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 residential property market in 2026 is in a correction phase, but that means opportunities for buyers who know where to look and what to avoid.
This blog post covers current housing prices in Phnom Penh, days on market, neighborhood trends, and what foreigners need to know before buying.
We constantly update this article to keep the data fresh and accurate for you.
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.
How's the real estate market going in Phnom Penh in 2026?
What's the average days-on-market in Phnom Penh in 2026?
As of early 2026, residential properties in Phnom Penh typically stay on the market for around 90 to 120 days, with mid-range condos averaging closer to 110 days before finding a buyer.
The realistic range for most listings in Phnom Penh spans from about 75 days for well-priced units in prime areas like BKK1 or Tonle Bassac, up to 150 days or more for overpriced or less desirable properties.
This is noticeably longer than two years ago when market conditions were tighter and properties in popular districts could sell in 60 to 90 days, reflecting the current buyer's market where supply competition has stretched selling timelines.
Are properties selling above or below asking in Phnom Penh in 2026?
As of early 2026, most residential properties in Phnom Penh sell at around 3% to 8% below the initial asking price, reflecting the buyer's market conditions in the city.
We estimate that roughly 80% to 85% of properties in Phnom Penh close at or below asking price, while only a small fraction of exceptionally well-located or underpriced units attract competitive offers, though we have moderate confidence in these numbers given limited public transaction data.
The neighborhoods most likely to see at-asking or near-asking sales are BKK1, Tonle Bassac, and prime Toul Kork locations, where well-priced units with clean strata titles and strong rental appeal can still generate genuine buyer interest.
By the way, you will find much more detailed data in our property pack covering the real estate market in Phnom Penh.
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.
What kinds of residential properties can I realistically buy in Phnom Penh?
What property types dominate in Phnom Penh right now?
The Phnom Penh residential market in 2026 roughly breaks down into condominiums (around 40% of listings visible to foreign buyers), borey townhouses and villas (about 45%), and traditional shophouses or landed homes (roughly 15%).
Condominiums represent the largest share of the market accessible to foreign buyers, since they offer the cleanest legal pathway to ownership through strata titles under Cambodia's 2010 Foreign Ownership Property Law.
Condos became so prevalent in Phnom Penh because developers responded to growing expat and investor demand in the 2010s, while the legal framework made them the only direct ownership option for foreigners who cannot purchase land in their own name.
If you want to know more, you should read our dedicated analyses:
- How much should you pay for an apartment in Phnom Penh?
- How much should you pay for a condo in Phnom Penh?
Are new builds widely available in Phnom Penh right now?
New-build condominiums make up a significant portion of available inventory in Phnom Penh, with estimates suggesting they represent around 35% to 45% of condo listings as the city absorbs a multi-year supply wave of over 72,000 condominium units.
As of early 2026, the highest concentration of new-build developments can be found in Chamkarmon district (including BKK1 and Tonle Bassac), Sen Sok for more affordable options, Chroy Changvar across the river, and along Hun Sen Boulevard toward the new Techo International Airport in the south.
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Which neighborhoods are improving fastest in Phnom Penh in 2026?
Which areas in Phnom Penh are gentrifying in 2026?
As of early 2026, the neighborhoods showing the clearest signs of gentrification in Phnom Penh include Tuol Tompoung (Russian Market area), BKK2 and BKK3 as spillover zones from pricier BKK1, and parts of Chroy Changvar along the riverfront.
In Tuol Tompoung, you can see new specialty coffee shops, coworking spaces, and boutique restaurants opening alongside renovated shophouses, while BKK2 and BKK3 are attracting young professionals and expats seeking lower rents than BKK1 without losing walkability to central amenities.
Price appreciation in these gentrifying Phnom Penh neighborhoods has ranged from around 10% to 20% over the past two to three years, though the gains have been uneven and more visible in specific pockets with improved infrastructure or new retail anchors.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Phnom Penh.
Where are infrastructure projects boosting demand in Phnom Penh in 2026?
As of early 2026, the areas seeing the strongest infrastructure-driven demand boost in Phnom Penh are the southern corridor toward Techo International Airport, zones along Ring Road No. 3, and select parts of Chroy Changvar benefiting from bridge and road upgrades.
