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Everything you need to know before buying real estate is included in our Cambodia Property Pack
Cambodia's property market offers opportunities for foreign investors, but comes with strict ownership restrictions and varying returns across different cities and property types.
As of September 2025, property prices are rising across major Cambodian cities, with Phnom Penh condos averaging $2,200-$2,900 per square meter and rental yields ranging from 6-10% depending on location and strategy.
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.
Foreign investors can only buy condominium units above ground floor in Cambodia, with property prices rising 5-10% annually in 2025 across major cities.
Rental yields range from 6-8% in Phnom Penh to 7-10% in secondary cities, with mid-range condos ($120K-$220K) offering the best balance of returns and liquidity.
| City | Property Price Range (per sqm) | Rental Yield | 2025 Price Growth |
|---|---|---|---|
| Phnom Penh | $1,500 - $2,924 | 6-8% | 5-10% |
| Siem Reap | $1,500 - $2,200 | 6-8% | 8-10% |
| Sihanoukville | $1,800 - $2,400 | 7-9% | 5-7% |
| Battambang | $800 - $1,200 | N/A | 3-5% |
| Kep & Kampot | $1,200 - $2,000 | 7-10% | 7-10% |
What are the ownership rules and restrictions for foreigners buying property in Cambodia?
Foreigners cannot own land directly in Cambodia, which means you cannot buy land plots, villas, or shophouses outright.
The main legal route for foreign property ownership is purchasing strata-titled condominium units built after 2010. However, you can only buy units from the first floor upward - ground-floor and basement units are reserved exclusively for Cambodian nationals.
Foreign ownership in any co-owned building is capped at 70%, with the remaining 30% required to be owned by Cambodians. Some foreign investors work around land ownership restrictions through long-term leases or joint ventures with majority Cambodian shareholding, though these arrangements carry additional legal complexities.
These restrictions significantly impact your investment options, essentially limiting foreign buyers to mid-rise and high-rise condominium units in urban areas.
It's something we develop in our Cambodia property pack.
How much do different property types cost right now across major Cambodian cities?
| City | Property Type | Price per sqm | Average Unit Price |
|---|---|---|---|
| Phnom Penh | Prime condos | $2,650-$2,924 | ~$114,164 |
| Phnom Penh | Mid-range condos | ~$2,200 | $80,000-$180,000 |
| Phnom Penh | Entry-level condos | $1,500-$2,200 | $60,000-$120,000 |
| Phnom Penh | Borey houses | ~$2,000 | $150,000-$400,000 |
| Siem Reap | Condos | $1,500-$2,200 | $104,991-$559,227 |
| Siem Reap | Villas | N/A | $89,000-$950,000 |
| Sihanoukville | Beachfront condos | $1,800-$2,400 | $120,000-$350,000 |
| Battambang | Condos | $800-$1,200 | $40,000-$80,000 |
| Kep & Kampot | Condos | $1,200-$2,000 | $60,000-$150,000 |
What are the current short-term price trends across these markets?
Property prices across Cambodia are rising consistently in 2025, driven by tourism recovery, infrastructure investment, and government incentives.
Phnom Penh prime condominiums have appreciated 5-10% year-to-date in 2025, with the strongest growth in central business district locations. Mid-range and entry-level condos in the capital are following similar upward trends, though at slightly lower rates.
Siem Reap is experiencing the strongest short-term growth at 8-10% annually, with luxury villas appreciating 15-20% since 2023. The new international airport and tourism infrastructure investments are primary drivers of this appreciation.
Sihanoukville property values are up 5-7% annually, particularly in beachfront locations and areas near casino developments. Kep and Kampot markets are forecast for 7-10% annual growth through 2025, while Battambang shows more modest 3-5% appreciation.
These trends reflect Cambodia's broader economic recovery and increasing foreign investment interest in the real estate sector.
What are the medium-term growth expectations for each major market?
The medium-term outlook from 2025-2030 shows differentiated growth potential across Cambodia's major property markets.
Phnom Penh is projected to deliver 5-8% annual appreciation, supported by continued urbanization and foreign investment flows. The capital's established infrastructure and business environment provide steady growth fundamentals.
