Cambodia Property Prices Per Square Meter: What Investors Need to Know in 2026

For around 1,200 USD per square meter, you can acquire a new unit in a Class B residential tower in Phnom Penh. That entry point is a fraction of what comparable new-build apartments cost in Singapore, Bangkok, or Ho Chi Minh City - yet the rental income arrives in US dollars, inside an economy that has been expanding at over 6% annually.

Cambodia remains one of the most affordable property markets in Southeast Asia, but pricing is no longer uniform. The gap between a prime Phnom Penh district and the coastal city of Sihanoukville can exceed 300%. Investors who want to allocate capital here must understand the geographic pricing structure, because it determines both rental yield and the probability of capital appreciation.

Quick answer

• Phnom Penh, Class B/B+: 1,100 - 1,800 USD/m2 (new condominiums in BKK1, Chamkarmon, Toul Kork)
• Phnom Penh, premium segment: 2,200 - 3,500 USD/m2 (international-developer projects near Diamond Island)
• Sihanoukville: 800 - 1,500 USD/m2 - a market still recovering from the 2019-2023 correction, significant oversupply
• Siem Reap: 700 - 1,200 USD/m2 - a smaller market with recovering tourism following resumed international routes
• Gross rental yield: 6-9% in Phnom Penh, 4-6% in Sihanoukville
• Transaction currency: USD - Cambodia is one of the most highly dollarized economies in the world

Options and scenarios

Scenario 1: Phnom Penh - long-term rental investment

The capital concentrates over 80% of expat and middle-class rental demand. The BKK1 district functions as Phnom Penh's equivalent of Bangkok's Sukhumvit - international cafes, corporate offices, and international schools within walking distance. A studio of 35-45 m2 in a new development typically costs 45,000 - 70,000 USD. At a monthly rent of 450-600 USD, the gross annual yield sits around 8-9%.

A concrete example: a 40 m2 apartment in Toul Kork purchased at 1,350 USD/m2, totalling 54,000 USD. Transaction costs include a 4% transfer tax on the property value plus approximately 1,500 USD in legal fees, bringing the total cost of entry to roughly 57,660 USD. A monthly rent of 500 USD generates 6,000 USD in gross annual income - a gross yield of 10.4% on the purchase price, or 8.7% on the fully loaded cost.

After deducting property management fees (typically 8-10% of rent), insurance, and minor maintenance, the net yield settles at around 7-7.5%. That is still comfortably above what most European or North American markets offer on residential property.

Scenario 2: Sihanoukville - contrarian recovery play

Sihanoukville experienced a dramatic boom driven by Chinese capital between 2017 and 2019, followed by a sharp collapse. Prices fell 40-50% from peak levels. In 2026, the market is gradually stabilising as the Cambodian government restructures the casino zone and enforces stricter construction standards. New units in credible projects are available at 800-1,000 USD/m2, but market liquidity remains low. Seasonal short-term rental activity generates 4-6% gross yield, though occupancy outside peak season can be unreliable.

This scenario suits investors with a 7-10 year horizon and a risk appetite comparable to frontier market exposure.

Scenario 3: Siem Reap - tourism and short-term rental

The city adjacent to Angkor Wat recorded its highest tourist arrivals since the pandemic in 2025. The new Siem Reap Angkor International Airport (opened in 2023) now handles direct routes from Kuala Lumpur, Bangkok, and Seoul. Property prices are the lowest among the three key markets at 700-1,200 USD/m2, but the supply of condominiums accessible to foreign buyers is limited. The market is dominated by houses and land plots, which foreigners cannot own directly under Cambodian law.

Comparison table

Parameter	Phnom Penh BKK1/Toul Kork	Sihanoukville	Siem Reap	Bangkok (Sukhumvit)
Price per m2 (new condo)	1,200 - 2,500 USD	800 - 1,500 USD	700 - 1,200 USD	3,500 - 7,000 USD
Gross rental yield	7 - 9%	4 - 6%	5 - 8% (seasonal)	4 - 6%
Transaction currency	USD	USD	USD	THB
Foreign ownership structure	Hard title, from 1st floor	Hard title, from 1st floor	Limited condo supply	Freehold (up to 49% of units per building)
Transfer tax	4%	4%	4%	Approx. 6-7% combined
Market liquidity	Moderate	Low	Low	High
Oversupply risk	Moderate	High	Low	Low
Entry cost (40 m2 studio)	48,000 - 100,000 USD	32,000 - 60,000 USD	28,000 - 48,000 USD	140,000 - 280,000 USD

Ownership structure - what foreign investors can legally buy

Cambodian law prohibits foreigners from owning land. However, it permits full freehold ownership of units within multi-storey condominium buildings, starting from the first floor above ground, provided that foreign ownership within any given project does not exceed 70% of total units. The ownership document is referred to as a hard title - a centrally registered title deed equivalent to a standard property register entry in most European jurisdictions.

Alternative structures include:

• Leasehold - leases of up to 50 years with renewal options, commonly used for villas and houses
• Corporate structure - a locally registered company with a Cambodian shareholder (carries significant legal and operational risk, requires a trusted partner and a robust shareholders agreement)
• Nominee arrangement - formally prohibited and legally precarious, though encountered in practice

For international investors, the safest and most transparent route remains purchasing a condominium unit on a hard title.

