Buying a Condo in Phnom Penh 2026: Investor Guide

In 2026, a square metre in a new condominium in central Phnom Penh costs between 1,800 and 3,200 USD. That price point is broadly comparable to mid-tier European cities, yet gross rental yields reach 7-9% per year. Cambodia remains one of the very few markets in Southeast Asia where all real estate transactions are conducted in US dollars and where a foreign national can hold full freehold title to a residential unit.

Phnom Penh is a high-risk, high-reward proposition for international investors. The capital has a population exceeding 2.4 million (National Institute of Statistics, 2025), with an urbanisation rate growing at roughly 3.5% annually. GDP growth reached 5.8% in 2025 (World Bank), with projections for 2026 pointing to a similar trajectory. Capital inflows from China, Japan and South Korea continue to drive the development sector, although they also create oversupply risk in selected districts.

This guide walks through every critical dimension of buying a condo in Phnom Penh: ownership structures, current prices, the best-performing locations, exit strategies and tax obligations for international investors.

Quick answer

Price per sqm (new condo, 2026): 1,800-3,200 USD in central districts Chamkarmon and Daun Penh; 1,200-1,700 USD in Sen Sok and Toul Kork.
Gross rental yield: 7-9% for studio and one-bedroom units rented to expats; 5-6% for larger apartments.
Transaction currency: USD (fully dollarised economy; the Cambodian riel is used only for small everyday purchases).
Foreign ownership form: foreigners may hold hard title (full freehold) exclusively on units from the first floor upwards under the 2010 Co-Ownership Law (Articles 4-8). Ground floor and land plots remain inaccessible to foreign buyers.
Foreign ownership cap per building: maximum 70% of total floor area.
Transfer tax: 4% of the transaction value, payable by the buyer.
Flight time from major European hubs: approximately 14-18 hours with one stopover (Doha, Dubai or Bangkok); time zone UTC+7.

Options and scenarios

Option A: Studio for short-term rental in Chamkarmon

Chamkarmon, centred on BKK1 and BKK3, is the core of expat Phnom Penh. International restaurants, co-working spaces and private clinics line its streets. A studio of 28-35 sqm in a new B+ class project costs 65,000-95,000 USD. With a monthly rent of 550-700 USD (Realestate.com.kh, Q1 2026) and an 85% occupancy rate, annual gross income works out as follows:

650 USD x 12 x 0.85 = 6,630 USD gross, which at a purchase price of 80,000 USD produces a gross yield of 8.3% before management fees and taxes.

After deducting property management fees (10-12%) and Cambodian withholding tax on rental income (a flat 14% on gross income for non-residents), net yield settles at approximately 5.5-6.2%. That remains competitive compared with Bangkok (net 3.5-4.5%) or Western European capitals (typically 3-4%).

Option B: One-bedroom apartment in Toul Kork for long-term rental

Toul Kork is Cambodia's emerging middle-class district, anchored by AEON Mall 3 and TK Avenue. A 45-55 sqm unit here costs 85,000-120,000 USD. Long-term rental income runs at 450-600 USD per month. Vacancy risk is lower (annual lease contracts), though gross yield is more modest at around 6-7%. This option suits investors who prioritise stable cash flows over maximum yield.

Option C: Premium condo in Daun Penh targeting capital appreciation

Daun Penh, the historic riverside district along Sisowath Quay, attracts premium development. Prices range from 2,800 to 4,500 USD per sqm. A 60 sqm unit represents an outlay of 170,000-270,000 USD. Gross rental yields are lower (5-6%), but capital appreciation potential is stronger: according to CBRE Cambodia, prices in this segment grew 4-7% annually between 2022 and 2025. This scenario suits investors with a 7-10 year horizon and a higher risk tolerance.

Comparison table

Parameter	Chamkarmon (studio)	Toul Kork (1-bed)	Daun Penh (premium)	Bangkok (reference)
Price per sqm (USD)	2,200-2,700	1,800-2,200	2,800-4,500	3,500-6,000
Typical budget (USD)	65,000-95,000	85,000-120,000	170,000-270,000	120,000-250,000
Gross rental yield	7-9%	6-7%	5-6%	4-5.5%
Tenant profile	Expats, digital nomads	Local middle class, NGO staff	Diplomats, senior executives	Expats, tourists
Oversupply risk (2026)	Moderate	Low	Moderate	Low
Secondary market liquidity	Low-medium	Low	Medium	High
Freehold for foreigners	Yes (from 1st floor)	Yes (from 1st floor)	Yes (from 1st floor)	Yes (condo)
Transaction currency	USD	USD	USD	THB

Risks and mistakes

1. Secondary market liquidity is limited. Phnom Penh has no MLS-equivalent listing infrastructure. Selling a resale unit can take 6-18 months. Distressed sales typically carry a 10-15% discount. Plan for a minimum five-year investment horizon.

