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
Property prices in Phnom Penh are experiencing modest growth with a 1.72% increase in 2024, though they declined 1.29% when adjusted for inflation.
As we reach mid-2025, the market shows signs of stabilization after previous volatility, with strong fundamentals supporting moderate price increases of 5-10% expected this year, driven by government incentives, infrastructure development, and growing demand from young families.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.
Property prices in Phnom Penh are rising moderately in 2025, with experts forecasting 5-10% growth driven by economic expansion, infrastructure development, and government incentives for first-time buyers.
The market has shifted from speculative growth to demand-driven expansion, with affordable housing and suburban areas showing the strongest momentum while the luxury segment faces oversupply challenges.
| Key Indicator | Current Status (June 2025) | Trend |
|---|---|---|
| Average High-End Condo Price | $2,650 per sqm | ↓ 2.21% from 2024 |
| Median Property Price | $203,508 | ↑ Stable growth |
| Residential Price Index (RPPI) | 115.4 points | ↑ 1.72% nominal growth |
| Rental Yields | 6-8% gross | → Stable and attractive |
| 2025 Price Forecast | 5-10% increase | ↑ Moderate growth expected |
| Vacancy Rate | 8% | ↓ Improving from previous years |
| Foreign Investment | Rising steadily | ↑ Diversifying beyond China |
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.
What are the current property prices in Phnom Penh as of June 2025?
Property prices in Phnom Penh currently average $203,508 for residential properties, with high-end condominiums priced at $2,650 per square meter.
The Residential Property Price Index (RPPI) stands at 115.4 points, representing a 15.4% increase from the 2020 base year. One-bedroom apartments rent for an average of $550 per month, while luxury units command significantly higher prices. The market shows distinct pricing tiers, with central districts like Daun Penh and 7 Makara commanding premium prices of $3,000-$8,500 per square meter for land.
Peripheral districts offer more affordable options, with areas like Kambol and Prek Pnov seeing land prices between $70-$2,000 per square meter. The condominium market has experienced a slight correction, with high-end units falling 2.21% in nominal terms during 2024. However, this correction has created opportunities for buyers seeking quality properties at more reasonable prices.
The median property listing ranges from $94,963 to $553,315, showing a diverse market catering to different budget levels. Standard single-family homes in suburban areas are priced between $150,000-$200,000, making them accessible to middle-class families. It's something we develop in our Cambodia property pack.
Overall rental yields remain attractive at 6-8% gross, positioning Phnom Penh as one of the most profitable rental markets in Southeast Asia.
How much have property prices increased in Phnom Penh recently?
Property prices in Phnom Penh increased by 1.72% nominally in 2024, though they declined by 1.29% when adjusted for inflation.
This modest growth follows a challenging period where the market corrected from previous speculative excesses. The nationwide residential property price index showed even weaker performance, rising just 0.45% year-over-year. Quarter-on-quarter data reveals continued volatility, with prices declining 1.35% in Q4 2024 in nominal terms.
The luxury condominium segment has been particularly affected, with average prices falling from $2,709 to $2,650 per square meter. This represents a 2.21% nominal decline and a 5.11% real decline when accounting for inflation. The correction has been more pronounced in oversupplied segments, particularly high-end condominiums where supply has outpaced demand.
| Time Period | Nominal Change | Real Change | Segment |
|---|---|---|---|
| 2024 Annual (Phnom Penh) | +1.72% | -1.29% | All Residential |
| 2024 Annual (National) | +0.45% | -2.52% | All Residential |
| Q4 2024 (Quarterly) | -1.35% | -2.77% | All Residential |
| 2024 High-End Condos | -2.21% | -5.11% | Luxury Segment |
| 2023 Annual | -2.95% | N/A | All Residential |
| Other Provinces 2024 | -4.65% | -7.47% | Provincial Markets |
| Borey Supply 2019-2022 | +100% | N/A | Gated Communities |
Despite recent modest gains, the market has shifted from speculative growth to more sustainable, demand-driven expansion. Government interventions and policy support have helped stabilize prices and prevent a sharper correction.
What is the property price forecast for Phnom Penh in 2026?
Property prices in Phnom Penh are forecast to increase by 5-10% annually through 2026, driven by economic growth and infrastructure development.
Economic fundamentals support this optimistic outlook, with Cambodia's GDP projected to grow steadily at 4-5% annually. The government's massive infrastructure investments, including over $10 billion in railway development and the new Techo International Airport opening in July 2025, will significantly enhance connectivity and property values. These projects are expected to particularly benefit suburban areas like Sen Sok, Kambol, and Chbar Ampov.
The shift toward affordable and mid-range housing will continue dominating the market through 2026. Young families and first-time buyers, representing over 50% of potential purchasers, will drive demand for properties priced under $210,000. Government incentives, including stamp duty exemptions for first-time buyers on properties up to $210,000, will remain in effect through the end of 2025, supporting this segment's growth.
