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 is showing signs of stabilization with modest price growth and attractive rental yields.
As of September 2025, residential property prices in Cambodia's capital are experiencing steady appreciation after a period of market volatility, with current prices ranging from $1,600 to $3,000 per square meter depending on location and property type. The market offers compelling opportunities for both personal use and investment purposes, particularly given the city's projected economic growth of 5.5% annually over the next three years.
If you want to go deeper, you can check our pack of documents related to the real estate market in Cambodia, based on reliable facts and data, not opinions or rumors.
Phnom Penh's residential property market offers stable investment opportunities with prices ranging $1,600-$3,000 per square meter and rental yields of 6-8%.
The market shows modest growth with 5-10% annual appreciation expected through 2026, supported by government incentives and infrastructure development.
| Market Indicator | Current Status | Outlook (2025-2030) |
|---|---|---|
| Average Price per sqm | $1,600 - $3,000 | 5-10% annual growth |
| Rental Yield | 6-8% | Stable |
| Vacancy Rate | 8% | Improving |
| Economic Growth | Recovering | 5.5% annually |
| Foreign Ownership | Condos only | No change expected |
| Entry Budget (Condo) | $90,000 - $110,000 | Rising moderately |
| Prime Areas Growth | BKK1, Tonle Bassac | Strongest appreciation |
What is the current price per square meter in Phnom Penh for residential properties?
Residential properties in Phnom Penh currently cost between $1,600 and $3,000 per square meter as of September 2025.
Luxury condominiums in prime locations command prices upwards of $2,650 per square meter, while mid-range units average between $1,300 and $1,900 per square meter. The price variation depends primarily on location, with central districts like BKK1 and Tonle Bassac at the higher end of the spectrum.
Entry-level properties in developing areas start around $1,600 per square meter, making them accessible for first-time buyers. Premium developments with high-end finishes and prime locations can exceed $3,000 per square meter, particularly in areas popular with expatriates and affluent locals.
These prices represent a stabilized market after previous volatility, with properties now offering more predictable pricing structures across different segments.
How have property prices in Phnom Penh changed over the last 12 months?
Phnom Penh property prices experienced modest growth over the past 12 months, with a nominal increase of 1.72% in 2024.
However, when adjusted for inflation, prices fell slightly, indicating that real purchasing power for properties remained relatively stable. High-end condominiums saw a nominal decline during this period, reflecting market corrections in the luxury segment.
The overall market has stabilized significantly compared to previous years of volatility. This stabilization comes after a period of rapid price fluctuations that characterized the Phnom Penh market in earlier years.
The modest growth rate suggests a maturing market where dramatic price swings are becoming less common, providing more predictability for both buyers and investors.
What are the predicted property price trends for the next 1 to 5 years in Phnom Penh?
Property prices in Phnom Penh are forecasted to appreciate by 5-10% annually through 2026, with growth moderating to 5-7% per year from 2026 to 2030.
Prime condominium sectors are expected to climb from current levels of around $2,100 to approximately $3,000 per square meter by 2030. This represents a cumulative increase of 42% over the five-year period.
The stronger growth in the initial years reflects pent-up demand and ongoing infrastructure development projects. The moderation in later years indicates market maturity and stabilization at higher price levels.
Mid-tier properties are likely to see the most consistent appreciation, while luxury segments may experience more volatile growth patterns depending on international buyer sentiment.
It's something we develop in our Cambodia property pack.
What are the key factors driving property prices up or down in Phnom Penh right now?
Several key factors are currently influencing Phnom Penh property prices in both directions.
Upward price drivers include:
- Government incentives for property buyers, including tax breaks and simplified procedures
- Major infrastructure development projects such as new roads, bridges, and urban planning initiatives
- Rising demand from young Cambodian families and growing expatriate communities
- Diversifying foreign investment beyond traditional Chinese buyers
- Post-pandemic economic recovery boosting consumer confidence
Downward pressure factors include:
- Oversupply in the luxury condominium segment causing price corrections
- Economic uncertainty affecting high-end buyer sentiment
- Competition from other Southeast Asian markets for international investment
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Which areas in Phnom Penh are seeing the most growth or decline in property prices?
BKK1 and Tonle Bassac districts are experiencing the strongest property price growth in Phnom Penh.
These central areas attract expatriates and luxury buyers, driving consistent price increases due to their proximity to business districts, international schools, and lifestyle amenities. The concentration of high-end restaurants, shopping centers, and diplomatic missions makes these areas particularly desirable.
Suburban and affordable districts such as Chbar Ampov and Chroy Changvar are also seeing rapid development and price appreciation. These areas benefit from infrastructure investment and offer better value propositions for local buyers and young families.
Areas experiencing slower growth or oversupply include parts of the luxury condominium market in non-central districts. Some peripheral areas without direct infrastructure improvements are seeing more modest price movements.
The strongest growth corridors follow new road developments and planned urban expansion zones, making location selection crucial for investment success.
