Real estate represents a great investment option worldwide – and equally in Phnom Penh, Cambodia. However, knowing what factors can affect the value of a property allows you to gain stronger capital appreciation for any real estate assets you are intending to purchase, and avoid any depreciation on your investments in years to come.
Here are some of the most important considerations that will influence the short- and long-term value of any properties in Phnom Penh.
ទីតាំង
The old adage of “location, location, location” in the real estate industry rings true to this day. Location is the major factor to consider in property value since the economic growth of its area and the surrounding markets either increases it or decreases the overall value of the asset. Infrastructure development and nearby amenities will also influence the relative price of any location.
For example, if the property is located in an area with thriving businesses, various conveniences and entertainment like the flourishing city of Phnom Penh, then the property value will be high on average, and growing yearly. On the other hand, if the real estate is in an area that is still being developed, the property value will likely remain lower than in other areas. That being said, its important to pay attention to starting price trends of properties, even in popular areas – because if you overpay on the initial purchase, your chances of property appreciation in the short and mid-term will be limited.
Moreover, if you want to invest in a property, you don’t necessarily have to buy one from a high-value area. You can buy real estate property from a cheaper area with promising developments in the coming years, so you know your home investment is guaranteed to appreciate in the longer term.
The best locations for most investors in Cambodia are in the district of BKK1, Phnom Penh – as this area boasts the highest land and rental prices, historically and currently. An excellent development in this area which promises strong capital appreciation is the J Tower 3 project, and market leading rental returns, thanks to its high quality and top tier management services.
Outside of this area, many buyers prefer growing districts with the potential for mid-to-long term capital appreciation such as ទួលគោក និង Toul Tom Poung (Russian Market). The Time Square 7 project is Toul Kork, and the Time Square 8 project in Toul Tom Poung offer great prices for investors buying off plan, with the opportunity for significant capital appreciation in years to come.
ទំហំ
The size of a real estate property is a considerable factor in its value. After all, the smaller a property is—even considering its location—the cheaper its price. The same logic also applies to larger real estate properties regarding its cost. Additionally, the cost of a home is often detailed per square meter so you need to know the average price of similar homes in the area to determine if the property you want to invest in is a great deal.
បន្ថែមពីនេះ កន្លែងទំនេរដែលអាចប្រើបាននៅក្នុងអចលនទ្រព្យក៏សំខាន់ផងដែរ។ ឧទាហរណ៍ ប្រសិនបើផ្ទះមានចំណតយានយន្ត បន្ទប់ក្រោមដី បន្ទប់សម្រាប់ភ្ញៀវ និងកន្លែងផ្សេងៗទៀត នោះតម្លៃអចលនទ្រព្យក៏កើនឡើងតាមនោះដែរ។
Some particular property types are in higher demand as of 2025 in Phnom Penh, namely 2-4 bedroom units. Traditionally developers have produced a large supply of smaller units (studio and 1 bedroom) to a point where there is a relative oversupply.
For the best chances of strong rental incomes and resale appreciation in major urban hubs such as Phnom Penh, IPS Cambodia recommends our clients to invest in larger properties, with 2-4 bedrooms. This segment of the market sees stronger demand for both rentals and resales than that of smaller units.
ការថែទាំ និង កែលម្អ
When you have already invested in a property, what you do with it in the time you own it can contribute to its value either appreciating or depreciating. If an appliance, fixtures or more needs repairing in the property, then making sure it is fixed quickly and correctly is important to maintain the value of your asset for both renters and buyers.
Moreover, upgrading a property you own through a world-class fit out can effectively force appreciation. Improving a properties look and feel, or adding new features, can significantly boost its overall value. It can mean the property fetches higher rental returns, and a higher overall resale price.
If you need assistance in managing your properties for improved rental incomes and resale appreciation, get in touch with IPS Cambodia’s specialist property management team today! With over 15 years in the Cambodian market, we know what renters and buyers are seeking in the market and can help you take your property to the next level.
Meanwhile if you are looking for a great investment asset in Phnom Penh that will bring you strong returns on your investment into the future, contact IPS Cambodia today for a free consultation. We love to help our clients make money in Cambodia and avoid poor investment decisions – this is part of the IPS Difference.
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