How's the real estate market doing in Phnom Penh? (2026)

Authored by the expert who managed and guided the team behind the Cambodia Property Pack

Get all the data you need about the real estate market in Phnom Penh

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Phnom Penh. If you’d like to learn more about us, you can check our presentation page.

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 2026, a normal resale condo in Phnom Penh takes about 150 days to sell when it is priced close to the real market price.

That average hides a wide gap, because good units in BKK1, Tonle Bassac, Toul Kork, Daun Penh, and riverside Chroy Changvar often sell in 60 to 120 days, while overpriced high-end condos or weaker outer-area units can stay online for 180 to 300 days.

This is slower than one or two years ago, because Phnom Penh buyers now have more choice, developers are offering flexible payment plans, and sellers can no longer expect quick sales at old boom prices.

Are properties selling above or below asking in Phnom Penh in 2026?

As of 2026, most residential properties in Phnom Penh sell at about 90% to 95% of their asking price, which means buyers usually negotiate a discount.

In practical terms, we estimate that fewer than 10% of Phnom Penh residential sales close above asking, while about 90% close at or below asking, and our confidence is medium because private sales data is not fully public.

The rare above-asking sales in Phnom Penh usually happen for scarce, well-managed, and correctly titled units in BKK1, Tonle Bassac, Daun Penh, Toul Kork, or strong river-view buildings in Chroy Changvar.

By the way, you will find much more detailed data in our property pack covering the real estate market in Phnom Penh.

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 is dominated by condos, borey houses, link houses, shophouses, and villas, with Knight Frank counting about 63,000 existing condo units and about 95,000 landed housing units in late 2025.

The largest share of the real local housing market is landed housing, especially borey-style link houses and shophouses, while the easiest product for most foreign buyers is a strata-title condo above the ground floor.

Landed housing became so common in Phnom Penh because Cambodian families often prefer a house with land, parking, family space, and shopfront potential, while condos grew mainly because foreign buyers can own private units in co-owned buildings.

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 homes are widely available in Phnom Penh in 2026, and we estimate that new or recently completed units represent about 35% to 45% of visible residential listings, with condos making up much of that stock.

As of 2026, the highest concentrations of new-build developments in Phnom Penh are in Chroy Changvar, Sen Sok, Meanchey, Dangkao, Kamboul, Chbar Ampov, Toul Kork, and the southern growth corridor toward Kandal and Techo International Airport.

Which neighborhoods are improving fastest in Phnom Penh in 2026?

Which areas in Phnom Penh are gentrifying in 2026?

As of 2026, the clearest gentrification areas in Phnom Penh are Toul Kork, Chroy Changvar, Boeung Keng Kang 2, Boeung Keng Kang 3, Russian Market, Tonle Bassac, and selected streets around Daun Penh.

The visible signs are easy to see: more cafes and international restaurants in Toul Kork, more river-view condo towers in Chroy Changvar, more renovated low-rise homes around BKK2 and BKK3, and more foreign-friendly rentals near Russian Market.

Over the past two to three years, we estimate that good residential assets in these gentrifying Phnom Penh neighborhoods have gained about 5% to 15%, while weaker or overpriced buildings have often stayed flat.

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 2026, infrastructure is boosting housing demand most clearly in Meanchey, Dangkao, Kamboul, Chbar Ampov, Prek Pnov, Chroy Changvar, and the corridor from southern Phnom Penh toward Techo International Airport.

The main drivers are Techo International Airport in Kandal, new road links toward the south, bridge access around Chroy Changvar and Chbar Ampov, ring-road expansion, and long-term transport planning around Phnom Penh’s growth corridors.

Techo International Airport opened in September 2025, while several road, bridge, and corridor upgrades are being delivered in stages, so the full housing impact will probably unfold from 2026 to 2030 rather than all at once.

In Phnom Penh, infrastructure announcements can lift nearby asking prices by about 5% to 10%, but completed and genuinely useful infrastructure usually matters more and can support a 10% to 20% premium for the best-connected properties.

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 2026, many Phnom Penh locals and market insiders still think homes are overpriced, especially high-end condos built for foreign investors rather than for local incomes.

The evidence people usually mention is simple: rents do not always justify purchase prices, many towers still have empty units, resale can be slow, and sellers often start with prices from the old boom period.

The main counterargument is that scarce central land in BKK1, Tonle Bassac, Daun Penh, and Toul Kork is still valuable because Phnom Penh keeps attracting jobs, embassies, schools, businesses, and better infrastructure.

The price-to-income ratio in Phnom Penh remains high compared with normal local salaries, and this is why affordable condos and practical borey homes often have stronger real demand than luxury investor condos.

