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
Phnom Penh's property market in 2025 presents both opportunities and challenges for foreign buyers looking to invest in Cambodia's capital.
The market has stabilized after years of oversupply, with affordable and mid-range condominiums showing the strongest demand while luxury segments remain soft. Property prices are forecast to increase 5-10% annually, driven by infrastructure improvements and growing demand in suburban areas.
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.
Phnom Penh offers mainly condominiums to foreign buyers, with prices ranging from $60,000 for studios in emerging areas to $500,000+ for luxury units in prime districts like BKK1.
The market has recovered from a 30% price drop between 2019-2024, and rental yields of 4-8% gross are achievable in well-chosen locations.
| Investment Type | Best For | Expected Returns |
|---|---|---|
| Affordable Condos ($60k-$150k) | First-time investors, rental income | 6-8% gross rental yield |
| Mid-range Condos ($150k-$300k) | Long-term residents, stable returns | 5-7% gross rental yield |
| Luxury Condos ($500k+) | Premium lifestyle, capital appreciation | 4-6% gross rental yield |
| Suburban Areas | Capital appreciation focus | 5-10% annual price growth |
| Central Districts | Stable rental income | 4-6% gross rental yield |
| Short-term Rentals | Active management, higher yields | 6-10% gross rental yield |
| Long-term Rentals | Passive income, stable tenants | 5-8% gross rental yield |
What types of properties can you buy in Phnom Penh in 2025?
Foreign buyers in Phnom Penh have access to condominiums as their primary investment option, with units available from $60,000 to over $500,000.
Condominiums represent the most accessible property type for foreigners, with studios starting around $60,000 in emerging areas like Sen Sok and Kakab. Premium units in districts like BKK1 or along the riverfront can exceed $500,000.
Apartments and serviced apartments are also available to foreign buyers, typically offered as strata-titled units above ground floor level. These properties often come with additional amenities like pools, gyms, and security services.
Landed properties including villas, borey houses, and shophouses remain largely restricted to Cambodian citizens. While some foreigners attempt to access these through nominee structures or long-term leases, these arrangements carry significant legal risks and are generally not recommended.
Commercial properties offer limited opportunities for foreign ownership, usually available only as strata-titled units within mixed-use developments.
Should you buy or rent property in Phnom Penh right now?
Renting offers more flexibility and lower risk in 2025, particularly given the ongoing oversupply in Phnom Penh's condominium market.
Monthly rental costs for one-bedroom units range from $200 in emerging areas to $1,000 in premium locations like BKK1 or Tonle Bassac. This flexibility allows you to test different neighborhoods before committing to a purchase.
Buying makes financial sense for long-term residents planning to stay five years or more, or investors seeking rental income opportunities. Gross rental yields of 4-8% are achievable, though net yields after expenses typically range from 2-4%.
Most foreigners staying less than five years will find renting more advantageous in 2025, avoiding the transaction costs, taxes, and maintenance responsibilities that come with ownership.
The decision ultimately depends on your timeline, risk tolerance, and whether you're seeking stable housing or investment returns.
How have property prices changed and what's the forecast?
Phnom Penh property prices experienced significant declines between 2019-2024, dropping up to 30% at market lows due to oversupply and global economic slowdowns.
The market stabilized in mid-2025, showing modest recovery with 1.72% nominal growth in 2024, though this represented a decline when adjusted for inflation. This stabilization marked the end of the severe correction period.
Forecasts for 2025 onwards predict annual price increases of 5-10%, driven primarily by infrastructure improvements including the new airport, ring roads, and railway projects. These developments are particularly boosting prices in outer districts like Sen Sok, Chbar Ampov, and Kambol.
The luxury segment remains oversupplied with soft or declining prices, creating potential bargain opportunities but slower appreciation prospects. Government incentives, including ongoing stamp duty exemptions for properties up to $210,000, continue to support the lower and mid-market segments.
Overall market recovery is expected to be gradual, with affordable and suburban areas showing the strongest growth potential through 2025 and beyond.
What are the main real estate trends shaping Phnom Penh in 2025?
Demand has shifted strongly toward affordable and mid-range condominiums, while luxury segments face continued oversupply challenges.
| Market Segment | Current Status | Key Drivers |
|---|---|---|
| Affordable Condos ($60k-$150k) | High demand | Government incentives, first-time buyers |
| Mid-range Condos ($150k-$300k) | Strong demand | Expat preferences, rental potential |
| Luxury Condos ($500k+) | Oversupplied | Limited high-end buyer pool |
| Suburban Areas | Emerging growth | Infrastructure development |
| Central Districts | Stable demand | Established amenities, expat concentration |
| Short-term Rentals | Growing interest | Tourism recovery, digital nomads |
| Rental Market | Strong yields | Expat population, local professionals |
What's the step-by-step process to buy property in Phnom Penh as a foreigner?
The property purchase process for foreigners involves several critical steps that must be followed carefully to ensure legal compliance.
