Yes, the analysis of Phnom Penh's property market is included in our pack
The question of 'the best neighborhood to buy a property in Phnom Penh' does not have a one-size-fits-all answer.
Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.
That’s why the article below is covering every intent.
At BambooRoutes, when we write a blog post or when we update our our property pack for Cambodia, we want to bring solutions and cover different aims in a clear and organized way.
Enjoy the read, and please remember that we are not financial or investment experts. This article is for informational purposes only.
To improve the readability and user-friendliness of this article, we will categorize neighborhoods in Phnom Penh into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.
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How is the real estate market in Phnom Penh?
The real estate market in Phnom Penh, Cambodia's bustling capital, is experiencing a dynamic period of growth and transformation, making it an attractive destination for various types of investors and homebuyers.
Let's delve into the unique strengths of this city and the factors driving interest in its real estate.
Firstly, Phnom Penh stands out with its unique blend of cultural heritage and rapid modernization. Unlike many other cities, it harmoniously combines historic sites like the Royal Palace and the Silver Pagoda with contemporary skyscrapers and luxury developments.
This unique juxtaposition is not found in many places and adds a distinct charm to the city's real estate offerings.
People are drawn to buy in Phnom Penh for several reasons.
For one, the city is a hub of economic activity in Cambodia, offering numerous business and investment opportunities. This economic vibrancy attracts a diverse group of buyers, including local entrepreneurs, expatriates working in multinational companies, and retirees looking for a culturally rich yet affordable place to live.
Foreign interest in Phnom Penh's real estate is notably high. The city's openness to foreign investment, coupled with relatively affordable property prices compared to other Southeast Asian capitals, makes it an appealing option for international investors.
The Cambodian government has also implemented policies that make it easier for foreigners to buy and own properties, further fueling this interest.
Speaking of the market's dynamism, one data point to consider is the steady increase in property values over the past few years.
Despite global economic fluctuations, Phnom Penh's real estate market has shown resilience, with property prices consistently rising, reflecting the city's growing appeal and economic stability.
A unique and positive aspect specific to Phnom Penh's properties is the integration of traditional Khmer architectural elements in modern buildings. This distinct style, which incorporates aspects of Cambodia's rich architectural heritage, adds a cultural depth and aesthetic appeal to properties that is hard to find elsewhere.
Looking into the future, several factors indicate that properties in Phnom Penh will continue to gain value. The city is undergoing significant infrastructure development, including new roads, bridges, and public transportation systems, which will enhance connectivity and accessibility.
Additionally, Phnom Penh is increasingly becoming a regional hub for technology and innovation, attracting talent and investments that boost the local economy. These developments, along with Cambodia's overall economic growth, suggest a bright future for the real estate market in Phnom Penh.
Top neighborhoods in Phnom Penh to consider for living
Areas in Phnom Penh that are budget-friendly
If you're looking to buy property in Phnom Penh on a budget, there are a few neighborhoods you might want to consider.
Here is a summary table. Below, we will give more details.
| Neighborhood | Average Price per sqm | Property Types | Resident Demographics | Strengths | Weaknesses |
|---|---|---|---|---|---|
| Sen Sok | $1,000 - $1,200 | Modern condos, traditional homes | Middle-class families | Growing infrastructure, quiet | Far from city center |
| Toul Kork | $1,500 - $1,800 | Older-style houses, newer apartments | Local families, expats | Community feel, increasing conveniences | Lacks vibrancy and diversity |
| Dangkao | $800 - $1,000 | Land plots, traditional Khmer houses, new apartments | Locals, some foreign investors | Affordability, larger spaces | Less developed amenities and services |
Sen Sok
In Phnom Penh, the neighborhood of Sen Sok is a budget-friendly option for property buyers.
It's affordable primarily because it's a bit further from the city center, which typically means lower land and property costs. However, this area is gradually developing, suggesting potential growth in property values over the next few years. You'll find a mix of modern condos and traditional homes for sale in Sen Sok, with the average price per square meter hovering around $1,000 to $1,200.
