Should you buy property in Cambodia now?

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

Everything you need to know before buying real estate is included in our Cambodia Property Pack

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 Cambodia. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Cambodian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Phnom Penh, Siem Reap, and Sihanoukville. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What's the current trend in property prices across Cambodia, and how do they differ between Phnom Penh, Siem Reap, Sihanoukville, and secondary cities?

Property prices across Cambodia show significantly different patterns depending on the city, with tourism-dependent areas outperforming the capital as of September 2025.

Phnom Penh's residential market has stabilized with modest growth of 1.7% in 2025. Entry-level condos sell for $1,500-$2,200 per square meter, while high-end options average $2,746 per square meter. The capital's growth remains limited due to oversupply in certain segments and cautious buyer sentiment.

Siem Reap leads Cambodia's price growth with 8-10% annual increases. The median residential price reaches approximately $205,366, with condos averaging $834 per square meter. Villas have experienced 15-20% appreciation since 2023, driven by tourism recovery and the new Siem Reap-Angkor International Airport expansion.

Sihanoukville's coastal property market shows 5-10% annual growth, with apartments averaging $1,600 per square meter. The city continues recovering from previous market volatility, supported by infrastructure investments and renewed foreign capital interest.

Secondary cities like Kep, Kampot, and Chroy Changvar often outperform Phnom Penh with growth rates of 7-12%. These markets benefit from domestic migration patterns and growing expatriate communities seeking more affordable lifestyle options.

How much rental yield can you realistically expect in each major area right now, and how do short-term vs long-term rentals compare?

Rental yields across Cambodia vary significantly by location and rental strategy, with secondary cities and tourism areas offering the highest returns as of September 2025.

City	Gross Rental Yield	Short-term Rental Performance
Phnom Penh	6.5-7.5% (avg 6.55%)	Slightly higher yields but more vacancy risk
Siem Reap	7.9-8.5%	Highly attractive, 85% occupancy rates
Sihanoukville	7.9-8.5%	Strong coastal tourism demand
Kep/Kampot	7.08-8.28%	Both strategies work well
Chroy Changvar	7%+	Emerging market potential
Koh Rong	7%+	Island tourism premium

Phnom Penh offers the most stable but lowest yields at 6.55% average. Larger units with more than three bedrooms and upscale segments can achieve yields up to 7.79%. Short-term rentals targeting digital nomads and business travelers can outperform long-term rentals but carry higher vacancy risks during low seasons.

Tourism-driven areas like Siem Reap and Sihanoukville consistently deliver 7.9-8.5% yields. Short-term rentals in these locations benefit from robust tourism recovery, with occupancy rates reaching 85% for well-managed properties. The airport expansion in Siem Reap particularly boosts short-term rental attractiveness.

Secondary cities provide excellent yield opportunities, with Kep and Kampot offering up to 8.28% on three-bedroom apartments. These markets work well for both short-term vacation rentals and long-term expatriate tenants seeking lifestyle destinations.

What are the official transaction costs, taxes, and fees you'll face when buying, renting out, or selling property in Cambodia?

Transaction costs in Cambodia remain relatively low compared to regional markets, but several fees and taxes apply throughout the property ownership cycle.

Purchase costs include a 4% transfer tax applied to the registered property value, which represents the largest single expense. Agent fees typically range from 1-2% of the purchase price. Legal fees for proper due diligence cost $800-$2,000, which is essential for foreign buyers navigating local regulations.

First-time buyers purchasing homes under $70,000 receive transfer tax exemptions under current government incentive programs, making entry-level properties more accessible.

Rental income faces a 10% standard tax rate for individuals. Non-resident landlords may face additional withholding requirements, making proper tax planning important for foreign property owners.

Capital gains tax has been set at an effective rate of 20% since 2024. However, many private sales still bypass formal channels, creating potential risks for foreign sellers who need proper documentation for future exits.

Ongoing ownership costs include property management fees, maintenance, and government housing fund contributions that vary by project. Condominium owners typically pay $1.50-$4 per square meter monthly for building management and shared facilities.

How are foreign ownership laws currently applied in practice, and do they vary by property type such as condos, land, or commercial real estate?

Foreign ownership rules in Cambodia create clear distinctions between different property types, with condos remaining accessible while land ownership faces significant restrictions.

