Authored by the expert who managed and guided the team behind the Cambodia Property Pack
Yes, the analysis of Phnom Penh's property market is included in our pack
If you're thinking about buying property in Phnom Penh, you're probably wondering whether now is a good time or if you should wait for prices to drop further.
We constantly update this blog post with the latest housing prices and market signals in Phnom Penh, so you can make an informed decision based on real data, not just opinions.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Phnom Penh.
So, is now a good time?
Rather yes, January 2026 is a favorable window for disciplined buyers in Phnom Penh because you're entering a market that has already corrected and offers real negotiating power.
The strongest signal is that Phnom Penh's Residential Property Price Index fell around 5% year-over-year in 2024, meaning prices have already adjusted and the "overpaying risk" has decreased.
Another strong signal is that house sales dropped 18% in 2024 while mortgage borrowing contracted by 5.2%, which tells us sellers are motivated and competition among buyers is low.
Other signals include low landed housing sales rates (often below 5%), developer incentives and promotions, and serviced apartment occupancy around 54%, all pointing to a buyer-friendly environment.
The best strategy right now is to focus on established neighborhoods like BKK1, Tonle Bassac, or Toul Kork for end-user properties, plan for a 5-plus year hold rather than quick flips, and negotiate hard on price and payment terms.
This is not financial or investment advice, we don't know your personal situation, and you should always do your own research before making any property purchase.
Is it smart to buy now in Phnom Penh, or should I wait as of 2026?
Do real estate prices look too high in Phnom Penh as of 2026?
As of early 2026, Phnom Penh property prices are not dramatically overvalued but remain stretched for many local households, with entry-level condos at around 3 to 4 times median income being accessible while mid-market properties sit at 7 to 10 times income, requiring dual incomes or overseas earnings.
One clear on-the-ground signal is that the National Bank of Cambodia's Residential Property Price Index showed Phnom Penh prices fell 5.4% year-over-year in May 2024, which tells us the market has already corrected rather than being in bubble territory.
Another supporting signal is that Knight Frank reports very low sales rates in landed housing developments (often below 5%) with developers offering promotions and incentives, which you simply don't see in an overheated market.
You can also read our latest update regarding the housing prices in Phnom Penh.
Does a property price drop look likely in Phnom Penh as of 2026?
As of early 2026, the likelihood of a sharp price crash in Phnom Penh is low, but further softening or flat prices in oversupplied segments like investor-heavy condos and fringe Borey developments remains quite possible.
Looking at the next 12 months, we consider a range of minus 5% to plus 3% for most Phnom Penh residential segments plausible, with prime areas like BKK1 and Tonle Bassac more likely to hold steady while outer corridors may drift lower.
The single most important factor that could increase the odds of a price drop in Phnom Penh is a further tightening of credit, since mortgage borrowing already contracted 5.2% in 2024 and banks remain cautious about property lending.
Given Cambodia's economic growth forecast of around 6% for 2026 and the new Techo International Airport now operational, a severe credit crunch is unlikely, though lending will probably stay selective rather than loosening dramatically.
Finally, please note that we cover the price trends for next year in our pack about the property market in Phnom Penh.
Could property prices jump again in Phnom Penh as of 2026?
As of early 2026, the likelihood of a significant price surge in Phnom Penh within the next 12 months is low to medium, because the market is still absorbing existing supply and credit conditions remain cautious.
If positive catalysts align, we could see upside of 5% to 10% in select prime neighborhoods like BKK1, Tonle Bassac, and emerging corridors near Techo International Airport, but a broad market jump is not the base case.
The single biggest demand-side trigger that could drive prices up in Phnom Penh would be a meaningful return of foreign investor appetite combined with easier credit conditions, since Chinese, Korean, and Japanese buyers have historically fueled price rallies here.
Please also note that we regularly publish and update real estate price forecasts for Phnom Penh here.
Are we in a buyer or a seller market in Phnom Penh as of 2026?
As of early 2026, Phnom Penh is clearly a buyer-leaning market across most residential segments, meaning you have negotiating leverage that simply wasn't available during the 2017 to 2019 boom years.
While Phnom Penh doesn't publish a formal months-of-supply metric like Western markets, the signals we track, including sales rates below 5% in many Borey developments and high condo inventory, suggest the equivalent of 12 or more months of supply, which typically means buyers can push hard on price.