What are common buyer mistakes people regret in Phnom Penh right now?

The most common mistake buyers regret in Phnom Penh is buying an off-plan condo without checking the developer’s delivery record, title structure, real occupancy, and resale history.

The second most common mistake is choosing a cheaper outer-area unit without testing daily commute, flooding risk, road quality, building management, and whether tenants actually want that location.

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.

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 medium difficulty level when buying a condo in Phnom Penh, but a high difficulty level when trying to buy land-linked property like a villa, shophouse, borey house, or townhouse.

The key legal rule is that foreigners can generally own private units in co-owned buildings, such as strata-title condos above the ground floor, but foreigners cannot directly own land in Cambodia.

The practical problems are often very Phnom Penh-specific: foreign buyers may be shown foreign-priced units, unclear strata-title documents, weak building-management records, developer financing offers, and rental-yield claims that do not match actual tenant demand.

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 2026, mortgage financing for foreign buyers in Phnom Penh exists, but it is not easy, not standardized, and often less attractive than buying with cash.

A foreign buyer in Phnom Penh should usually expect around 50% to 60% loan-to-value at best, with interest rates often higher than local borrowers and sometimes replaced by developer payment plans.

Banks and lenders normally ask for a passport, valid visa or residency documents, proof of income, overseas bank statements, tax records, employment or business documents, and sometimes a larger deposit or local guarantor.

You can also read our latest update about mortgage and interest rates in Cambodia.

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.

How risky is buying in Phnom Penh compared to other nearby markets?

Is Phnom Penh more volatile than nearby places in 2026?

As of 2026, Phnom Penh residential property is more volatile than Bangkok and Kuala Lumpur, and it is usually less liquid than central Ho Chi Minh City, especially for generic investor condos.

Over the past decade, Phnom Penh had a strong construction boom followed by a long correction, while Bangkok and Kuala Lumpur had deeper resale markets and more transparent transaction systems to soften the shock.

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 is resilient as Cambodia’s main city, but Phnom Penh residential prices are not equally resilient across all property types.

During the most recent major correction, generic and high-end condos in Phnom Penh often lost about 10% to 25% in resale value, and many weak units have still not fully recovered by 2026.

The properties that held value best were practical landed homes in Sen Sok, Toul Kork, Dangkao, Meanchey, Kamboul, and Prek Pnov, plus well-managed central condos in BKK1, Tonle Bassac, and Daun Penh.

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 2026, long-term rental demand in Phnom Penh is growing slowly, with our estimate around 3% to 5% growth for well-located and well-managed rental properties.

The main tenants are local young professionals, Cambodian middle-class families, NGO and embassy workers, regional employees, students, and expats who want easy access to offices, schools, cafes, and services.

The strongest long-term rental demand in Phnom Penh is in BKK1, Tonle Bassac, Daun Penh, Toul Kork, Russian Market, Chroy Changvar, and near major employment and international-school zones.

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?

Short-term rentals in Phnom Penh are affected less by a single citywide ban and more by building rules, condo management policies, business licensing, tax compliance, and whether the building allows daily or weekly stays.

As of 2026, short-term rental demand in Phnom Penh is growing moderately, helped by tourism recovery, business travel, and the new Techo International Airport, but the growth is not strong enough to fill weak or badly located units.

A good short-term rental in BKK1, Tonle Bassac, Daun Penh, riverside, Toul Kork, or a serviced-apartment-style building can reach about 55% to 70% annual occupancy, while weaker generic units may stay below 45%.

The main guests are business travelers, regional visitors, NGO and embassy visitors, short-stay expats, and tourists who use Phnom Penh as a stop before Siem Reap, the coast, or another Southeast Asian city.

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 2026, the 12-month demand outlook for Phnom Penh residential property is modestly positive, but only for well-priced, completed, and useful homes.

The main factors that will shape demand are bank credit conditions, Cambodia’s economic growth, tourism recovery, the property-sector correction, Thailand border risk, trade pressure, and whether developers keep discounting old stock.

Our 12-month forecast is that generic Phnom Penh condos move from -3% to +2%, good central condos move from 0% to +4%, affordable core condos move from +1% to +5%, and good landed homes move from +2% to +6%.

By the way, we also have an update regarding price forecasts in Cambodia.

What's the 3-5 year outlook for housing in Phnom Penh in 2026?

As of 2026, the 3-5 year outlook for Phnom Penh housing is cautiously positive, with stronger demand for affordable, useful, and well-connected homes than for generic luxury condos.

