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 early 2026 is sorting itself out after years of heavy supply, meaning location and building quality now matter far more than hype.
Foreign buyers face specific ownership rules in Cambodia, so knowing which neighborhoods actually deliver returns (and which ones just look good on paper) can save you from costly mistakes.
We constantly update this blog post to reflect the latest data and market shifts.
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.
What's the Current Real Estate Market Situation by Area in Phnom Penh?
Which areas in Phnom Penh have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas for residential property in Phnom Penh are Boeung Keng Kang 1 (BKK1), Tonle Bassac, and the Riverside/Wat Phnom pocket of Daun Penh.
In these prime Phnom Penh neighborhoods, typical condo prices range from around $2,200 to $3,800 per square meter, with BKK1 sitting at the top of that range.
Each of these high-priced areas commands a premium for different reasons:
- BKK1 (Chamkarmon): walkable expat hub with embassies, international schools, and strong resale liquidity for foreigners
- Tonle Bassac (Chamkarmon): newer towers near NagaWorld and the riverfront attract corporate tenants and long-stay professionals
- Daun Penh Riverside/Wat Phnom: historic core with tourism gravity and proximity to government and business districts
Which areas in Phnom Penh have the most affordable property prices in 2026?
As of early 2026, the most affordable areas for residential property in Phnom Penh are Dangkao (especially Prey Sa), Meanchey (Stueng Meanchey and Chak Angre areas), Sen Sok (Tuek Thla and Phnom Penh Thmey), and Russey Keo (Tuol Sangke and Kilometer 6).
In these budget-friendly Phnom Penh neighborhoods, typical condo prices range from around $700 to $1,700 per square meter, with Dangkao often sitting at the lower end.
The main trade-off in these lower-priced Phnom Penh areas is that commute times are longer, tenant demand is thinner (mostly local end-users rather than expats), and resale liquidity can be weak if you need to exit quickly.
You can also read our latest analysis regarding housing prices 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.
Which Areas in Phnom Penh Offer the Best Rental Yields?
Which neighborhoods in Phnom Penh have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods in Phnom Penh with the highest gross rental yields are Toul Kork (especially Boeung Kak 1 and 2), non-BKK1 pockets of Chamkarmon (like Tuol Svay Prey), Sen Sok (Tuek Thla area), and Chroy Changvar, where well-bought units can deliver 6.5% to 9.5% gross yields.
Across Phnom Penh as a whole, typical gross rental yields for investment condos range from about 4% to 8%, depending heavily on purchase price, building quality, and tenant targeting.
Here is why these top-yielding Phnom Penh neighborhoods deliver higher returns:
- Toul Kork (Boeung Kak 1/2): prices sit well below BKK1 while tenant demand from families and office workers stays resilient
- Chamkarmon non-BKK1 (Tuol Svay Prey edges): you get central location rents without paying absolute prime-street prices
- Sen Sok (Tuek Thla/Phnom Penh Thmey): low entry prices combined with growing mid-income tenant demand
- Chroy Changvar (Chrouy Changvar/Prek Leap): river-view units rent well relative to price if building management is solid
Finally, please note that we cover the rental yields in Phnom Penh here.
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Which Areas in Phnom Penh Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Phnom Penh perform best on Airbnb in 2026?
As of early 2026, the neighborhoods in Phnom Penh that perform best on Airbnb are Daun Penh (Riverside/Sisowath Quay area), BKK1 and Tonle Bassac near the dining and embassy corridor, and Tuol Tompoung 1 and 2 (Russian Market), though citywide occupancy sits at only around 38%.
Top-performing Airbnb properties in these Phnom Penh neighborhoods can generate roughly $800 to $1,500 per month in revenue, but this varies significantly based on unit quality, pricing strategy, and seasonality.
Here is what makes each of these Phnom Penh neighborhoods stand out for short-term rentals:
- Daun Penh Riverside/Sisowath Quay: tourists want walkable sightseeing, the Royal Palace, and easy airport pickup access
- BKK1 and Tonle Bassac: business travelers and first-time visitors prefer familiar amenities and restaurant density
- Tuol Tompoung 1/2 (Russian Market): lifestyle travelers book longer stays for the cafe culture and "local feel"
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Phnom Penh.
Which tourist areas in Phnom Penh are becoming oversaturated with short-term rentals?
The tourist areas in Phnom Penh that are becoming oversaturated with short-term rentals are Daun Penh's Riverside/Sisowath Quay strips and nearby lanes, Tonle Bassac condo clusters, and parts of Koh Pich (Diamond Island).
In these oversaturated Phnom Penh areas, there are over 1,000 active Airbnb listings citywide competing for guests, with the highest concentration packed into a few square kilometers around the river.
