Phnom Penh Property Prices and Returns 2026

At 1,800 USD per square metre, you can acquire an apartment in the capital of a country growing at over 6% GDP annually, with all transactions denominated in US dollars. Phnom Penh in 2026 remains one of the few cities in Southeast Asia where international investors can enter the market below 100,000 USD and achieve gross rental yields of 7-9%. Too good to be true? The numbers, risks, and district-by-district breakdown below will give you a clear picture.

Cambodia is not Thailand. The market is thinner, regulations are younger, and the list of credible developers is shorter. But that is precisely why margins remain higher and the investment window is still open. This article covers ownership structure, district selection, and cash flow calculation for international buyers in 2026.

Quick answer

Average new condominium prices in central Phnom Penh (BKK1, Tonle Bassac, Chamkarmon) range from 2,000-3,200 USD/m² (mid-range) to 3,500-5,500 USD/m² (premium), per CBRE Cambodia and Knight Frank data, Q1 2026.
Budget segment districts (Sen Sok, Chbar Ampov, Meanchey) start from 1,200-1,800 USD/m².
Gross rental yield on a 35-45 m² studio in BKK1 typically reaches 7-9%, with monthly rents of 550-800 USD.
Foreigners may hold freehold (hard title) only from the first floor upward, and may own a maximum of 70% of units in any single building.
All transactions are conducted in USD, eliminating local currency risk from the Cambodian riel (KHR).
Property transfer tax is 4% of the property value; annual property tax is 0.1% on value exceeding 25,000 USD.

Options and scenarios

Scenario A: Studio for short-term rental in BKK1

BKK1 (Boeung Keng Kang 1) is Phnom Penh's expat and diplomatic hub, lined with third-wave coffee shops and international restaurants. A 38 m² studio in a new development costs approximately 2,800 USD/m², totalling 106,400 USD. Adding 4% transfer tax (4,256 USD), registration fees, and legal costs (approximately 1,500 USD) brings the total entry cost to around 112,156 USD.

Short-term rental income (via Airbnb or local management agencies) at 75% occupancy, after a 20% management fee, yields approximately 750 USD per month net. Annual income: 9,000 USD. Gross return: 8.0%. After Cambodia's withholding tax on rental income for non-residents (10%) and applicable income tax in the investor's home country (with a proportional credit for tax paid in Cambodia), the realistic net yield lands at 5.5-6.0%.

Scenario B: Two-bedroom apartment in Tonle Bassac for long-term rental

Tonle Bassac attracts NGO workers, corporate tenants, and senior professionals. A 65 m² mid-range apartment at 2,400 USD/m² comes to 156,000 USD. Long-term monthly rent: 900-1,100 USD. Gross yield: approximately 7.5%. Lower vacancy risk and more stable cash flow compared to short-term rentals.

Scenario C: Growth district opportunity in Sen Sok

Sen Sok is Phnom Penh's most populous district, driven by expanding infrastructure including a new ring road and AEON shopping centres. Entry price: 1,400 USD/m² for a 45 m² studio = 63,000 USD. Monthly rent: 350-450 USD. Gross yield: 7.1%. Higher capital appreciation potential, but lower secondary market liquidity on exit.

Comparison table

Parameter	BKK1 - Studio 38 m²	Tonle Bassac - 2BR 65 m²	Sen Sok - Studio 45 m²	Bangkok Sukhumvit - Studio 30 m²
Price per m² (USD)	2,800	2,400	1,400	4,800
Total purchase cost (USD)	112,000	164,000	66,500	152,000
Monthly rent (USD)	750	1,000	400	650
Gross rental yield	8.0%	7.3%	7.2%	5.1%
Transfer tax	4%	4%	4%	approx. 2% (fees + tax)
Land ownership	No	No	No	No (condo freehold)
Transaction currency	USD	USD	USD	THB
Secondary market liquidity	Medium	Medium	Low	High

Bangkok serves as a regional benchmark. Phnom Penh leads on yield; Bangkok leads on secondary market depth and liquidity.

Risks and mistakes

1. Exit liquidity. The secondary condominium market in Phnom Penh remains thin. Average time to sell a mid-range unit is 6-12 months, and longer in peripheral districts like Sen Sok. Investors should plan for a minimum holding period of 5-7 years.