Siem Reap leads medium-term expectations with 8-10% annual growth projections, fueled by tourism recovery and major infrastructure developments including the new international airport. The city's unique position as Cambodia's tourism gateway supports these optimistic forecasts.
Sihanoukville anticipates 6-7% annual growth, with development focused on casinos, entertainment complexes, and coastal resort projects. The city's transformation into a gaming and entertainment hub drives investor interest.
Secondary cities show varied prospects: Kep and Kampot are expected to achieve 7-10% annual growth leveraging their affordability and expanding tourism appeal, while Battambang projects more conservative 3-5% appreciation.
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What is the long-term outlook for property values and demand in Cambodia?
Cambodia's long-term property outlook is positive, with projections showing continued value appreciation as the country industrializes and tourism expands.
The government's goal of achieving high-income status by 2050 could drive major property appreciation, especially in strategic urban and tourist areas. Economic diversification beyond textiles and agriculture should create new employment centers and housing demand.
Demographic trends support long-term demand, with increasing urbanization rates and a growing middle class seeking modern housing options. Infrastructure development, including new airports, highways, and urban transit systems, will likely create new property hotspots.
Tourism expansion remains a key long-term driver, with Cambodia positioning itself as a premium Southeast Asian destination. This trend particularly benefits cities like Siem Reap, Sihanoukville, and emerging coastal areas.
Demand is expected to remain robust for condominium developments, hospitality projects, and mixed-use developments that serve both residents and tourists.
What are the rental yields for different property types in major cities?
Rental yields in Cambodia vary significantly by location and property type, with secondary cities generally offering higher returns than Phnom Penh.
Phnom Penh condominiums deliver 6-8% gross rental yields, with entry to mid-range units typically outperforming luxury properties in yield terms. The capital's stable rental market and diverse tenant base support consistent occupancy rates.
Sihanoukville offers 7-9% rental yields, particularly strong in beachfront locations and areas near casino developments. The city's entertainment industry creates steady rental demand from workers and short-term visitors.
Kep and Kampot provide the highest yields at 7-10%, making these coastal towns attractive for value-oriented investors. Lower property acquisition costs combined with growing tourism support these elevated returns.
Siem Reap delivers 6-8% yields supported by strong tourism, with overall rental occupancy around 85%. The city's position as Cambodia's primary tourist destination creates consistent rental demand from both long-term residents and short-term visitors.
How do occupancy rates vary between city centers, tourist areas, and suburban zones?
Occupancy rates across Cambodia show significant variation based on location type and proximity to business or tourism centers.
City centers maintain the lowest vacancy rates, with Phnom Penh central condominiums averaging around 15% vacancy. Prime business district locations benefit from steady demand from professionals and expatriate workers.
Tourist hotspots like Siem Reap report strong occupancy at 85% for rental properties, especially in new and centrally located developments. Areas near major attractions, restaurants, and hotels maintain consistently high occupancy throughout the year.
Suburban zones experience higher vacancy rates above 20%, as tenants generally prefer central locations with better access to employment and amenities. Suburban properties often require lower rents to attract tenants, impacting overall yields.
Beachfront and casino areas in Sihanoukville maintain solid occupancy due to entertainment industry employment, though rates can fluctuate with casino operations and tourism seasons.
Tourist areas consistently outperform suburban locations in terms of both occupancy rates and rental pricing power.
What are the transaction costs, taxes, and fees for buying and selling property?
Property transactions in Cambodia involve several mandatory costs that buyers and sellers should budget for when calculating investment returns.
Transfer tax represents the largest single cost at 4% of the property value, paid during the ownership transfer process. This tax applies to both local and foreign buyers without differentiation.
Agency fees typically range from 1-2% of the property value, depending on the real estate agency and property type. Premium properties and complex transactions may command higher commission rates.
Legal and documentation fees generally cost $400-$800 for typical transactions. These fees cover legal review, contract preparation, and due diligence services essential for foreign buyers navigating Cambodia's property laws.