The clearest sign of oversaturation in these Phnom Penh short-term rental zones is that citywide occupancy has dropped to around 38%, meaning hosts are cutting prices, offering heavy discounts, and still struggling to fill calendars.
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.
Which Areas in Phnom Penh Are Best for Long-Term Rentals?
Which neighborhoods in Phnom Penh have the strongest demand for long-term tenants?
The neighborhoods in Phnom Penh with the strongest demand for long-term tenants are BKK1, Tonle Bassac, and central Daun Penh (Tier 1), followed by Toul Kork and Tuol Tompoung 1/2 (Tier 2), with Sen Sok and Meanchey serving the local professional market (Tier 3).
In these high-demand Phnom Penh neighborhoods, well-priced and well-managed units typically rent within two to four weeks, while vacancy rates for quality stock hover around one month per year.
Here is the type of tenant that drives demand in each of these Phnom Penh neighborhoods:
- BKK1 and Tonle Bassac: expat professionals, embassy staff, and corporate relocations with higher budgets
- Daun Penh central core: NGO workers, hospitality managers, and tourists converting to medium-term stays
- Toul Kork (Boeung Kak areas): families with children attending nearby international schools
- Tuol Tompoung 1/2 (Russian Market): digital nomads, freelancers, and lifestyle expats seeking community
- Sen Sok and Meanchey: local professionals, factory managers, and price-sensitive Cambodian renters
The key amenity that makes these Phnom Penh neighborhoods attractive to long-term tenants is reliable building management (backup power, consistent water pressure, responsive security), which matters more than postcode in determining tenant retention.
Finally, please note that we provide a very granular rental analysis in our property pack about Phnom Penh.
What are the average long-term monthly rents by neighborhood in Phnom Penh in 2026?
As of early 2026, average long-term monthly rents in Phnom Penh's main neighborhoods range from around $400 for a basic one-bedroom in outer districts to over $3,000 for a three-bedroom in BKK1 or Tonle Bassac.
In the most affordable Phnom Penh neighborhoods like Sen Sok, Meanchey, and Russey Keo, entry-level one-bedroom apartments typically rent for $300 to $600 per month.
In average-priced Phnom Penh neighborhoods like Toul Kork and the non-BKK1 parts of Chamkarmon, mid-range two-bedroom apartments typically rent for $1,000 to $1,800 per month.
In the most expensive Phnom Penh neighborhoods like BKK1 and Tonle Bassac, high-end three-bedroom condos typically rent for $2,500 to $5,000 per month.
You may want to check our latest analysis about the rents in Phnom Penh here.
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Which Are the Up-and-Coming Areas to Invest in Phnom Penh?
Which neighborhoods in Phnom Penh are gentrifying and attracting new investors in 2026?
As of early 2026, the neighborhoods in Phnom Penh that are gentrifying and attracting new investors are Tuol Tompoung 1 and 2 (Russian Market), Toul Kork's Boeung Kak side, select pockets of Chroy Changvar along the riverfront, and parts of Sen Sok near Tuek Thla.
These gentrifying Phnom Penh neighborhoods have seen annual price appreciation of roughly 3% to 7% in recent years, though gains vary significantly by specific street and building quality.
Which areas in Phnom Penh have major infrastructure projects planned that will boost prices?
The areas in Phnom Penh with major infrastructure projects likely to boost property prices are the southern corridors toward Kandal and Takeo (benefiting from the new airport) and outer districts connected by the ring road expansion.
The specific projects driving these expectations are Techo International Airport, which opened in September 2025 about 20 kilometers south of the city center, and Phnom Penh Ring Road No.3, which will improve cross-city connectivity to outer districts.
Historically in Phnom Penh, areas with major infrastructure improvements have seen price increases of 10% to 25% over the three to five years following project completion, though this depends heavily on how much the infrastructure actually reduces commute friction.
You'll find our latest property market analysis about Phnom Penh here.
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.
Which Areas in Phnom Penh Should I Avoid as a Property Investor?
Which neighborhoods in Phnom Penh with lots of problems I should avoid and why?
The areas in Phnom Penh that investors should generally approach with caution are STR-heavy micro-lanes in Daun Penh's Riverside area, ultra-cheap condo projects in outer Meanchey and Dangkao far from demand anchors, and any building where management quality is visibly weak.
Here is the main problem affecting each of these Phnom Penh areas:
- Daun Penh Riverside micro-lanes: STR oversupply means low occupancy, price wars, and high guest-complaint risk
- Outer Meanchey/Dangkao fringe projects: weak resale liquidity, high tenant churn, and thin demand beyond first-time local buyers
- Buildings with poor management (any district): power outages, water issues, and security gaps drive away quality tenants
For these Phnom Penh problem areas to become viable investments, they would need either a significant reduction in competing supply (for oversaturated zones), better road connectivity and anchor employers (for fringe areas), or management overhauls with new building committees (for poorly-run buildings).