The prevalence of developer promotions, free furniture packages, and extended payment terms across Phnom Penh is a clear sign that sellers and developers are competing for buyers, not the other way around.
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.
Are homes overpriced, or fairly priced in Phnom Penh as of 2026?
Are homes overpriced versus rents or versus incomes in Phnom Penh as of 2026?
As of early 2026, Phnom Penh homes are moderately stretched versus local incomes but offer reasonable value versus rents, with gross rental yields in the 5% to 8% range making the market more attractive for investors than many regional peers.
The price-to-rent ratio in Phnom Penh varies significantly by segment: prime serviced apartments in BKK1 and Tonle Bassac can deliver gross yields of 6% to 8%, which suggests fair value, while oversupplied condo clusters may only achieve 3% to 5%, indicating those are priced too high relative to rental income.
Looking at price-to-income, a median Phnom Penh household earning around $10,000 per year faces a ratio of 7 to 10 times income for typical mid-market properties, which is above the 3 to 5 times benchmark for "affordable" but not unusual for emerging Asian capitals.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Phnom Penh.
Are home prices above the long-term average in Phnom Penh as of 2026?
As of early 2026, Phnom Penh property prices are not sitting above their long-term average but are instead below recent peaks, with the NBC's Residential Property Price Index showing declines through 2024 rather than the runaway growth of the pre-2019 period.
The recent 12-month price change in Phnom Penh shows the RPPI fell around 2% nationally and 5.4% year-over-year in the capital at its worst point in 2024, which compares to double-digit annual gains during the 2017 to 2018 boom, meaning current pricing reflects a correction rather than exuberance.
In inflation-adjusted terms, Phnom Penh residential prices are meaningfully below their 2018 to 2019 cycle peak, which is good news for buyers entering now since you're not buying at the top of the market.
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What local changes could move prices in Phnom Penh as of 2026?
Are big infrastructure projects coming to Phnom Penh as of 2026?
As of early 2026, the biggest infrastructure project already transforming Phnom Penh is Techo International Airport, a $1.5 billion facility that opened in September 2025 and is expected to boost property values in southern corridors and improve overall city connectivity and investor confidence.
Techo International Airport is now fully operational with Phase 1 handling up to 13 million passengers annually, and future phases are planned to expand capacity to 30 million by 2050, meaning the connectivity benefits will compound over time for property owners in well-positioned areas like Chbar Ampov and Meanchey.
For the latest updates on the local projects, you can read our property market analysis about Phnom Penh here.
Are zoning or building rules changing in Phnom Penh as of 2026?
The most important regulatory shift being implemented in Phnom Penh is stricter licensing and compliance requirements for real estate operators under the NBFSA's Real Property Regulator, which aims to professionalize the market and reduce unscrupulous practices.
As of early 2026, these regulatory changes are more about improving market quality and transaction safety than directly moving prices, though over time better enforcement could reduce buyer risk and support more sustainable price growth.
The areas most affected by these changes in Phnom Penh are Borey developments on the fringes where developer-buyer disputes have been common, as stricter licensing may help filter out less reliable operators and protect homebuyers in Sen Sok, Por Sen Chey, and Meanchey.
Are foreign-buyer or mortgage rules changing in Phnom Penh as of 2026?
As of early 2026, the most impactful rule change for Phnom Penh buyers is the extension of stamp duty relief for first-time homebuyers purchasing properties under $70,000, which reduces transaction costs and supports entry-level demand in the Borey and affordable condo segments.
The Capital Gains Tax on real estate, originally planned for January 2026, has been postponed to January 2027, giving investors and property owners additional time to prepare and reducing immediate pressure on the resale market.
On the mortgage side, credit conditions remain selective with the NBC reporting a 5.2% contraction in mortgage lending in 2024, so while no major rule change is imminent, expect banks to stay cautious about property lending until the market shows clearer recovery signals.
You can also read our latest update about mortgage and interest rates in Cambodia.
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.
Will it be easy to find tenants in Phnom Penh as of 2026?
Is the renter pool growing faster than new supply in Phnom Penh as of 2026?
As of early 2026, supply has been running ahead of renter demand in many Phnom Penh submarkets, particularly in investor-focused condo clusters, though prime neighborhoods with strong expat and lifestyle demand remain healthier.
The best signal for renter demand in Phnom Penh is urban migration and household formation: the NIS CSES 2023 shows about 26% of Phnom Penh households rent their homes, and the city continues to attract workers from provinces, but this growth hasn't matched the pace of condo completions.