The projects and plans most likely to shape Phnom Penh are Techo International Airport, southern growth toward Kandal, bridge and ring-road improvements, transport planning, and continued expansion in Sen Sok, Dangkao, Kamboul, Meanchey, Chbar Ampov, and Prek Pnov.

The biggest uncertainty is whether the oversupply of investor condos clears without a larger credit shock, because slow resale liquidity could keep weak buildings under pressure for years.

Are demographics or other trends pushing prices up in Phnom Penh in 2026?

As of 2026, demographics are pushing some Phnom Penh housing prices up, but the effect is selective and strongest for practical homes near jobs, schools, roads, and services.

The most important demographic shifts are rural-to-urban migration, young household formation, local middle-class growth, and the pull of Phnom Penh as Cambodia’s main job, education, government, and business center.

Non-demographic trends also matter, especially foreign worker demand, airport-led growth, return of tourism, flexible work by some expats, and buyers moving from speculative condos toward homes with real daily-use value.

These pressures should continue through the late 2020s, but they will not lift every property equally, because weak buildings and poor-access locations can still underperform.

What scenario would cause a downturn in Phnom Penh in 2026?

As of 2026, the most likely downturn scenario in Phnom Penh would be tighter bank credit, more distressed developer sales, weak tourism, and forced resales from investors who bought during the boom.

The early warning signs would be more unfinished projects, bigger developer discounts, rising non-performing loans, more empty high-end towers, lower rents in BKK1 and Tonle Bassac, and more resale listings staying online for over six months.

A realistic downturn could push generic condo prices down 8% to 15%, high-end oversupplied units down 12% to 20%, and good landed housing down only 3% to 8% if Phnom Penh’s local end-user demand stays stable.

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 this source matters	How we used it
Knight Frank Cambodia Real Estate Highlights H2 2025	Knight Frank is one of the few firms publishing structured data on Phnom Penh residential supply, prices, and sales rates.	We used it as the main private-sector benchmark for condos, landed housing, launch prices, sales rates, and market mood. We treated it carefully because Cambodia has limited official housing transaction data.
CBRE Cambodia Phnom Penh Mid-Year Review 2025	CBRE Cambodia is a major local market adviser with useful commentary on the property cycle.	We used it to cross-check the cautious-buyer and recalibrating-developer view. We did not use it alone for numerical estimates.
National Bank of Cambodia annual reports	The National Bank of Cambodia is the official source for banking, credit, and macro-financial conditions.	We used it to understand mortgage liquidity and lending conditions. We also used it to judge why foreign buyers may face stricter financing conditions.
National Bank of Cambodia supervision reports	These reports are the official source for banking supervision and loan-quality risks.	We used them to assess whether banks are becoming more cautious. We connected that caution to buyer financing and developer stress.
IMF Cambodia 2025 Article IV	IMF Article IV reports are official macroeconomic surveillance documents.	We used it for Cambodia’s downside risks, financial vulnerabilities, property correction, and credit stress. We treated it as a conservative macro scenario.
World Bank Cambodia Economic Update, December 2025	The World Bank gives independent macro and sector analysis for Cambodia.	We used it to frame the property downturn as a drag on domestic demand. We also used it to cross-check risks from trade pressure, border disruption, and weak property activity.
ADB Asian Development Outlook April 2026, Cambodia	ADB is a major regional development bank with Cambodia-specific economic forecasts.	We used it for the 2026 growth baseline and the view that construction and real estate are likely to grow only modestly. We used it to avoid relying only on property-agent optimism.
National Institute of Statistics Cambodia	NIS is Cambodia’s official statistics agency.	We used it for population and household context. We used it mainly to support long-term urban demand, not short-term price estimates.
Cambodia tourism statistics	Tourism statistics from Cambodian public sources are the best official base for visitor-demand analysis.	We used them to judge short-stay and expat-adjacent rental demand. We cross-checked them with the new Phnom Penh airport opening.
Techo International Airport official news	This is the official airport source for the new Phnom Penh airport opening.	We used it to identify the airport-led demand corridor. We connected it to southern Phnom Penh and Kandal-side residential demand.
World Bank Urban Development in Phnom Penh	This is a detailed institutional report on Phnom Penh’s urban growth and infrastructure constraints.	We used it to explain why drainage, roads, and fragmented growth matter so much in Phnom Penh. We also used it to understand why infrastructure quality affects neighborhood risk.
Cambodia foreign ownership law	This is the legal basis for foreign ownership of private units in co-owned buildings.	We used it to explain what foreigners can directly own. We kept the explanation simple: condos are easier, land-linked property is much harder.