The area is popular among middle-class families and individuals seeking a balance between urban and suburban lifestyles.
The strengths of Sen Sok include its growing infrastructure and quiet environment, but it's further from the city's central amenities, which can be a downside for some.
Toul Kork
Toul Kork is another area where property prices are relatively more affordable in Phnom Penh.
It's known for being a quieter, more residential part of the city, which keeps prices down compared to the bustling city center. There's a trend of rising property values in Toul Kork, as Toul Kork is attracting more upscale developments and commercial investments.
The properties on offer range from older-style houses to newer apartments in Toul Kork, with average prices around $1,500 to $1,800 per square meter. The area is favored by local families and expats who prefer a more laid-back environment.
Toul Kork's strengths lie in its community feel and increasing modern conveniences, but it can lack the vibrancy and cultural diversity found in more central neighborhoods.
Dangkao
Dangkao is a district that's catching the eye of budget-conscious property buyers in Phnom Penh.
It's one of the more affordable areas because it's on the outskirts of the city, meaning lower land values. The potential for increase in property values exists as the district is slowly being integrated into the wider city development plans.
In Dangkao, the real estate market is varied, with land plots, traditional Khmer houses, and some new apartment buildings, at an average price of around $800 to $1,000 per square meter. Dangkao is popular with locals and some foreign investors looking for larger spaces at lower costs.
The district's strengths are its affordability and space, but it's less developed in terms of amenities and services, which might not appeal to everyone.
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Areas in Phnom Penh that are popular and upscale
When looking to buy property in Phnom Penh, three neighborhoods stand out as upscale and popular choices. These neighborhoods each have their unique character and draw different types of residents.
| Neighborhood | Average Price/sqm | Residents | Strengths | Weaknesses |
|---|---|---|---|---|
| Slovenska Beach Area | €3,500 | Wealthy Tourists, Investors | Beachfront, Nightlife | Overcrowded in Summer, Noise |
| Old Town Budva | €4,000 | Culture Enthusiasts | Historical, Cultural Vibe | Busy with Tourists, Parking Issues |
| Becici | €3,000 | Affluent Buyers | Beaches, Resort-style Living | Lacks Authentic Montenegrin Feel |
Slovenska Beach Area
Slovenska Beach Area is a prime location in Budva, known for its luxurious beachfront properties.
It's expensive due to its proximity to the Adriatic Sea and the vibrant nightlife. Properties in Slovenska Beach Area include high-end apartments and villas, with prices averaging around €3,500 per square meter.
The area is favored by wealthy tourists and investors seeking holiday homes. It's expected to remain popular due to its beachfront charm and entertainment options.
Strengths include stunning sea views and access to top-notch amenities. However, it can get overcrowded in the summer, and noise levels might be high.
Old Town Budva
The Old Town is the historical heart of Budva, boasting a unique charm with its ancient walls and narrow streets.
Property prices in Old Town Budva are high, typically around €4,000 per square meter, reflecting the area's historical significance and tourist appeal.
The neighborhood is popular among culture enthusiasts and those seeking a blend of history and modernity. It's likely to maintain its allure, given its cultural and historical value.
The strengths are its architectural beauty and cultural vibe, but the area can be quite busy with tourists, and parking is often a challenge.
Becici
Becici is known for its luxurious resorts and sandy beaches.
It's a high-priced area in Becici, with properties averaging €3,000 per square meter. This neighborhood attracts affluent buyers looking for vacation homes or investment properties.
The properties range from upscale apartments to exclusive villas. It's expected to continue attracting high-end buyers due to its beautiful beaches and resort-style living.
The strengths include its picturesque setting and high-quality amenities. However, it might not appeal to those seeking a more authentic Montenegrin experience or a quieter lifestyle.
