Phnom Penh: Cost of Finishing and Furnishing a Rental Apartment – Real Investor Budget (2026)

Phnom Penh: Cost of Finishing and Furnishing (Apartments and Condos) for Rental – Budget and Priorities

If you only count the purchase price, you're not counting the investment

In Phnom Penh, many investors still focus almost exclusively on price per m². That's understandable—the market looks cheap compared to Thailand or Europe. The problem is that it's not the purchase price that determines the real investment return, but rather how much and how you spend on finishing and furnishing for a specific tenant profile.

In practice:

• two identical apartments in the same building
• same square footage, same purchase price
• difference in ROI can reach 3–5 percentage points

Solely due to poor finishing decisions.

This article breaks down the costs of finishing and furnishing in Phnom Penh to their core components—without inspirational photos and marketing slogans. You get concrete rates, realistic cost ranges, and investor logic, not interior designer aesthetics.

Phnom Penh in 30 Seconds: The Most Important Fact

In Phnom Penh, "nice" standard does not equal "rentable" standard.

The rental market here is functional, price-sensitive, and long-term, not lifestyle-oriented like in resort areas.

Every dollar spent on design that doesn't improve durability or daily comfort lowers ROI.

Why Finishing in Phnom Penh Counts Differently Than in Thailand

This is a key distinction that many investors fail to make.

Phnom Penh ≠ Phuket ≠ Koh Samui

In Phnom Penh:

• medium- and long-term rentals dominate (6–24 months)
• tenants are expats, managers, NGO workers, diplomats, IT specialists
• decisions are rational, not emotional
• quiet, ergonomics, reliability, and service matter, not the "wow" factor

This means:

• marble, gold fixtures, and designer lamps don't increase rent
• good air conditioning, a quiet refrigerator, and a solid sofa—do

Finishing Budget Structure – Starting Point

For a typical investment apartment in Phnom Penh:

• size: 45–75 m²
• standard: mid / mid+
• goal: stable long-term rental

realistic finishing + furnishing budget is:

✔ 180 – 350 USD / m²

meaning:

• 45 m²: 8,100 – 15,750 USD
• 60 m²: 10,800 – 21,000 USD
• 75 m²: 13,500 – 26,250 USD

Going below these ranges means quality compromises, and going above—risk of burning ROI.

Finishing Costs – Concrete Numbers

1. Flooring

Most common options:

• ceramic tiles (basic): 10–18 USD / m²
• better quality tiles: 20–30 USD / m²
• SPC vinyl planks: 22–35 USD / m²

🔴 Natural wood:

• 45–70 USD / m²
• high susceptibility to moisture
• poor investment decision in Phnom Penh

Investment recommendation:

SPC planks or good tiles—best price-to-durability ratio.

2. Kitchen (Cabinetry + Appliances)

Kitchen in Phnom Penh is not a lifestyle element, but a functional one.

Kitchen cabinetry:

• MDF + laminate: 1,200 – 2,200 USD
• stone countertop (local quartz): 250 – 450 USD

Appliances (mid-range):

• refrigerator: 350 – 600 USD
• cooktop + hood: 300 – 500 USD
• microwave / oven: 180 – 350 USD

👉 Total kitchen:

2,200 – 3,800 USD

3. Bathroom

This is one of the most critical rental points.

Realistic costs:

• fixtures (toilet, sink, shower): 600 – 1,000 USD
• fittings (faucets, drains): 300 – 600 USD
• shower enclosure: 250 – 450 USD
• labor and waterproofing: 300 – 500 USD

👉 Total bathroom:

1,500 – 2,500 USD

🔴 Cutting corners on waterproofing is mistake #1, which comes back after 12–18 months.

4. Air Conditioning

In Phnom Penh, air conditioning is not an extra—it's essential.

• split unit (Daikin / Panasonic): 650 – 900 USD / unit
• installation: 80 – 120 USD

Typical apartment: 2–3 units

👉 Total: 1,500 – 2,800 USD

Most Common Myth About Phnom Penh

"The better the standard, the higher the rent"

Not in Phnom Penh.

Tenants will pay more for:

• quiet
• stable temperature
• reliable appliances
• easy service

They won't pay more for:

• designer chairs
• marble countertops
• trendy wall colors

3 Facts You Must Know (Phnom Penh)

Fact 1:

Every 1,000 USD wasted on design lowers ROI by ~0.3–0.5 pp.

Fact 2:

The best standard is "business class hotel," not "boutique."

Fact 3:

Service and durability are more important than first impression.