- Find Eligible Property: Locate condominiums above ground floor level where foreign ownership hasn't exceeded the 70% building limit. Verify hard title ownership and check the property's legal status.
- Conduct Due Diligence: Research the developer's reputation, verify project licenses, and perform comprehensive title checks. This step is crucial for avoiding future legal complications.
- Reserve and Negotiate: Pay a deposit (typically 10% of purchase price) to reserve the unit and negotiate terms. Review all contract details with an independent legal advisor.
- Sign Sales Agreement: Execute the formal purchase contract and arrange financing if needed. Mortgages of 30-70% are available with interest rates ranging from 8-12%.
- Pay Transfer Fees: Prepare for 4% transfer tax, legal fees, agent commissions, and 10% VAT for new properties. These costs can add significantly to your total investment.
- Complete Registration: Finalize the official transfer at the Land Office and receive your strata title certificate, which serves as proof of ownership.
- Property Setup: Arrange property management services if planning to rent out the unit, and complete any necessary furnishing or renovations.
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Where can you find properties and which agencies are reliable?
Several established platforms and agencies serve Phnom Penh's property market, with Realestate.com.kh being Cambodia's leading property portal.
Major international agencies operating in Phnom Penh include CBRE, Knight Frank, and Century 21, all offering comprehensive services for foreign buyers. Local agencies like IPS Cambodia, CAM Realty, and Rentex provide specialized knowledge of the market.
Online platforms such as Phnom Penh Real Estate and Expert Realty offer extensive property listings with detailed information and photos. These platforms allow you to filter properties by price, location, and property type.
Always verify that agencies hold proper business licenses and seek references from previous clients before engaging their services. It's something we develop in our Cambodia property pack.
Direct contact with developers can also provide access to new projects and potential early-bird pricing, though independent legal advice remains essential regardless of the purchase channel.
What types of properties can you get for different budgets?
Property options in Phnom Penh vary significantly based on budget, with clear distinctions between price ranges and corresponding amenities.
| Budget Range | Property Type | Typical Locations |
|---|---|---|
| $60,000-$90,000 | Studio/small 1-bedroom condo | Sen Sok, Kakab, Russian Market area |
| $100,000-$150,000 | 1-2 bedroom condo with pool/gym | Toul Kork, Chroy Changvar, mid-tier developments |
| $180,000-$300,000 | 2-3 bedroom upscale condo | BKK1, Tonle Bassac, Riverside districts |
| $500,000+ | Luxury penthouse/large condo | Central districts, riverfront locations |
| City Center | $2,000-$2,700 per sqm | Prime locations with premium amenities |
| Outer Zones | $1,000-$1,500 per sqm | Emerging areas with growth potential |
| Rental Investment | Focus on $100k-$200k range | Areas with strong rental demand |
What are the most common mistakes when buying property in Phnom Penh?
Title verification failures represent the most critical mistake, as buying without proper hard title documentation can result in complete loss of investment.
- Skipping developer verification: Not researching the developer's track record and financial stability can lead to project delays or abandonment
- Avoiding legal reviews: Failing to use independent lawyers for contract review often results in unfavorable terms or legal complications
- Underestimating total costs: Many buyers forget to budget for transfer taxes (4%), legal fees, agent commissions, and furnishing expenses
- Choosing oversupplied areas: Buying in areas with excessive supply without verifying actual rental demand leads to poor rental yields
- Believing gross yield estimates: Focusing on gross rather than net yields (after management, taxes, and maintenance) creates unrealistic return expectations
- Using risky nominee structures: Attempting to buy land through Cambodian nominees violates the law and provides no real ownership protection
- Ignoring foreign ownership quotas: Not confirming available foreign ownership slots in a building can invalidate the purchase
- Making rushed decisions: Purchasing without visiting the property or neighborhood in person often leads to buyer's remorse
What's the cost of living like compared to property ownership costs?
Living costs in Phnom Penh remain significantly lower than most Western cities, making property ownership more attractive for long-term residents.
A single person can live comfortably on $800-$1,200 per month including rent and daily expenses, while a family of four typically needs $2,000-$2,500 monthly. Western-style one-bedroom apartments rent for $400-$600 monthly in popular expat areas.
Property ownership adds several ongoing costs including annual property tax (0.1% of assessed value), transfer taxes (4% at purchase), maintenance fees, and property management costs if renting out the unit.
The relatively low daily living costs mean that property ownership can represent a larger proportion of your total expenses compared to Western markets, making the buy-versus-rent decision more significant.
Utilities, food, transportation, and entertainment costs are substantially lower than Western standards, potentially offsetting the carrying costs of property ownership for long-term residents.
Which neighborhoods offer the best value - affordable, upcoming, and upscale options?
Phnom Penh's neighborhoods offer distinct advantages depending on your budget and investment strategy.
Affordable areas like Sen Sok, Meanchey, and Kakab provide the best entry points with newer condominium developments, authentic local atmosphere, and rapid infrastructure growth. These areas offer the highest potential for capital appreciation.