The key projects driving this demand include Techo International Airport (which opened in September 2025 and can handle 13 million passengers annually), Phnom Penh Ring Road No. 3 improving orbital connectivity, and power grid upgrades that make peripheral districts more livable for families.
Ring Road No. 3 is substantially complete, Techo Airport is now operational, and further phases of the airport (targeting 30 million passengers) are planned through the early 2030s, giving buyers a visible timeline for continued infrastructure investment.
In Phnom Penh, infrastructure announcements typically generate modest initial price bumps of 5% to 10%, while actual completion and demonstrated usage can drive another 10% to 20% appreciation in nearby residential areas over the following two to three years.
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.
What do locals and insiders say the market feels like in Phnom Penh?
Do people think homes are overpriced in Phnom Penh in 2026?
As of early 2026, the general sentiment among locals and expats in Phnom Penh is that a significant portion of the condo market remains overpriced relative to achievable rents, especially in buildings with high vacancy or weak management.
People typically point to thin rental yields (often 4% to 5% net after fees and vacancy in oversupplied segments), high condo inventory exceeding 72,000 units, and the IMF's documented real estate correction as evidence that prices haven't fully adjusted to market realities.
Those who believe prices are fair argue that prime locations like BKK1 still deliver 6% to 7% gross yields, that Phnom Penh remains cheaper per square meter than Bangkok or Ho Chi Minh City, and that long-term urbanization will eventually absorb the supply.
The price-to-income ratio in Phnom Penh is high by local standards, making homeownership difficult for average Cambodian families, though this metric is less relevant for foreign investors who benchmark against regional markets and dollar-denominated returns.
What are common buyer mistakes people regret in Phnom Penh right now?
The most frequently cited buyer mistake in Phnom Penh is purchasing a condo without verifying the exact strata title status and developer track record, leading to situations where buyers discover their unit cannot be legally registered in their name or the building has unresolved documentation issues.
The second most common regret is overpaying for a "future area" based on infrastructure promises without a clear or verified timeline, leaving buyers stuck in locations where expected appreciation never materialized because road or bridge projects were delayed indefinitely.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Phnom Penh.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Phnom Penh.
Get the full checklist for your due diligence in Phnom Penh
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
How easy is it for foreigners to buy in Phnom Penh in 2026?
Do foreigners face extra challenges in Phnom Penh right now?
Foreigners face a moderately high difficulty level when buying property in Phnom Penh compared to local buyers, primarily because the types of property they can legally own are limited to strata-titled condominium units above the ground floor.
Under Article 44 of the Cambodian Constitution and the 2010 Foreign Ownership Property Law, foreigners cannot own land directly and can only purchase up to 70% of units in any co-owned building, meaning at least 30% must remain in Cambodian hands.
Beyond the legal constraints, foreigners in Phnom Penh commonly struggle with verifying which buildings actually have strata titles (not all do, even newer ones), navigating Khmer-language documentation, and finding reliable legal counsel who can confirm developer compliance rather than just rubber-stamping transactions.
We will tell you more in our blog article about foreigner property ownership in Phnom Penh.
Do banks lend to foreigners in Phnom Penh in 2026?
As of early 2026, mortgage financing is available to foreigners in Phnom Penh, though the options are more limited and requirements stricter than for Cambodian nationals, with major banks like ABA, ACLEDA, and J Trust Royal Bank offering home loan products.
Foreign buyers in Phnom Penh can typically expect loan-to-value ratios of 50% to 70% (compared to up to 80% for locals), interest rates ranging from 6.5% to 8% per annum, and maximum tenors of 15 to 25 years depending on the bank and property type.
Banks generally require foreigners to demonstrate Cambodia-based income or strong offshore income documentation, a valid long-term visa, employment verification or business registration, and clean collateral in the form of a strata-titled property with proper documentation.
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.
How risky is buying in Phnom Penh compared to other nearby markets?
Is Phnom Penh more volatile than nearby places in 2026?
As of early 2026, Phnom Penh exhibits medium-high price volatility compared to nearby markets like Bangkok (medium volatility, deeper liquidity) and Ho Chi Minh City (medium volatility, stronger institutional demand), largely because a smaller buyer pool is absorbing a large condo supply.
