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 wondering what's happening with housing prices in Phnom Penh right now, you're in the right place.
This article covers current prices, neighborhood trends, and 5 to 10-year forecasts with real data from trusted sources.
We update this regularly so you always get the freshest numbers.
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.
Insights
- The Phnom Penh property market in 2026 is buyer-friendly, with condos at 0% to -2% growth while borey landed housing outperforms at +2% to +4% annually.
- Mean Chey leads Phnom Penh districts, benefiting from the Techo International Airport that opened 20 kilometers south in September 2025.
- Mortgage rates in Cambodia range from 6.5% to 9% per annum, making developer financing often more attractive than bank loans.
- The stamp duty relief for first-time buyers applies to properties under a specific price cap, reducing transaction costs by several percentage points.
- Rental yields in Phnom Penh average 6% to 7% gross, competitive with other Southeast Asian capitals.
- The capital gains tax postponement to 2027 has removed near-term selling pressure for both buyers and sellers.
- Phnom Penh's condo supply reached 72,000 units in 2024, up 25% year-on-year, creating price competition in mid and high-end segments.
- Our 5-year base case sees cumulative growth of 20% to 35%, or roughly 3.7% to 6.2% annual appreciation.
What are the current property price trends in Phnom Penh as of 2026?
What is the average house price in Phnom Penh as of 2026?
As of early 2026, the estimated average house price in Phnom Penh sits around $155,000 (approximately 635 million KHR or €143,000), blending condos, townhouses, villas, and borey developments.
The citywide average price per square meter for residential property in Phnom Penh comes to roughly $1,250/sqm (about 5.1 million KHR/sqm or €1,150/sqm), with condos higher and landed homes lower depending on location.
About 80% of residential purchases in Phnom Penh fall within $70,000 to $350,000 (287 million to 1.4 billion KHR, or €65,000 to €323,000), showing how wide the market spreads from entry-level apartments to family villas.
How much have property prices increased in Phnom Penh over the past 12 months?
Over the past 12 months, property prices in Phnom Penh increased by approximately +1% nominally, essentially flat after accounting for Cambodia's 2% inflation.
This headline hides real variation: condos moved between 0% and -2% due to oversupply, while borey landed housing performed better at +2% to +4% in districts with improving infrastructure.
The biggest factor behind this muted movement has been the ongoing real estate correction flagged by the World Bank and IMF, which shifted bargaining power firmly toward buyers.
Which neighborhoods have the fastest rising property prices in Phnom Penh as of 2026?
As of early 2026, the three neighborhoods with fastest rising prices in Phnom Penh are Mean Chey, Chbar Ampov, and Sen Sok, benefiting from new infrastructure and strong family housing demand.
Mean Chey sees annual growth of 5% to 8%, Chbar Ampov around 4% to 7%, and Sen Sok approximately 3% to 6%, varying by micro-location and property type.
The main driver is improved connectivity: Mean Chey and Chbar Ampov benefit from the Techo International Airport corridor, while Sen Sok attracts families with established borey developments and affordable pricing versus central districts.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Phnom Penh.
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.
Which property types are increasing faster in value in Phnom Penh as of 2026?
As of early 2026, borey townhouses and link houses lead value appreciation in Phnom Penh, followed by practical shophouses, then mid-range condos, with higher-end condos trailing due to oversupply.
Mid-tier borey landed homes appreciate at roughly 3% to 5% annually, outpacing other segments because they match what local families actually want to buy and live in.
Borey housing outperforms because these are practical homes in districts where commute times improve thanks to ring road investments, and developers compete on financing terms rather than raising prices.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much do properties cost in Phnom Penh?
- How much should you pay for an apartment in Phnom Penh?
- How much should you pay for a condo in Phnom Penh?
- How much should you pay for a studio in Phnom Penh?
What is driving property prices up or down in Phnom Penh as of 2026?
As of early 2026, the top three factors driving Phnom Penh property prices are the ongoing real estate correction dampening confidence, new infrastructure like Techo International Airport creating growth pockets, and stamp duty relief for first-time buyers supporting transactions.
The strongest upward pressure comes from infrastructure delivery, particularly the airport that opened in September 2025, making southern districts genuinely more accessible rather than just promising future improvements.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Phnom Penh here.
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What is the property price forecast for Phnom Penh in 2026?
How much are property prices expected to increase in Phnom Penh in 2026?
As of early 2026, Phnom Penh property prices are expected to increase 2% to 5% over the year, with borey landed housing at the higher end and condos at the lower end.
Analyst forecasts vary: conservative estimates sit around 2% to 3%, while optimistic projections expecting faster tourism recovery and infrastructure effects reach 5% to 7%.
The main assumption underlying most forecasts is that Cambodia's economy will grow around 5% in 2026 as projected by the ADB, providing enough income growth to support steady housing demand without triggering a boom.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Phnom Penh.
Which neighborhoods will see the highest price growth in Phnom Penh in 2026?
As of early 2026, the neighborhoods expected to see highest growth in Phnom Penh are Mean Chey, Chbar Ampov, Dangkao, Kamboul, and Sen Sok, all along improving infrastructure corridors.
