Cambodia’s vibrant capital, Phnom Penh, offers a diverse range of neighborhoods catering to expatriates seeking both short-term stays and long-term investments. Four neighborhoods stand out as particularly attractive for expats: BKK1, Tonle Bassac, Toul Tom Poung, and Riverside. Each of these areas offers unique amenities and lifestyles, making them popular choices for expatriates looking to invest in property or lease accommodations.
We asked IPS Lead Agents Chakriya Em and Kanha Pich, for their professional insights into what makes these neighborhoods appealing and how they are evolving.
1. BKK1 (Beoung Keng Kang 1)
Beoung Keng Kang 1 (BKK1) is often regarded as the heart of expat life in Phnom Penh. According to Riya, expats appreciate BKK1 for its “convenience and modern infrastructure,” offering easy access to a diverse array of international schools, shops, restaurants, and entertainment options both day and night. The area is known for its tree-lined streets and a mix of colonial charm with modern amenities. However, traffic congestion at peak hour and high living costs can be drawbacks for some residents.
- Investment Potential:
BKK1 properties tend to have the highest values due to steady demand and continuous appreciation. Buyers are often drawn by the reputation of developers and the prime location. Riya notes that “the property values in BKK1 have generally seen steady appreciation” because of its popularity among both expats and investors. - Lifestyle & Community:
Kanha highlights BKK1’s vibrant community, which offers numerous opportunities for networking, socializing, and cultural exchange. The area is bustling with upscale dining options, boutique shopping, and international schools, making it a top choice for expat families.
2. Tonle Bassac
Tonle Bassac is an affluent neighborhood adjacent to BKK1, offering luxurious condominiums and villas with panoramic views of the Tonle Bassac River. The area appeals to expats who prioritize proximity to the central business district and upscale shopping malls.
- Investment Potential:
With property values slightly lower than BKK1, Tonle Bassac presents a growing opportunity for investors. The ongoing development projects and increasing demand contribute to rising property values. - Lifestyle & Community:
The neighborhood boasts modern amenities, including gyms, spas, and international schools. Kanha describes Tonle Bassac as offering “a mix of expats and affluent locals, providing ample opportunities for socializing and networking.”
3. Toul Tom Poung (Russian Market)
Known for its bustling market and vibrant atmosphere, Toul Tom Poung offers a more affordable yet lively alternative to BKK1 and Tonle Bassac. Expats enjoy the diverse dining options and the area’s unique blend of local culture with international influences.
- Investment Potential:
Toul Tom Poung’s property values are lower, making it an attractive option for budget-conscious buyers. According to Riya, “the area is known for affordable condominiums and a vibrant community life.” - Lifestyle & Community:
The area is famous for the Russian Market, where expats can find everything from local handicrafts to international brands. Kanha notes that Toul Tom Poung is “an ideal choice for expats looking for affordable housing and a lively community.”
4. Riverside
Nestled along the picturesque Tonle Sap River, the Riverside area is a blend of historic charm and modern conveniences. This vibrant neighborhood offers breathtaking riverfront views and a unique cultural experience, making it a favorite among expats. Riverside’s scenic promenades are perfect for leisurely strolls, morning jogs, or simply enjoying the stunning sunsets over the river.
- Investment Potential:
Riverside stands out for its more affordable property prices compared to other prime areas in Phnom Penh. The area is not only scenic but also ripe for development, making it a great opportunity for savvy investors. With ongoing urban development projects, Riverside is poised for appreciation, enhancing its value as a long-term investment. - Lifestyle & Community:
Riverside offers a dynamic lifestyle with a rich mix of local and international influences. The area is dotted with upscale hotels, charming boutique guesthouses, and modern expat-friendly apartments. It boasts a lively atmosphere with a variety of dining options, from traditional Khmer cuisine to international gourmet restaurants. The local markets and cafes add to the neighborhood’s charm, providing ample opportunities for social interaction and cultural exchange. Kanha highlights the appeal of Riverside’s “scenic riverfront views and its diverse blend of dining and entertainment options, which cater to the tastes of both expats and locals alike.”
Current Trends and Future Developments
Phnom Penh is experiencing rapid development, with significant infrastructure improvements and new projects enhancing its appeal to expats and investors alike. The new Olympic Stadium, improved streets, and the upcoming Phnom Penh International Airport, set to open in 2025, are expected to boost the city’s attractiveness further.
Advice for Expats
- BKK1: Expats should be prepared for higher rental prices but can benefit from negotiating long-term leases for better rates.
- Tonle Bassac: Proximity to the central business district makes it an attractive option for professionals. Expats should consider the community atmosphere that aligns with their social preferences.
- Toul Tom Poung: Offers affordable housing and a vibrant lifestyle but requires careful consideration of property conditions and commuting needs.
- Riverside: While offering beautiful views, expats should be mindful of noise levels and security measures, especially during tourist seasons.
Phnom Penh’s real estate landscape offers diverse options for expatriates, each neighborhood with its unique charm and opportunities. Whether investing or leasing, expats can find a suitable location that fits their lifestyle and preferences.
IPS Cambodia provides expert guidance and tailored solutions to meet your needs. Contact us today for personalized assistance in finding your ideal property in Phnom Penh.
KH