Is buying a property in Toul Kork a good investment?

Last updated on December 20, 2023

Yes, the analysis of Phnom Penh's property market is included in our pack

If you've marveled at the suburban charm and family-friendly vibe of Toul Kork, you might have contemplated settling in this peaceful Phnom Penh district, immersing yourself in its relaxed atmosphere and amenities.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Cambodia, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Toul Kork?

Toul Kork, a district in Phnom Penh, has gradually emerged as a sought-after location for property buyers, distinguishing itself from other real estate markets in several ways.

It offers a unique blend of urban living and tranquility, a combination that's quite rare in bustling cities. Unlike the more crowded and commercial areas like Daun Penh or Chamkar Mon, Toul Kork provides a more residential and laid-back atmosphere. This is especially appealing for those who desire city life without the constant hustle and bustle.

The rise in Toul Kork's popularity as a property hotspot can be traced back to the early 2000s. It was around this time that Phnom Penh began expanding, and Toul Kork, with its spacious land and strategic location, became a prime area for development. What really set it apart was its planning.

Unlike some other rapidly developing areas, Toul Kork maintained a sense of order and space, avoiding the trap of becoming overly congested. This foresight in urban planning is a key factor in its enduring appeal.

As for the hype surrounding Toul Kork, it doesn't seem to be a passing trend. The district has consistently attracted a diverse range of buyers and investors. Its appeal lies in its blend of modern amenities and peaceful residential areas.

You'll find high-end condominiums and villas alongside more modest homes, catering to a wide range of preferences and budgets. This diversity in housing options attracts a varied demographic, from young professionals and expatriates to well-to-do Cambodian families.

The type of people drawn to Toul Kork are often those looking for a balance between a modern lifestyle and a peaceful living environment.

They appreciate the district's quality schools, supermarkets, and restaurants, which offer convenience without the intensity of central city life. The presence of international schools and various cultural amenities also makes it appealing to expatriates.

However, like any area, Toul Kork has its drawbacks. One of the main issues is the price of property, which is relatively high compared to other districts in Phnom Penh. This can be a barrier for some buyers, particularly those looking for more affordable options.

Additionally, while Toul Kork is less congested than some central areas, traffic can still be a concern, especially during rush hours. This is a common challenge in growing urban areas and something potential buyers should consider.

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Why is Toul Kork a nice place to live?

Toul Kork has garnered a reputation as a desirable place to live, and for good reason.

The lifestyle and culture there are a harmonious blend of modern living and traditional Cambodian charm. It's an area where you can find bustling markets alongside trendy cafes and restaurants, reflecting a diverse cultural tapestry.

This balance makes it an ideal spot for those who enjoy a contemporary lifestyle but also appreciate a sense of local community.

The expat community in Toul Kork is thriving, thanks in part to the area's quality amenities and its welcoming atmosphere. Expatriates from various countries have made Toul Kork their home, drawn by its cosmopolitan feel and the ease of living.

This multicultural presence adds to the district's vibrant character, with international restaurants and cultural events commonplace.

When it comes to living costs, Toul Kork can be seen as a mid-range option in Phnom Penh. While it's not as expensive as some of the city's more upscale areas, the cost of living here is somewhat higher than in other districts.

Housing, in particular, can vary widely in price, with luxury villas and modern condos available alongside more affordable apartments. The cost will largely depend on your lifestyle choices and housing preferences.

Safety in Toul Kork is generally considered good, especially compared to other urban areas. Like any city district, it's wise to take standard precautions, but residents often speak of a sense of community and security.

In terms of amenities, Toul Kork is well-equipped. You'll find reputable educational institutions such as the International School of Phnom Penh and Zaman International School, making it a popular choice for families.

Healthcare needs are well-catered for with facilities like the Royal Phnom Penh Hospital offering quality medical services. Shopping and leisure are also well taken care of, with TK Avenue Mall being a notable destination for shopping, dining, and entertainment.

The infrastructure in Toul Kork is relatively well-developed. Roads are generally in good condition, and there's ongoing investment in improving utilities and services. Internet connectivity is reliable, which is a significant plus for expatriates and locals working from home or managing businesses.

In terms of accessibility, Toul Kork is conveniently located. While it's slightly removed from the city's bustling center, it's easily reachable via main roads. This makes travel to other parts of Phnom Penh fairly straightforward.

For travel further afield, Phnom Penh International Airport is not too distant, making it convenient for those who travel frequently.

Public transportation options in Toul Kork, as in much of Phnom Penh, are still developing. While there are buses and an increasing number of ride-hailing services, many residents prefer using personal vehicles or motorcycles for daily commuting.

How much does it cost to buy real estate in Toul Kork?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Cambodia.