Infrastructure improvements will be a key catalyst for price appreciation. The proposed light rail system connecting to the new airport, improved drainage systems for flood prevention, and expanded road networks will make previously peripheral areas more accessible and desirable. Expert consensus from CBRE Cambodia and other market analysts suggests that properties in infrastructure-connected areas could see price increases exceeding the market average.
However, the luxury segment will likely continue facing headwinds through 2026 due to persistent oversupply. Developers are already adjusting their strategies, focusing on tech-enabled, energy-efficient properties that appeal to modern buyers' preferences.
Which districts in Phnom Penh are seeing the biggest property price increases?
Kambol, Sen Sok, and Chbar Ampov districts are experiencing the fastest property price growth in Phnom Penh, with land prices in some areas increasing by up to 15% in recent months.
Kambol has emerged as the standout performer, benefiting from major infrastructure projects and private developments. Land prices in this district range from $80 to $2,000 per square meter, making it attractive for both developers and individual buyers. The district's proximity to new ring roads and shopping centers has accelerated its transformation from a peripheral area to a sought-after residential location.
Chbar Ampov has witnessed remarkable growth, with land prices increasing nearly 15% in just six months in certain communes like Prek Pra and Prek Eng. The district's land prices now range from $300 to $3,200 per square meter, reflecting strong investor confidence. This rapid appreciation is driven by improved accessibility and the spillover effect from more expensive central districts.
Sen sok and Dangkor are also experiencing significant momentum, particularly for affordable housing developments. These areas benefit from new infrastructure including ring roads and proximity to industrial zones, making them attractive for middle-income families. The southern part of Phnom Penh, where these districts are located, has become a real estate hotspot due to affordable land prices combined with improving infrastructure.
Prek Pnov, with land prices ranging from $70 to $1,700 per square meter, represents another frontier of growth, especially along main roads where development is accelerating. Central districts like Daun Penh and Chamkarmon remain stable but expensive, with limited room for significant price appreciation due to scarcity of available land.
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What types of properties are experiencing the highest demand in Phnom Penh?
Tech-equipped, energy-efficient apartments and family-sized suburban homes are seeing the highest demand and price appreciation in Phnom Penh's 2025 market.
The market has undergone a significant shift in buyer preferences, moving away from traditional flat houses toward modern condominium styles including lofts and duplexes. Properties featuring smart home technology, energy-saving systems, and sustainable design elements command premium prices and sell faster than conventional units. This trend reflects the influence of a younger, more environmentally conscious buyer demographic.
Affordable condominiums priced between $60,000 and $150,000 are experiencing particularly strong demand. One-bedroom units in areas like Russian Market with full amenities including rooftop pools, gyms, and communal spaces are attracting both owner-occupiers and investors. These properties offer attractive entry points for first-time buyers benefiting from government tax exemptions.
- Tech-smart apartments with integrated home automation systems and high-speed internet infrastructure
- Energy-efficient units featuring solar panels, LED lighting, and advanced insulation
- Family-sized suburban homes in gated communities (boreys) with 3-4 bedrooms
- Mixed-use developments combining residential, retail, and office spaces
- Properties with outdoor spaces including balconies, terraces, or small gardens
- Eco-friendly buildings with green certifications and sustainable materials
- Flexible living spaces adaptable for remote work and multigenerational families
Boreys in emerging districts continue attracting families seeking security and community amenities, while the luxury condo segment faces challenges with oversupply and declining prices.
How do current mortgage rates affect property prices in Phnom Penh?
Current mortgage rates in Cambodia range from 8-12% annually, impacting affordability but being offset by government incentives and flexible payment plans from developers.
Local banks have become more accommodating to property buyers, with many offering loans up to 70-80% of property value for qualifying buyers. The relatively high interest rates compared to developed markets are balanced by Cambodia's dollarized economy, which provides stability and eliminates currency risk for investors. Banks are particularly supportive of purchases in established developments with clear land titles.
Developers have responded to financing challenges by offering creative payment structures. Many new projects feature 3-4 year payment plans with only 20-30% down payment required initially, and 40% due upon completion. Some developers even accept cryptocurrency payments, catering to international investors seeking alternative payment methods. It's something we cover extensively in our Cambodia property pack.
The government's stamp duty exemption for first-time buyers on properties up to $210,000 effectively reduces the total cost by 4%, making homeownership more accessible. This policy, extended through 2025, has particularly benefited the affordable and mid-range segments where most mortgage activity occurs.
Foreign buyers face some restrictions but can still obtain financing from local banks for condominium purchases. The combination of high rental yields (6-8%) and available financing makes property investment attractive despite higher interest rates, especially for buy-to-let investors who can cover mortgage payments through rental income.
