Phnom Penh Condo Market Trends 2025 

As of 2025, the Phnom Penh condo market has witnessed a significant cooling of activity compared to previous periods, most notably the years 2016 through to 2021 during which the market experienced its largest increase in supply of new condo units in the nation’s history, as well as the highest volumes of capital investment into the property sector. 

It should be noted that the high-rise market in Phnom Penh is a relatively new phenomenon. Around 15 years ago, condominiums in Phnom Penh were essentially unheard of – however, the city was dotted with privately owned apartment buildings and serviced apartments, wholly owned by Khmer owners and landlords but not applicable to any foreign ownership mechanisms.  

Everything changed in 2010 with the introduction of the strata law allowing foreign nationals to own condos in co-owned buildings, and the opening of door for foreign development companies to feasibly enter the sector. The decision by the Cambodian Government to implement this regulation kick-started an extraordinary growth story in the high-rise property sector. 

During the period of 2016-2021, and to some degree the years preceding, Phnom Penh witnessed a particularly strong influx of Chinese investment into the condominium sector, amongst a host of Chinese capital flows into other areas of the economy. These were not only Chinese-based developers but also Chinese private real estate buyers entering the market.  

Alongside Chinese investment, regional investors were also enticed into the Phnom Penh property market, including a considerable share of Singaporean, Malaysian, Japanese, Korean and Taiwanese developers and investors, among others; based on the swiftly growing demand for foreign-ownership-ready properties and perceived rental returns far above global norms.  

This abundance of Chinese capital in the market pushed prices for foreign-ownership-applicable properties to new heights in Phnom Penh and drastically increased the market supply of condominium units suitable for foreign investment. Meanwhile, the market experienced the emergence of several shortsighted developments by inexperienced condo developers, seeking to capitalize on economic trends.  

Phnom Penh had a total supply of around 20,000 condo units in 2019. By the end of 2024, that number had jumped to roughly 60,000 units, demonstrating an annual growth rate of close to 20% year on year.   

Around 2020-2021, however, Chinese-state outward capital controls begun to take hold, and many Chinese investors were unable to continue to move such large amounts of capital into Cambodia. Simultaneously, the Covid-19 pandemic period significantly reduced the inflow of foreign renters and buyers into the country, as well as stunting international tourism flows, slowing the condo sales and rentals market considerably.

By late 2023, condo sales in Phnom Penh had decreased considerably, driving developers to refocus toward more affordable and mid-range property offerings, suitable for both local and international investor’s budgets.  

As of 2025, Chinese investment into the real estate sector remains much lower than previous periods, and the supply of condo units in many areas of the city now outweighs demand in some segments.   

This has supported a price correction in the market for some new projects in Phnom Penh, plus a tendency for professional developers to place more emphasis on creating products applicable for not only foreign investors but also domestic Cambodian demand.

While average condo prices doubled from approximately $1,500 per square meter in 2012 to around $3,000 per sqm in 2019; since 2019, condo prices have decreased by around 15–20% from their peak levels.   

As of 2025, entry-level condos are priced attractively between $1,500 and $2,200 per sqm, making Phnom Penh one of the region’s most affordable capital-city property markets.  

Meanwhile, despite some drop off in recent years, rental vacancies have been gradually declining in recent periods also, settling at around 15% per project on average by 2025, suggesting the market is effectively absorbing the previous excess supply.

Condo rental yields in Phnom Penh also remain highly attractive in 2025, typically averaging net returns of 6.5% – 8% annually and reflecting some of the highest yield ratios in Southeast Asia. Some prime and unique properties in Phnom Penh are even delivering net yields for investors as high as 8.5% and above. 

Furthermore, there is considerable demand for larger condo units in Phnom Penh as of 2025. 2-to-4-bedroom condo units continue to witness high demand for both rental tenants and resales, especially high-quality offerings in central locations.

Smaller sized units are more readily available (studio and 1 bedroom) market-wide, meaning more competition for tenants and resale buyers down the line for incoming investors. 

Following this swift boost in supply in previous years, the market has also seen a slowdown in new project launches by developers in 2025, and a more wary approach by incoming foreign investors seeking condominium investments in the city. Nonetheless, a small handful of developers in the market continue to succeed by addressing the issues of quality versus price and producing worthy investment opportunities. 

