Investment Apartment in Phnom Penh: 7 Facts You Need to Know in 2026
Phnom Penh is one of the few cities in Southeast Asia where a foreigner can acquire full freehold ownership of a condominium unit and collect rental income denominated in US dollars. Price per square metre runs at roughly one-third of Bangkok levels, rental yields reach 7-9% gross annually, and entry tickets start below 80,000 USD for a finished unit in a well-located district. Below is a structured breakdown of the market, numbers, risks, and concrete calculations included.
Quick answer
- Price per sqm in a new Class B+ condominium in Phnom Penh ranges from 1,800 to 2,600 USD in 2026 (CBRE Cambodia and Knight Frank data)
- Gross rental yield for a studio of 35-45 sqm in BKK1, Tonle Bassac, or Toul Tom Poung runs at 7-10% per year, collected in USD
- Transaction currency: virtually 100% of Phnom Penh real estate deals are settled in US dollars; the Cambodian riel (KHR) is used only for small everyday purchases
- Foreign ownership: full freehold title (hard title) is available from the first floor upward in buildings holding a formal condominium licence; foreigners may own up to 70% of the total floor area in any single building
- Rental tax in Cambodia: 10% of gross rental income withheld at source
- GDP growth forecast: the Asian Development Bank projects 6.3% growth for Cambodia in 2026, driven by construction, tourism, and garment exports
Options and scenarios
Phnom Penh concentrates more than 70% of expatriate tenant demand in Cambodia. It is the only city in the country with sufficient rental market depth to sustain consistent occupancy rates.
Sihanoukville experienced a speculative bubble fuelled by foreign capital in 2018-2019. In 2026, oversupply of empty towers continues to suppress prices, with estimated occupancy rates of only 30-40%. It is a speculative market, not an income-generating one.
Siem Reap relies on temple tourism. Seasonality is pronounced (peak: November to March), and the long-term rental market is almost non-existent. It suits a boutique hospitality concept, not a buy-to-let apartment.
For investors targeting predictable USD cash flow, Phnom Penh is the only rational choice among Cambodian cities.
Ownership structure, what can a foreigner actually buy?
The Cambodian constitution prohibits foreigners from owning land. However, a foreign national can acquire full freehold title (hard title, also called strata title) to a unit in a building that holds a condominium licence, provided the unit is on the first floor or above. Three pathways exist:
- Hard title condominium, full ownership registered with the Ministry of Land Management. The safest structure. Requires purchase in a project that has obtained a formal condominium licence (not all buildings qualify).
- Leasehold, a registered lease for up to 50 years with renewal option. Commonly used to control ground-floor or land-based assets.
- Nominee company structure, purchase through a Cambodian company in which the foreigner holds 49% and a trusted local partner holds 51%. Legally risky and not recommended without robust legal counsel.
For international investors buying a rental apartment, hard title condominium is the only recommended path.
Scenario 1: Studio 35 sqm in Tonle Bassac
Purchase price: 35 sqm x 2,200 USD/sqm = 77,000 USD. Monthly rent: 650 USD (market rate for expat tenants in 2026). Annual gross income: 7,800 USD. Gross yield: 10.1%. After deducting 10% Cambodian rental tax, property management fee (8% of income), and maintenance costs (approx. 600 USD/year), net income is approximately 6,100 USD per year. Net yield: approximately 7.9%.
Scenario 2: Two-bedroom apartment 55 sqm in BKK1
Purchase price: 55 sqm x 2,500 USD/sqm = 137,500 USD. Monthly rent: 1,000 USD. Annual gross income: 12,000 USD. Gross yield: 8.7%. After costs, net income approximately 9,500 USD. Net yield: approximately 6.9%. Higher ticket size, but more stable tenant profile (families, senior managers).
Scenario 3: Premium apartment 80 sqm in Chroy Changvar
Purchase price: 80 sqm x 1,900 USD/sqm = 152,000 USD (lower per-sqm price reflects the district's developing status). Monthly rent: 900 USD. Gross yield: 7.1%. Higher vacancy risk as the district is still building out its service infrastructure. Capital appreciation potential over a 5-7 year horizon is the primary investment thesis here.
Comparison table
| Parameter | Tonle Bassac (studio 35 sqm) | BKK1 (2-bed 55 sqm) | Chroy Changvar (80 sqm) | Bangkok Sukhumvit (35 sqm) |
|---|---|---|---|---|
| Price per sqm (USD) | 2,200 | 2,500 | 1,900 | 5,500-7,000 |
| Total purchase price (USD) | 77,000 | 137,500 | 152,000 | 192,500-245,000 |
| Monthly rent (USD) | 650 | 1,000 | 900 | 800-1,100 |
| Annual gross yield | 10.1% | 8.7% | 7.1% | 4.5-5.5% |
| Annual net yield | approx. 7.9% | approx. 6.9% | approx. 5.4% | approx. 3.5-4.2% |
| Income currency | USD | USD | USD | THB |
| Foreign ownership type | Hard title | Hard title | Hard title | Freehold condo |
| Vacancy risk | Low | Low | Medium | Low |
The Bangkok column serves as a benchmark. Phnom Penh delivers materially higher yields, but with lower secondary market liquidity.
