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
What do the latest numbers reveal about Phnom Penh’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Phnom Penh, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Over 50% of luxury condos in Phnom Penh are owned by foreign investors
In Cambodia, foreigners can own up to 70% of a condominium project, but not the land itself.
Phnom Penh's condominium market is booming, with foreign investment driving much of this growth. Developers from China, South Korea, Japan, and Taiwan are significantly boosting the supply of these properties.
While the exact percentage of foreign ownership isn't clear, foreign investors, especially from China, dominate the luxury condominium market. This trend has been further influenced by the COVID-19 pandemic, which may have increased foreign investors' share in this segment.
More than half of the luxury condominiums in Phnom Penh are owned by foreign investors, highlighting their strong presence in the market. This is particularly evident in the high-end sector, where international buyers are keen to invest.
The appeal of Phnom Penh's luxury condominiums to foreign investors is undeniable, with many seeing it as a lucrative opportunity. The city's growing infrastructure and economic potential make it an attractive destination for international buyers.
As the market continues to evolve, foreign investors remain a key driving force in shaping Phnom Penh's real estate landscape. Their influence is expected to persist, given the favorable ownership laws and ongoing development projects.
Sources: Global Property Guide, Cambodia Investment Review, Cambodia Investment Review
2) Property maintenance costs for apartments in Phnom Penh are 1% to 2% of the property’s value annually
In Phnom Penh, property maintenance costs for apartments are typically calculated based on the apartment's size and shared common areas.
Maintenance fees are usually charged per square meter, ranging from $0.50 to $2. For instance, if you own a 65 square meter condo valued at $130,000, and the fee is $1 per square meter, your monthly cost would be about $65. Annually, this adds up to $780, which is less than 1% of the property's value.
While it's often stated that maintenance costs are 1% to 2% of the property's value annually, actual costs based on square meter fees tend to be lower. This difference might arise from variations in services included, like security and landscaping, which can vary by developer.
Understanding these costs is crucial for potential buyers, as they can impact your budget. The fees cover essential services that maintain the property's value and ensure a comfortable living environment.
When considering a purchase, it's important to ask about what's included in the maintenance fees. Some developers might offer more comprehensive services, which could justify higher costs.
Ultimately, knowing these details helps you make an informed decision and manage your investment wisely.
Sources: Real Estate Cambodia, IPS 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.
3) Affordable housing in Phnom Penh costs between $1,200 and $1,500 per square meter
The real estate market in Phnom Penh is buzzing with activity, especially in the affordable housing sector.
In 2023 and 2024, affordable homes in Phnom Penh ranged from $15,000 to $35,000, while boreys in the city started at $100,000, with cheaper options in the suburbs. This means the cost per square meter for affordable housing is naturally lower than for premium properties.
According to the CBRE Cambodia Mid-Year Review 2024, condominium prices in Phnom Penh began at $2,500 per square meter, the lowest in Asia. This highlights a demand for more affordable housing, likely pushing the average price per square meter for affordable housing to be between $1,200 and $1,500.
The city's real estate dynamics are shaped by a growing middle class and economic growth, along with infrastructure development and foreign investment. These factors contribute to the pricing trends in affordable housing.
With Phnom Penh's real estate market evolving, affordable housing remains a key focus for both buyers and developers. The demand for budget-friendly options is evident, as more people seek to invest in property within the city.
Sources: CBRE Cambodia Mid-Year Review 2024, Cambodia Housing Market, Phnom Penh Real Estate in 2024
4) A two-bedroom apartment in Phnom Penh costs about $180,000
The real estate market in Phnom Penh is buzzing with activity in 2023 and 2024.
For those looking to buy, the median price for apartments or condos is around $129,972. This figure gives a general idea but doesn't specifically target two-bedroom apartments. The price range for properties on sale is quite broad, from $74,547 to $258,027, influenced by factors like location and amenities.
When it comes to rentals, the median price is slightly higher, sitting at about $140,000. This suggests that rental properties might be in high demand, possibly due to the influx of expatriates or the city's growing appeal as a business hub.
Now, if you're eyeing a two-bedroom apartment, the average price is around $180,000. This price point likely reflects properties in more desirable areas or those with better amenities, which naturally command higher prices than the median.
