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Phnom Penh's property market is rebounding strongly in 2025 after several years of stagnation. The Cambodian capital is experiencing a robust recovery driven by local demand, infrastructure development, and competitive rental yields that attract both residents and investors.
As of September 2025, condo prices range from $1,600 to $3,000 per square meter, while suburban districts like Sen Sok and Meanchey are leading price growth with increases exceeding 17%. The market shows clear signs of maturation with local buyers now dominating demand, replacing the previous foreign investor-heavy landscape.
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Phnom Penh's property market is experiencing a strong recovery in 2025, with condo prices rebounding 5-10% year-to-date after years of stagnation.
Local buyers now dominate demand while suburban districts show the fastest price growth, offering attractive investment opportunities with rental yields of 6-8%.
| Property Type | Average Price (2025) | 5-Year Trend | Rental Yields | Vacancy Rate |
|---|---|---|---|---|
| Condos (Central) | $2,500-$3,000/sqm | +15.4% | 6-8% | 8% |
| Condos (Emerging) | $1,200-$1,700/sqm | +15.4% | 7-10% | 8% |
| Houses (Borey) | $2,000/sqm | Moderate growth | 6-8% | Less than 8% |
| Prime Land | $3,000-$8,500/sqm | Stable central, rising peripheral | N/A | N/A |
| Commercial Spaces | Varies by location | Mixed performance | Variable | 36% |
What are the current average prices per square meter for condos, houses, and land in Phnom Penh?
As of September 2025, Phnom Penh's property prices vary significantly based on location and property type.
Condos in central districts like BKK1 and Tonle Bassac command the highest prices, reaching up to $3,000 per square meter or more. These premium locations offer proximity to business districts, shopping centers, and established infrastructure.
Emerging districts present more affordable options, with condos in areas like Chbar Ampov, Toul Kork, and Russian Market averaging between $1,200 and $1,700 per square meter. These neighborhoods are experiencing rapid development and offer better value for money.
Borey houses (gated community properties) throughout the capital cost approximately $2,000 per square meter, while single-family suburban homes typically range from $150,000 to $200,000 in total purchase price.
Prime land within central districts such as Daun Penh, BKK1, and 7 Makara commands between $3,000 and $8,500 per square meter, while peripheral areas like Kambol and Prek Pnov range from $70 to $2,000 per square meter.
How have property prices in Phnom Penh changed over the past five years?
Phnom Penh's property market experienced a challenging period from 2019 to 2023, with prices remaining flat or slightly declining due to COVID-19 impacts and oversupply concerns.
The market began showing signs of recovery in 2024, with nominal annual increases of 1-2%, though real prices declined slightly after accounting for inflation. This marked the beginning of a turnaround after several difficult years.
In 2025, the recovery has accelerated significantly, with property prices rebounding 5-10% year-to-date, particularly in mid-range and premium segments. This represents the strongest growth the market has seen since before the pandemic.
Over the entire five-year period, the Residential Property Price Index has risen by 15.4% from its 2020 base, indicating overall resilience despite the challenging intermediate years.
The recovery is being driven by renewed local demand, infrastructure investments, and improved economic conditions following the post-pandemic rebound.
What rental yields can investors expect from condos, apartments, and commercial spaces?
Phnom Penh offers attractive rental yields compared to many regional markets, making it appealing for income-focused investors.
| Property Type | Typical Gross Yield | Location Factor |
|---|---|---|
| Condos (Central) | 6-7% | Prime locations, stable demand |
| Condos (Emerging Areas) | 7-10% | Higher yields, growing demand |
| Apartments (Mid-range) | 6-8% | Strong local rental market |
| Commercial Spaces | Variable | Depends on grade and occupancy |
| Office (Grade A) | 5-7% | Premium locations, 80% occupancy |
| Retail Spaces | 4-6% | Oversupply challenges |
Mid-range properties and emerging areas often deliver the highest returns, with some reports indicating yields reaching up to 10% for well-positioned units.
One-bedroom apartments in central areas command average rents of $550 per month, while luxury units achieve higher rental rates, contributing to competitive overall yields.
Which districts are experiencing the fastest price growth right now?
Sen Sok district leads Phnom Penh's price growth with increases exceeding 17% in recent periods, driven by rapid urbanization and significant infrastructure development.
Several suburban districts are also showing impressive double-digit growth, including Meanchey, Dangkor, Prek Pnov, and Russey Keo, all benefiting from urban expansion and improved connectivity.
Other notable growth areas include Chbar Ampov, Tuol Kork, and Por Sen Chey, which are experiencing significant appreciation rates of 5-9% as they attract middle-class families and young professionals.
While central districts like BKK1 and Daun Penh remain the most expensive, peripheral and suburban areas are catching up quickly as infrastructure improvements make them more accessible.
It's something we develop in our Cambodia property pack.
What are the current vacancy rates for rental properties?
Phnom Penh's residential vacancy rate currently stands at approximately 8%, representing a significant improvement from previous years when oversupply was a more pressing concern.
The commercial property sector faces greater challenges, with citywide office occupancy at 64%, indicating a 36% vacancy rate across the office market. This oversupply primarily affects lower-grade office buildings.
Top-grade office spaces perform much better, achieving approximately 80% occupancy rates, demonstrating strong demand for premium commercial properties in prime locations.
The residential market's improved vacancy rate reflects growing local demand and better alignment between supply and market needs, particularly in the mid-range segment.
Retail and commercial spaces continue to face oversupply challenges, with vacancy rates varying significantly by location and property grade.
