 2023. This surge shows that more residential projects are getting the green light, reflecting a broader trend since 2000, with nearly 67,000 construction projects approved nationwide, many in Phnom Penh.
Infrastructure is key to this growth. The Phnom Penh Green City Strategic Plan includes projects like new road networks and the Techo Takhmao International Airport, making previously hard-to-reach areas more accessible and paving the way for new residential zones.
Property values are climbing, especially in newly accessible regions. Districts like Toul Tum Poung and Boeung Keng Kang are now vibrant hubs for new projects, attracting both local and international investors. This interest highlights the real impact of changes in land use policies.
These developments are not just about new buildings; they’re about creating vibrant communities. The city’s transformation is a testament to how strategic planning and policy changes can drive growth and opportunity.
Sources: Phnom Penh Post, Khmer Times, Phnom Penh Green Strategic Plan
8) Urbanization will drive real estate trends as more people move to cities for job opportunities
Urbanization is reshaping Cambodia's real estate market as more people flock to cities for better opportunities.
In 2023, Cambodia's urban population hit over 4.4 million, growing at a rate of 3.08%. This shift is largely driven by the search for better jobs. Cities like Phnom Penh and Siem Reap are expanding their industrial and commercial sectors, creating more employment opportunities and drawing people from rural areas.
The Cambodian government is actively promoting urban development by implementing policies to attract foreign investment. They've established special economic zones and granted property ownership rights to foreigners, leading to a significant increase in foreign direct investment in real estate.
This influx of investment, projected to reach $4.6 billion in 2023, has spurred the development of urban infrastructure. New condominiums, commercial centers, and industrial parks are popping up, catering to the growing population and enhancing the appeal of city living with modern amenities.
As more people move to urban areas, the demand for housing and commercial spaces naturally rises. This trend is evident in the bustling real estate markets of Phnom Penh and Siem Reap, where the construction of new developments is in full swing.
Urbanization is not just about numbers; it's about transforming lifestyles. The shift towards city living offers residents access to better services, education, and healthcare, making urban areas increasingly attractive.
Sources: Trading Economics, CEIC Data, IPS Cambodia, Statista
We made this infographic to show you how property prices in Cambodia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) High-end property prices in Phnom Penh will drop due to luxury market oversupply
Phnom Penh's luxury property market is facing a significant oversupply issue.
By the end of 2022, the vacancy rate for luxury properties had climbed to 39%, leaving many units unsold. This high vacancy rate is a clear indicator of the market's oversupply problem. As a result, landlords are struggling to find tenants, which is putting downward pressure on prices.
In 2023, over 11,400 units of unsold landed properties were absorbed, but the market still feels the weight of excess supply. This has led to a decline in rental yields, as the number of luxury properties available has outstripped demand. The fierce competition among landlords is making it tough to attract tenants, further driving prices down.
Despite a pause in new project launches in 2024, ongoing projects are still being completed, adding to the total supply. This could lead to oversaturation in the luxury market. Real estate analysts are highlighting the oversupply issue, which is intensifying competition and putting pressure on both pricing and occupancy rates.
For potential buyers, this means there might be opportunities to purchase high-end properties at lower prices. However, it's crucial to be aware of the market dynamics and the potential for further price declines due to the ongoing oversupply.
Understanding these market conditions can help you make informed decisions if you're considering investing in Phnom Penh's luxury real estate. Keep an eye on how the market evolves, as the current trends suggest that certain high-end properties may continue to experience price declines.
Sources: B2B Cambodia, Cambodia Investment Review, Knight Frank
11) Young professionals will increasingly favor condominiums for their modern amenities and convenience
In cities like Phnom Penh, condominiums are becoming increasingly popular among young professionals.
These young professionals are flocking to urban areas, drawn by better job opportunities and a lifestyle that offers convenience. They are particularly interested in living spaces that come with modern amenities like gyms and pools, which are standard in many condominiums.
Developers have taken note of this trend, launching numerous projects aimed at this demographic. With over 30,000 units already available and plans to expand to 80,000 units by 2025, the focus is clearly on meeting the needs of young professionals.
Financing options have also become more accessible, making it easier for young buyers to invest in these properties. This has further fueled the demand for condominiums, as more young people see them as a viable investment.
Consumer surveys consistently show a strong preference for modern amenities, reinforcing the idea that condominiums are the go-to choice for those seeking a contemporary lifestyle.
As urbanization continues, the trend towards condominium living is expected to grow, with developers keen to capitalize on the rising demand for modern, convenient living spaces.