Additional costs include registration fees, notary charges, and translation services for legal documents. These miscellaneous fees vary by property location and district requirements but typically add $200-$500 to total transaction costs.
Total transaction costs generally range from 5.5-7% of property value when combining all fees, taxes, and professional services.
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 easy is it to resell property, and what are the liquidity differences by location and type?
Property liquidity in Cambodia varies dramatically based on location, property type, and target buyer market.
Prime city condominiums and central apartments offer the highest liquidity, typically selling within 3-6 months when priced appropriately. Phnom Penh's central business district properties benefit from strong demand from both investors and end-users.
Secondary cities and luxury villas present greater liquidity challenges, sometimes requiring more than a year to complete transactions unless located in high-demand tourist areas. The smaller buyer pool for high-value properties extends marketing periods significantly.
Suburban borey houses and properties accessible only to Cambodians face the lowest liquidity for foreign investors. Since foreigners cannot directly own these properties, resale options are limited to other foreign investors through complex legal structures.
Tourist-area properties in Siem Reap and beachfront locations in Sihanoukville maintain better liquidity than their price points might suggest, due to investor interest in rental income properties.
Market conditions significantly impact liquidity, with rising markets facilitating faster sales and declining markets extending transaction timelines across all property types.
How do returns compare between living in the property, renting it out, or flipping for resale?
Different investment strategies in Cambodia's property market yield varying returns depending on market conditions and investor objectives.
Living in your property provides lifestyle benefits but no direct financial returns, essentially converting your investment into consumption. This strategy makes sense for retirees or relocated professionals prioritizing quality of life over investment income.
Rental strategies provide steady cash flow with 6-8% yields in prime locations and higher returns of 7-10% in emerging tourist and coastal areas. Rental income offers regular returns while maintaining capital appreciation potential, making it popular among foreign investors.
Property flipping strategies depend heavily on timing and location selection. Prime city condos can deliver 8-10% annual capital appreciation during strong market cycles, but risks increase significantly in saturated or oversupplied segments.
Combined strategies of short-term rental followed by resale can maximize returns in tourist areas, though this approach requires active management and market timing expertise.
Rental strategies generally provide more predictable returns than flipping, while living in the property offers lifestyle benefits without financial returns.
What budget ranges make sense for different investment strategies?
| Strategy/Location | Entry-Level | Mid-Market | Luxury |
|---|---|---|---|
| Phnom Penh | $80K-$130K | $130K-$250K | $250K-$700K+ |
| Siem Reap | $100K-$180K | $180K-$300K | $300K-$950K |
| Sihanoukville | $90K-$160K | $160K-$275K | $275K-$1M+ |
| Secondary Cities | $60K-$110K | $110K-$200K | $200K-$600K |
It's something we develop in our Cambodia property pack.
Which area, property type, and price bracket offer the best positioning for your investment goals?
The optimal investment positioning in Cambodia depends on your risk tolerance, investment timeline, and return objectives.
For area selection, Phnom Penh's central business district and Siem Reap city center offer the best combination of consistent rental demand and capital growth potential. These locations provide steady fundamentals with lower volatility than emerging markets.
Mid-range condominium units above ground floor with strata titles represent the optimal property type for most foreign investors. These properties strike the ideal balance of affordability, rental returns, and resale liquidity while complying with foreign ownership regulations.
The $120K-$220K price bracket offers the sweet spot for newcomers to Cambodia's property market, providing access to quality units with strong rental potential in prime locations. This range typically delivers 6-8% rental yields with solid appreciation prospects.
Investors with larger budgets exceeding $300K may consider newer luxury projects in tourist cities for higher capital appreciation, though these properties often sacrifice yield for growth potential.
All investment decisions must align with legal restrictions limiting foreigners to strata-titled condominium units and consider local market dynamics and infrastructure development plans.
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 presents compelling opportunities for foreign investors willing to navigate ownership restrictions and focus on condominium investments.
With rising property values, solid rental yields, and positive medium-term growth projections, Cambodia offers attractive returns for investors who understand the legal framework and choose appropriate locations and property types.