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How does demand from local buyers compare to foreign investors?
Local demand now dominates Phnom Penh's property market, representing a significant shift from the previous foreign investor-driven landscape.
Cambodian buyers are actively filling the gaps left by the pandemic-era decline in foreign investment, particularly from Chinese investors who previously played a major role in the market.
Property developers are strategically targeting the growing Cambodian middle class, creating products and financing options specifically designed for local buyers' needs and budgets.
Foreign investment is recovering but remains well below its previous peak levels, with investors taking a more cautious approach following the market corrections of recent years.
This shift toward local demand is creating a more stable and sustainable market foundation, less dependent on external factors and foreign capital flows.
What regulations and restrictions apply to foreign property buyers?
Foreign nationals can legally own condos above the ground floor in co-owned buildings, providing a straightforward path to property ownership in Phnom Penh.
However, landed houses and land remain off-limits to foreigners except through trust or company structures, which require careful legal navigation and ongoing compliance.
The most secure route for foreign control of landed property is through the trust structure established under Cambodia's 2019 Trust Law, which provides legal protections for foreign beneficiaries.
Stamp duty exemptions and other tax incentives apply to both local and foreign buyers for properties up to $210,000 in 2025 when purchased from registered developers, making entry-level investment more attractive.
Foreign buyers should work with experienced legal professionals to ensure compliance with all regulations and optimize their ownership structure for long-term security.
How accessible is property financing and what are current mortgage rates?
Property financing is available to both Cambodian nationals and foreigners, though requirements are typically stricter for non-resident buyers.
Current mortgage rates range from 7.2% to 7.6% per annum with loan terms extending up to 20 years, providing reasonable financing options for qualified buyers.
Some banks offer promotional rates as low as 0.67% per month during introductory periods, though these typically adjust to standard rates after the promotional period ends.
Foreign buyers generally need to provide larger down payments and meet higher income requirements compared to local borrowers, with most banks requiring 30-40% down payments for non-residents.
The banking sector's lending standards have tightened since the pandemic, but credit remains available for well-qualified borrowers with stable income and good credit profiles.
What infrastructure projects will impact future property values?
The new Techo International Airport represents the most significant infrastructure development, expected to boost property values particularly in southern and northeastern districts of Phnom Penh.
Major bridge and highway projects are improving connectivity between districts, making previously remote areas more accessible and attractive for residential development.
Public transport investments, including bus rapid transit systems and road improvements, are enhancing mobility throughout the city and supporting property value growth in emerging areas.
New shopping centers, educational facilities, and healthcare infrastructure are being developed across suburban districts, creating amenities that drive residential demand and property appreciation.
These infrastructure investments are particularly benefiting outlying districts like Sen Sok, Meanchey, and Dangkor, which are experiencing the fastest property price growth as connectivity improves.
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 are population growth and urbanization affecting housing demand?
Phnom Penh's population is growing rapidly at over 3% annually, with projections showing growth from 2.4 million residents in 2025 to above 3 million within a decade.
This substantial population growth is driven by continued urban migration from rural areas as people seek employment and educational opportunities in the capital city.
The city's youthful demographic profile creates strong demand for starter homes, apartments, and rental properties as young adults enter the housing market and form new households.
Tourism recovery and increased business travel are supporting demand for both residential and commercial properties, with hospitality-related real estate benefiting from improved visitor numbers.
Urban expansion is pushing development into previously rural areas, creating new residential districts and supporting the strong price growth seen in peripheral areas like Sen Sok and Meanchey.
What are the main risks and oversupply concerns in this market?
Oversupply remains a significant concern, particularly in the luxury condo segment and commercial properties, where some price segments continue to face soft demand and elevated vacancy rates.
The commercial office market faces substantial oversupply challenges, with overall occupancy at only 64%, though premium Grade A properties perform much better with 80% occupancy.
Credit market tightening poses risks for developers and investors, with potential impacts on liquidity and increased non-performing loan risks as lending standards become more stringent.
Foreign funding pullback could affect large-scale development projects, particularly those targeting the premium segment that previously relied heavily on international investment.
It's something we develop in our Cambodia property pack.
What do experts forecast for the property market over the next three years?
Real estate experts anticipate moderate annual growth of 5-10% from 2025 to 2028, driven primarily by infrastructure development and continued demand for affordable and mid-range properties.
Suburban districts and affordable housing tiers are expected to outperform luxury and conventional CBD offerings, as local buyers drive demand for practical, value-oriented properties.
Rental yields are likely to remain attractive at 6-8%, though they may moderate somewhat as property values appreciate and the market matures.
The premium and oversupplied condo segments will likely see much slower appreciation or continued price corrections as the market works through existing inventory.
Local demand, government incentives, and infrastructure investment will be the primary drivers of market performance, creating a more stable foundation than the previous foreign investor-dependent model.
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.
Phnom Penh's property market in 2025 presents a compelling opportunity for investors and residents alike, with strong fundamentals supporting continued growth.
The shift toward local demand, competitive rental yields, and strategic infrastructure investments create a solid foundation for property value appreciation over the next three years.
Sources
- Condo Prices in Phnom Penh
- Dabest Properties - Condo Price Range
- Phnom Penh Price Forecasts
- Cambodia Price Forecasts
- Harbor Property - Land Prices
- Phnom Penh Property Market
- Global Property Guide - Rental Yields
- World Property Journal - 2025 Report
- Kiri Post - Rental Market Analysis
- Jins Global - Sen Sok Development