2. Developer quality is uneven. Cambodia lacks a licensing framework comparable to more mature markets. Always verify a developer's track record: completed projects, delivery timelines and construction partners. Projects backed by Japanese or Singaporean capital tend to carry higher credibility.

3. The Sihanoukville lesson. Between 2017 and 2019, speculative Chinese capital produced thousands of condo units in Sihanoukville, many of which remain empty to this day. Oversupply in that city is estimated at 40-50% (Knight Frank Cambodia, 2024). Not every location in Cambodia offers a sound investment case.

4. International tax obligations. Rental income from Cambodian property is taxable in the investor's country of residence. Many countries do not have a double taxation treaty with Cambodia, which means taxes paid locally may not be fully creditable against home-country obligations. The effective combined tax rate can exceed 20%. Consult a cross-border tax advisor before committing.

5. Currency risk is lower but not absent. USD-denominated transactions eliminate Cambodian riel exposure, but USD fluctuations against your home currency remain relevant. The USD/EUR rate, for example, moved within a 10-15% band over the past five years. Consider hedging strategies for investments above 100,000 USD.

6. Remote management costs. A local property management firm charges 10-15% of gross rent. Without a reliable local partner, managing a tenancy from a different continent (UTC+7 vs European time zones) is effectively impossible.

7. Title due diligence is non-negotiable. Confirm that the property carries a hard title (permanent ownership certificate) issued by the Ministry of Land Management. A so-called 'soft title' (local authority confirmation) provides weaker legal protection and is considerably harder to sell on the secondary market.

FAQ

Can a foreigner own a condo in Phnom Penh outright?

Yes. Since 2010, foreign nationals may acquire a condominium unit on a hard title basis, provided the unit is located on the first floor or above. Ground-floor units and land cannot be owned by foreigners. Foreign ownership within any single building is capped at 70% of total floor area.

How much does a condo in Phnom Penh cost in 2026?

In central districts such as Chamkarmon and Daun Penh, new condominiums are priced at 1,800-4,500 USD per sqm. A 30 sqm studio starts at around 65,000 USD. In peripheral districts like Sen Sok and Chroy Changvar, prices begin at approximately 1,200 USD per sqm.

What are the transaction costs when buying property in Cambodia?

The transfer tax is 4% of the transaction value, payable by the buyer. Additional costs include legal fees (typically 1,000-2,500 USD for transaction support), title registration fees and, in some cases, an agent commission (usually covered by the seller).

Do I need to pay tax on Cambodian rental income in my home country?

In most cases, yes. Cambodia has limited double taxation treaty coverage with other countries. Investors should assume that rental income will be taxable both locally (14% withholding tax for non-residents) and in their country of residence. The effective combined rate can exceed 20%. Always seek advice from a tax professional with cross-border expertise.

Is Phnom Penh a better investment than Bangkok?

Phnom Penh offers higher gross yields (7-9% versus 4-5.5% in Bangkok) and a lower entry price. Bangkok provides superior secondary market liquidity, more developed legal infrastructure and a longer track record for foreign investors. The right choice depends on individual risk tolerance and investment horizon.

What does the purchase process look like step by step?

The typical process involves: reservation (deposit of 1,000-5,000 USD), signing the sale and purchase agreement, staged payments (for off-plan purchases) or full payment for completed units, and title registration with the Ministry of Land Management. The entire process takes 4 weeks for a ready unit or up to 24 months for off-plan.

Is Phnom Penh safe for property investment?

Political and regulatory risk in Cambodia is higher than in Thailand. Stabilising factors include a fully dollarised economy and growing foreign direct investment inflows (over 3.5 billion USD annually, UNCTAD 2025). Selecting a reputable developer and a district with an established tenant base is essential.

What is the minimum realistic investment amount?

The lowest practical entry point is approximately 55,000-65,000 USD for a studio unit in an off-plan project in Toul Kork or Sen Sok. Including transaction costs and basic fit-out, total outlay is typically 70,000-80,000 USD.

Can foreigners get a mortgage in Cambodia?

Mortgage products for foreign buyers are available at select banks (including ABA Bank and ACLEDA Bank), but interest rates run at 8-12% per year in USD. At those rates, leveraged financing rarely makes economic sense. The large majority of foreign buyers transact in cash.

How long should I plan to hold the investment?

Given limited secondary market liquidity and the time required to recover transaction costs, a minimum holding period of five years is advisable. For premium Daun Penh assets targeting capital appreciation, a 7-10 year horizon is more appropriate.

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Buying a Condo in Phnom Penh: 7 Key Facts for Investors in 2026