Over the past decade, Phnom Penh experienced a boom through 2018, followed by a notable correction from 2019 onward that saw high-end condo prices decline by roughly 5% to 10% in real terms, while Bangkok and Ho Chi Minh City saw more muted swings due to their larger and more diversified markets.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Phnom Penh.
Is Phnom Penh resilient during downturns historically?
Phnom Penh has shown mixed historical resilience during downturns, with family-oriented housing in livable districts holding value better than investor-heavy condo segments that tend to see sharper corrections when credit tightens or sentiment shifts.
During the most recent correction (2019 to 2024), high-end condo prices in Phnom Penh declined by roughly 5% to 10% in real terms, and the market is still digesting that adjustment, with recovery timelines likely extending into 2026 and beyond for oversupplied segments.
The property types and neighborhoods in Phnom Penh that have historically held value best during downturns include well-managed condos in BKK1 and Tonle Bassac with strong rental demand, and borey townhouses in established family suburbs like Toul Kork and Sen Sok where end-user demand remains steady.
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How strong is rental demand behind the scenes in Phnom Penh in 2026?
Is long-term rental demand growing in Phnom Penh in 2026?
As of early 2026, long-term rental demand in Phnom Penh is growing modestly at an estimated 3% to 6% annually, though this growth is partially offset in some condo submarkets by the large supply of competing units.
The tenant demographics driving long-term rental demand in Phnom Penh include expat professionals working for NGOs, international companies, and embassies, young Cambodian professionals in the growing middle class, and families seeking quality housing near international schools.
The neighborhoods with the strongest long-term rental demand in Phnom Penh right now are BKK1 and Tonle Bassac (expat-heavy, proximity to offices and embassies), Toul Kork (families seeking space and schools), and parts of Chamkarmon where walkability to amenities remains high.
You might want to check our latest analysis about rental yields in Phnom Penh.
Is short-term rental demand growing in Phnom Penh in 2026?
Phnom Penh currently has relatively light short-term rental regulations compared to cities like Bangkok or Singapore, though operators should register with local authorities and some buildings have their own restrictions on Airbnb-style rentals.
As of early 2026, short-term rental demand in Phnom Penh is growing moderately, supported by Cambodia's tourism recovery toward its target of 7.5 million visitors in 2025 and the opening of Techo International Airport which improves connectivity.
The current estimated average occupancy rate for short-term rentals in Phnom Penh hovers around 35% to 40% according to AirDNA data, which suggests a competitive market where operators need to price carefully and manage costs to achieve profitability.
The guest demographics driving short-term rental demand in Phnom Penh include regional tourists from China and Vietnam, digital nomads attracted by low living costs, and business travelers visiting the growing number of international companies and factories in Cambodia.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Phnom Penh.
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 are the realistic short-term and long-term projections for Phnom Penh in 2026?
What's the 12-month outlook for demand in Phnom Penh in 2026?
As of early 2026, the 12-month demand outlook for residential property in Phnom Penh is cautiously positive, with modest improvement expected over 2025 levels as the market continues absorbing excess supply and buyers remain selective.
The key factors most likely to influence Phnom Penh property demand over the next 12 months include Cambodia's GDP growth (projected at 5% to 6% by the ADB), the new airport's impact on southern districts, and global economic conditions affecting expat employment and investment flows.
Price movement in Phnom Penh over the next 12 months is forecast to be roughly flat to slightly positive (0% to 3%) in well-located segments, while oversupplied commodity condos may see continued pressure or modest declines of 2% to 5%.
By the way, we also have an update regarding price forecasts in Cambodia.
What's the 3 to 5 year outlook for housing in Phnom Penh in 2026?
As of early 2026, the 3 to 5 year outlook for Phnom Penh housing is moderately positive, with gradual price recovery expected in quality segments as supply gets absorbed, while commodity condos in oversupplied pockets may take longer to find equilibrium.
The major development projects expected to shape Phnom Penh over the next 3 to 5 years include further phases of Techo International Airport (targeting 30 million passengers), continued Ring Road expansion, potential light rail connections, and new commercial developments along Hun Sen Boulevard.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Phnom Penh is the trajectory of credit conditions and financial system health, since any renewed stress in property-linked lending could trigger another correction or delay recovery.