How do prices vary between different types of properties (condos, houses, land, etc.) in Phnom Penh?
| Property Type | Price Range | Key Characteristics |
|---|---|---|
| Condominiums | $1,600 - $3,000 per sqm | Luxury central areas at top end |
| Single-family homes (suburban) | $150,000 - $200,000 | Family-oriented neighborhoods |
| Single-family homes (citywide) | $94,963 - $553,315 | Wide variation by location |
| Land (central areas) | $300 - $8,500 per sqm | Premium locations command highest prices |
| Land (periphery) | $70 - $2,000 per sqm | Development potential areas |
| Luxury condos | $2,650+ per sqm | High-end finishes and amenities |
| Mid-range condos | $1,300 - $1,900 per sqm | Standard finishes, good locations |
What is the rental yield in Phnom Penh for residential properties, and how has it changed over the past year?
Rental yields for residential properties in Phnom Penh remain stable and attractive at 6-8% gross yield.
This yield level positions Phnom Penh among the highest-performing rental markets in Southeast Asia. The yields have remained relatively unchanged over the past year due to steady demand from both local and international renters.
The stability in rental yields reflects a balanced market where rent increases have kept pace with property price appreciation. Strong demand from expatriate workers, young professionals, and students supports consistent rental income.
Properties in central districts and near business hubs tend to achieve yields at the higher end of the range, while suburban properties may see yields closer to 6%.
It's something we develop in our Cambodia property pack.
What is the vacancy rate for rental properties in Phnom Penh currently?
The current vacancy rate for rental properties in Phnom Penh is approximately 8% as of September 2025.
This represents a significant improvement from previous years when vacancy rates were higher due to market oversupply concerns. The reduction indicates that market conditions have stabilized and excess supply has been absorbed by growing demand.
The 8% vacancy rate is considered healthy for a developing market, allowing for normal tenant turnover while maintaining strong occupancy levels. Different property segments show varying vacancy rates, with mid-range properties typically experiencing lower vacancies than luxury units.
The improvement in vacancy rates supports the stability of rental yields and indicates a more balanced supply-demand dynamic in the rental market.
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.
What is the outlook for the local economy in Phnom Penh over the next 1 to 3 years?
Phnom Penh's economy is projected to grow at 5.5% annually over the next three years, supporting sustained property demand.
Key economic drivers include continued urbanization as rural populations migrate to the capital for employment opportunities. The city's young population demographic provides a strong foundation for economic expansion and housing demand.
Post-pandemic recovery continues to boost various economic sectors including tourism, manufacturing, and services. Government infrastructure investments are creating jobs and improving the business environment.
The diversification of foreign investment sources beyond traditional markets is strengthening economic resilience. New industries and service sectors are establishing operations in Phnom Penh, creating employment opportunities that support property demand.
What are the expected returns for reselling property in Phnom Penh in the next 3 to 5 years?
Returns for reselling property in Phnom Penh over the next 3-5 years are expected to be 5-10% annually for well-positioned assets.
Properties in prime districts and mid-tier segments are likely to see higher returns due to both capital appreciation and strong rental yields during the holding period. The combination of rental income and price appreciation can provide total returns exceeding 10% annually for optimal properties.
Well-located condominiums and single-family homes in developing areas with infrastructure improvements are expected to outperform the market average. Properties near new transportation links and business districts should see the strongest appreciation.
The returns assume normal market conditions and proper property selection, with location and timing being crucial factors in achieving optimal results.
What legal considerations or regulations should a foreigner be aware of when buying property in Phnom Penh?
Foreigners can own condominiums above the ground floor but cannot directly own land in Cambodia.
Key legal requirements include:
- Properties must be registered under a strata title system for condominium ownership
- Verification of project licensing and developer credentials before purchase
- Due diligence on the developer's reputation and financial standing
- Legal review of all purchase contracts and ownership documents
- Understanding of foreign ownership limits within condominium buildings
- Proper registration with relevant government authorities
It's something we develop in our Cambodia property pack.
What budget is required for buying a property in Phnom Penh for personal use versus for investment or rental purposes?
| Purpose | Property Type | Budget Range |
|---|---|---|
| Personal Use - Entry Level | Basic Condos | $90,000 - $110,000 |
| Personal Use - Mid Range | Quality Condos | $110,000 - $180,000 |
| Personal Use - Luxury | Premium Condos | $185,000+ |
| Investment - High Yield | Rental-focused Properties | $95,000 - $150,000 |
| Investment - Diversified | Mixed Portfolio | $150,000 - $250,000 |
| Investment - Premium | Prime Locations | $200,000 - $400,000 |
| Land Investment | Development Plots | $50,000 - $300,000+ |
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.
Phnom Penh's property market offers compelling opportunities for both personal use and investment purposes, with stable rental yields of 6-8% and projected annual price appreciation of 5-10% through 2026.
The market has stabilized after previous volatility, with improved vacancy rates, strong economic growth prospects, and continued infrastructure development supporting long-term property values.
Sources
- Phnom Penh Price Forecasts - BambooRoutes
- Condo Prices Phnom Penh - BambooRoutes
- Phnom Penh Condo Market Trends 2025 - IPS Cambodia
- Cambodia Price History - Global Property Guide
- Cambodia Price Forecasts - BambooRoutes
- Phnom Penh Condominium Market Evolution - Cambodia Investment Review
- Buy House Cambodia - Realestate.com.kh
- Cambodia Square Meter Prices - Global Property Guide