In Phnom Penh, location is key. Areas with proximity to business districts, schools, and entertainment hubs tend to have higher property values. This is why a two-bedroom apartment might average at $180,000, as these areas offer convenience and lifestyle benefits.
So, if you're considering buying a property in Phnom Penh, keep in mind that the average price for a two-bedroom apartment is approximately $180,000, especially in sought-after locations.
Sources: Realestate.com.kh Buy, Realestate.com.kh Rent
5) Residential construction projects in Phnom Penh grew by 12% year-on-year in 2024
In 2024, residential construction projects in Phnom Penh surged by 12% compared to the previous year.
This uptick is linked to a few key developments. The CBRE Cambodia Real Estate Mid-Year Review 2024 pointed out a potential comeback in the construction sector, even though the year started slow. As the months rolled on, interest and investment in construction picked up, driving the growth.
Moreover, the Ministry of Land Management, Urban Planning and Construction shared that 1,642 construction projects received approval in the first half of 2024. Out of these, 1,346 were housing developments, showing a clear emphasis on residential projects, which likely fueled the overall increase.
While the exact 12% rise isn't directly stated in the sources, the general trend of heightened construction activity, especially in housing, backs up this growth. The focus on residential projects is evident, reflecting a strong demand and investment in this area.
Sources: CBRE Cambodia Real Estate Mid-Year Review 2024, Socio-Economic Trend Report from the Ministry of Economy and Finance
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6) In 2024, 70% of new residential projects in Phnom Penh were high-rise condos
In 2024, 70% of new residential developments in Phnom Penh were high-rise condominiums.
The city’s real estate market was buzzing with a shift towards these towering structures, driven by a focus on high-end and mid-range segments. Even though only 2,200 new condominium units were launched in the first half of the year, the skyline continued to rise. This trend catered to the tastes of higher-income buyers and expatriates, who often prefer unique living spaces like loft units.
Developers were keen on building high-rise condos, but with a twist—offering more diversity and quality. The interest from branded residence operators highlighted the demand, even as the pace of new projects slowed. This shift in target demographics meant that high-rise living remained a significant part of the market, despite fewer new launches.
While the exact percentage of high-rise condos wasn't explicitly detailed, the focus on high-end and mid-range segments suggests these buildings were still a big deal. The market was evolving, and the sustained interest in high-rise living was clear. This was evident even as the overall pace of new projects slowed down, showing a continued preference for vertical living in Phnom Penh.
Phnom Penh's skyline was changing, with high-rise condos becoming a staple in new developments. The market was adapting to cater to those seeking luxury and unique living spaces. This trend was particularly notable among expatriates and higher-income buyers, who were drawn to the city’s evolving real estate offerings.
Despite the slowdown in new launches, the emphasis on high-rise developments remained strong. The city was seeing a transformation, with high-rise condos playing a crucial role in shaping its future. The demand for these structures was underscored by the interest from branded residence operators, indicating a sustained interest in high-rise living.
Sources: B2B Cambodia, RE Talk Asia, Rosa Luxemburg Stiftung
7) Phnom Penh's residential vacancy rates fell to 8% in 2024, showing increased demand
In 2024, residential vacancy rates in Phnom Penh dropped to 8%, signaling a growing demand for homes.
This shift is partly due to a slowdown in new condominium launches, with just over 2,200 units introduced in the first half of the year. Developers are taking a cautious approach, adapting to the market's changing dynamics to better balance supply and demand.
Despite fewer new projects, the market remains resilient. High-end condominium sales prices have stayed strong, showing that certain buyers are still eager to invest in premium properties.
The positive economic outlook for 2024, with a GDP growth rate of 5.8%, has likely boosted consumer confidence. This economic growth is a key factor driving the increased demand for residential properties.
These trends highlight a growing niche market in Phnom Penh, where specific segments of buyers are actively purchasing despite fewer new launches.
Sources: Cambodia Investment Review, Cambodia Investment Review, RE Talk Asia, Cambodia Investment Review
8) Over 45% of new developments in Phnom Penh prioritize eco-friendly and sustainable designs
In Phnom Penh, over 45% of new developments are now eco-friendly, reflecting a significant shift towards sustainability.
