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Phnom Penh's property market in 2025 offers a wide range, with condos typically priced from $1,600–$3,000 per sqm, landed houses varying from $1,150–$3,337 per sqm, and land from $70–$9,000 per sqm depending on centrality.
Total all-in purchase costs for typical units range from $65,000 for a studio to $400,000 for a high-end shophouse, with ongoing costs and taxes considerably lower than regional peers. The market shows strong potential for both investors and residents seeking affordable entry into Southeast Asian real estate.
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.
Phnom Penh remains Southeast Asia's most affordable capital for property investment, with condos averaging $1,800/sqm and gross rental yields of 6.2-8%.
The market is recovering from oversupply corrections with 5-10% price growth in 2025, driven by new infrastructure including the upcoming Techo Airport.
| Property Type | Price Range (USD/sqm) | Best Districts | Gross Yield |
|---|---|---|---|
| Condo | $1,600 - $3,000 | BKK1, Tonle Bassac | 6.2 - 8% |
| Landed House | $900 - $3,500 | Mean Chey, Chroy Changvar | 7 - 8% |
| Shophouse | $2,000 - $3,337 | Central, Daun Penh | 6 - 7% |
| Land | $70 - $9,000 | 7 Makara (prime), Kambol (budget) | N/A |
What are the current property prices by type and district in Phnom Penh?
As of September 2025, Phnom Penh's property market shows distinct pricing tiers across different property types and districts.
Condominiums range from $1,600 to $3,000 per square meter, with BKK1 commanding the highest prices at $2,650-$3,000 per sqm due to its embassy district status and expat concentration. Tonle Bassac follows at around $2,500 per sqm for its upscale riverside location, while Chroy Changvar offers mid-range options at $1,700-$2,000 per sqm.
Landed houses vary significantly by location, from $900 per sqm in suburban areas like Mean Chey to $3,500 per sqm in prime locations. The variation reflects accessibility, infrastructure quality, and proximity to business districts.
Shophouses in prime central locations average $3,337 per sqm, representing the premium end of the market due to their commercial potential and limited supply in central areas.
Raw land prices show the most dramatic range, from $70-$400 per sqm in outer districts like Kambol to $6,500-$9,000 per sqm in the central CBD area of 7 Makara.
What are the typical unit sizes and price per square meter in each district?
| District/Area | Property Type | Typical Size (sqm) | Price/sqm (USD) | Total Unit Price |
|---|---|---|---|---|
| BKK1 | Condo | 45-80 | $2,650-$3,000 | $119,000-$240,000 |
| Tonle Bassac | Condo | 60-120 | $2,500 | $150,000-$300,000 |
| Chroy Changvar | Condo | 40-90 | $1,700-$2,000 | $68,000-$180,000 |
| Russian Market | Condo | 35-70 | $1,200-$1,452 | $42,000-$102,000 |
| Mean Chey | Landed House | 60-300 | $900-$3,500 | $54,000-$1,050,000 |
| Central | Shophouse | 120+ | $3,337 | $400,000+ |
| 7 Makara | Land | Variable | $6,500-$9,000 | Per sqm basis |
Which are the most expensive, up-and-coming, and budget-friendly neighborhoods?
Phnom Penh's property market is clearly segmented into three distinct tiers based on development level, infrastructure, and buyer demographics.
The most expensive neighborhoods include BKK1, Daun Penh, 7 Makara, and Tonle Bassac. These areas command premium prices due to their concentration of embassies, high-end retail, established expat communities, and limited new supply. BKK1 particularly benefits from its diplomatic quarter status, while Tonle Bassac attracts buyers with its Mekong riverfront location and luxury developments.
Up-and-coming areas showing strong growth potential include Chroy Changvar, Chbar Ampov, Sen Sok, and Kambol. These districts are experiencing rapid development driven by new infrastructure projects, including improved road networks and proximity to the upcoming Techo Airport. Spillover demand from central areas is pushing buyers toward these locations as they offer better value while maintaining good connectivity.