What impact is foreign investment having on Phnom Penh property prices?
Foreign investment continues driving Phnom Penh property prices upward, though the market is diversifying beyond traditional Chinese capital to include investors from Japan, South Korea, Singapore, and Western countries.
Chinese investment still represents approximately 47% of total foreign direct investment as of mid-2024, but the composition is changing. The slowdown in China's economy and property sector has reduced speculative investment, leading to a healthier market dynamic focused on genuine demand rather than speculation. The new Techo International Airport, financed by China and opening in July 2025, demonstrates continued infrastructure commitment despite economic headwinds.
Japanese and South Korean investors are increasingly active, particularly in commercial and mixed-use developments. These investors bring different development philosophies, emphasizing quality construction, sustainable design, and long-term value creation rather than quick profits. Their presence has elevated construction standards and introduced new property management practices.
The dollarized economy remains a major attraction for foreign investors seeking USD-denominated assets without currency risk. As geopolitical tensions persist globally, Cambodia's relatively stable political environment and strong economic growth projections make it an attractive safe haven for regional capital. This is particularly true for investors from neighboring countries facing their own economic uncertainties.
Foreign investment has particularly influenced the condominium market, where foreigners can legally own units above ground floor. This has created a two-tier market, with foreign-focused developments commanding premium prices while local-oriented projects remain more affordable. The government's continued openness to foreign investment, combined with improving legal frameworks, suggests this trend will persist.
How do Phnom Penh property prices compare to neighboring capitals?
Phnom Penh property prices are higher than Vientiane but comparable to Yangon, with city center condos averaging $2,650 per square meter compared to $1,849 in Vientiane.
The comparative analysis reveals Phnom Penh's position as a mid-priced market within Southeast Asia's emerging capitals. While significantly cheaper than established markets like Bangkok or Kuala Lumpur, Phnom Penh offers better value propositions than might be expected given its rapid development. Central area prices remain competitive, while peripheral districts offer exceptional value for investors seeking growth potential.
| City | City Center ($/sqm) | Outside Center ($/sqm) | 1BR Rent ($/month) |
|---|---|---|---|
| Phnom Penh | $2,650 | $1,517 | $520 |
| Vientiane | $1,849 | $100 | $867 |
| Yangon | $1,800 | $1,100 | $472 |
| Ho Chi Minh City | $3,500 | $2,000 | $650 |
| Bangkok | $5,000 | $2,800 | $800 |
| Manila | $3,200 | $1,800 | $600 |
| Jakarta | $2,400 | $1,200 | $450 |
Rental yields in Phnom Penh remain among the most attractive in the region at 6-8%, second only to Jakarta. This high yield compensates for the relatively modest capital appreciation, making Phnom Penh particularly attractive for income-focused investors. The combination of reasonable entry prices and strong rental returns creates a compelling investment case compared to more expensive but lower-yielding markets.
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 government policies are affecting property prices in Phnom Penh?
Government policies including stamp duty exemptions up to $210,000 and suspended land taxes are significantly boosting property demand and prices in Phnom Penh.
The most impactful policy is the registration tax exemption for first-time homebuyers on properties valued up to $210,000, extended through 2025. This saves buyers 4% of the purchase price, making a $200,000 property effectively $8,000 cheaper. The policy has particularly stimulated the affordable and mid-range segments, where most local buyers operate. Additionally, properties under $70,000 receive full exemptions, encouraging developers to create more affordable units.
Tax incentives for affordable housing projects have encouraged developers to shift focus from luxury to mid-range developments. The suspension of taxes on unused land has prevented speculative land banking while encouraging active development. The capital gains tax on property sales has been delayed until the end of 2025, maintaining investor confidence and market liquidity during the recovery period.
Infrastructure investment represents another crucial policy lever. The government's commitment of over $10 billion to railway development, new airports, and road networks directly impacts property values in connected areas. The planned light rail system and expressways will dramatically reduce commute times, making suburban properties more valuable. Flood prevention infrastructure investments have also made previously vulnerable areas more attractive for development.
Recent efforts to improve property registration processes and enforce construction standards have increased market transparency and buyer confidence. While some challenges remain with land titles and dispute resolution, the overall regulatory environment has become more structured and predictable, supporting sustainable price growth.
Are property prices in suburban Phnom Penh rising faster than central areas?
Suburban districts in Phnom Penh are experiencing significantly faster price growth than central areas, with some peripheral locations seeing 15% increases in just six months.
Central districts like Daun Penh and 7 Makara have reached price ceilings due to scarcity, with land values of $3,000-$8,500 per square meter showing minimal growth potential. These established areas maintain their premium status but offer limited opportunities for significant appreciation. In contrast, suburban districts present compelling growth stories driven by infrastructure development and urban expansion.