Condominiums offer the most straightforward foreign ownership path. Foreigners can own up to 70% of any strata-title building above the ground floor. This ownership grants full title rights for the specific unit but not the underlying land. Condo resale and rental practices operate freely under current regulations.

Land and commercial properties prohibit direct foreign ownership entirely. Foreign investors must use leasehold arrangements limited to 50 years, Cambodian nominee structures, or company ownership vehicles. Each approach carries distinct legal risks that require careful evaluation.

Nominee arrangements, while common in practice, create ongoing legal vulnerabilities since the Cambodian citizen holds legal title. Company structures offer more control but require maintaining proper corporate governance and may face future regulatory changes.

Leasehold agreements provide legal security for the lease term but limit financing options and eventual exit strategies. Most institutional lenders prefer freehold titles, making leveraged purchases more challenging with leasehold properties.

It's something we develop in our Cambodia property pack.

What is the supply vs demand situation in the condo market, the landed house market, and the land market over the short term, medium term, and long term?

Cambodia's property supply and demand dynamics vary significantly across different market segments and time horizons, with distinct patterns emerging in each major category.

The condominium market faces oversupply risks in the short term, particularly in downtown Phnom Penh where many new units remain unsold. Developers built extensively during the pre-2018 boom, creating inventory that still impacts pricing and absorption rates. However, mid-range and affordable segments show stronger demand as domestic buyers enter the market.

Medium-term condo demand should stabilize as urbanization continues and tourism recovery supports vacation rental demand. Secondary cities like Siem Reap and Sihanoukville show healthier supply-demand balance due to infrastructure improvements and growing expatriate communities.

Long-term condo prospects remain positive given Cambodia's young population and continued economic development. Government housing policies favor sustained demand growth, though speculative excess could create future volatility in luxury segments.

The landed house market shows more balanced supply-demand fundamentals across all time periods. Domestic buyers prefer houses when affordable, creating steady demand in suburban and secondary city markets. Supply remains constrained by land availability near urban centers, supporting price stability.

Land markets face the most complex dynamics. Short-term demand comes primarily from developers and speculators, while long-term demand reflects genuine urbanization needs. Foreign ownership restrictions limit speculative pressure but also reduce capital inflows for development projects.

How have property values performed historically in Cambodia over the past 5–10 years, and what patterns can we expect going forward?

Cambodia's property market experienced dramatic cycles over the past decade, with distinct phases of boom, correction, and gradual recovery that inform current expectations.

The 2015-2018 period saw explosive price growth driven by Chinese investment and speculative demand. Many areas experienced 20-30% annual appreciation, creating unsustainable market conditions that peaked around 2018.

From 2018-2020, prices plateaued and began declining in many segments as speculative demand cooled and regulatory changes reduced foreign capital flows. The COVID-19 pandemic accelerated these declines, particularly in tourism-dependent areas and luxury segments.

The 2021-2025 recovery phase shows more sustainable growth patterns. Phnom Penh has largely stabilized with modest increases, while tourism-dependent areas like Siem Reap and coastal cities outperform due to infrastructure development and visitor recovery.

Forward patterns suggest mid-to-high single-digit growth in well-located properties outside oversupplied central Phnom Penh areas. Tourism and infrastructure-rich locations should experience faster appreciation, potentially reaching 8-12% annually in favorable conditions.

The key difference from the previous boom is more balanced demand sources, with domestic buyers and genuine end-users playing larger roles alongside foreign investors. This suggests more sustainable growth patterns moving forward, though regional economic volatility remains a risk factor.

What infrastructure projects, government policies, or foreign investments are most likely to influence property prices in the next 3–5 years?

Several major infrastructure and policy developments will significantly impact Cambodia's property markets through 2030, creating both opportunities and regional variations in growth potential.

1. **Siem Reap-Angkor International Airport expansion** represents the most transformative single project for property values. The enhanced facility already drives tourism growth and property appreciation in Siem Reap, with effects likely continuing through 2027-2028.2. **Phnom Penh satellite city developments** include new highways, affordable housing projects, and mixed-use developments that expand the capital's urban footprint. These projects create new growth corridors while potentially pressuring central city rental rates.3. **Government transfer tax incentives** for affordable housing support first-time buyer demand and help absorb existing inventory. These policies particularly benefit properties under $70,000, stimulating mid-market segments.4. **Sihanoukville infrastructure investments** continue attracting foreign direct investment despite previous volatility. New port facilities, road improvements, and mixed-use mega projects support the coastal property recovery.5. **Digital infrastructure improvements** including expanded fiber internet and 5G networks make secondary cities more attractive for remote workers and digital nomads, supporting property demand in previously overlooked markets.