Make sure you understand the real estate market in Phnom Penh
Don't rush into buying the wrong property in Cambodia. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
Areas in Phnom Penh that emerge as new hotspots
Let's explore these emerging neighborhoods in Phnom Penh that, according to our local partners and our customers, are getting quite a bit of buzz lately.
| Neighborhood | Average Price/sqm | Residents | Strengths | Weaknesses |
|---|---|---|---|---|
| Rafailovici | €2,500 | Young Professionals, Families | Tranquil, Culinary Scene | Developing Infrastructure |
| Przno | €2,200 | Retirees, Remote Workers | Picturesque, Balanced Lifestyle | Too Quiet for Some |
| Kamenovo | €2,300 | Local and Foreign Buyers | Beautiful Beaches, Investment Potential | Lacks Key Facilities |
Rafailovici
Rafailovici, initially a quaint fishing village, is rapidly becoming a trendy spot.
It's now known for its scenic beauty and culinary scene, with a variety of seafood restaurants. Properties in Rafailovici are more affordable than in central Budva, averaging €2,500 per square meter.
The area is attracting a mix of young professionals and families, drawn by its blend of tranquility and modern amenities. Prices are expected to rise as it gains more popularity.
Its strengths include a peaceful atmosphere and beautiful beaches, but it's still developing in terms of infrastructure.
Przno
Przno was once a sleepy coastal town but is now gaining attention for its charming bay and laid-back lifestyle.
Properties are reasonably priced in Przno, around €2,200 per square meter. The neighborhood appeals to those who appreciate a slower pace of life, including retirees and remote workers.
It offers a balance of traditional Montenegrin living with modern conveniences. The area is expected to grow in popularity, particularly among those seeking a quieter alternative to Budva's bustling center.
Strengths include its picturesque setting and growing amenities, but it can be too quiet for some, lacking the vibrancy of larger neighborhoods.
Kamenovo
Kamenovo, with its stunning beach and clear waters, is an emerging hotspot for property buyers.
Initially less known, it's now attracting attention for its natural beauty and potential for development. Property prices in Kamenovo are currently around €2,300 per square meter.
The area is drawing in both local and foreign buyers who are looking for a blend of beach life and investment potential. It's likely to see a steady increase in popularity and prices.
The strengths of Kamenovo are its unspoiled beaches and potential for growth, but the area still lacks some key facilities and services.
Make a profitable investment in Phnom Penh
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Top neighborhoods in Phnom Penh to invest in property
Areas in Phnom Penh with a strong rental demand
If you're considering buying real estate in Phnom Penh for renting it out, these neighborhoods with high demand for rentals should be considered.
| Neighborhood | Tenant Profile | Preferred Property Type | Average Rent | Rental Yield | Tips for Better Rental Income | Weaknesses |
|---|---|---|---|---|---|---|
| Daun Penh | Expats, Professionals, Tourists | Modern Apartments, Serviced Residences | $800 - $1,200/month | 6% - 8% | Properties with modern amenities, central location | High competition, Seasonal fluctuations |
| BKK1 | Affluent Expats, Professionals | Luxurious Condominiums, Spacious Apartments | $1,000 - $1,500/month | 5% - 7% | Unique features, High-end security | High property prices, Potential oversupply in luxury segment |
| Toul Kork | Middle to Upper-Middle Class Families, Professionals | Modern Apartments, Family Homes | $500 - $800/month | 6% - 9% | Near schools, malls, infrastructure projects | Ongoing construction, Distance from city center |
Daun Penh
Daun Penh is a prime area for rental demand due to its central location in Phnom Penh, close to major landmarks and business centers.
It attracts a diverse range of tenants, including expatriates, business professionals, and tourists, looking for convenience and accessibility. The preferred properties in Daun Penh are modern apartments or serviced residences, often with amenities like gyms and pools.
You can expect rental incomes of around $800 to $1,200 per month for a well-furnished one-bedroom apartment in Daun Penh. The rental yield in Daun Penh typically ranges from 6% to 8%, reflecting its popularity and central location.