Projected growth ranges from 5% to 8% for Mean Chey and Chbar Ampov, down to 3% to 6% for Sen Sok and Dangkao, depending on how quickly road connections translate into buyer demand.
The primary catalyst is the "accessibility premium" effect: Ring Road No. 3 and airport improvements cut commute times, so districts once too far from the center are being repriced upward by families seeking more space.
One emerging neighborhood that could surprise is Prek Pnov, positioned for significant additional supply and tends to outperform once infrastructure catches up.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Phnom Penh.
What property types will appreciate the most in Phnom Penh in 2026?
As of early 2026, mid-tier borey townhouses and link houses are expected to appreciate most in Phnom Penh, followed by practical shophouses, while higher-priced condos will lag due to oversupply.
Projected appreciation for top-performing borey housing sits around 4% to 7%, assuming infrastructure continues pulling family buyers toward outer districts.
The demand trend driving this is the shift from investor-focused to end-user-focused product: families want livable homes with school access and reasonable commutes, not units designed for rental yield or resale.
High-end condo stock will underperform as developers compete through incentives and payment plans rather than holding firm on prices.
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 will interest rates affect property prices in Phnom Penh in 2026?
As of early 2026, Cambodia's interest rates are moderating Phnom Penh prices because higher borrowing costs push buyers toward developer financing rather than bank mortgages, capping how much prices can rise.
The benchmark deposit rate sits around 1.5%, but mortgage rates from banks like ABA and CIMB range from 6.5% to 9% per annum depending on borrower profile.
A 1% change in mortgage rates typically shifts monthly payments by $50 to $80 per $100,000 borrowed, enough to move affordability thresholds for certain buyer segments.
You can also read our latest update about mortgage and interest rates in Cambodia.
What are the biggest risks for property prices in Phnom Penh in 2026?
As of early 2026, the three biggest risks for Phnom Penh property prices are a deepening correction if confidence worsens, continued condo oversupply leading to aggressive discounting, and external shocks from trade policy or geopolitical tensions.
The highest-probability risk is oversupply in condos: new units keep coming to market while absorption stays sluggish, meaning effective prices could fall even if headline asking prices appear stable.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Phnom Penh.
Is it a good time to buy a rental property in Phnom Penh in 2026?
As of early 2026, it is a reasonably good time to buy a rental property in Phnom Penh if you approach it as an operator focused on tenant demand rather than a speculator, because the buyer-friendly market lets you negotiate better entry prices while yields remain competitive at 5% to 7% gross.
The strongest argument for buying now is locking in discounted prices and favorable developer terms during a correction, positioning yourself to benefit when confidence returns.
The strongest argument for waiting is that condo oversupply could deepen over 12 to 18 months, potentially creating even better opportunities for patient buyers.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Phnom Penh.
You'll also find a dedicated document about this specific question in our pack about real estate in Phnom Penh.
Buying real estate in Phnom Penh can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Phnom Penh?
What is the 5-year property price forecast for Phnom Penh as of 2026?
As of early 2026, cumulative property price growth in Phnom Penh over 5 years is estimated at +20% to +35% under our base case, reflecting gradual recovery rather than boom conditions.
The range spans +5% to +15% in a downside scenario where shocks persist, up to +40% to +55% in an upside scenario where confidence returns faster and infrastructure effects compound.
This translates to roughly 3.7% to 6.2% annual appreciation, modest by historical Southeast Asian standards but realistic given current conditions.
The key assumption is that Cambodia sustains GDP growth around 5% annually while avoiding major external shocks, allowing housing demand to recover alongside rising incomes.
Which areas in Phnom Penh will have the best price growth over the next 5 years?
The top three areas expected to have best growth over 5 years are Mean Chey, Chbar Ampov, and Dangkao, all along the southern corridor benefiting from the airport and ring road improvements.
Projected 5-year cumulative growth for these areas ranges from 30% to 50%, outpacing the citywide average because they start from lower bases with more room for infrastructure-driven repricing.
This differs from the 1-year forecast in magnitude rather than direction: the same neighborhoods lead, but compounding effects widen the gap between connected outer districts and mature central areas.
The undervalued area with best 5-year potential is Kamboul, flagged for significant future supply but hasn't yet seen the price run-up that follows once infrastructure catches up.
What property type will give the best return in Phnom Penh over 5 years as of 2026?
As of early 2026, mid-tier borey townhouses in family-oriented districts are expected to give the best total return over 5 years, combining steady rental income with solid capital appreciation as infrastructure improves.
Projected 5-year total return for this property type is 45% to 65% cumulative, assuming base case conditions and 5% to 7% gross rental yields annually.
The structural trend favoring borey housing is the maturing of Phnom Penh's urban form: ring roads and airport connections make commutes predictable, so families can finally move to larger outer-district homes without sacrificing accessibility.
For best balance of return and lower risk, practical shophouses in established commercial areas generate tenant demand from small businesses regardless of market sentiment and hold value well during downturns.
How will new infrastructure projects affect property prices in Phnom Penh over 5 years?