Chinese belt-and-road investments remain influential, though patterns have shifted toward more sustainable development projects rather than speculative construction. Japanese and South Korean investments increasingly focus on manufacturing and logistics, creating employment-driven housing demand in specific regions.

It's something we develop in our Cambodia property pack.

How much budget do you realistically need to buy in central Phnom Penh versus outskirts, secondary cities, or coastal areas right now?

Budget requirements vary dramatically across Cambodia's property markets, with central Phnom Penh commanding premium prices while secondary cities offer significantly more affordable entry points.

Central Phnom Penh condos require $1,500-$2,746 per square meter, making a typical 2-bedroom unit cost approximately $238,000. When including transaction costs, legal fees, and initial setup expenses, buyers should budget around $250,000-$260,000 total for a quality central condo.

Phnom Penh outskirt areas and satellite developments offer more affordable options, with decent condos starting around $1,200-$1,500 per square meter. A 2-bedroom unit might cost $180,000-$200,000 including all costs, making these areas attractive for budget-conscious buyers.

Siem Reap provides excellent value at approximately $834 per square meter for condos. A comfortable 2-bedroom apartment costs around $120,000-$150,000 total, while villas start from $200,000 in good locations. The tourism potential adds investment upside to these lower entry costs.

Sihanoukville coastal properties average $1,600 per square meter, placing them between Phnom Penh and Siem Reap. Beach-proximity apartments cost $180,000-$220,000 for 2-bedroom units, with oceanview premiums adding 20-30% to base prices.

Secondary cities like Kampot and Kep offer the most affordable options, with 1-bedroom apartments starting at $99,500-$120,000 and villas from $150,000. These markets appeal to lifestyle buyers seeking lower costs and slower-paced living environments.

If you want to live in Cambodia, which neighborhoods and property types make the most sense today in terms of livability and future value?

Choosing the right neighborhood and property type in Cambodia depends on your lifestyle preferences, budget, and long-term plans, with each major area offering distinct advantages for residents.

Phnom Penh's BKK1 and BKK3 districts provide the best expat-friendly condo living with international amenities, restaurants, and services within walking distance. These central areas offer excellent connectivity and urban conveniences, though at premium prices. Sen Sok district appeals to families seeking suburban houses with more space and local community integration.

Chroy Changvar represents Phnom Penh's emerging riverfront development zone, offering modern condos and planned communities with better value than traditional central areas. The infrastructure development and river views create both lifestyle benefits and future appreciation potential.

Siem Reap city center provides villa and apartment options within reach of restaurants, cultural sites, and international services. The growing Western expat community creates social networks and support systems that ease the transition for newcomers. Property types range from traditional Khmer houses to modern serviced apartments.

Sihanoukville's Victory Beach and Serendipity Beach areas offer coastal living with tourism rental potential. Beach proximity commands premium prices but provides unique lifestyle benefits and potential income streams through vacation rentals.

Secondary cities like Kampot, Kep, and Koh Rong attract residents seeking peaceful, nature-focused lifestyles at lower costs. These locations work well for retirees, remote workers, and those prioritizing lifestyle over urban conveniences. Property liquidity remains lower, making them better for longer-term residents.

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.

If you want to rent out a property, which areas and types of properties currently give the best occupancy rates and returns?

Rental property success in Cambodia varies significantly by location and target tenant type, with tourism-focused areas and expatriate communities providing the most reliable returns as of September 2025.

Siem Reap delivers the strongest rental performance with short-term villas and serviced apartments achieving top occupancy rates from tourism recovery. The airport expansion creates sustained demand from international visitors, while the growing expat community supports long-term rental markets. Properties near Angkor Wat and city center achieve 85% occupancy rates for short-term rentals.

Kampot and Kep provide excellent stable yields for long-term rentals targeting retirees and lifestyle expatriates. These markets offer 7-8.3% yields with lower management intensity and more predictable tenant relationships. Properties with gardens, traditional architecture, or river access command premium rents.