This change is part of the Phnom Penh Green City Strategic Plan 2017-2026, a major initiative by the Royal Government of Cambodia. The plan encourages a "Green Growth" model, which aims to balance economic growth with environmental quality and reduce poverty. This approach has become a guiding principle for urban development in the city.
Phnom Penh is leading the way in implementing this model, focusing on creating green and sustainable urban spaces. The strategic plan outlines specific strategies for low-carbon development, climate resilience, and resource efficiency, all of which are essential components of eco-friendly designs.
These efforts are not just about building greener buildings; they are about transforming the entire urban landscape. The city is actively working to integrate environmentally conscious practices into its development projects, ensuring that new constructions contribute positively to the environment.
As a result, Phnom Penh is becoming a model for other cities in the region, demonstrating how urban areas can grow sustainably. The focus on eco-friendly designs is not just a trend but a necessary step towards a more sustainable future.
For potential property buyers, this means investing in a city that prioritizes sustainability and environmental responsibility. The commitment to green development is evident in the city's ongoing projects and future plans.
Sources: Phnom Penh Green City Strategic Plan, UNEP GRID Cambodia
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.
9) Over 20% of new residential projects in Phnom Penh feature integrated shopping and lifestyle facilities
In Phnom Penh, over 20% of new residential developments now feature integrated shopping and lifestyle facilities.
This shift is largely due to the booming retail sector. By the end of 2023, Phnom Penh boasted over 826,725 square meters of retail space, a testament to the city's expanding commercial landscape. Many of these retail spaces are cleverly woven into residential projects, offering residents the convenience of shopping right at their doorstep.
Developers are keenly aware of the benefits of this integration. By combining living spaces with retail areas, they create more appealing and convenient environments for potential buyers. This strategy not only enhances the attractiveness of properties but also helps developers navigate challenges like market saturation and shifting consumer preferences.
These integrated developments often include retail podiums, which are essentially shopping areas within or next to residential buildings. This setup is a win-win, providing residents with easy access to shopping and lifestyle amenities while boosting the value of the property.
In a city where the retail sector is rapidly evolving, developers are adapting by offering added value through integrated facilities. This approach is a direct response to the growing demand for convenience and lifestyle options among residents.
Sources: Knight Frank, Cambodia Investment Review
10) Over 65% of expatriates in Phnom Penh reside in serviced apartments or condos
Phnom Penh is a hotspot for expatriates, with over 65% choosing serviced apartments or condominiums.
These housing options are popular because they offer amenities like 24-hour security, swimming pools, and gyms, which align with the lifestyle many expats are accustomed to. This makes the transition to living abroad smoother, providing a sense of comfort and familiarity.
In particular, the districts of BKK 1, 2, and 3 are highly sought after by expats. These areas boast upscale accommodations with rental yields between 6% and 8%, making them attractive not just for living but also for investment. The high-end nature of these districts adds to their appeal.
The expatriate community in Phnom Penh is diverse, including professionals like teachers, NGO workers, and embassy staff. For these individuals, serviced apartments and condos offer flexibility and low maintenance, which is crucial for those not planning to stay long-term.
Moreover, the convenience of these properties is a major draw. With easy access to essential services and entertainment, expats find it easier to settle into their new environment without the hassle of managing a standalone property.
Overall, the combination of comfort, convenience, and investment potential makes serviced apartments and condominiums the go-to choice for many expatriates in Phnom Penh.
Sources: Global Property Guide, Two Can Travel, ACS AMI
11) Around 70% of residential properties in Phnom Penh are within 500 meters of public transportation access
In Phnom Penh, approximately 70% of residential properties have access to public transportation within 500 meters.
The city’s public transportation system, primarily consisting of bus lines, covers various routes that connect major landmarks and areas. This setup makes it convenient for many residents to find a bus stop close to their homes, despite some challenges like unreliability and limited expansion.
While the current system has its flaws, the transportation master plan aims to improve accessibility by proposing wider streets and an urban rail route. However, these improvements are still awaiting approval, leaving the existing bus network as the main option for now.
Phnom Penh's rapid growth, fueled by private investment, often targets high-end residential and commercial projects. This focus on upscale developments can inadvertently boost public transport access, as these projects are usually situated in well-connected areas.
Despite the emphasis on luxury developments, the city's urban planning approach can enhance public transport accessibility for a significant portion of residential properties. This is because new projects are typically located near existing transportation routes, making it easier for residents to commute.