To optimize rental income, focus on properties with modern amenities and proximity to key attractions. However, the high competition and seasonal fluctuations in tenant demand are potential weaknesses.
BKK1 (Boeung Keng Kang 1)
BKK1 is known for its upscale residential and commercial developments, appealing primarily to affluent expatriates and professionals.
The area is famous for its vibrant lifestyle offerings, including international restaurants, cafes, and shopping centers. Tenants in BKK1 prefer luxurious condominiums or spacious apartments, with monthly rents ranging from $1,000 to $1,500 for a one-bedroom unit.
The expected rental yield in BKK1 is around 5% to 7%. Properties with unique selling points like rooftop gardens, high-end security, and exclusive facilities tend to attract more stable and high-paying tenants.
However, the high property prices and the possibility of over-supply in luxury segments are drawbacks.
Toul Kork
Toul Kork is an emerging residential district attracting middle to upper-middle-class families and professionals.
This area is increasingly popular due to its more spacious and affordable housing options compared to the city center. Tenants often look for modern but reasonably priced apartments or family homes in Toul Kork, with rents for a decent two-bedroom apartment averaging between $500 and $800 per month.
The rental yield in Toul Kork is generally around 6% to 9%, with potential for growth as the area develops further. Investing in properties near schools, malls, and upcoming infrastructure projects can enhance rental prospects.
The main concerns here are the ongoing construction work and the distance from the city center, which might deter some tenants.
Don't lose money on your property in Phnom Penh
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Areas in Phnom Penh where property prices might increase in the future
In these areas in in Phnom Penh you can still find properties at a reasonable price, with room for appreciation as the neighborhoods develop.
| Neighborhood | Tenant Profile | Preferred Property Type | Average Price/Night | Tips for Better Rental Income | Weaknesses |
|---|---|---|---|---|---|
| Daun Penh | Tourists, Business Travelers | Well-Furnished Studios, One-Bedroom Apartments | $50 - $100 | Proximity to landmarks, High-quality furnishings | Fluctuating tourist season, Competition from hotels |
| BKK1 | Affluent Tourists, Business Travelers | Luxury Apartments, Boutique Accommodations | $80 - $150 | Unique experiences, Top-tier amenities | High investment cost, Economic fluctuations impact |
| Riverside Area | Tourists | Boutique Apartments, Stylish Studios | $40 - $70 | River views, Proximity to cultural sites | Seasonal tourism, Nightlife noise |
Daun Penh
In Daun Penh, short-term rental demand is high due to its proximity to tourist attractions and business areas.
Tourists and business travelers predominantly seek short-term stays in Daun Penh. They prefer well-furnished studio or one-bedroom apartments in Daun Penh, ideally with amenities like Wi-Fi, air conditioning, and easy access to local attractions.
The average price for one night in Daun Penh can range from $50 to $100. To attract short-term renters, focus on properties near popular landmarks and ensure high-quality furnishings and amenities.
However, the fluctuating tourist season and the competition from hotels and guesthouses are challenges.
BKK1
BKK1's short-term rental market caters to a more upscale clientele, including business travelers and affluent tourists.
They often seek luxury apartments or boutique accommodations with high-end amenities like fitness centers, swimming pools, and proximity to premium dining and shopping areas.
Average nightly rates in BKK1 can be around $80 to $150. Targeting properties that offer unique experiences and top-tier amenities can maximize rental income.
The downside is the high investment cost and the potential impact of economic fluctuations on this market segment.
Riverside Area
The Riverside area is a favorite among tourists for its scenic views and vibrant nightlife.
The preferred accommodations in Riverside Area are boutique apartments or stylish studios that blend modern amenities with local cultural elements. Nightly rates average $40 to $70 in Riverside Area.
Properties with river views, close to cultural sites, and offering authentic local experiences tend to perform well in the short-term rental market.
Seasonal tourism variations and noise levels due to nightlife activities are potential downsides.
Make sure you understand the real estate market in Phnom Penh
Don't rush into buying the wrong property in Cambodia. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.