Budget-friendly neighborhoods centered around Russian Market (Toul Tom Poung), Mean Chey, and Prek Pnov offer the most affordable entry points. These areas provide strong rental yields due to their lower baseline prices and appeal to local residents and budget-conscious expats.
The main drivers behind these price differentials include infrastructure quality, proximity to business districts, international school access, and the presence of established expat communities that create sustained demand.
What are the total all-in purchase costs for a studio, two-bed condo, and shophouse?
Understanding the complete cost structure beyond the purchase price is crucial for accurate budgeting in Phnom Penh's property market.
For a 45 sqm studio condo in areas like Russian Market or Chbar Ampov, the base purchase price ranges from $60,000-$65,000. Additional costs include legal fees of $1,000-$2,000, agent commission of 1-3% ($600-$1,950), and fit-out/furnishing costs of $3,000-$7,000. Transfer taxes are currently waived under government incentives for properties under $210,000, resulting in a total all-in cost of $65,000-$75,000.
An 80 sqm two-bedroom condo in Toul Kork or Chroy Changvar typically costs $130,000-$160,000 for the unit itself. With similar percentage-based fees, legal costs of $1,500-$2,500, agent fees of $1,300-$4,800, and fit-out expenses of $5,000-$15,000, the total reaches $138,000-$175,000. These units also benefit from the transfer tax waiver as they fall under the $210,000 threshold.
A 120 sqm shophouse in central locations commands $260,000-$400,000 for the base purchase. Legal and agent fees can reach $3,000-$15,000 depending on the complexity and value, while fit-out costs for commercial space can be $15,000-$35,000. Properties exceeding $210,000 face a 4% transfer tax on the excess amount, bringing total costs to $285,000-$450,000.
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What ongoing costs should I expect after purchasing property?
Post-purchase expenses in Phnom Penh are significantly lower than in regional capitals like Bangkok or Ho Chi Minh City.
Property tax applies at 0.1% of assessed value annually, but only kicks in for properties worth more than $25,000. Most residential properties fall into this category, so budget around $100-$400 per year for typical units.
Condominium owners face monthly management fees of $1-$1.50 per square meter, meaning a 60 sqm unit costs $60-$90 monthly for building maintenance, security, and common area upkeep. Sinking funds for major repairs are typically rolled into these monthly fees, though significant renovations may require additional special assessments.
Insurance is optional but recommended, costing $200-$800 annually depending on coverage and property value. Utilities average $40-$120 monthly for typical residential units, with air conditioning being the primary cost driver in Phnom Penh's tropical climate.
For shophouses and landed properties, estate management fees are usually minimal unless located in managed developments. However, owners bear direct responsibility for maintenance and repairs.
When calculating investment returns, budget 1.5-2% below gross rental yield to cover all genuine running costs, providing a realistic net yield expectation.
What mortgage options are available for locals and foreigners?
Cambodia's mortgage market offers different terms based on buyer nationality and residency status.
Local Khmer citizens can access loan-to-value ratios of 70-80% with tenors extending up to 30 years. Fixed interest rates currently start from 6.75% and can reach 8.5%, while variable rates typically float between 7-9%. Major local banks like PPC Bank and ACLEDA provide these services with competitive terms for qualifying borrowers.
Foreign buyers face more restrictive conditions, with most banks capping LTV ratios at 60-70% and requiring more stringent proof of income and residency status. Interest rates are generally similar to those offered to locals, but approval processes are more complex and may require additional documentation.
Down payment requirements vary by property type, with condominiums typically requiring 20-40% down, while land purchases and landed properties often demand 40% or higher initial payments. This reflects the higher perceived risk associated with these property types.
For practical budgeting, consider a $130,000 condo with 80% LTV financing ($104,000 loan). At 7.5% annual interest over 25 years, monthly principal and interest payments would approximate $760-$850, excluding property taxes and insurance.
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Which areas and property types are best for living and future resale?