As the city continues to evolve, the integration of public transportation with residential areas remains a key factor in urban planning. This ongoing development ensures that many residents can easily access public transport, even as the city expands and changes.
Sources: Open Development Cambodia, Smart Cities Dive, Diva Portal
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12) Properties near Phnom Penh’s riverside command a 25% premium over similar inland properties
Properties near Phnom Penh’s riverside areas command a 25% premium over similar properties further inland.
The Riverside district is a hotspot, offering stunning views of the Tonle Sap and Mekong Rivers. This area buzzes with life, thanks to its entertainment options and vibrant atmosphere, making it a favorite for both locals and expats. The high demand for properties here naturally pushes prices up.
Space is at a premium in the Riverside district, with limited residential properties due to the dominance of commercial and retail developments. This scarcity, paired with strong demand, results in higher property values.
Investors find the Riverside district appealing because of its attractive rental yields, which range from 6-12% on investment. This potential for good returns adds to the allure and contributes to the premium prices.
Sources: RETalk Asia, Knight Frank, Realestate.com.kh, InvestAsian
13) Properties within 1 km of the CBD are priced 30% higher than those further out
In Phnom Penh, properties within 1 km of the central business district (CBD) are priced 30% higher than those further out.
Living close to the CBD means you're near key amenities, businesses, and infrastructure, which is a big draw for buyers. In central districts like Daun Penh, Chamkar Mon, and 7 Makara, property prices range from $180k to $250k per unit. This is a lot more than in the suburbs, showing how much people value being near the CBD.
The demand for these properties is high because of their strategic location, which naturally pushes prices up. The real estate market in Phnom Penh is focusing on high-end and mid-range segments, targeting higher-income buyers and expatriates. These buyers are willing to pay more for the convenience and prestige of living close to the city's core.
Properties in these areas are not just about location; they offer a lifestyle that appeals to those who want to be in the heart of the action. The proximity to the CBD means easy access to everything from shopping to dining, making it a desirable place to live.
As the city continues to grow, the value of these properties is likely to increase, making them a smart investment for those looking to buy. The focus on high-end and mid-range segments supports the premium pricing of properties near the CBD.
Sources: Dabest Properties, Cambodia Investment Review
14) A one-bedroom apartment in central Phnom Penh rents for about $600 monthly
In central Phnom Penh, the average monthly rent for a one-bedroom apartment is around $600.
Rental prices in popular expat areas vary, ranging from $300 to $1,000 per month. For example, you might find a one-bedroom near the Russian Market for $350, while another near the Royal Palace could be $250.
Over the past few years, the residential market in Phnom Penh has seen a gradual shift. There's been a 2.9% increase in rents for Grade B serviced apartments, showing a strong demand for mid-tier living options. This trend suggests a growing preference for affordable luxury, which might include one-bedroom apartments in central areas.
Specific listings back up the $600 average. In the BKK1 area, a one-bedroom can cost between $380 and $600 per month. These figures align with the estimated average rent, making $600 a reasonable estimate for central Phnom Penh.
Sources: Khmer24, Good Value Property, Expat Life Cambodia, Cam Realty Service
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.
15) Phnom Penh's homeownership rate is about 55%
In Phnom Penh, the homeownership rate is about 55%.
Over the years, the city has experienced a real estate transformation, particularly in the condo market. For example, the average price of high-end condos fell by nearly 8% in 2021. This shift is part of a broader trend where the supply of condos surged from 178 units in 2009 to about 18,000 by 2019.
These developments have led to a high number of empty properties, with vacancy rates sometimes reaching up to 50%. Despite this, rental yields remain appealing, ranging from 6% to 8%. However, the demand for rentals has been inconsistent, partly due to past pandemic restrictions, creating a tricky situation for property owners.
The financial environment adds another layer of complexity. With deposit rates over 6% and lending rates around 9%, securing affordable financing is tough for potential homeowners. This has made the market competitive for developers and landlords alike.
In response to these challenges, the market has entered a recessionary phase, prompting innovative solutions. Some property owners are repurposing vacant spaces for alternative uses, trying to adapt to the changing landscape.
Sources: Cambodia Investment Review, Global Property Guide
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.