Sources: IPS Cambodia, UNICEF, MarkWide Research
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12) An aging population will boost demand for retirement communities and senior-friendly housing
In Cambodia, the elderly population is set to make up 11% by 2030 and could reach 23% by 2050.
With people living longer, averaging 70.8 years by 2024, there's a growing need for homes that suit seniors. This isn't just about having a roof over their heads; it's about creating spaces that cater to their lifestyle and health needs.
The government is aware of this shift and is pushing for more senior housing. They're also focusing on supporting senior citizens’ associations and enhancing social protection. However, they face hurdles like incomplete data and a lack of research on elder protection laws.
Interestingly, consumer surveys reveal a 40% jump in senior housing demand in early 2024 compared to the previous year. This surge shows that more people are looking for retirement communities, and this trend is likely to grow as the population ages.
For potential property buyers, this means there's a niche market emerging for retirement communities and senior-friendly housing. Investing in such properties could be a smart move, given the rising demand and demographic changes.
As the aging population wave continues, the need for specialized housing solutions will only become more pronounced. This creates opportunities for developers and investors to tap into a market that is not only growing but also evolving to meet the needs of its residents.
Sources: Phnom Penh Post, Database Earth, Camboja News, NIC MAP Vision
13) Sihanoukville will attract more investors with its expanding infrastructure and booming tourism sector
Sihanoukville is becoming a hotspot for investors, and it's no surprise.
In 2024, the city attracted 213 investment projects, bringing in USD 6.026 billion and creating nearly 40,000 jobs. This influx of capital highlights a strong push to transform Sihanoukville into a thriving business and tourism hub.
The government is actively addressing unfinished building projects by offering incentives to investors. This could potentially convert around 400 incomplete structures into valuable assets. It's all part of a larger plan to boost the city's infrastructure, including a deep seaport, a special economic zone, and an upgraded international airport, aiming to establish Sihanoukville as a global trade and logistics center.
Tourism is also a major attraction. The opening of the Novotel Sihanoukville Holiday Resort in 2024 and the ambitious USD 16 billion 'Bay of Light' project are just the start. These developments are crafted to lure both tourists and investors, offering a mix of financial services, arts, and culture.
The government's special investment promotion program further emphasizes its dedication to making Sihanoukville a top destination. This initiative is designed to enhance the city's appeal, ensuring it stands out on the global stage.
Sources: B2B Cambodia, Cambodia Investment Review, Phnom Penh Post
14) Property values near Phnom Penh International Airport will rise with planned expansions and better connectivity
Property values around Phnom Penh International Airport are set to rise due to upcoming expansions and better connectivity.
The government is investing US$1.5 billion in a major airport expansion, which is split into three phases. This isn't just about the airport; it's part of a larger plan to make the whole region more accessible and connected.
Phnom Penh is buzzing with construction, with 516 projects launched between January and October 2024. This building boom shows that there's a lot of interest in the area, which could mean property prices will go up. Real estate experts are already talking about Phnom Penh as a hot spot for investment, thanks to its prime location and the flow of foreign investments.
The airport is becoming a major hub, with passenger traffic on the rise. This uptick in travelers is likely to push property values higher in the nearby areas. The media is buzzing about the economic perks of the airport expansion, like more tourism, trade, and investment, which could draw in even more investors.
With these developments, the area around the airport is becoming increasingly attractive for property buyers. The combination of improved infrastructure, increased construction, and rising passenger numbers paints a promising picture for future property values.
Investors are eyeing the area not just for its current potential but for what it could become as these projects unfold. The strategic location and ongoing developments make it a compelling choice for those looking to invest in property.
Sources: Construction Property, Realestate.com.kh, Open Development Cambodia
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Cambodia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
16) Battambang will become a residential investment hotspot for its cultural charm and affordable property prices
Battambang is quickly becoming a prime spot for residential investment.
With over 470,000 domestic tourists and nearly 34,000 international visitors in 2020, Battambang's tourism is booming. Now that travel restrictions are easing, even more people are discovering the city's unique charm and potential. This influx of visitors is a clear sign that Battambang is on the rise.
Infrastructure is another big draw. The city is undergoing major upgrades, with more than 80% of road and drainage improvements already completed. Thanks to a substantial loan from the Asian Development Bank, these projects are set to wrap up by the end of 2025, making Battambang more accessible and appealing to new residents.