For owner-occupiers seeking both quality of life and solid resale potential, certain areas consistently outperform others.
BKK1 and Tonle Bassac represent the smartest choices for resale value, offering established infrastructure, international school access, and strong expat communities that maintain demand. These areas provide excellent lifestyle amenities including restaurants, shopping, and proximity to business districts, while their limited new supply supports price stability.
Chroy Changvar and Toul Kork are emerging as excellent family-friendly options, combining reasonable pricing with improving amenities and infrastructure. The new bridge connections and planned developments make these areas particularly attractive for buyers seeking growth potential while maintaining good connectivity to central Phnom Penh.
For property type, mid-range condominiums in well-managed buildings offer the best balance of lifestyle and investment potential. They require minimal maintenance while providing security and amenities that appeal to both local and international buyers.
New landed homes near major infrastructure projects, particularly those connected to the ring road system and Techo Airport access routes, are seeing strong demand and likely appreciation as these projects near completion.
Avoid ultra-luxury units in oversupplied segments and budget properties in areas with poor infrastructure, as both face liquidity challenges and limited appreciation potential.
What rental yields and occupancy can I expect for long-term rentals?
Phnom Penh's rental market offers some of Southeast Asia's most attractive yields for long-term residential investment.
Gross rental yields range from 6.2% to 8% across the city, with net yields typically 4.2% to 6% after accounting for taxes, management fees, and vacancy periods. These returns significantly exceed those available in Bangkok (3-5%) or Ho Chi Minh City (4-6%), making Phnom Penh attractive for yield-focused investors.
Occupancy rates vary by location and property type, with prime sectors like BKK1 and Tonle Bassac achieving 80-90% occupancy due to consistent expat demand. Growth corridors like Chroy Changvar and newer developments typically see 70-80% occupancy as the rental market develops in these areas.
Time-to-lease averages 1-2 months for well-located, properly priced units. Family homes and budget-friendly condominiums attract reliable local tenants, while expat-focused properties in premium areas command higher rents but may experience longer vacancy periods between tenants.
The strongest rental demand comes from local professionals, growing middle class, and international workers in NGOs, embassies, and businesses. This diverse tenant base provides stability compared to markets overly dependent on tourist or expat demand.
Budget 15-20% of gross rental income for management, maintenance, and vacancy allowances to calculate realistic net returns.
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 returns can I expect from short-term rental properties?
Short-term rental operations in Phnom Penh face different dynamics and constraints compared to long-term residential leasing.
Average daily rates (ADR) range from $30 for basic units in secondary locations to $110 for premium properties in BKK1 or Tonle Bassac. Location, unit quality, and amenities significantly impact pricing power, with expat-oriented areas commanding substantial premiums.
Occupancy rates typically achieve 50-70% depending on unit positioning and management quality, considerably lower than long-term rental occupancy. This reflects both seasonal tourism patterns and competition from hotels and serviced apartments.
Net yields after platform fees, cleaning, utilities, and management typically range from 4-7%, often lower than long-term rental yields due to higher operational costs and vacancy rates. Success requires active management and strong marketing to maintain competitive occupancy levels.
Regulatory constraints are emerging as the market develops. Some major condominium buildings restrict short-term rentals through management company policies, while local government is considering limitations on "Airbnb-type" operations in certain residential areas.
Factor in platform commission fees (typically 15-20%), higher utility costs, professional cleaning between stays, and more frequent maintenance when calculating realistic returns from short-term rental operations.
Which areas show the strongest resale demand and liquidity?
Resale market strength varies dramatically across Phnom Penh's different districts and property types.
Established premium areas like BKK1, Tonle Bassac, and Daun Penh maintain the strongest liquidity due to consistent buyer demand and limited supply. However, their high current prices may cap future upside potential, making them suitable for stable capital preservation rather than dramatic appreciation.