When looking at the cost of buying property in Toul Kork, it's important to understand the variety of residential properties available and the dynamics of the local real estate market.

In Toul Kork, you'll find a range of properties including apartments, houses, and luxury villas. Each type caters to different preferences and budgets, but there's a noticeable trend towards high demand for modern apartments and luxury villas.

This demand is driven by the district's reputation as a more upscale and well-planned area of Phnom Penh, attracting a mix of affluent locals, expatriates, and investors.

The types of properties in Toul Kork vary greatly. Apartments, especially in new developments, are popular among those seeking a modern, urban lifestyle. These are often favored by young professionals and small families.

On the other hand, larger houses and luxury villas are sought after by more affluent buyers looking for spacious living and exclusivity.

In terms of market dynamics, Toul Kork has seen a mix of new developments and resale properties. New developments are particularly attractive as they often come with modern amenities and are seen as a sign of the area's ongoing growth and modernization.

The presence of these new developments, alongside well-maintained resale properties, provides a broad range of options for buyers.

The price range for properties in Toul Kork can vary significantly based on the type and location of the property.

Generally, prices per square meter can range widely. For instance, apartments might have a different price range per square meter compared to luxury villas, which are typically at the higher end of the spectrum.

It's important to note that these prices are influenced by factors like the property's size, condition, amenities, and exact location within the district.

Over recent years, property values in Toul Kork have shown a trend of appreciation. This can be attributed to the district's development, increasing demand, and its growing reputation as a desirable place to live. The area has seen continuous investment in infrastructure and amenities, which has positively impacted property values.

Looking at future developments, any upcoming projects or city planning changes could potentially affect property values in Toul Kork.

For instance, new commercial developments, improvements in infrastructure, or the addition of public amenities like parks or schools can make the area even more attractive, potentially driving up property prices.

Predictions for the real estate market in Toul Kork in the coming years remain optimistic. The area is likely to continue attracting investment and interest from buyers, particularly if the trend of well-planned development continues.

Factors such as the ongoing development of amenities, the district's strategic location, and its reputation as a safe and upscale area are likely to continue driving interest and potentially increasing property values.

Where is the best area to buy a property in Toul Kork?

Choosing the best area to buy a property in Toul Kork, depends largely on what you're looking for in terms of atmosphere, property types, and your budget.

One key area to consider is the vicinity around TK Avenue. This part of Toul Kork is known for its modern urban feel. It's a bustling area with a blend of residential and commercial properties, including apartments, shops, and restaurants.

The atmosphere here is lively and vibrant, making it appealing for those who enjoy being in the heart of activity. The properties in this area are relatively new, often featuring contemporary designs and amenities.

However, the popularity and modernity of this area mean that prices tend to be higher compared to other parts of Toul Kork.

If you prefer a quieter, more residential setting, areas like Boeung Kak 2 might be more suitable. This part of Toul Kork offers a more laid-back atmosphere, with a mix of traditional houses and newer developments.

The property prices here can be more moderate, making it a good option for families or those looking for a quieter lifestyle while still being close to the city's conveniences.

For buyers looking for up-and-coming areas within Toul Kork, it's worth keeping an eye on regions undergoing new developments. Areas undergoing revitalization or where new infrastructure projects are taking place could be potential hotspots in the future.

In terms of areas where it might be advisable to look for a property, consider the parts of Toul Kork that are well-connected to main roads and amenities. Areas near international schools, hospitals, and shopping centers are often sought after. They not only offer convenience but also tend to maintain their value well over time.

On the contrary, areas that are less developed or have less access to amenities might not be as desirable. These might include regions on the outskirts of Toul Kork or areas that are more prone to traffic congestion.

While properties in these areas might be more affordable, they could also pose challenges in terms of daily convenience and long-term value.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Cambodia.

Area	Atmosphere	Property Types	Price Level
TK Avenue Vicinity	Lively, Urban	Modern Apartments, Commercial Properties	Higher
Boeung Kak 2	Quiet, Residential	Traditional Houses, New Developments	Moderate
Emerging Areas	Varies, Potential Growth	Varied, Often Newer Developments	Varies, Potentially More Affordable
Less Developed Outskirts	Less Accessible, Congested	More Affordable Housing	Lower

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Is there a strong rental demand in Toul Kork?

The rental market in Toul Kork, indeed shows a strong demand, but the nature of this demand varies based on several factors including the duration of rental, target demographic, type of properties, and specific areas within the district.

In terms of rental duration, there's a notable demand for both short-term and long-term rentals, but they cater to different demographics. Short-term rentals are popular among tourists, business travelers, and expatriates on temporary assignments. These tenants often look for fully furnished apartments or serviced apartments that offer flexibility and convenience.