Entry costs and exit strategy
Costs at purchase:
- Transfer tax: 4% of property value
- Legal fees: 1,000-2,000 USD
- Agent commission: typically covered by the developer, not the buyer
- Total transaction costs: approximately 5-6% of purchase price
Exit strategy is the most significant challenge in the Cambodian market. The secondary market is thin. Average time to sell a condominium in Phnom Penh is 6-18 months, compared with 3-6 months in Bangkok. The practical implication: prioritise strong cash flow assets, because the holding period may extend beyond the original plan.
Tax considerations for international investors
Cambodia withholds 10% rental tax at source. Investors should verify their home-country tax obligations with a qualified accountant, particularly in jurisdictions that do not have a double taxation treaty with Cambodia. There is currently no such treaty between Cambodia and most European countries, which means the Cambodian tax paid may only partially offset the home-country liability rather than eliminating it entirely. At net income levels around 6,000-9,000 USD per year, the residual additional tax burden is typically modest.
Risks and mistakes
- Secondary market liquidity, Phnom Penh is not Bangkok or Singapore. A resale can take over a year. Do not enter this market with an investment horizon shorter than 5 years.
- Developer track record, Cambodia has no state-backed completion guarantee fund comparable to those in more regulated markets. Purchase only completed projects, or projects from developers with a verifiable history of delivered buildings in Cambodia.
- Oversupply in the premium segment, multiple new high-rise towers are being completed in Phnom Penh in 2026. The studio and compact format (30-50 sqm) absorbs demand most efficiently. Units above 100 sqm carry visibly longer vacancy periods.
- Absence of a double taxation treaty, investors from countries without a tax treaty with Cambodia may face a higher combined tax burden than they would in treaty-covered markets.
- Political and regulatory risk, Cambodia operates as an authoritarian state with limited judicial independence. Condominium property rights are generally respected in practice, but institutional safeguards do not reach OECD-country standards.
- Remote management, a flight from Europe to Phnom Penh takes a minimum of 14-16 hours with a connection. Without a local property manager, running a rental from abroad is effectively impossible. Budget 8-10% of gross income for professional management.
FAQ
Can a foreigner own an apartment in Phnom Penh outright?
Yes. A foreign national can acquire full freehold ownership (hard title) in a building with a condominium licence, provided the unit is on the first floor or above. Foreigners may collectively own up to 70% of any single building's total floor area.
How much does an investment apartment in Phnom Penh cost in 2026?
A studio of 30-45 sqm in a prime district such as BKK1 or Tonle Bassac costs between 65,000 and 120,000 USD. Price per square metre ranges from 1,800 to 2,600 USD depending on location and finish standard.
What rental yields can I expect in Phnom Penh?
Gross yields run at 7-10% per year in USD. After taxes and management fees, net yields are typically 5.5-8%. This compares favourably with Bangkok (3.5-4.5% net) and most Western European capital cities.
In what currency are Cambodian property transactions conducted?
US dollars. Cambodia is one of the most dollarised economies in the world. Prices, rents, purchase contracts, all are denominated in USD.
Which district of Phnom Penh is best for investment?
BKK1 and Tonle Bassac offer the lowest vacancy rates and the strongest expatriate tenant demand. Toul Tom Poung (Russian Market area) offers lower entry prices with growing potential. Chroy Changvar is a longer-horizon bet on infrastructure development and capital appreciation.
How long does it take to sell a condominium in Phnom Penh?
On average 6-18 months on the secondary market. Liquidity is lower than in Bangkok or Ho Chi Minh City. A recommended minimum holding period is 5-7 years.
Do I need a visa to purchase property in Cambodia?
No visa is required to complete a property purchase. For extended stays, a business visa (Type E) with extensions is the standard option. A tourist visa allows stays of up to 30 days.
What are the ongoing costs of owning an apartment in Phnom Penh?
Common area maintenance (CAM) fees run at 0.5-1.5 USD per sqm per month. For a 35 sqm studio that is approximately 18-53 USD per month. Electricity costs 0.20-0.25 USD per kWh; water charges are modest.
Is it safe to buy off-plan in Cambodia?
Only if the developer has a documented track record of completing projects in Cambodia. There is no statutory completion guarantee comparable to regulated markets. Buying a finished unit, ideally with an existing tenant, is the lower-risk approach.
How does property management work for remote investors?
A local property management company handles tenant sourcing, rent collection, maintenance coordination, and reporting. Fees typically range from 8-10% of gross rental income. Without local management, operating a rental property in Phnom Penh from abroad is not practical.
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