The top three infrastructure projects impacting Phnom Penh prices over 5 years are Techo International Airport (operational since September 2025), Ring Road No. 3 (targeting congestion relief), and the planned light rail link to central Phnom Penh.
The typical price premium near completed infrastructure runs 10% to 25% versus similar properties without improved connectivity, though this materializes gradually over 2 to 4 years.
Neighborhoods benefiting most include Mean Chey and Dangkao (airport corridor), Chbar Ampov (eastern access), and areas along Ring Road No. 3 gaining reduced commutes to both CBD and airport.
How will population growth and other factors impact property values in Phnom Penh in 5 years?
Phnom Penh's population growth of 2% to 3% annually (driven by rural-urban migration) translates into sustained housing demand pressure even if income growth remains modest.
The demographic shift with strongest influence is the expanding working-age middle class, particularly professionals and families in their 30s and 40s upgrading from rental to owned homes.
Internal migration keeps rental demand firm in affordable segments while pushing homeownership demand toward outer districts where prices remain accessible for first-time buyers.
Property types and areas benefiting most are mid-tier borey developments in Mean Chey, Sen Sok, Chbar Ampov, and Dangkao, where new household formation translates directly into purchases.
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.
What is the 10 year property price outlook in Phnom Penh?
What is the 10-year property price prediction for Phnom Penh as of 2026?
As of early 2026, cumulative property price growth in Phnom Penh over 10 years is estimated at +50% to +90% under our base case, reflecting urbanization, economic development, and infrastructure maturation.
The range spans +20% to +40% in a downside scenario with repeated shocks, up to +100% to +140% in an upside scenario where Cambodia diversifies successfully and sustains confident growth.
This translates to roughly 4.1% to 6.6% annual appreciation, making property a reasonable inflation hedge for patient investors.
The biggest uncertainty is Cambodia's ability to diversify beyond garments, tourism, and construction, as heavy reliance on narrow drivers leaves it vulnerable to external shocks.
What long-term economic factors will shape property prices in Phnom Penh?
The three long-term factors shaping Phnom Penh prices are economic diversification (moving beyond garments and construction), infrastructure compounding (turning "far" into "normal"), and sustained urbanization from migration and household formation.
The factor with most positive impact is infrastructure maturation, because each completed project makes more land developable, expanding supply while increasing the value of connected locations.
The greatest structural risk is over-reliance on foreign investment, leaving the market vulnerable to capital flight if regional alternatives become more attractive or governance concerns arise.
You'll also find a much more detailed analysis in our pack about real estate in Phnom Penh.
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 how we applied them.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Knight Frank Cambodia H1 2025 | Global consultancy with local research presence. | We anchored condo price benchmarks and identified leading districts. We also used their buyer-seller dynamics assessment. |
| World Bank Cambodia Update Dec 2025 | Multilateral institution with baseline macro assessments. | We framed correction dynamics affecting demand. We stress-tested forecasts using their risk scenarios. |
| World Bank Press Release Dec 2025 | Official public summary of country assessment. | We cross-checked key messages about property downturn. We used accessible language for reader-friendly explanations. |
| IMF Cambodia 2025 Article IV | Standard macro and financial stability reference. | We validated correction risks and financial concerns. We informed interest rate analysis with their credit discussion. |
| ADB September 2025 Outlook | Major multilateral with Southeast Asia forecasts. | We pinned down 2026 GDP growth assumptions. We calibrated upside and base case scenarios. |
| NIS CPI Tables | Cambodia's official inflation benchmark. | We converted nominal prices to real terms. We avoided overstating growth when inflation is low. |
| NIS Population Projections | Official demographic projections. | We supported 5 and 10-year demand stories. We justified why family districts attract end-users. |
| AP News Techo Airport | Major wire service with dated milestones. | We confirmed airport opened September 2025. We connected infrastructure to southern corridor housing. |
| Cambodia Logistics Ring Road | Official government project portal. | We backed accessibility premium arguments. We grounded neighborhood picks in real infrastructure. |
| Phnom Penh Post CGT | Major local newspaper with policy dates. | We used it for transaction sentiment timing. We explained why forced selling is less likely. |
| Global Property Guide Cambodia | Cross-country research citing NBC/CBRE. | We triangulated price direction and magnitude. We used rental yield data for investment recommendations. |
| Rajah and Tann Stamp Duty | Regional law firm citing MEF notifications. | We explained buyer incentives accessibly. We cross-checked market commentary on relief programs. |
| DFDL CGT Update | Regional law firm with prakas references. | We added precision on tax timing mechanics. We provided second opinion alongside press reporting. |
| ABA Bank Mortgage | Leading Cambodian bank with public terms. | We established mortgage rate benchmarks. We explained practical financing options for buyers. |
| Trading Economics Rates | Data aggregator sourcing World Bank. | We referenced deposit rate benchmarks. We contextualized how rates affect property dynamics. |
| Wikipedia Techo Airport | Aggregated info citing primary sources. | We verified operational dates and capacity. We understood future phases affecting growth corridors. |
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