Are demographics or other trends pushing prices up in Phnom Penh in 2026?
As of early 2026, demographic trends are providing modest upward support to Phnom Penh housing prices, though the impact is diffuse and primarily benefits well-located properties that match actual household needs rather than speculative stock.
The specific demographic shifts affecting Phnom Penh prices include continued rural-to-urban migration, a young population entering household formation years, and a growing middle class with increasing purchasing power driven by manufacturing and service sector employment.
Beyond demographics, non-demographic trends pushing Phnom Penh prices include Cambodia's USD-based economy attracting regional investors seeking currency stability, the airport opening creating new demand corridors, and selective interest from crypto-friendly buyers who appreciate Cambodia's cash and digital asset acceptance.
These demographic and trend-driven price pressures in Phnom Penh are expected to persist for at least the next decade, as urbanization rates remain strong and Cambodia's young population continues forming households, though the pace of price appreciation will depend on supply discipline.
What scenario would cause a downturn in Phnom Penh in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Phnom Penh is a credit crunch where banks tighten lending due to rising non-performing loans in property-linked portfolios, forcing distressed sales and pushing prices down.
Early warning signs that such a downturn is beginning in Phnom Penh would include rising NPL ratios reported by the National Bank of Cambodia, developers offering increasingly aggressive discounts (beyond the current 10% to 15%), and a visible uptick in foreclosure or distressed sale listings.
Based on historical patterns, a potential downturn in Phnom Penh could realistically see prices decline by 10% to 20% in the most exposed segments (investor-heavy condos with weak occupancy), while family housing in established neighborhoods might see more modest declines of 5% to 10%.
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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 | It's Cambodia's central bank, so its credit and financial system data is the cleanest reality check for housing market conditions. | We used it to gauge how much mortgage and real estate credit is expanding or tightening. We also used it as a sanity check on market risk since credit quality pressure usually signals a slower sales market. |
| IMF Article IV Consultation | The IMF is a top-tier macro and financial watchdog that is very direct about systemic risks in Cambodia's property sector. | We used it to frame the correction cycle Phnom Penh is in. We also used it to stress-test purchase decisions against downside scenarios involving credit and construction risk. |
| Asian Development Bank | The ADB is a core development institution in Asia that publishes transparent and well-documented growth forecasts. | We used it to anchor the 2026 demand backdrop since jobs and incomes drive home buying and renting. We also used it to avoid relying on broker optimism alone. |
| Knight Frank Cambodia | Knight Frank is a major global brokerage with a formal research methodology and recurring market series covering Cambodia. | We used it to understand supply, pricing pressure, and what's actually selling in Phnom Penh. We also used it to triangulate market feel with hard indicators like pipeline and absorption data. |
| CBRE Cambodia | CBRE is a top global real estate firm with on-the-ground research teams producing regular Phnom Penh market reports. | We used it to cross-check the condo supply wave and competition among sellers. We also used it to support the slow momentum conclusion rather than guessing. |
| Ministry of Tourism Cambodia | It's an official government dataset tracking tourism arrivals, which is a key driver of rentals and city demand. | We used it to ground short-term rental demand drivers in actual arrival numbers. We also used it to avoid relying on Airbnb anecdotes. |
| AirDNA | AirDNA is a widely used industry dataset with consistent short-term rental methodology across cities worldwide. | We used it to estimate current STR occupancy and revenue realities in Phnom Penh. We also used it to check whether Airbnb demand is actually booming or just marketing. |
| National Institute of Statistics Cambodia | It's the national statistics authority, making it the right place for population and housing datasets. | We used it to anchor the medium-term logic that more households means more housing demand. We also used it to keep projections evidence-based rather than vibes-based. |
| General Department of Logistics Cambodia | It's an official government project page, so it's a reliable infrastructure reference for road and connectivity projects. | We used it to identify where connectivity upgrades can shift demand toward the south and west periphery. We also used it to support infrastructure-led neighborhood momentum with verifiable data. |
| Associated Press | AP is a highly reputable wire service with tightly fact-checked reporting on major developments like the new airport. | We used it to pin down dates and capacity claims for Techo International Airport as a major Phnom Penh demand catalyst. We also used it to connect infrastructure timing to early-2026 housing and rental demand zones. |
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