Up-and-coming districts including Chroy Changvar, Toul Kork, and Phnom Penh Thmey are experiencing major infrastructure improvements and showing strong upside potential. These areas benefit from new transport links and development projects.
Upscale neighborhoods such as BKK1, Tonle Bassac, Riverside, and Diamond Island command the highest prices but offer international schools, luxury amenities, and the most stable expat community. These areas provide the most predictable rental income.
Each category serves different investment goals, with affordable areas focusing on capital growth, emerging areas balancing growth and amenities, and upscale areas prioritizing stability and lifestyle.
It's something we develop in our Cambodia property pack.
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.
What's expat life like in Phnom Penh and how does it affect property choices?
Expat communities in Phnom Penh concentrate heavily in BKK1, Tonle Bassac, and Riverside districts, drawn by international amenities, walkability, and security features.
These areas offer international schools, Western restaurants, coworking spaces, and English-speaking services that make daily life more convenient for foreigners. The social scene is vibrant with numerous expat-friendly venues and community events.
Many expats initially choose to rent for flexibility, but families and long-term residents increasingly buy property for housing stability and local integration benefits. Property ownership can provide a sense of permanence and community connection.
Access to international healthcare, educational facilities, and business networks influences property location choices, with most expats prioritizing proximity to these essential services over lower prices in outer districts.
The growing expat population creates sustained rental demand in preferred areas, making these districts attractive for both personal residence and investment purposes.
What rental yields and tenant profiles can you expect for long-term rentals?
Long-term rental markets in Phnom Penh offer attractive yields, with the best performing areas providing 6-8% gross returns in the Russian Market area.
Chroy Changvar and Toul Kork deliver 5-7% gross yields, while established areas like BKK1 provide more stable 5-7% returns. These yields reflect strong demand from both local professionals and expatriate tenants.
Typical long-term tenants include expatriate workers, young Cambodian professionals, diplomatic staff, and international families seeking stable housing. Each group has specific preferences regarding location, amenities, and property features.
Tenants consistently prioritize reliable WiFi, security features, access to pools and gyms, and proximity to their workplace or international schools. Properties meeting these criteria command premium rents and experience lower vacancy rates.
It's something we develop in our Cambodia property pack.
What about short-term rental opportunities and regulations?
Short-term rental markets in Phnom Penh target tourists, business travelers, and digital nomads, with the strongest demand in BKK1, Tonle Bassac, and Riverside districts.
Typical short-term tenants are singles or couples visiting for business, tourists exploring Cambodia, or digital nomads seeking temporary accommodation. These guests value location, amenities, and proximity to restaurants and attractions.
Potential returns from short-term rentals range from 6-10% gross yields, though this requires active management, higher marketing costs, and dealing with more frequent vacancy periods compared to long-term rentals.
Cambodia currently has no national ban on platforms like Airbnb, but individual condominium buildings may restrict short-term letting in their bylaws. Always verify building regulations before purchasing if you plan short-term rental operations.
Success in short-term rentals depends heavily on property location, quality of furnishing, professional photography, and active guest management to maintain high ratings and occupancy rates.
So is it worth buying property in Phnom Penh in 2025?
Buying property in Phnom Penh can be worthwhile in 2025, but success depends entirely on your specific goals, timeline, and chosen location.
For long-term living: Property purchase makes sense if you're committing to stay five years or more, providing housing stability and potential appreciation. Shorter stays favor renting for flexibility.
For rental income: Success requires careful area selection focusing on high-demand locations and realistic net yield calculations after all expenses. Gross yields of 4-8% are achievable, but net returns typically range 2-4%.
For capital appreciation: Moderate 5-10% annual price increases are forecast, particularly in affordable and suburban zones benefiting from infrastructure development. However, appreciation isn't guaranteed, especially in oversupplied luxury segments.
The biggest opportunities lie in affordable and suburban areas experiencing infrastructure improvements, while established central districts offer more predictable but moderate returns.
Most foreigners will find success by focusing on well-researched condominium purchases in growing areas, avoiding luxury oversupply, and maintaining realistic expectations about returns and timelines.
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 offers selective opportunities for informed investors willing to conduct thorough research and maintain realistic expectations.
Success requires focusing on affordable to mid-range condominiums in areas with strong fundamentals, avoiding common pitfalls, and matching your investment strategy to your timeline and risk tolerance.
Sources
- Cambodia Property Asia - Phnom Penh Properties
- BambooRoutes - Phnom Penh Property Guide
- BambooRoutes - Phnom Penh Price Forecasts
- Dabest Properties - Cambodia Condo Trends
- CBRE Cambodia
- Expat Life Cambodia - Real Estate
- BambooRoutes - Phnom Penh Areas Guide
- InvestAsian - Phnom Penh Areas
- IPS Cambodia - Top Expat Locations
- RealEstate.com.kh - Phnom Penh Properties