Phnom Penh Property Prices and Rental Yields in 2026

For around 1,800 USD per square metre, an investor can acquire a new studio in a high-rise along Riverside Promenade in Phnom Penh. That same budget in Bangkok would barely cover a parking space. This pricing gap is drawing increasing volumes of international capital into the Cambodian capital, and for good reason.

Phnom Penh in 2026 is a city of 2.4 million people, urbanising at over 3% annually, with GDP growth estimated by the World Bank at approximately 6%. The economy is substantially dollarised: more than 90% of real estate transactions are conducted in US dollars. For international investors, this eliminates currency exposure to the local riel (KHR) and simplifies financial modelling entirely in USD.

Quick answer

• Price per sqm in central Phnom Penh (new condominiums): 2,000 - 3,500 USD
• Price per sqm in peripheral districts (Chbar Ampov, Sen Sok): 1,200 - 1,800 USD
• Gross rental yield: 6 - 9% per year, depending on location and specification
• Transaction currency: USD (90%+ of the market)
• Minimum entry for a condominium: from approximately 60,000 USD for a 30 sqm studio
• Foreign ownership structure: hard title (strata title) on condominiums from the first floor upward, with foreign ownership capped at 70% per building

Options and scenarios

BKK1 and Chamkarmon - the premium market core

Boeng Keng Kang 1 (BKK1) is the most established expat district in Phnom Penh. New condominium prices range between 2,800 and 3,500 USD per sqm. A two-bedroom unit of 65 sqm therefore costs approximately 195,000 - 227,000 USD. Rental rates for comparable units sit at 1,100 - 1,500 USD per month, producing a gross yield of 6.8 - 7.9% per year.

To illustrate with a concrete example: a 65 sqm apartment purchased at 210,000 USD, rented at 1,300 USD per month. Annual rental income: 15,600 USD. Gross yield: 15,600 / 210,000 = 7.43%. After deducting property management fees (approximately 10%) and maintenance costs (approximately 1,200 USD per year), net income before tax is around 12,840 USD, equivalent to 6.11% net.

Daun Penh and Riverside - tourism and short-term rental potential

The Tonle Sap riverfront is Phnom Penh's most recognisable address. Prices range from 2,200 to 3,200 USD per sqm. Short-term rental potential (via platforms such as Airbnb) is the highest in the city, though seasonality is a factor. Occupancy during peak season (November through March) reaches 85%, dropping to 50 - 55% in the off-season.

Sen Sok and Chbar Ampov - high-yield emerging districts

These outer districts offer entry prices from 1,200 USD per sqm. Infrastructure is expanding rapidly, with new roads and retail centres (including Aeon Mall 3 in Sen Sok). Gross rental yields here are paradoxically the highest in the city, reaching 8 - 9%, driven by demand from Cambodia's growing local middle class.

Scenario A - passive income from long-term rental

Purchase a condominium in BKK1 for approximately 200,000 USD. Rent it at 1,200 - 1,400 USD per month via a local property management firm. Investment horizon: 7 - 10 years. Target: stable USD cashflow plus capital appreciation estimated at 4 - 6% annually.

Scenario B - capital growth in emerging districts

Buy off-plan in Sen Sok or Chbar Ampov for 80,000 - 120,000 USD. Sell upon completion (2 - 3 years) targeting a 15 - 25% gain. Key risks: developer delays and oversupply in the budget segment.

Scenario C - short-term rental near Riverside

Invest 160,000 - 200,000 USD in a riverfront unit. Operate through a short-term rental manager. At 65% occupancy and 55 USD per night for a studio, annual gross revenue is approximately 13,000 USD, representing a gross yield of around 7%. This approach requires more active oversight and monitoring of short-term rental regulations.

Comparison table

Parameter	BKK1 / Chamkarmon	Riverside / Daun Penh	Sen Sok / Chbar Ampov
Price per sqm (USD)	2,800 - 3,500	2,200 - 3,200	1,200 - 1,800
Typical studio size	35 - 50 sqm	30 - 45 sqm	28 - 40 sqm
Entry cost (USD)	100,000 - 175,000	70,000 - 145,000	35,000 - 72,000
Gross rental yield	6.5 - 7.5%	6 - 8%	8 - 9%
Typical tenant profile	Expats, corporate staff	Tourists, digital nomads	Local Cambodian middle class
Secondary market liquidity	High	Medium	Low
Oversupply risk	Low	Medium	High

Ownership structure for foreign investors

Cambodian law prohibits foreigners from owning land. The only direct ownership route is a hard title condominium (strata title) from the first floor upward, provided that foreign-owned units do not exceed 70% of the building. Ground-floor units are reserved for Cambodian citizens.

