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Yes, the analysis of Phnom Penh's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Daun Penh? It’s a vibrant area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other districts like Chamkarmon or Toul Kork where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Cambodia Property Pack.
Will property prices increase in Phnom Penh in 2025?
Yes, property prices in Phnom Penh are expected to rise in 2025, driven by a combination of economic growth and urban development.
Backed by our fresh, in-depth market analysis, we’re confident that Phnom Penh remains an attractive destination for both local and international investors.
While there are challenges such as inflation and potential regulatory changes, the main drivers behind Phnom Penh’s price growth are strong and persistent.
The city’s ongoing development projects and increasing foreign investment continue to fuel demand, making significant price drops unlikely. Additionally, Phnom Penh’s strategic location and growing infrastructure keep attracting buyers and investors.
Signals pointing to a property price increase in Phnom Penh
Here are some factors suggesting prices could increase:
The Cambodian economy is projected to grow steadily in 2025, boosting consumer confidence and increasing the purchasing power of potential homebuyers, which is likely to drive up property prices.
Phnom Penh is experiencing a surge in infrastructure development, including new roads, bridges, and public transport systems, which are expected to enhance connectivity and increase property values in the surrounding areas.
Foreign direct investment in Cambodia, particularly in the real estate sector, is anticipated to rise in 2025, bringing in more capital and driving demand for both residential and commercial properties.
The government’s focus on urban development and modernization projects in Phnom Penh is likely to attract more residents and businesses, increasing demand for real estate and pushing prices higher.
A growing middle class in Cambodia is expected to increase demand for housing, particularly in urban areas like Phnom Penh, where economic opportunities are concentrated.
The tourism sector in Cambodia is projected to recover and expand in 2025, boosting demand for hospitality-related real estate and indirectly supporting residential property prices.
Phnom Penh’s strategic location as a regional hub in Southeast Asia continues to attract multinational companies, increasing demand for office spaces and residential properties for expatriates.
Signals pointing to a property price decrease in Phnom Penh
Here are some factors suggesting prices could fall:
Potential regulatory changes in Cambodia’s real estate sector could introduce uncertainties, affecting investor confidence and potentially slowing down property market growth.
Rising construction costs due to inflation and supply chain disruptions could lead to higher property prices, but may also deter new developments, affecting the overall market dynamics.
Economic challenges, such as global market fluctuations or local economic instability, could impact consumer confidence and reduce demand for property investments in Phnom Penh.
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If property prices go up in Phnom Penh, how much would they increase by?
If real estate prices in Phnom Penh were to rise in 2025, the increase would likely be between 5% to 10% of their 2024 values.
Typically, real estate in emerging markets like Phnom Penh appreciates by approximately 5% to 10% annually over the long term. However, fluctuations can occur depending on factors such as location, economic conditions, and property type.
It means that, if you spot a charming 2-bedroom apartment in BKK1 for $150,000 today, don't be surprised if it's priced between $157,500 and $165,000 this time next year.
To give you a better understanding, here is a table that shows 7 types of Phnom Penh real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 5%, 7%, and 10%.
| Type of Property | Average Price in 2024 ($) | Price in 2025 (5% increase) | Price in 2025 (7% increase) | Price in 2025 (10% increase) |
|---|---|---|---|---|
| Condominium (60 sqm / 646 sqft) | $120,000 | $126,000 | $128,400 | $132,000 |
| Modern Apartment (75 sqm / 807 sqft) | $180,000 | $189,000 | $192,600 | $198,000 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | $400,000 | $420,000 | $428,000 | $440,000 |
| Studio (30 sqm / 323 sqft) | $60,000 | $63,000 | $64,200 | $66,000 |
| Loft (80 sqm / 861 sqft) | $240,000 | $252,000 | $256,800 | $264,000 |
| Townhouse (150 sqm / 1,615 sqft) | $500,000 | $525,000 | $535,000 | $550,000 |
| Investment Property (50 sqm / 538 sqft) | $100,000 | $105,000 | $107,000 | $110,000 |
Everything you need to know is included in our Property Pack for Phnom Penh
If real estate prices go up in Phnom Penh, which areas are likely to see the biggest increases?
Today, people who want to move to Phnom Penh want the charm, but they also want modern conveniences and vibrant social scenes, which Boeung Keng Kang 1 (BKK1) delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Tuol Tom Poung (Russian Market) has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Phnom Penh market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Boeung Keng Kang 1 (BKK1) | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Chroy Changvar | High | Expected rise due to limited housing stock, upcoming infrastructure projects, and growing demand for prime properties near the riverfront. |
| Tuol Tom Poung (Russian Market) | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Diamond Island (Koh Pich) | Medium | The shift towards mixed-use developments is driving demand for residential properties, combined with new commercial and entertainment venues. |
| Sen Sok | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Tonle Bassac | Medium | Investment in local infrastructure, such as the extension of road networks and renovation of historic areas, is boosting long-term value. |
| Olympic | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Phnom Penh Thmey | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Boeung Trabek | Medium-High | Its proximity to central Phnom Penh, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Wat Phnom | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Boeung Kak | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Riverside | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, scenic location. |
-The best areas to buy a property in Phnom Penh
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Phnom Penh?
In 2025, Phnom Penh real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Phnom Penh are seeing increased interest. Proximity to green spaces and international schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Phnom Penh, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Phnom Penh's growing commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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