Growth corridors including Chroy Changvar, Chbar Ampov, Kambol, and Sen Sok are likely to show the best liquidity for properties held 3-7 years. These areas benefit from new infrastructure development, improving connectivity, and buyer spillover from expensive central locations. Resale success depends on timing the sale after new infrastructure becomes operational.
Realistic holding periods for appreciation-focused investment range from 3-5 years minimum. Flipping properties quickly faces significant transaction costs including agent fees (1-3%) and potential transfer taxes, making short-term speculation generally unprofitable.
Properties near major infrastructure projects, particularly those connected to the ring road system, Techo Airport, and new commercial developments, show strongest resale potential. These locations benefit from improving accessibility and growing commercial activity.
Avoid isolated developments, oversupplied luxury segments, and properties in areas with poor infrastructure or uncertain development plans, as these face the greatest liquidity challenges during resale.
How have prices changed in recent years and what are the main drivers?
Phnom Penh's property market has undergone significant correction and recovery cycles in recent years.
Condominium prices remained largely flat or declined from 2019-2023 due to oversupply issues and reduced foreign investment during the COVID-19 period. However, 2025 has seen a strong recovery with prices rising 5-10% across most segments, with the strongest gains in premium and central locations.
Land values have shown more resilience, with central core areas appreciating 10-15% since 2024 and outlying districts seeing gains of up to 15% in some locations. This reflects both infrastructure development and speculative demand ahead of major projects.
The main drivers of recent price recovery include oversupply correction as developers reduced new launches, infrastructure-led demand from projects like Techo Airport and ring road improvements, new government incentives including transfer tax waivers, and returning investor confidence as economic conditions stabilized.
Compared to five years ago, overall price levels have remained relatively stable, with inflation and currency factors offsetting much of the nominal gains. This creates opportunities for buyers entering a market that has undergone natural correction rather than speculative bubble expansion.
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What's the outlook for Phnom Penh property prices over the next 1-10 years?
Market forecasts for Phnom Penh vary significantly based on economic and infrastructure development scenarios.
The base case scenario over 1-5 years expects steady 4-7% annual appreciation, with rental yields remaining among the region's highest. New build absorption in growth corridors should help mitigate oversupply concerns while infrastructure projects drive demand in previously underdeveloped areas.
A bullish scenario assumes successful infrastructure realization and relaxed capital controls, potentially driving 8-12% annual price gains in key corridors. International demand could spike if Cambodia continues political stability and economic growth, while yields are preserved due to growing local rental demand.
The bearish case considers regional recession risks or regulatory shifts that could result in flat to -3% annual performance. Yields might weaken due to muted rental demand, and oversupply could resume in prime sectors if economic conditions deteriorate.
Long-term outlook over 10 years suggests Phnom Penh will likely close the gap with Ho Chi Minh City and Bangkok in both price levels and market liquidity, while maintaining higher net yields and faster transaction turnover. This reflects Cambodia's economic development trajectory and growing middle class wealth.
Regional comparison shows Phnom Penh currently offering 20-60% lower prices per square meter than Bangkok or HCMC, with gross yields commonly 1.5-2% higher, making it attractive for both capital growth and income-focused investment strategies.
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.
Phnom Penh remains Southeast Asia's most accessible capital for property investment, offering compelling value for both owner-occupiers and investors seeking high yields.
The market's recovery from oversupply corrections, combined with major infrastructure development and government incentives, creates favorable conditions for strategic property investment in Cambodia's capital.
Sources
- BambooRoutes - Condo Prices Phnom Penh
- BambooRoutes - Phnom Penh Price Forecasts
- Fazwaz - Shophouse for Sale Cambodia Phnom Penh
- Global Property Guide - Cambodia Price History
- BambooRoutes - Phnom Penh Property
- Construction Property - Land Price Index by Districts
- CBRE - Cambodia Real Estate Law 2025
- Global Property Guide - Cambodia Rental Yields
- PPC Bank - Home Financing Options
- IPS Cambodia - Average Rental Prices Phnom Penh 2025