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Phnom Penh.
Which areas in Phnom Penh have stagnant or declining property prices as of 2026?
As of early 2026, the areas in Phnom Penh with stagnant or weak price performance are not entire districts but rather specific segments, particularly the very top end of BKK1 and Tonle Bassac (trophy towers) and certain high-end riverside units where prices disconnected from achievable rents.
These stagnating Phnom Penh market segments have shown minimal to zero price recovery since 2022, while the more affordable "core segment" has improved noticeably since mid-2024.
Here is the main cause of stagnation in each of these Phnom Penh market segments:
- BKK1 trophy-priced units: prices assumed perpetual foreign demand, but achievable rents do not justify the entry cost
- Tonle Bassac high-end towers: heavy new supply competed for the same tenant pool, flattening both rents and resale values
- Luxury riverside condos (Daun Penh/Koh Pich): view premiums were priced in years ago, leaving little upside
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Which Areas in Phnom Penh Have the Best Long-Term Appreciation Potential?
Which areas in Phnom Penh have historically appreciated the most recently?
The areas in Phnom Penh that have historically appreciated the most over the past five to ten years are BKK1 and Tonle Bassac (for liquidity), Tuol Tompoung and Toul Kork (for balanced entry and demand), and select Chroy Changvar riverfront projects (for infrastructure-driven gains).
Here is the approximate appreciation these top-performing Phnom Penh areas have achieved:
- BKK1 (Chamkarmon): cumulative gains of roughly 30% to 50% over the past decade, though recent years have been flat at the top end
- Tonle Bassac (Chamkarmon): similar trajectory to BKK1, with newer towers outperforming older stock
- Tuol Tompoung 1/2 (Russian Market): steady 4% to 6% annual gains as the area gentrified and expat spillover increased
- Toul Kork (Boeung Kak areas): 3% to 5% annual appreciation driven by family demand and school proximity
The main driver of above-average appreciation in these Phnom Penh areas has been a combination of expat liquidity (meaning you can actually sell to another foreigner), improving retail and lifestyle amenities, and consistent tenant demand that supports valuations.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Phnom Penh.
Which neighborhoods in Phnom Penh are expected to see price growth in coming years?
The neighborhoods in Phnom Penh expected to see the strongest price growth in coming years are southern corridor areas benefiting from Techo International Airport, Toul Kork and Tuol Tompoung (the resilient middle), and select Chroy Changvar projects with proven management.
Here is the projected annual price growth for these high-potential Phnom Penh neighborhoods:
- Southern corridors (Dangkao toward airport routes): 5% to 10% annually if connectivity improvements materialize as planned
- Toul Kork and Tuol Tompoung: 3% to 6% annually, benefiting from stable demand and limited new prime supply
- Chroy Changvar (select buildings): high variance, with winners potentially seeing 5% to 8% and losers staying illiquid
The single most important catalyst expected to drive future price growth in these Phnom Penh neighborhoods is the operational impact of Techo International Airport, which should gradually shift demand patterns southward and reward areas with improved connectivity.
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 Do Locals and Expats Really Think About Different Areas in Phnom Penh?
Which areas in Phnom Penh do local residents consider the most desirable to live?
The areas in Phnom Penh that local Cambodian residents consider most desirable to live are Toul Kork (for family friendliness and space), Sen Sok (for suburban value and newer housing), and parts of Chamkarmon outside the highest-priced BKK1 streets.
Here is what makes each of these areas most desirable to Phnom Penh locals:
- Toul Kork: larger unit sizes, good schools, quieter streets, and a family-oriented community feel
- Sen Sok (Tuek Thla/Phnom Penh Thmey): affordable borey housing, newer construction, and room to grow
- Chamkarmon (non-BKK1 streets): central convenience without paying the maximum premium for an expat address
These locally-preferred Phnom Penh areas tend to attract middle-class Cambodian families, civil servants, and business owners who prioritize space and value over walkability to Western restaurants.
Local preferences in Phnom Penh do differ somewhat from what foreign investors typically target: locals often prefer landed properties (borey houses) and value space over building amenities, while foreigners usually focus on strata-title condos in expat-heavy areas for ownership simplicity and rental demand.
Which neighborhoods in Phnom Penh have the best reputation among expat communities?
The neighborhoods in Phnom Penh with the best reputation among expat communities are BKK1 and Tonle Bassac (the established expat core), central Daun Penh (for convenience), and Tuol Tompoung 1 and 2 (the lifestyle alternative).