On the other hand, long-term rentals are sought after by expatriates planning to stay for a longer period, local professionals, and families. These renters typically seek stability and are more inclined towards unfurnished or semi-furnished apartments, houses, or villas.

The target demographic for Toul Kork's rental market is quite diverse. For short-term rentals, the focus is on expatriates, business professionals, and tourists. These individuals often prioritize location, ease of access, and modern amenities.

Long-term renters include expatriate families, local professionals, and sometimes students attending nearby international schools. Their preferences can vary, but generally, they look for properties that offer a balance of comfort, space, and proximity to essential services.

When it comes to the profiles of potential tenants, we're looking at a mix. Expatriates often seek properties that offer a sense of security and modern comforts.

They tend to prefer properties in well-developed areas of Toul Kork, like around TK Avenue, where they can access international schools, shopping centers, and health facilities easily.

Local professionals, on the other hand, might prioritize affordability and convenience, opting for areas that are well-connected but perhaps a bit quieter.

The type of properties in demand largely depends on these tenant profiles. For short-term rentals, fully furnished, modern apartments or serviced apartments with amenities like WiFi, air conditioning, and in some cases, a gym or pool, are highly sought after.

For long-term rentals, spacious apartments, houses, or villas, with or without furnishing, are in demand. Families often look for properties with multiple bedrooms and outdoor space.

Specific areas in Toul Kork like the vicinity of TK Avenue are particularly popular due to their central location and the availability of amenities. Properties in these areas can command higher rents due to the convenience and lifestyle they offer.

Amenities that can help reduce vacancy and attract tenants include modern facilities like a fully equipped kitchen, air conditioning, secure parking, and in some cases, communal facilities such as a swimming pool or gym. Proximity to essential services like international schools, supermarkets, hospitals, and public transport can also be a significant draw.

In terms of potential returns on investment, properties in Toul Kork can offer attractive yields. While the exact numbers can vary, landlords can expect a decent return on investment, especially if the property is well-maintained and strategically located.

The rental yield can be influenced by factors like the quality of the property, its size, the amenities offered, and its location within Toul Kork.

Finally, looking at the type of properties that are gaining more demand and could potentially yield better returns, modern apartments and luxury villas are increasingly popular.

As Toul Kork continues to develop and attract a diverse population, properties that cater to the needs of this changing demographic, offering comfort, convenience, and a touch of luxury, are likely to be highly sought after in the rental market.

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Is it easy to buy a property as foreigner in Toul Kork?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Cambodia.

Buying property as a foreigner in Toul Kork, Phnom Penh, comes with its specific set of regulations, processes, and considerations.

Understanding these factors is crucial to navigate the real estate market effectively and mitigate potential risks.

Firstly, foreign buyers face certain regulations and restrictions in Cambodia. Foreigners are not allowed to own land outright, but they can own properties in buildings from the first floor and above, provided that Cambodian nationals own 70% of the building.

This is particularly relevant in areas like Toul Kork, where there are numerous condominium developments. It's important to ensure that the property you're interested in falls within these legal parameters.

The purchasing process for foreigners in Toul Kork involves several steps. After identifying a suitable property, you would typically negotiate the terms and price, followed by signing a sales agreement and paying a deposit.

The next steps include conducting due diligence to ensure the property's legal status and finalizing the sale with the payment of the remaining balance. The property then gets registered in your name at the Ministry of Land Management, Urban Planning, and Construction.

One of the primary risks associated with property investment in Toul Kork, as with any real estate investment, is the potential fluctuation in property values. The real estate market can be subject to economic and political changes.

Additionally, there's the risk of legal complications, especially given the restrictions on foreign ownership. Understanding the legal framework and ensuring that all property rights are clear and undisputed is crucial.

Common pitfalls or mistakes people face in Cambodia include overlooking legal checks, not verifying the property developer's credibility, and not understanding the full scope of property management and maintenance costs.

A unique aspect in Cambodia is the issue of land titles. There are different types of land titles, and some do not offer the same security as others. Ensuring that a property has a "hard title," which is the strongest form of property ownership in Cambodia, is essential.

Working with a local real estate agent or lawyer is highly important. They can provide invaluable assistance in navigating the local market, understanding legal requirements, and ensuring that all necessary due diligence is conducted.

Their expertise can be particularly beneficial in avoiding common pitfalls and ensuring a smooth transaction.

Common exit strategies for property investors in Toul Kork include selling the property outright, especially if its value has appreciated over time. Another strategy could be leasing the property, which can provide a steady income stream.

Given Toul Kork's popularity and growth, these strategies can be viable, but it's important to keep an eye on market conditions and plan accordingly.