2. Oversupply in certain segments. According to CBRE Cambodia, over 10,000 new condo units were delivered in Phnom Penh in 2024, with absorption around 60%. The supply-demand balance is improving in 2026 but has not fully corrected. Prioritise projects with over 80% presale rates during construction.

3. Developer quality. The market includes developers from China, South Korea, and Japan of varying standards. Always review a developer's track record: delivery timelines, actual build quality, and post-handover management. Developers backed by Japanese or Singaporean capital (such as those co-financed by OCBC or Mitsui affiliates) generally carry stronger reputations.

4. No land ownership for foreigners. Foreign nationals cannot own land in Cambodia. Alternatives include leasehold arrangements of up to 50 years (with renewal options) or acquisition through a Cambodian company where 51% must be held by a Cambodian citizen. The latter carries significant risk of loss of control. Always prefer a clean hard title on a condominium unit.

5. USD currency exposure. While USD-denominated transactions remove riel risk, investors converting from other currencies face USD exchange rate exposure on both entry and exit. A 10% weakening of the dollar reduces real returns in the investor's home currency proportionally.

6. Tax obligations in your home country. Rental income from foreign property is taxable in most countries. Cambodia has not signed double taxation treaties with most European nations. Investors should verify whether a proportional tax credit applies for taxes paid in Cambodia, and consult a qualified tax adviser before committing to a purchase.

FAQ

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

New condominiums in central districts (BKK1, Tonle Bassac) are priced at 2,000-3,500 USD/m² in the mid-range segment. In peripheral areas like Sen Sok or Chbar Ampov, prices start from 1,200 USD/m². A well-located studio of 35-40 m² typically costs between 80,000 and 130,000 USD.

Can a foreigner buy property in Cambodia?

Yes, but only condominium units on the first floor or above, with a hard title deed. The ground floor and land are reserved for Cambodian citizens. Foreign buyers may collectively own a maximum of 70% of units within any single building.

What rental yields can investors expect in Phnom Penh?

Gross yields of 7-9% are common in mid-range properties, making Phnom Penh one of the highest-yielding rental markets in Southeast Asia. After local withholding tax and applicable home-country income tax, net yields typically settle at 5-6%.

Are real estate transactions in Cambodia conducted in USD?

Yes. Cambodia is one of the most highly dollarised economies in the world. Over 80% of real estate transactions are priced and settled in US dollars, including purchase prices, rents, and notary fees.

What taxes apply when buying property in Phnom Penh?

The property transfer tax is 4% of the transaction value. Annual property tax is 0.1% on value exceeding 25,000 USD. Withholding tax on rental income for non-residents is 10% of gross rental receipts.

Which districts in Phnom Penh are best for investors?

BKK1 and Tonle Bassac offer the strongest expat rental demand and lower vacancy risk. Chamkarmon is a middle ground between price and location. Sen Sok and Toul Kork are growth-oriented districts with a lower entry threshold and higher capital appreciation potential.

What is the buying process for a condo in Phnom Penh?

The process involves a reservation deposit (1,000-5,000 USD), signing a sale and purchase agreement, staged payments (typically 30/30/40 or 50/50 structures), and hard title registration with the Ministry of Land Management. For a completed project, the full process takes 2-4 months.

Does Cambodia have a tax treaty with European countries?

Cambodia has signed very few double taxation treaties. Investors from most European countries should verify whether proportional tax relief applies in their home jurisdiction for taxes paid in Cambodia, and seek professional tax advice before proceeding.

How long does it take to fly to Phnom Penh from Europe?

There are no direct flights from Europe to Phnom Penh. Common connections include Bangkok (Suvarnabhumi), Singapore, Kuala Lumpur, or Doha. Total travel time is typically 13-18 hours. Phnom Penh is UTC+7, which is 6-7 hours ahead of Central European Time depending on the season.

What is the recommended investor profile for Phnom Penh property?

International investors with a budget of 100,000-160,000 USD, a 5-7 year holding horizon, and a preference for USD-denominated cash flow are well suited to the market. A 40-65 m² hard title condominium in BKK1 or Tonle Bassac, rented long-term, offers a combination of 5-6% net yield and estimated 3-5% annual capital appreciation.

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Phnom Penh Property: Prices and Real Returns in 2026