Here is the main reason expats prefer these Phnom Penh neighborhoods:
- BKK1: walkable to embassies, international schools, Western supermarkets, and English-speaking services
- Tonle Bassac: newer buildings, corporate-quality amenities, and proximity to business districts
- Daun Penh central (Wat Phnom/Riverside): historic charm, short commutes, and tourist infrastructure
- Tuol Tompoung (Russian Market): cafe culture, lower rents than BKK1, and a more "local" community feel
The expat profile in these popular Phnom Penh neighborhoods tends to be NGO workers, embassy staff, and corporate professionals in BKK1/Tonle Bassac, while Tuol Tompoung attracts more freelancers, entrepreneurs, and digital nomads seeking affordability and character.
Which areas in Phnom Penh do locals say are overhyped by foreign buyers?
The areas in Phnom Penh that locals commonly say are overhyped by foreign buyers are the very top end of BKK1 (trophy-priced units), luxury riverside towers in Daun Penh and Koh Pich, and some high-end Tonle Bassac projects.
Here is the main reason locals believe these Phnom Penh areas are overvalued:
- BKK1 trophy towers: prices assume permanent foreign demand, but rents cannot keep pace with entry costs
- Luxury riverside towers (Daun Penh/Koh Pich): view premiums are already priced in with little room for upside
- High-end Tonle Bassac projects: oversupply of similar units means you compete on price, not differentiation
Foreign buyers typically value the "prime address" cachet, building amenities, and perceived safety of these areas, while locals tend to prioritize practical value: actual square meters per dollar, commute convenience, and long-term family suitability over brand-name positioning.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Phnom Penh.
Which areas in Phnom Penh are considered boring or undesirable by residents?
The areas in Phnom Penh that residents commonly consider boring or undesirable are outer pockets of Meanchey and Dangkao far from retail clusters, deep lanes in Russey Keo with poor road access, and any location where you need a motorbike or car for every errand.
Here is the main reason residents find these Phnom Penh areas boring or undesirable:
- Outer Meanchey/Dangkao fringes: minimal cafes, restaurants, or evening activity, and long commutes to anything interesting
- Deep lanes in Russey Keo: poor walkability, occasional flooding, and limited public transport options
- Any low-amenity outer street (multiple districts): tenants churn quickly because daily life feels inconvenient
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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 |
|---|---|---|
| Knight Frank Cambodia | Global real estate consultancy with consistent research methodology across markets. | We used it for Phnom Penh condo supply, sales-rate trends, and price-per-sqm benchmarks by segment. We also used it for serviced-apartment rent ranges as a proxy for prime long-term rental pricing. |
| IPS Cambodia | Long-running Cambodia-focused brokerage with on-the-ground rental data. | We used it to quantify neighborhood rent bands for condos and villas. We then combined those rent bands with price-per-sqm benchmarks to produce gross yield estimates by neighborhood. |
| National Bank of Cambodia | Cambodia's central bank, the closest thing to official market data. | We used it to anchor the macro direction of residential prices via the Residential Property Price Index. We treat it as the baseline, then layer neighborhood-level private-sector evidence on top. |
| IMF Technical Assistance Report | The IMF explains methodology and data quality in a way you can verify. | We used it to understand how Cambodia's RPPI is built (hedonic index based on mortgage loan data). We also used it as a sanity check for how much confidence to place in national price trends. |
| Airbtics | Provides concrete STR numbers with a stated time window and update date. | We used it to quantify the current STR baseline entering 2026 (occupancy, ADR, supply). We treat it as directional and triangulate it with tourism stats before making oversupply calls. |
| Ministry of Tourism Cambodia | Official government dataset for arrivals and tourism recovery. | We used it to ground Airbnb demand in real visitor numbers and recovery trajectory. We then compared those totals to STR occupancy data to detect oversupply risk. |
| AP News | Major international wire service with strong fact-checking. | We used it to date the Techo International Airport opening as a major demand catalyst. We also used it to identify which corridors south of the city may benefit most. |
| General Department of Logistics | Official Cambodian government site for nationally significant infrastructure. | We used it to justify why some edge districts become more investable once connectivity improves. We then translated that into neighborhood-level implications for renters. |
| Council for the Development of Cambodia | The underlying law text, the highest-authority reference for foreign ownership. | We used it to state the hard constraints on foreigners (only from the 1st floor up, no ground floors). We then tailored all neighborhood advice to property types foreigners can legally control. |
| DFDL | Major regional law firm that cites exact regulations and effective dates. | We used it to translate legal text into practical buying implications. We also used it to highlight common due-diligence steps like title type and floor restrictions. |
| Grant Thornton Cambodia | Top-tier accounting firm that cites capital gains tax regulations directly. | We used it to explain why resale planning matters more in 2026 than it did a few years ago. We also used it to highlight that yield is not just rent, but exit costs matter too. |
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