State of the Market: IPS Explores Siem Reap Market Trends in 2025 at One Vision, One Siem Reap.

James Whitehead from IPS Cambodia recently offered an overview of the trends influencing the Siem Reap real estate market in 2025. These detailed findings were presented during his presentation at this year’s “One Vision, One Siem Reap” event, held at Rose Apple Square in Siem Reap city on Saturday June 14th.

One Vision, One Siem Reap is an annual event organized by IPS Cambodia and Urban Living Solutions (ULS) to champion growth and intersectoral business collaboration in Cambodia’s premier tourism town.

The event brought together key thought leaders from Siem Reap’s public and private sectors sharing perspectives and data on the real estate and hospitality industries to discuss recent changes in the city and the impacts of those changes on the local business and investment landscape.

IPS Cambodia is pleased to share these findings to our audience and offer investor’s targeting Siem Reap for real estate or hospitality investments a chance to understand key drivers of the market as of 2025, and opportunities in the pipeline in the medium and long term.

Part 1: Siem Reap Real Estate Market 2025

In 2025, Whitehead noted that Siem Reap’s real estate market is showing signs of recovery, cautiously, but clearly.

“The volume of property transactions this year is noticeably higher than in 2024, especially in the first half of the year. But we’re still not at the levels we saw pre-pandemic, when tourism arrivals were at their peak,” he said. 

Land and Commercial Sectors:

In the land and commercial sector, we’re still seeing an oversupply. Many owners who struggled during the downturn, or over-leveraged their finances, are now looking to sell assets for liquidity. This includes business owners tied to tourism, who’ve been hit hard in the slower recovery years.

That said, buyers in the market today are more strategic, noted Whitehead.

“Most are pure investors, looking for under-market prices with a long-term resale strategy,” he said.

So, while the volume of buyers isn’t enormous, the deals are happening, and they’re happening at smart entry points. It’s still a buyer’s market, but that’s exactly what makes Siem Reap attractive right now, noted Whitehead. 

“The consensus is that prices and tourism flows will return in the years ahead, and early investors are positioning themselves ahead of that curve.”

IPS Cambodia is also seeing growing activity in commercial assets like guesthouses, hotels, and retail spaces, Whitehead noted.

“However, international tourism numbers, especially from Western countries, are still below pre-2020 levels, and that’s limiting the rebound in certain sectors.”

Retail leasing is improving, but survival depends on serving both local and tourist demand. And for hotel or commercial property owners trying to sell, prices have come down, just not quite enough to trigger aggressive investor activity.

But Whitehead said that there is one segment that’s showing real momentum: residential property, especially landed villas:

Landed Villas & Residential Market:

Siem Reap has always attracted a specific kind of buyer, someone looking for space, lifestyle, and peace. And in 2025, demand for Western-style villas, built to international standards, is rising again. There simply aren’t enough of these homes in the city to meet the current level of interest.

These buyers include both expats and Cambodians, including those relocating from Phnom Penh for a quieter pace of life. Lifestyle is playing a major role here, Siem Reap now has quality hospitals, supermarkets, transport, and better infrastructure than ever before. That’s making it a serious option for long-term living.

Also worth noting, said Whitehead, is that Cambodia continues to offer foreign-friendly visa options, including specialized retirement visas, which makes it a competitive destination for expats comparing it to Thailand or the Philippines.

What’s really driving confidence though are the numbers.

Rental yields on quality villas in good locations are coming in around 5–9% net, and resale profits on those same assets are showing 20–30% appreciation in recent holding periods.

Properties near green spaces, parklands, and golf courses are especially popular, offering both lifestyle appeal and protection from unwanted nearby development.

The bottom line: villas and landed properties are performing well, and this trend is only expected to grow in the second half of 2025.

Siem Reap’s Condo Market: Small but Strong

Whitehead then went on to explore the Siem Reap condominium sector, and noted that it’s a very different story from Phnom Penh.

“Unlike Phnom Penh or Sihanoukville, Siem Reap doesn’t have a condo oversupply. In fact, there are only three strata-titled condo projects in the city as of 2025. This low supply is driven by city height restrictions; buildings can only go up to six stories to protect the heritage of Angkor Wat. That makes large-scale condo development less viable and limits the number of new projects.”

But the demand is strong, said Whitehead.

International buyers are drawn to Siem Reap condos because they offer 100% freehold titles, a big advantage for foreign investors. In light of this demand, projects like Rose Apple Square and Angkor Grace nearly sold out within just a few years, despite launching just before the pandemic.

• Prices for condos range between $1,900 to $2,800 per sqm in Siem Reap city, depending on quality and location.
• Rental yields average 7–8%, and many owners have already seen resale gains of up to 20% in just one to two years.
• Unlike Phnom Penh, the market here isn’t dominated by one group of investors. It’s a mix, which adds to the city’s appeal and helps stabilize prices.

