The past two decades have witnessed a massive transformation in Phnom Penh’s housing projects and constructions. In twenty years, Phnom Penh witnessed old houses with poor infrastructure and roads rapidly transforming.
From high-rise constructions to modern towers, the city is presently filled with investments from local and international individuals and investors. The middle-income population has benefitted from the modern rental trends since the housing scene has exploded with many investment options.
Rapid urbanisation, modern infrastructure, smart homes, growing population, and other factors have significantly transformed Phnom Penh’s rental trends. IPS Cambodia plays a significant role in this ever-evolving landscape through its expertise in the Cambodian real estate industry and provides dynamic housing options for people looking for rental properties.
Historical Context
Phnom Penh transformed from wooden houses into a trendy city when it was titled the new royal capital in 1865. Its development boomed in 1890 when the French administration introduced the property concepts. The customary land laws mandated to avoid encroachment of public places, such as streets. Land was considered as the private property of an individual when it was registered officially.
Cambodia witnessed a massive growth in the past decade. Its growth between 2000 and 2018 was majorly in agriculture, tourism, property, and industry areas. Still, real estate contributed massively to the growth of the economy in Cambodia, as it became the top driver in the decade. It took over the remaining three areas. Phnom has grabbed its “Paris of the East” title, leaving behind the title “Ghost City.”
The city that had a crowded, tiny port of wooden houses has considerably evolved into modern housing solutions. People don’t have to put as much effort into their households as they did in traditional Khmer homes since houses are equipped with smart home devices, modern structures, advanced equipment, and sophisticated tools.
Every part of the city now has constructed projects pipelined, completed, or under construction to open new businesses, apartments, shopping malls, hotels, and restaurants.
The Modern Renter’s Profile
The market sentiments keep changing in the real estate sector primarily due to weather, rise or fall in the economy, and several other factors. The modern renter’s profile includes individuals from 21 to 40 years old who visit Phnom Penh for studying, fixed job contracts, or accommodation in the region. People often leave to spend vacations with families or catch up for any other circumstances, schooling, university education, or many other reasons. Such individuals and families often prefer rental properties.
Opting for the rental property primarily is based on property type, price, location, and available services and amenities. People prefer properties with multiple services, proximity to utility services, and the best location at an affordable price since all these factors are crucial for long-term and short-term stays.
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The demographics of renters are mostly young professionals and expatriates who rent a property in Phnom Penh for their education, job opportunities, businesses, or other needs. The majority of the renters are not from Phnom Penh but from other provinces. These renters include students or youth, workers, urban employees, food and service workers, and more.
The emerging middle calls also opt for the rental properties in the area since an apartment is available for around 300 USD each month. Young locals also flock to the area for available employment options and those looking for a prime location and proximity to offices or other services.
Renters often prefer apartments and condominiums since they require a hassle-free living experience with a swimming pool, parking area, gym, and other amenities. Many budget-conscious renters stay in properties with other individuals, colleagues, or friends. It is the standard practice among Western expats who want rental property for the short term or only till their internship is completed.
Current Rental Trends
Many international residents visit Phnom Penh for many reasons, and the number rises with every passing year, leading to increased demand for real estate options. The area with wooden houses in the past has now evolved into the prime cultural and economic hub. BKK, Chamkarmon, and Tuol Kork are among the prime sought-after areas for rental properties.
Since renters from international locations look for property options, there is a massive surge in preference for condominiums and luxury apartments. People often prefer rental properties that offer significant amenities, such as security, swimming pool, and gym, while many others look for eco-friendly and sustainable housing solutions.
READ ALSO: Navigating The Neighbourhoods: A Deep Dive Into Phnom Penh’s Areas
The rental trends in the prime locations of Phnom Penh are as follows:
BKK1 District
- Apartments starting from 400 USD for each month
- Villa starting from 2500 USD for each month
Chamkarmon District (Russian Market, BKK, Tonle Bassac, etc.)
- Apartments starting from 350 USD for each month
- Villa starting from 800 USD for each month
Toul Kork District
- Apartments starting from 380 USD for each month
- Villa starting from 1800 USD for each month
Factors Driving The Trends
Multiple factors are considered by renters when they look for residential property types for their hassle-free living in Phnom Penh. While tourism plays a significant role due to prominent attractive locations and landmarks, the blend of tradition and modernity makes people stay joyfully in their communities.
Renters often prefer properties with unique or quality interior design and proximity to offices or convenient transportation options. Their decision to opt for a property majorly relies on the facilities available at the property and near the property.
A few of the other factors that significantly influence renters to buy a specific property also include the property’s surrounding environment and the community. Urbanisation, infrastructure with ample green spaces and city projects also attract tenants to get a property for rent in Phnom Penh.
How IPS Cambodia Stands Out
Renting a property is a crucial decision since it takes time, effort, and money and getting unsuitable options may not let you stay for a longer period in the property. Since investing in rent is also a considerable expense like any other property dealing, investing wisely or taking expert advice will help you find and stay in the hassle-free and ideal rental property.
IPS Cambodia, the leading Cambodian real estate agency, can help you locate the most suitable and affordable rental property options as per your preference of location, amenities, and other specific requirements. Good and wise judgement is obtained only through expertise and familiarity with the local areas, rental trends, property management, or any specific legality.
They have deeper market insights and understanding of trends in rental properties that clearly exhibit in their personalised approach to offer you the best real estate services. Each client has their own unique preferences, hence, the experts at IPS Cambodia use personalized approach, ensuring the clients’ preferences and needs are met with the ideal property fit.
Conclusion
The increasing supply of real estate projects, reduced demand from the Chinese region, and global economic transformation have led to many challenges in the Cambodian real estate industry.
By 2026, the serviced apartments’ supply is anticipated to reach approximately nine thousand units in Phnom Penh, resulting in nine per cent growth on the current property options. Considering fresh growth areas, strategic approaches, and data-driven valuations, the role of a knowledgeable partner is crucial in shaping the future of rental properties in Phnom Penh.
Want to learn more about housing in Phnom Penh? Whether you’re a tenant or a landlord, our experts are ready to help you with your housing needs. Contact us here or via Telegram.
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