On the supply side, Knight Frank reports a large existing condo stock plus ongoing pipeline, and the 2025 to 2026 period is seeing one of the biggest handover cycles in years, meaning landlords will face competition for tenants in most segments.
Are days-on-market for rentals falling in Phnom Penh as of 2026?
As of early 2026, rental days-on-market in Phnom Penh are not falling citywide; instead the market remains competitive with landlords offering incentives, especially in oversupplied condo segments where occupancy is around 54% for serviced apartments.
There's a significant gap between prime areas and weaker locations: units in BKK1, Tonle Bassac, and Daun Penh typically lease within 2 to 4 weeks when priced correctly, while condos in outer districts like parts of Chroy Changvar may sit vacant for months.
Are vacancies dropping in the best areas of Phnom Penh as of 2026?
As of early 2026, vacancies in Phnom Penh's best rental areas like BKK1, Tonle Bassac, and Daun Penh are not dropping dramatically but are holding steadier than the broader market, with these prime districts attracting the deepest expat and business traveler demand.
Knight Frank reports serviced apartment occupancy around 54% citywide in H1 2025, but prime districts likely run higher at 60% to 70%, while outer areas struggle with occupancy well below 50%, creating a clear two-tier market.
One practical sign that prime areas are relatively stronger in Phnom Penh is that landlords there can still achieve rents of $23 to $25 per square meter monthly, while comparable units in weaker districts must discount heavily to attract tenants.
By the way, we've written a blog article detailing what are the current rent levels in Phnom Penh.
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Am I buying into a tightening market in Phnom Penh as of 2026?
Is for-sale inventory shrinking in Phnom Penh as of 2026?
As of early 2026, for-sale inventory in Phnom Penh is not shrinking in a way that signals a tightening market; instead, there's still meaningful available stock across both condos and landed housing segments.
While Phnom Penh lacks a formal months-of-supply metric, the best proxy, which is landed housing sales rates often below 5% according to Knight Frank, suggests the equivalent of 12 or more months of inventory, well above the 4 to 6 months typical of a balanced market.
Are homes selling faster in Phnom Penh as of 2026?
As of early 2026, homes in Phnom Penh are not selling faster; the market looks more like buyers taking their time and negotiating hard rather than properties flying off the shelf.
The year-over-year signal is clear: the NBC reports house sales dropped 18% in 2024, and Knight Frank highlights weak sales velocity in landed housing, both indicating that selling time has lengthened rather than shortened.
Are new listings slowing down in Phnom Penh as of 2026?
As of early 2026, new project launches have slowed in some segments, but because there's already substantial existing stock, fewer new listings doesn't automatically translate to rising prices in Phnom Penh.
The seasonal pattern in Phnom Penh typically sees stronger listing activity after Khmer New Year in April, but even accounting for seasonality, developers have been more cautious about launching new phases given weak absorption in 2024.
The most plausible reason new listings are slowing is that developers are waiting for existing inventory to clear before adding more supply, recognizing that launching into a soft market risks further discounting.
Is new construction failing to keep up in Phnom Penh as of 2026?
As of early 2026, new construction is not failing to keep up with demand in Phnom Penh; if anything, the opposite has been true, with supply outpacing absorption in multiple segments over recent years.
The recent trend shows a large pipeline of condos and Borey developments still completing, with the 2025 to 2026 period marking one of the biggest handover cycles as major projects deliver units to market.
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.
Will it be easy to sell later in Phnom Penh as of 2026?
Is resale liquidity strong enough in Phnom Penh as of 2026?
As of early 2026, resale liquidity in Phnom Penh is selectively okay rather than universally strong, meaning well-located properties in established neighborhoods can sell within reasonable timeframes while oversupplied segments may struggle.
While we don't have official median days-on-market data for resales, market signals suggest correctly-priced properties in BKK1, Tonle Bassac, Toul Kork, and Daun Penh can sell within 3 to 6 months, compared to a "healthy liquidity" benchmark of 2 to 4 months in more developed markets.
The property characteristic that most improves resale liquidity in Phnom Penh is location in an established neighborhood with genuine end-user demand, because these areas have deeper buyer pools than investor-heavy developments that depend on sentiment cycles.
Is selling time getting longer in Phnom Penh as of 2026?