Investor Checklist – Finishing

• Does each element enhance daily use comfort?
• Will materials withstand 3–5 years of intensive rental?
• Are spare parts available locally in Phnom Penh?
• Is finishing cost calculated in ROI, not "after the fact"?
• Does the standard match the actual tenant profile, not brochure images?

Furnishing Costs – Where Money Really "Works"

In Phnom Penh, furnishing doesn't sell a dream, but solves tenant's daily needs. Tenants rarely move frequently, so what matters is: durability, ergonomics, and ease of repair.

Living Room / Living Area

Realistic cost ranges:

• sofa (easy-to-clean material): 600 – 1,200 USD
• table + 4 chairs: 400 – 800 USD
• coffee table / TV stand: 250 – 450 USD
• TV 50–55": 450 – 700 USD
• curtains / blinds (custom): 200 – 350 USD

👉 Total living room: 1,900 – 3,500 USD

🔴 Investor mistake: designer sofas (pretty but not durable).

🟢 Good sofa = neutral color + dense foam + simple service.

Bedroom

Tenants in Phnom Penh stay long, so bedroom has enormous impact on retention.

• bed (frame + mid-range mattress): 800 – 1,400 USD
• nightstands (2 pcs): 200 – 350 USD
• wardrobe / closet: 600 – 1,200 USD
• lighting + blackout curtains: 180 – 300 USD

👉 Total bedroom: 1,800 – 3,200 USD

Home Office (Increasingly Important)

From 2023–2026, demand for home office in Phnom Penh grows faster than square footage.

• desk: 180 – 350 USD
• ergonomic chair: 250 – 450 USD
• additional outlets / lighting: 100 – 200 USD

👉 Total: 530 – 1,000 USD

This is one of the cheapest ways to defend rent.

Total Furnishing Cost – Summary

For typical 1–2BR apartment:

• minimum sensible standard: 4,500 – 6,000 USD
• comfortable investment standard: 6,500 – 9,500 USD
• above 10,000 USD: ROI starts to deteriorate

Utilities and Service Costs – What "Eats the Margin"

This element is most often omitted from ROI calculations.

Utilities (Average Monthly)

• electricity (air conditioning): 80 – 150 USD
• water: 10 – 20 USD
• internet: 25 – 40 USD
• trash / local fees: 5 – 10 USD

👉 Total: 120 – 220 USD / month

Condominium Fees (Maintenance Fee)

In Phnom Penh they're lower than in Thailand, but not zero:

• standard condo: 0.6 – 1.2 USD / m² / month

Example:

• 60 m² × 0.9 USD = 54 USD / month
• 650 USD / year

Service and Minor Repairs (Annually)

Realistic reserve:

• air conditioning (cleaning + minor repairs): 120 – 250 USD
• plumbing / electrical: 150 – 300 USD
• furniture / appliance wear: 200 – 400 USD

👉 Total: 470 – 950 USD / year

Apartment Insurance

Not mandatory, but sensible.

• basic policy (fire, flood, liability): 120 – 250 USD / year

Sources:

• https://www.allianz.com.kh
• https://www.prudential.com.kh

Most Common Cost Myth

"These are minor details, they don't affect the result"

Not true.

Over a 5-year horizon:

• poorly calculated finishing costs + service
• can take away 15–25% of planned profit

Impact of Finishing on ROI – Numerical Model

Assumptions:

• purchase price: 120,000 USD
• rent: 900 USD / month
• annual income: 10,800 USD

Scenario A – sensible standard

• finishing + furniture: 18,000 USD
• annual costs (utilities + service + fees): 2,200 USD

👉 Net ROI ~6.8–7.4%

Scenario B – "over-designed"

• finishing + furniture: 28,000 USD
• annual costs: 2,600 USD

👉 Net ROI ~5.4–5.8%

Difference not in rent—in CAPEX.

3 Facts You Must Know (Continued)

Fact 1:

Phnom Penh rewards stability, not showiness.

Fact 2:

The best apartments look… ordinary.

Fact 3:

Every dollar spent on durability works longer than a dollar spent on design.

Investor Checklist – Finishing

• Will furniture survive 5 years of rental without replacement?
• Is service available locally and quickly?
• Are utility costs calculated conservatively?
• Is maintenance fee included in ROI?
• Does the standard match the actual tenant profile, not photos?

Summary: This Is the Chapter That Saves Your Margin

In Phnom Penh, the investor who spends the least doesn't win,

nor the one who spends the most.

The winner is the one who:

• understands the tenant profile
• calculates costs over time
• treats finishing as an ROI tool, not decoration