In terms of upcoming trends for the Phnom Penh condo sector, market insiders have predicted a period of stability in coming years (2025–2028), due to a limited number of new project launches, allowing existing inventory to be absorbed by the market.  

Having said that, some developers remain bullish on the market, despite turbulence in recent years. It is predicted that an additional 20,000 condo units will be completed by the end of 2026, increasing Phnom Penh’s total supply of condo units to about 85,000 units by the start of 2027.  

Cambodia’s condominium market is a clear example of how fast-moving, emerging markets can grow, face challenges, and continue to adjust toward sustainability in relatively short periods of time. However, for incoming investors to Phnom Penh’s condo market, an emphasis on a genuine quality of product for the desired market segment, location, and the developer’s and agency’s track record for achieving consistent rental returns in market, remain crucial elements for foreign condo buyers in Phnom Penh to consider. 

Phnom Penh Macroeconomic Trends: 

Underlying this ongoing growth in the real estate sector, infrastructure investment in Cambodia remains high compared to global and regional norms.  

Between 2010 and 2025, approximately $40 billion was invested into the country’s core infrastructure. Meanwhile, close to $40 billion additional capital is earmarked for ongoing and new infrastructure projects set for completion by 2030.  

These sizable investments have drastically improved the nation’s logistics and lifestyle amenities in a very short period. A key driver behind the nation’s current infrastructure development targets includes reducing the costs of energy and logistics for in-country businesses to further propel the economy’s global attractiveness.

In recent years, Cambodia has also continued to draw high levels of foreign direct investment (FDI) into key business sectors, infrastructure development projects and the financial sector. Cambodia attracted $6.9 billion in FDI in 2024, a 20% year-on-year increase, and a historic high.  

China is the largest source of FDI in Cambodia, accounting for 49.8% of the total investment in 2024, covering manufacturing, infrastructure construction, real estate, agriculture and other fields. In Q1 2025, this trend also remains apparent, with China responsible for most of the inward investment capital.  

Cambodian local enterprises ranked second in 2024, accounting for 33.8% of the total investment; and neighboring Vietnam ranked third. In addition, South Korea, Japan, Singapore, Japan, Malaysia, Thailand, Canada, the United Kingdom (UK) and other countries are also important sources of FDI in Cambodia.  

The industrial sector is the field that attracts the most FDI currently, followed by the agricultural and agro-industrial sectors, the tourism and services sector and infrastructure investments. 

Underlying Cambodia’s robust economic performance in the past 20 years is its strong industrial base, which has continued to expand and diversify in recent years.

The Kingdom’s manufacturing sector is international export-oriented, leveraging trade agreements and preferential access to major markets, such as the Regional Comprehensive Economic Partnership (RCEP), European Union (Everything But Arms scheme – EBA), United States (Generalised System of Preferences – GSP) as well as other Free Trade Agreements with neighboring and regional partners to promote exports and attract FDI, including China, South Korea and more. 

Cambodia’s top trade partners in 2024 were China, the USA and Vietnam; and Cambodia’s main export products included garments, machinery, electronics, footwear, leather goods, agricultural products, furniture, rubber, fruits and vegetables.   

The garment, textiles and footwear industries remain the backbone of Cambodia’s manufacturing sector, and a key source of employment nationwide.  In 2024, clothing exports reached $11.66 billion, accounting for 46.2% of total exports; footwear exports accounted for $3.5 billion, or 13.5%. Meanwhile, agricultural product exports totaled $4.8 billion, up 20% year-on-year. Other emerging industries include technology, automotive parts and assembly, and renewable energies.   

Major imports into Cambodia include medicines, health products, food and beverages, electrical and electronic equipment, building materials, agricultural machinery and vehicles.  

The Cambodian Government remains highly proactive in driving continued growth and diversification in the industrial sector, most notably through the establishment of a nationwide network of Special Economic Zones (SEZs) purpose-built for industrial investment activities, highly preferential tax and customs arrangements for incoming investors, and a consistent drive towards improving work-force skills and proficiencies to continue growth into higher value-added industries.  

