Phnom Penh: Studio vs 1BR vs 2BR – Which Size Offers the Best Risk-Return Profile?

Introduction: Why Unit Size Determines Returns, Not Balcony Views

In Phnom Penh, unit size is one of the most critical investment decisions, yet it's often overlooked.

Most investors focus on:

• location,
• finishes and amenities,
• developer marketing narratives.

Meanwhile, unit size fundamentally determines:

• rental liquidity,
• vacancy risk levels,
• actual entry capital requirements,
• exit flexibility.

This article doesn't answer "what looks nicest", but rather:

Where capital performs most predictably in Phnom Penh.

Phnom Penh Market Context (2025–2026)

Phnom Penh is a market driven by:

• administration and government,
• corporate presence,
• long-term tenancies,
• and not tourism.

Primary tenant profiles include:

• expats on 12–24 month contracts,
• regional managers,
• NGO staff, banking professionals, infrastructure firms.

Sources:

• https://www.cbre.com.kh/insights
• https://www.knightfrank.com/research/cambodia
• https://www.worldbank.org/en/country/cambodia

This means demand is functional, not emotional.

And this has direct implications for unit sizing.

Studio Apartments in Phnom Penh – Low Entry Barrier, Higher Risk

Studio Characteristics

Size: 28–38 sqm (300–410 sqft)

Tenant Profile: Single professionals, junior expats, local middle management

Lease Duration: Shorter (6–12 months)

Purchase Prices (2025/2026)

• New developments CBD / BKK1:
• $1,800 – $2,400 per sqm
• Secondary districts:
• $1,400 – $1,700 per sqm

➡️ 32 sqm studio = ~$50,000 – $75,000

Sources:

• https://www.globalpropertyguide.com/Asia/Cambodia/Phnom-Penh
• https://www.statista.com/statistics/1375086/cambodia-condominium-prices/

Long-Term Rental Rates

• $600 – $850 per month
• Market average: $700

Annual Operating Costs

• Maintenance fees: $0.8 – $1.2 per sqm/month
• ➜ ~$350
• Minor repairs and refreshes: $300–$500
• Vacancy (1–2 months): $700–$1,400

➡️ Total annual costs: ~$1,400 – $2,200

Studio Investment Conclusions

Advantages:

• Low entry threshold,
• Easier to sell on price alone.

Risks:

• Highest tenant turnover,
• Greater sensitivity to market downturns,
• Competition from new supply.

➡️ Studios aren't bad, but they're most vulnerable.

1-Bedroom Units in Phnom Penh – The Market Sweet Spot

1BR Characteristics

Size: 45–60 sqm (485–645 sqft)

Tenant Profile: Expats, couples, middle/senior management

Lease Duration: 12–24 months

Purchase Prices

• CBD / BKK1 / Tonle Bassac:
• $1,700 – $2,300 per sqm
• Well-connected districts:
• $1,400 – $1,800 per sqm

➡️ 52 sqm 1BR = ~$80,000 – $110,000

Sources:

• https://www.cbre.com.kh/market-reports
• https://www.knightfrank.com/research

Long-Term Rental Rates

• $900 – $1,300 per month
• Stable average: $1,050

Operating Costs

• Maintenance: $500 – $700
• Repairs and reserves: $400 – $600
• Vacancy (1 month): $1,050

➡️ Annual costs: ~$2,000 – $2,300

Why 1BR Units Offer the Best Liquidity

• Broadest tenant pool,
• Lowest price sensitivity,
• Easiest lease renegotiation,
• Optimal risk-return balance.

Phnom Penh in 30 Seconds – Critical Fact

The most liquid unit size in Phnom Penh is 1BR, not studio and not 2BR.

Most Common Phnom Penh Myth

"Studios always rent fastest"

False.

Studios rent quickly only in strong markets.

In weaker conditions — they're first to sit vacant.

3 Facts You Must Know

1. Studios have the lowest entry barrier but highest turnover risk.
2. 1BR units offer best rental flexibility and exit options.
3. Unit size impacts ROI stability more than finish quality.

2-Bedroom Units in Phnom Penh – Higher Investment, Narrower Demand

2BR Characteristics

Size: 70–95 sqm (755–1,020 sqft)

Tenant Profile: Expat families, senior management, NGO contract staff

Lease Duration: 12–36 months

Market Features: Stability with good tenants, longer vacancies during turnover

2BR Purchase Prices (2025–2026)

• BKK1 / Tonle Bassac / Riverside:
• $1,700 – $2,200 per sqm
• Secondary districts:
• $1,300 – $1,600 per sqm

➡️ Example:

82 sqm 2BR × $1,700 = ~$139,000

Sources:

• https://www.cbre.com.kh/insights
• https://www.globalpropertyguide.com/Asia/Cambodia/Phnom-Penh

Long-Term Rental Rates

• $1,400 – $2,000 per month
• Market average (excluding premium views): $1,600

2BR Annual Operating Costs

• Maintenance fees: $0.9 – $1.3 per sqm/month
• ➜ ~$900–$1,200
• Service, repairs, wear: $700–$1,000
• Vacancy (1–2 months): $1,600 – $3,200

➡️ Total OPEX: ~$3,200 – $5,000 per year

2BR-Specific Risks

• Smaller pool of potential tenants,
• Higher sensitivity to corporate budgets,
• Greater pressure on building quality and management.

2BR units don't forgive weak projects.

Complete ROI Analysis – Unit Size Comparison (Net)

Common Assumptions

• Long-term rental (LTR),
• All-cash purchase,
• Conservative vacancy allowance,
• Standard market finishes (not luxury).

Studio – Net ROI

• Purchase price: $65,000
• Annual rent: $8,400
• Annual costs: ~$1,800

➡️ Net income: ~$6,600

➡️ Net ROI: ~10.1%

BUT: High turnover + rent decline risk.

1BR – Net ROI

• Purchase price: $95,000
• Annual rent: $12,600
• Annual costs: ~$2,200

➡️ Net income: ~$10,400

➡️ Net ROI: ~10.9%

Best balance of stability and liquidity.

2BR – Net ROI

• Purchase price: $140,000
• Annual rent: $19,200
• Annual costs: ~$4,000

➡️ Net income: ~$15,200

➡️ Net ROI: ~10.8%

Stable, but capital-intensive.

Phnom Penh in 30 Seconds – Key Fact

1BR is the most investor-friendly unit size in Phnom Penh.

Most Common Investor Myth

"2BR always delivers higher returns because rent is higher"

False.

What matters is net yield + liquidity, not gross rent.

3 Facts You Must Know

1. Studios have the highest return variability.
2. 1BR units have best resilience across market cycles.
3. 2BR only works in prime locations with quality buildings.

Investor Checklist – Unit Size Selection (5 Points)

1. Is demand in this district broader than "single expats"?
2. How many months of vacancy do you realistically expect, not per marketing?
3. Does the building have management capable of maintaining 2BR standards?
4. Is the secondary market active if you need to sell?
5. Is ROI calculated after costs, not from brochure figures?

Final Verdict (No Marketing Spin)

• Studio – For aggressive investors aware of risks.
• 1BR – Best investment choice in Phnom Penh.
• 2BR – Only sensible in prime locations with quality buildings.

Capital wins in Phnom Penh when it remains flexible.

Most often, flexibility = 1BR.