The most dramatic growth occurs in districts benefiting from new infrastructure. Kambol's transformation from a $80-$2,000 per square meter district to a development hotspot exemplifies this trend. Similarly, Chbar Ampov's 15% price surge in six months demonstrates how quickly values can appreciate when infrastructure arrives. These areas offer the dual advantages of affordable entry prices and strong growth potential.
Young families driving market demand increasingly prefer suburban locations offering larger properties at reasonable prices. A $150,000 budget buys a cramped apartment in central Phnom Penh but a spacious house with garden in suburban areas. This value proposition, combined with improving connectivity through new roads and planned public transport, makes suburban living increasingly attractive.
The expansion of amenities to suburban areas accelerates this trend. New shopping centers, international schools, and healthcare facilities follow residential development, creating self-contained communities that reduce dependence on the city center. This amenity migration suggests suburban price growth will continue outpacing central areas through 2026 and beyond.
What risks could cause property prices to fall in Phnom Penh?
The primary risks to Phnom Penh property prices include continued oversupply in the luxury segment, potential economic instability, and challenges in the borey (gated community) sector.
The luxury condominium market faces significant headwinds with oversupply persisting despite price corrections. High-end units have already declined 2.21% nominally and 5.11% in real terms, yet inventory remains elevated. Continued pressure on this segment could spill over into mid-range properties if developers desperately cut prices to clear inventory. Some borey developments have experienced serious problems, with buyers locked out after missing payments and developments left partially completed.
Global economic uncertainties pose external risks. China's economic slowdown has reduced investment and tourism, impacting commercial real estate and luxury residential segments. If this trend accelerates or spreads to other investor countries, foreign investment could decline further. Trade tensions and potential global recession could dampen Cambodia's export-driven economy, reducing local purchasing power. We analyze these risks in detail in our Cambodia property pack.
Regulatory risks remain despite improvements. Land title disputes, though less common, still occur and can devastate individual investments. Some borey projects operate without proper licenses, leaving buyers vulnerable. Changes in foreign ownership rules or tax policies could impact investor sentiment. The government's pro-development stance could shift if environmental or social concerns gain political traction.
The market's low rental yields of 1.5-2% net for many properties make it vulnerable to interest rate increases or alternative investment opportunities. If global interest rates rise significantly, the relatively modest returns from Phnom Penh property may become less attractive, potentially triggering capital flight to higher-yielding markets.
How does inflation affect real estate values in Phnom Penh?
Inflation has eroded real property values in Phnom Penh, with nominal price gains of 1.72% translating to a 1.29% decline in real terms during 2024.
The disconnect between nominal and real price movements highlights inflation's significant impact on property investments. While headline figures suggest modest growth, purchasing power adjusted values tell a different story. Property investors must factor in Cambodia's inflation rate, which has ranged between 2-3% annually, when calculating real returns. This means properties need to appreciate by at least 3% annually just to maintain value in real terms.
Different property segments experience inflation's impact differently. Luxury properties, already facing oversupply issues, have seen real value erosion of over 5% despite relatively stable nominal prices. Affordable housing segments have performed better, with genuine demand supporting prices even after inflation adjustment. Land in rapidly developing areas has generally outpaced inflation due to infrastructure-driven appreciation.
Rental income provides some inflation hedge, with rents typically adjusting annually to reflect cost increases. Properties generating 6-8% gross yields offer reasonable protection against inflation, especially compared to fixed-income investments. However, net yields of 1.5-2% after expenses leave little cushion against sustained inflation. Investors increasingly seek properties with value-add potential through renovation or redevelopment to achieve returns exceeding inflation.
The dollarized economy offers partial protection against local currency inflation but exposes investors to USD inflation and Federal Reserve policy changes. As global inflation moderates, Phnom Penh property may become relatively more attractive, potentially supporting stronger real price growth in 2025-2026.
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.
Based on current market data and expert analysis, property prices in Phnom Penh are going up, but at a moderate pace. The market shows nominal growth of 1.72% with expectations of 5-10% increases through 2025, driven by economic expansion, infrastructure development, and government support for first-time buyers.
While challenges exist including luxury oversupply and inflation impacts, the fundamental drivers of Phnom Penh's property market remain strong. Suburban areas offer the best growth potential, affordable housing segments show sustained demand, and improving infrastructure continues attracting both local and foreign investment. Yes, property prices are rising in Phnom Penh.
Sources
- Realestate.com.kh - Phnom Penh Property Listings
- Global Property Guide - Cambodia Price History
- Bamboo Routes - Phnom Penh Real Estate Trends 2025
- CBRE Cambodia Fearless Forecast 2025
- Phnom Penh Post - Government Housing Market Recovery
- The Wandering Investor - Phnom Penh Real Estate Guide 2025
- Bamboo Routes - Phnom Penh Price Forecasts
- Asia Property Awards - Cambodia Real Estate Policy Impact