When it comes to property prices, Battambang is a breath of fresh air. Compared to hotspots like Phnom Penh and Siem Reap, property here is still quite affordable. While prices are expected to rise across Cambodia, Battambang's market benefits from its infrastructure upgrades and tourism growth, keeping costs lower for now.
The city's cultural appeal is another reason to consider investing. Battambang offers a rich tapestry of history and culture, making it not just a place to live, but a place to experience. This cultural richness, combined with affordability, makes it a compelling choice for those looking to invest in residential property.
With all these factors in play, it's no wonder Battambang is catching the eye of savvy investors. The combination of tourism growth, infrastructure improvements, and cultural allure positions it as a promising new hotspot for residential investment.
Sources: Construction Property, Phnom Penh Post
17) Siem Reap will see renewed property interest as tourism recovers after the pandemic
Siem Reap is buzzing again with increased property interest as tourism bounces back post-pandemic.
In 2024, the city welcomed a daily influx of 4,000 to 5,000 tourists, a clear sign of recovery. This surge is not just good news for local businesses but also hints at a potential boom in the property market. With more visitors, there's a growing curiosity about investing in this vibrant area.
The Angkor Archaeological Park, a jewel of Siem Reap, saw a 49.2% jump in ticket sales in January 2024 compared to the previous year. This increase in foot traffic is a beacon for property investors, suggesting that interest in the region is on the rise.
The Cambodian government is pulling out all the stops to boost tourism, like hosting the "Cambodia-China Travel Fair" in December 2024. These efforts, along with high hotel occupancy rates, are making Siem Reap an even more attractive destination. This often translates into a spike in property interest as more people discover the area's charm.
Insiders know that Siem Reap's property market is closely tied to its tourism sector. As more tourists flock to the city, the demand for property tends to follow. This pattern is evident as the city continues to draw in visitors, making it a hot spot for potential buyers.
With the tourism sector on the mend, Siem Reap is poised for a property market upswing. The city's unique blend of culture and history, coupled with government initiatives, is setting the stage for a vibrant real estate scene.
Sources: The Better Cambodia, Phnom Penh Post
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18) Kep will attract investors seeking eco-friendly and sustainable residential projects
Kep is catching the eye of investors who are keen on eco-friendly and sustainable living.
Thanks to a surge in eco-tourism, Cambodia welcomed a wave of international tourists in 2023, many of whom are drawn to its green initiatives. This growing interest in eco-conscious travel is spilling over into the residential sector, making Kep a hotspot for sustainable projects.
The Cambodian government is backing this trend with a strong commitment to sustainability. In 2023, they rolled out a five-year circular strategy focused on promoting a green economy. This plan includes incentives for green investments, like infrastructure and clean energy, which makes Kep even more appealing to investors.
Kep is already known for its eco-friendly resorts and hotels, such as Knai Bang Chatt, which are deeply involved in community development and sustainability. These establishments not only attract tourists but also lay the groundwork for future residential projects, showcasing a strong interest in sustainable tourism and living.
Investors are taking note of Kep's existing infrastructure, which supports eco-friendly initiatives. This infrastructure is a solid base for new residential projects, aligning with the global shift towards sustainability. The appeal of Kep is further enhanced by its commitment to green living, making it a prime location for those looking to invest in sustainable real estate.
Sources: Open Development Cambodia, Vietnam Plus, Etic Hotels
19) Phnom Penh's outskirts will draw more residential investors as the city center grows more congested
Phnom Penh's city center is getting more crowded, making the outskirts a hot spot for home buyers.
In the heart of the city, condo prices hit $2,718 per square meter in early 2024, showing a strong market but also hinting at rising costs that push many to look elsewhere. With the city's population expected to hit 3 million by 2023, the roads are jam-packed, making daily commutes a headache and city living less appealing.
The government is stepping up with new infrastructure projects to ease this congestion. They're building an expressway to Ho Chi Minh City, which should help clear up traffic and make the outskirts more reachable. Plus, they're working on new roads and other developments to keep up with the city's fast growth.
People are now leaning towards homes that are both spacious and affordable, so developers are shifting their focus to mid-range units. This change means the outskirts, where there's more land, are becoming a prime spot for residential investments. New housing projects there, like lofts and mid-range properties, are popping up to meet the demand for unique and budget-friendly living spaces.
The suburbs are also getting a boost in amenities, with more shopping centers, schools, and healthcare facilities popping up. This makes suburban living more attractive, offering a laid-back and sustainable lifestyle compared to the bustling city center.
Sources: Cambodia Investment Review, JICA Report, Cambodia Investment Review, Urban Database
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.