That said, Whitehead confirmed that incoming condo developers will need to build smarter, with green spaces, lifestyle amenities, and a clear understanding that cheap, entry-level units won’t perform as well here.

Rental Market & Trends:

“We’re also seeing a pickup in rental demand, both short and long term,” noted Whitehead.

Expats relocating from Phnom Penh, digital nomads, and lifestyle renters are helping drive the recovery. That said, the market is still behind where it was pre-COVID, largely because Western tourist flows haven’t fully rebounded yet. Regional travelers from Thailand and Vietnam are contributing to tourism numbers, but they don’t typically stay long-term or rent properties, so this limits the upside in that specific segment. Still, the trend is upward and we expect stronger activity once the high season returns later this year.

Long-Term Growth Corridors for the Siem Reap Real Estate market:

Looking ahead, the growth of Siem Reap is being guided by smart infrastructure investment.

• Most of the city’s future development will happen in the east and west. To the north, you have Angkor Wat and protected land, to the south, Tonle Sap Lake and restricted zones. So growth is pushing outward.
• In the east, we now have the new Siem Reap-Angkor International Airport, and just 8km from that, the proposed Grand Siem Reap Smart City, a 7,000-hectare project with residential, business, and tourism zones. That’s where future high-rise development is likely to go. To this side of the city, the launch of the DreamVille project, by a large-scale Korean/Vietnamese operator is also excited news for 2025, and set to begin sales this year.
• To the west, areas around the Angkor Golf Course are gaining traction, offering a mix of lifestyle appeal and green buffer zones. It’s close to the city, and attractive for mid- to high end residential development.
• Add in the government’s green campaign, new ring roads, and better utilities, and we’re seeing a new foundation being laid for long-term, sustainable growth.

Part 2: National Real Estate Trends:

Let’s zoom out briefly to the rest of Cambodia.

In Phnom Penh, the residential market is soft, especially in the condo sector.

“Oversupply is pushing prices down 15–30%, and rental yields are also dropping,” Whitehead said.

Many projects are sitting empty or have shifted toward hospitality use. However, larger units for families are seeing renewed interest, and the city’s south, near the new airport, is emerging as a hot spot. There is also a marked change in developers creating products suitable for local Khmer buyer uptake, with lower starting prices and longer pay-off options. These are generally located in tier 2 locations in the city and selling at a comparatively fast pace.

In Sihanoukville, the market crashed after the Chinese exodus, but it’s starting to stabilize.

Condo prices are now as low as $1,000 per sqm as of 2025, much lower than their previous heights, and international hotel brands are quickly returning. The Bay of Lights project and major infrastructure upgrades are also reviving interest in this coastal city.

Kampot, Kep, and Koh Rong are steadily attracting long-term expats and lifestyle investors also, noted Whitehead, drawn by affordability, scenery, and the relaxed pace. These areas are still underdeveloped, but that’s exactly what makes them attractive for first-movers.

Part 3: Opportunities Through Collaboration

So how does this all come together? As per the theme for the 2025 One Vision, One Siem Reap, Whitehead highlighted the opportunity that exists for growth in the Siem Reap real estate market.

• First, there is a clear opportunity for developers and investors in Phnom Penh or Sihanoukville to shift focus to Siem Reap. The market here is stable, underbuilt, and backed by strong long-term fundamentals. Villas, lifestyle condos, and mixed-use projects all have room to grow. However, they will need to be creative and innovative in product creation, given the height limitations in the market, and demand for highly livable spaces in sync with the cities clean and green aesthetic.
• Second, Cambodia is moving beyond being a “one-stop temple tour.” Tourists are staying longer, traveling further, and spending more, and that shift benefits all of us. Siem Reap can tap into this national momentum, but it must be done thoughtfully.
• Finally, eco tourism, wellness resorts, and community-driven developments are high-potential sectors for Siem Reap also – with drawing demand in global markets. These types of projects are well suited to Siem Reap, given its rich cultural and environmental base.

Whitehead concluded that Siem Reap is entering a new chapter.

We’re already seeing increased interest from international buyers who want not just a return on investment, but also a meaningful lifestyle. And most importantly, this moment is about collaboration, between developers, policymakers, local businesses, and even cities. Whether it’s Phnom Penh, Kampot, or Siem Reap, the future of Cambodia’s real estate market depends on building smarter, greener, and together.

“We’ve had challenges. But the opportunities ahead, for investors, for developers, and for the city itself, are real, tangible, and already taking shape. Now is the time to build forward, with purpose, with vision, and yes, with collaboration.”

Ready to start your Cambodian investment journey with IPS Cambodia? 

Check out a selection of foreign ownership ready investments from trusted developers in Phnom Penh today:

Time Square 8, with units starting at $70,000

J Tower 3, with units starting at $330,000.

Or Get in touch directly and let us know how we can help.