Alternative structures include:

• Leasehold - land or house lease for up to 50 years with renewal option, registered at the cadastral office
• Nominee company structure - technically legal but carries meaningful risk. Requires a Cambodian majority shareholder. Courts may challenge the arrangement if deemed artificial
• Trust or investment fund - suitable for larger capital deployments (from 500,000 USD upward), requires specialist legal counsel in-country

For most international investors with budgets of 60,000 - 250,000 USD, a condominium with hard title remains the only recommended path.

Phnom Penh vs Bangkok - the numbers

For context: average prices per sqm in central Bangkok (Sukhumvit, Silom) range from 4,500 to 7,000 USD, while gross rental yields have compressed to 4 - 5%. Phnom Penh offers entry prices 40 - 60% lower, with yields 2 - 3 percentage points higher. The trade-off is lower secondary market liquidity and a less mature resale environment.

International investors should also factor in logistics. Flights to Phnom Penh from major European hubs typically involve one connection (via Doha, Dubai, or Bangkok) and take 13 - 17 hours. The city operates on UTC+7.

Taxes and transaction costs

• Transfer tax: 4% of property value (typically split between buyer and seller)
• Annual property tax: 0.1% of value above the 25,000 USD threshold
• Rental income withholding tax: 10% of gross rental income for non-residents
• Home country tax obligations: investors should consult a tax adviser in their country of residence regarding the treatment of foreign-source rental income, particularly where no double taxation treaty with Cambodia exists
• Property management fee: 8 - 12% of rental income

Risks and mistakes

1. Condominium oversupply. Market estimates indicate over 30,000 units currently under construction or in the pipeline in Phnom Penh. Not every project will find sufficient buyers. Developer selection is critical.

2. Developer quality. The Cambodian market is less regulated than Thailand's. Delays of 12 - 24 months are not uncommon, and some off-plan projects have failed to deliver. As a rule of thumb, only buy from developers with at least one completed project on record.

3. Exit liquidity. The secondary market in Phnom Penh is thin. Selling a unit can take 6 - 18 months. For speculative investments, this represents a significant constraint.

4. Regulatory risk. Cambodia is an emerging market. Policy can shift. In 2019, the ban on online casinos in Sihanoukville triggered a Chinese investor exodus and price declines of 30 - 40% in that market.

5. Double taxation exposure. In the absence of a double taxation treaty between Cambodia and many Western countries, investors should obtain professional tax advice to avoid unintended dual liability on rental income.

6. Title due diligence. Verify that the building holds a properly registered strata title and that the foreign ownership quota has not already reached the 70% ceiling before committing to a purchase.

FAQ

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

New condominiums in central districts such as BKK1 and Riverside are priced at 2,000 - 3,500 USD per sqm. A studio of 30 - 35 sqm starts from approximately 60,000 USD in peripheral areas and 120,000 - 175,000 USD in prime central locations.

Can foreigners buy property in Cambodia?

Yes. Foreign nationals may purchase a condominium unit with full hard title (strata title) on the first floor or above, provided that foreign-owned units do not exceed 70% of the building. Foreigners cannot own land directly.

What rental yields can investors expect in Phnom Penh?

Gross yields range from 6 to 9% per year depending on location. After management fees and local taxes, net returns typically sit at 5 - 7%, which is 2 - 3 percentage points above comparable Bangkok assets.

In which currency are property transactions conducted?

More than 90% of real estate transactions in Cambodia are conducted in US dollars, eliminating currency exposure to the local riel (KHR) for USD-denominated investors.

Is Sihanoukville a viable investment in 2026?

Sihanoukville experienced a sharp boom-and-bust cycle between 2018 and 2020. The market is stabilising in 2026, but oversupply remains a structural issue. For risk-conscious investors, Phnom Penh and Siem Reap offer a more favourable risk profile.

What does the condominium purchase process look like?

The process involves: unit selection, signing a reservation agreement (deposit of 5 - 10%), legal due diligence, signing the sale and purchase agreement, payment (instalment or lump sum), and title registration at the cadastral office. The entire process typically takes 4 - 8 weeks.

What are the annual running costs for a Phnom Penh condominium?

Maintenance fees typically range from 0.8 to 1.5 USD per sqm per month. For a 65 sqm apartment, this amounts to approximately 780 - 1,170 USD per year. Annual property tax of 0.1% of assessed value applies above the 25,000 USD threshold.

How do I travel from Europe to Phnom Penh?

The most convenient connections from major European hubs route via Doha (Qatar Airways), Dubai (Emirates), or Bangkok with an onward connection. Total travel time ranges from 13 to 17 hours. No direct flights from Europe currently operate.

---

Ready to invest in Thailand or Cambodia property? Send us a request - our experts will find the best options for you.

Contact us ->