Tax considerations for international investors

Cambodia has not concluded a double taxation treaty with most European countries, including key investor markets. This means that rental income from Cambodian property must typically be declared in the investor's country of tax residence, with the Cambodian withholding tax of 14% on rental income available as a partial credit under domestic proportional relief rules (confirm this with a local tax adviser in your jurisdiction).

On disposal, Cambodia levies a capital gains tax of 20% on profits - though enforcement has historically been inconsistent. In most Western jurisdictions, gains from the sale of foreign property are subject to domestic capital gains tax, with conditions varying by country and holding period.

A practical advantage for international investors: all transactions are conducted in USD, eliminating exposure to exotic currency risk. The Cambodian riel (KHR) plays a negligible role in property transactions.

Risks and mistakes

1. Secondary market liquidity. This is the most significant structural risk. Cambodia does not have a developed resale market comparable to Thailand or most Western markets. Selling a unit can take 6-18 months, and the achieved price may be 10-15% below initial expectations. Investors must treat Cambodian property as relatively illiquid.

2. Developer track record. The market is not regulated to the same standard as the European Union or Singapore. Some projects have stalled due to financing failures. Always verify how many buildings a developer has completed, whether construction permits are in order, and who the main contractor is.

3. Oversupply in Sihanoukville. Vacancy rates in some Chinese-built projects are estimated at 50-70%. Buying the cheapest unit in a ghost-town complex is not a bargain - it is a trap. Location specificity and project-level due diligence are essential.

4. Off-plan payment protection. Cambodia does not have a standardised off-plan buyer protection mechanism equivalent to European or Thai standards. Payments go directly to the developer. Mitigate this by structuring payments as construction-linked tranches and engaging an independent local lawyer throughout the process.

5. Ground-floor restriction. Foreign buyers cannot hold title to ground-floor units. If a seller or agent offers a ground-floor property as freehold, it is either a leasehold arrangement or a misrepresentation. Verify the floor level and title type before committing.

6. Capital repatriation documentation. Cambodia imposes no formal capital controls, but bank transfers above 10,000 USD typically require documentation of the source of funds. Have your sale agreement and proof of tax payment ready when repatriating proceeds.

FAQ

What is the price per square meter for a new condo in Phnom Penh in 2026?

New condominiums in Phnom Penh range from approximately 1,100 USD/m2 in districts such as Toul Kork and Sen Sok to 3,500 USD/m2 in premium projects near Diamond Island and BKK1. The average for the Class B+ segment is around 1,500 USD/m2.

Can a foreigner legally buy property in Cambodia?

Yes, but only a unit within a registered condominium building, from the first floor above ground, with a hard title. Purchasing land, a house, or a villa requires either a leasehold structure or a locally incorporated company with a Cambodian shareholder.

In what currency are Cambodia property transactions conducted?

In US dollars (USD). Over 80% of real estate transactions in Cambodia are denominated in USD, making it one of the most dollarized property markets in the world. This is a practical advantage for international investors.

What is the typical rental yield on Cambodia property?

In Phnom Penh, gross rental yields for well-located condominiums range from 7-9% per year. After accounting for management fees, insurance, and minor costs, net yields typically settle between 5.5-7.5%.

How is rental income from Cambodia taxed for international investors?

Cambodia applies a 14% withholding tax on rental income received by non-residents. Investors must also declare this income in their country of tax residence. In the absence of a double taxation treaty, partial credit for Cambodian tax paid may be available depending on domestic rules. Always consult a qualified tax adviser in your home jurisdiction.

Is Sihanoukville a good investment in 2026?

It is a high-risk investment. The market continues to face oversupply and low liquidity following the 2019-2023 crash. It may deliver returns over a 7-10 year horizon, but requires project-level due diligence and a genuine tolerance for frontier market risk.

How long is the flight from Europe to Cambodia?

From most Western European cities to Phnom Penh, the journey takes approximately 13-16 hours with one connection, typically via Bangkok, Kuala Lumpur, Doha, or Dubai. There are currently no direct flights from Europe to Cambodia.

What are the transaction costs when buying property in Cambodia?

The primary cost is a 4% transfer tax on the property value, payable on registration. Additional costs include legal fees (typically 1,000-2,500 USD) and, where applicable, an agent commission of around 3%, usually paid by the seller.

Can foreigners obtain a mortgage in Cambodia?

Mortgage financing is technically available to foreigners from local banks, but the terms are unattractive - interest rates of 8-12% per year in USD and repayment periods rarely exceeding 15 years. Most international investors purchase with cash or use a developer payment plan spread over the 2-3 year construction period.

International investors approaching Cambodia for the first time should focus on Phnom Penh, selecting a project from a developer with a documented completion record, a hard title condominium unit from the first floor and above, within a budget of 50,000 - 80,000 USD. That entry point balances a credible gross rental yield of 7-9% with exposure to one of Southeast Asia's fastest-growing economies - while remaining clear-eyed about limited exit liquidity and the importance of professional on-the-ground property management.

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