As of early 2026, selling time in Phnom Penh has likely lengthened compared to the 2017 to 2019 boom period, consistent with a market that has been correcting rather than accelerating.
The current realistic range for selling time in Phnom Penh spans from around 2 months for well-priced prime properties to 6 months or more for units in oversupplied segments or properties listed above market value.
One clear reason selling time lengthens in Phnom Penh is affordability pressure: with median household incomes around $10,000 and many properties priced at 7 to 10 times income, the pool of qualified local buyers is limited, especially when mortgage lending is contracting.
Is it realistic to exit with profit in Phnom Penh as of 2026?
As of early 2026, the likelihood of exiting with profit in Phnom Penh is medium, meaning it's realistic if you buy well and hold for 5 or more years, but short-term flips are risky in the current soft market.
We estimate a minimum holding period of 5 to 7 years to realistically exit with profit in Phnom Penh, accounting for price cycles, transaction costs, and the time needed for the market to recover from its 2020 to 2024 correction.
Total round-trip costs in Phnom Penh, including buying costs (stamp duty, registration, legal fees) and selling costs (agent commission, potential CGT from 2027), run approximately 8% to 12% of property value, or roughly $8,000 to $12,000 on a $100,000 property (around 7,500 to 11,000 euros).
The clearest factor that increases profit odds in Phnom Penh is buying during a correction like the current one, negotiating a meaningful discount, and targeting established neighborhoods with genuine end-user demand rather than speculative investor-driven developments.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Phnom Penh, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| National Bank of Cambodia Financial Stability Review 2024 | Cambodia's central bank publishes this flagship annual report with official price indices and credit data. | We used it for the Residential Property Price Index trends, mortgage lending contraction data, and housing sales volume. We also referenced it for macro context on growth and inflation. |
| Knight Frank Cambodia H1 2025 Market Review | Knight Frank is a major global real estate firm with on-the-ground presence and transparent reporting. | We used it to understand what's actually being built and sold in Phnom Penh, including condo pipeline, Borey supply, sales rates, and serviced apartment occupancy. |
| IMF Cambodia Country Page | The IMF provides standardized macro forecasts that anchor growth and inflation expectations. | We used it to confirm 2025 to 2026 economic growth projections of around 6%, which affects household purchasing power and investor sentiment. |
| World Bank Macro Poverty Outlook Cambodia | The World Bank publishes comparable methodology across countries for reliable cross-checking. | We used it as a second independent macro forecast and to understand the soft domestic demand backdrop affecting housing absorption. |
| NIS Cambodia Socio-Economic Survey 2023 | This is Cambodia's official household survey for income, consumption, and housing data. | We used it to anchor Phnom Penh median income figures for calculating price-to-income ratios and understanding renter share in the population. |
| Global Property Guide Cambodia | Global Property Guide tracks rental yields and price trends across emerging markets. | We used it for rental yield benchmarks in Phnom Penh and cross-referenced RPPI data with their historical price tracking. |
| Andersen Cambodia | Andersen is a major professional services firm that summarizes tax measures with dates and thresholds. | We used it to confirm the stamp duty relief program details and Capital Gains Tax implementation timeline. |
| Rajah & Tann Asia | This large regional law firm provides precise legal instrument citations. | We used it as a second legal cross-check on stamp duty and tax measures affecting Phnom Penh property transactions. |
| DFDL Cambodia | DFDL is a well-known regional law firm with regulatory update expertise. | We used their legal updates to describe the regulatory direction around real estate business licensing and compliance requirements. |
| Techo International Airport Official Communications | Official operator communications provide verified project details and timelines. | We used it to confirm Techo Airport opening date, capacity figures, and infrastructure impact on surrounding property corridors. |
| Khmer Times | Khmer Times is a leading English-language news outlet in Cambodia with government source access. | We used it to track policy announcements including Capital Gains Tax postponement and airport opening confirmations. |
| UNFPA Cambodia Inter-censal Population Survey 2024 | UNFPA hosts official national demographic publications produced by NIS. | We used it to support demographic context around urban household growth and migration patterns affecting housing demand. |
| Realestate.com.kh | Cambodia's largest property portal with real-time listing data. | We used it to observe listing trends, pricing patterns, and market activity across Phnom Penh neighborhoods. |
| World Property Journal / CBRE Cambodia | CBRE is a major global real estate services firm with local market research. | We used their reporting on commercial sectors and serviced apartments to understand broader market dynamics affecting residential segments. |
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.
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