Outside of industry, Cambodia also has a strong service sector, and a fast-emerging tourism economy. Increasingly the country is becoming a stand-out destination for international travelers to Southeast Asia, as well as a growing hub for long-term expatriate emigration and retirement. This drive towards improved tourism arrivals has been wholly supported by Government policy, including the construction of several new large-scale airports, seaports and other supportive logistic infrastructures, as well as global destination marketing initiatives.  

Thanks to a strong and blossoming economic backbone, and a commitment to improving conditions for doing business in the country, Cambodia’s economy appears set to follow the trajectory of regional peers such as Vietnam. Growth in core industrial and service sectors is also creating a platform for wage per capita improvement, urbanization and increased domestic investment in the real estate sector. These developments are being supported by a highly proactive and youthful workforce demographic, providing the labor necessary for swift economic growth into the future.  

Phnom Penh Condo Market Pricing and ROI Analysis 2025:

As Cambodia’s capital city and chief economic hub, Phnom Penh offers the largest selection of condominium projects suited to foreign investors nationwide. With a population of over 4 million and growing, inner-city housing is in fast-growing demand. Plus, with a permanent expatriate population of close to 200,000, there is also strong rental demand for high-quality and luxury offerings in the city’s downtown quarters.

Outside of the residential condominium sector, the city also has a range of commercial office developments with strata-title ownership available for investment by non-citizens.  

High End Condominiums in Phnom Penh: 

The high-end condo market represents around 30% of the available stock Phnom Penh-market wide. High quality condominium projects, with expansive common areas and facilities, generally range from $1900 to $3500 per net square meter, depending on the development’s location, unit quality and completion status. Off-plan projects offer more competitive prices than those which are 100% complete and ready to occupy.  

The average net return on investment from rental returns for high end condominiums in Phnom Penh ranges from 6 to 9% per annum. However, these returns are highly speculative based on factors such as initial sales price, location, quality of management and amenities within the project and the unit’s interior design features.

To achieve such returns, it’s extremely important to only consider purchasing high-end condominium units from developers or reselling owners with a clear track record of strong rental returns within the project or previously completed projects, and a price per square meter selling price which is relative to these projected or real annual returns.  

Mid-Range Condominiums in Phnom Penh: 

The mid-range condo segment accounts for upwards of 40% of the stock in the Phnom Penh condos market. Mid-range residential condominium units in central locations average around $1300 to $1900 per square meter, depending on in-building amenities. Prices are naturally lower for mid-range offerings in outer suburbs of the city where land prices are more affordable for developers. Again, off-plan purchases will achieve lower prices per square meter than buying in established and completed projects.  

Mid-range condominiums demonstrate rental returns of between 5 to 7.5% per annum, again depending on surrounding factors. Due to a larger supply of mid-range condominiums on the market, rental returns are not as attractive as those found in the high-end segment of the market.  

Low-Range Condominiums in Phnom Penh:  

While once the Phnom Penh condominium market was firmly geared towards only foreign investment into luxury offerings, as of 2025 the market is quickly evolving towards local needs and hence has witnessed the rise of developments offering ‘No-Frills’ condominiums with strata titles – which represent the lowest-range and around 30% of the overall stock in the market.  

This share of the market however is expected to increase considerably in coming years as urbanization trends continue along with demand for inner-city residences by working class Cambodians. 

These types of projects consist of basic units, sized between 25 to 70 square meters net, with total unit values under $100,000. Hence, prices per net square meter ranges from $1000 to $1400. These offerings are primarily aimed at a growing middle-class of Cambodian buyers and renters, but have attracted considerable attention in rentals, sales, and investment opportunities by foreigners seeking to buy properties in line with local needs and budgets.  

Rental returns in the low-range condominium sector range from 4 to 7% percent per annum, again depending on surrounding factors. Due to increasing supply in this sector and targeting towards local Cambodian-renter financial capacities, rental returns are not as high as in the more premium segments. 

Ready to stake your claim in Cambodia’s burgeoning real estate sector?

Check out our top condo picks in Phnom Penh:

J Tower 3, BKK1

Time Square 8, Russian Market District

Time Square 7, Toul Kork

Odom Living, Norodom Boulevard

Or contact the IPS team today and let us know your precise requirements!