Phnom Penh's central condos perform well when targeting specific niches like digital nomads, business travelers, and expatriate professionals. Generic properties face more competition due to oversupply, but well-located, fully-furnished units with modern amenities can achieve above-average returns. BKK1 and BKK3 areas maintain strongest demand.

Sihanoukville's coastal properties benefit from both tourism and business travel, particularly during dry season months. Beach-access apartments and houses with pools achieve premium rates, though seasonal variation requires careful financial planning.

Emerging areas like Chroy Changvar and other Phnom Penh satellite developments offer growth potential as infrastructure improves, but require more market timing and patience for optimal returns.

If you want to resell later, which property types and locations are the most liquid and easiest to exit from in the Cambodian market?

Property liquidity in Cambodia varies dramatically by type and location, with certain segments offering much quicker and more reliable exit opportunities for investors.

Phnom Penh condos, particularly 1-2 bedroom units in central areas, provide the highest liquidity in Cambodia's market. Strata-title properties sell fastest due to clear foreign ownership rights and established buyer demand. Central districts like BKK1, BKK2, and BKK3 maintain active secondary markets with reasonable price discovery.

Siem Reap villas and condos offer strong liquidity due to sustained tourism growth and expatriate community expansion. Properties near cultural sites, restaurants, and international amenities sell more quickly than remote locations. The airport expansion supports continued buyer interest from both investors and end-users.

Coastal apartments in Sihanoukville and nearby areas benefit from foreign investment interest and tourism potential. Beach-access properties, while more expensive, typically offer better liquidity than inland alternatives due to lifestyle appeal and rental income potential.

Landed homes in satellite towns and secondary cities present more challenging liquidity situations. These properties depend heavily on local development pace and infrastructure completion. Buyers should plan longer holding periods and have patient capital for these investments.

Commercial properties and raw land require specialized buyer knowledge and longer marketing periods. These segments work better for experienced investors with specific exit strategies rather than general market participants seeking quick liquidity.

Foreign buyers should prioritize clear title properties with proper documentation, as legal complications significantly impact resale timeline and pricing. Proper legal review during purchase protects future exit options.

What risks should you factor in—such as oversupply, political changes, or global economic trends—and how do they impact short, medium, and long-term buyers differently?

Cambodia's property market faces several distinct risk categories that affect different investor time horizons in varying ways, requiring careful consideration for successful investment outcomes.

Oversupply risks remain most acute in Phnom Penh's condominium market, where unsold inventory continues impacting pricing and absorption rates. Short-term buyers face immediate price stagnation risks in central districts, while medium-term holders may need 3-5 years for market absorption. Long-term investors can potentially benefit from below-replacement-cost purchase prices if they select well-located properties.

Legal and title risks create ongoing concerns for foreign property owners. Land purchase arrangements using nominees or complex corporate structures face potential future scrutiny as regulations evolve. Short-term buyers have limited exposure, while medium and long-term holders face increasing regulatory change risks over time.

Policy and tax changes represent significant variables in Cambodia's developing regulatory environment. The recent introduction of 20% capital gains tax demonstrates how quickly rules can change. Short-term buyers may benefit from current incentives, while longer-term holders face more policy cycles and potential adverse changes.

Political and economic volatility affects Cambodia's property market through global economic cycles and regional stability. Chinese investment patterns particularly influence market conditions, creating boom-bust cycles. Short-term buyers face higher volatility risk, while long-term investors can potentially ride through cycles if they maintain adequate liquidity.

Infrastructure development delays create timing risks for appreciation-dependent strategies. Projects can boost property values significantly when completed, but slow execution holds back short-term gains while potentially benefiting patient long-term holders who purchase before infrastructure completion.

Global economic trends, including interest rate changes, commodity prices, and regional growth patterns, influence foreign investment flows and domestic purchasing power. These factors create cyclical risks across all time horizons but particularly impact short-term buyers who lack time to weather economic cycles.

It's something we develop in our Cambodia property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. IPS Cambodia - Phnom Penh Condo Market Trends 2025
2. Global Property Guide - Cambodia Price History
3. BambooRoutes - Siem Reap Price Forecasts
4. Global Property Guide - Cambodia Rental Yields
5. Asia Property Awards - Cambodia Real Estate Recovery
6. InvestAsian - Cambodia Property Investment Guide
7. B2B Cambodia - Real Estate Mid-Year Review 2025
8. RealEstate.com.kh - Cambodia Condominium Report 2025