Price Per Square Meter in Phnom Penh: What Does Entry Cost in 2026?

In Q1 2026, a 35 sqm studio in a high-rise along Preah Norodom Boulevard in Phnom Penh trades at approximately 62,000 USD - or 1,771 USD per square meter. That is less than half the cost of a comparable unit in Bangkok. For international investors seeking exposure to one of Southeast Asia's fastest-growing economies, this price gap is a meaningful starting point for serious analysis.

Cambodia operates on a fully dollarized real estate market. Transactions are conducted in USD, which eliminates currency risk tied to the Cambodian Riel (KHR) and simplifies cross-border comparisons. The World Bank estimates Cambodia's GDP growth at above 5.5% per year (2025 data), while Phnom Penh's population has surpassed 2.4 million residents - having doubled over the past decade. Urbanization at this pace generates structural housing demand that underpins the investment case.

That said, a low entry cost is not an investment thesis on its own. What matters is yield, liquidity, and legal security. Here is what the numbers actually look like.

Quick answer

• Price per sqm in central Phnom Penh (Class A condos): 2,200 - 3,500 USD
• Price per sqm outside the center (Class B/C): 1,200 - 2,000 USD
• Gross rental yield: 6 - 8% in Class B; 4 - 6% in Class A
• Transaction currency: USD (approximately 90% of the real estate market is dollarized)
• Foreign ownership: Hard title condos from the 1st floor upward only; foreign quota capped at 30% of any building
• Transaction costs (transfer tax + notary fees): approximately 4 - 7% of purchase price
• Reference rate: 1 USD = approximately 4.05 PLN (April 2026)

Options and scenarios

Scenario 1: Short-term rental studio in BKK1

BKK1 (Boeung Keng Kang 1) is Phnom Penh's premier address - the local equivalent of Bangkok's Sukhumvit strip. A studio of 30 - 40 sqm in a new development here is priced at 2,800 - 3,500 USD per sqm, putting the entry cost for a 35 sqm unit at 98,000 - 122,500 USD.

Short-term rental income via Airbnb or Booking.com in BKK1 averages 700 - 1,000 USD per month at 70% occupancy. That translates to annual gross revenue of 8,400 - 12,000 USD and a gross yield of 7 - 10%. After deducting property management fees (10 - 15%), withholding tax on rental income (10% in Cambodia), and maintenance, realistic net returns settle at 4.5 - 6.5%.

Worked example (mid-range scenario):

• Purchase price: 35 sqm x 3,100 USD = 108,500 USD
• Transaction costs (5%): 5,425 USD
• Total capital deployed: 113,925 USD
• Annual gross income (70% occupancy, 35 USD per night): 8,942 USD
• Operating costs (12% management + 10% tax + maintenance): approx. 2,415 USD
• Net annual income: 6,527 USD
• Net yield: 5.7%

Scenario 2: Long-term rental apartment in Chroy Changvar

Chroy Changvar - the peninsula between the Mekong and Tonle Sap rivers - is undergoing rapid transformation. New developments offer 55 - 70 sqm apartments at 1,400 - 1,800 USD per sqm, attracting Cambodia's emerging middle class and international NGO workers.

Monthly long-term rents range from 450 - 650 USD, producing gross yields of 6 - 8%. The key risk here is infrastructure maturity: the district is still developing its amenity base, and resale liquidity is meaningfully lower than in BKK1.

Scenario 3: Capital appreciation play in Toul Kork

Toul Kork has evolved over five years from a quiet residential suburb into one of Phnom Penh's fastest-appreciating submarkets. Prices per sqm rose from approximately 1,100 USD in 2021 to 1,600 - 2,200 USD in 2026 (market estimates). Investors targeting capital gains should consider off-plan purchases, where developers typically offer 10 - 20% discounts relative to post-completion prices.

Comparison table

Parameter	BKK1 (Class A)	Chroy Changvar (Class B)	Toul Kork (Class B/C)	Bangkok Sukhumvit (reference)
Price per sqm (USD)	2,800 - 3,500	1,400 - 1,800	1,600 - 2,200	4,500 - 7,500
Typical unit size	30 - 50 sqm	55 - 70 sqm	40 - 65 sqm	25 - 45 sqm
Gross rental yield	5 - 7%	6 - 8%	5 - 7%	3.5 - 5%
Resale liquidity	Medium	Low	Medium	High
Transfer tax	4%	4%	4%	2% (buyer) + 3.3% SBT
Transaction currency	USD	USD	USD	THB
Developer risk	Moderate	Elevated	Moderate	Low
5-year price growth (est.)	+25 - 35%	+30 - 50%	+40 - 55%	+15 - 25%

Risks and mistakes

1. Oversupply in the premium segment. Phnom Penh experienced a construction boom fueled by Chinese capital between 2017 and 2022. A number of Class A projects carry vacancy rates above 25% (CBRE Cambodia, Q3 2025 report). Before committing capital, verify actual occupancy levels in the building - not the developer's marketing projections.

2. Developer quality and track record. Cambodia has no equivalent of a statutory developer guarantee fund. Construction delays of 12 - 24 months beyond the promised handover date are not uncommon. Always verify the developer's completed project history and confirm they hold a valid MLMUPC license (Ministry of Land Management, Urban Planning and Construction).

3. Limited exit liquidity. The secondary condo market in Phnom Penh is thin. Selling a unit can take 6 - 18 months. This is not a market where you can exit quickly if circumstances change.

4. Leasehold versus hard title. Foreign nationals can hold full freehold ownership (hard title) only in units located on the 1st floor and above. Ground-floor units and land remain off-limits. Alternatives include leasehold arrangements (maximum 50 years with renewal options) or a Cambodian company structure with a local shareholder. The company structure carries legal risk and should not be pursued without qualified local legal counsel.

5. Home country tax obligations. Income from Cambodian rental property is taxable in your country of tax residence. Cambodia applies a 10% withholding tax on rental income. Investors should check whether their home country has a double taxation agreement with Cambodia - many do not, which may affect how foreign tax credits are applied.

6. Remote management logistics. There are no direct flights from most European cities to Phnom Penh. Connecting routes via Doha, Dubai, or Bangkok typically involve 14 - 18 hours of travel time. Cambodia operates on UTC+7. Managing a property remotely requires a reliable, experienced local property manager - factor their fees into your yield calculations from day one.

FAQ

What is the price per square meter in Phnom Penh in 2026?

Prices range from 1,200 USD per sqm in peripheral districts such as Sen Sok and Chroy Changvar to 3,500 USD per sqm in prime central areas like BKK1 and Daun Penh. The market average for new condominiums is approximately 2,000 USD per sqm.

Can foreigners buy property in Cambodia?

Yes. Foreign nationals can acquire freehold ownership (hard title) of condominium units from the 1st floor upward, provided the foreign quota in any given building does not exceed 30%. Direct land ownership by foreigners is prohibited under Cambodian law.

In what currency are real estate transactions conducted in Cambodia?

Transactions are conducted in US dollars (USD). Cambodia's property market is approximately 90% dollarized. The Riel (KHR) is used for small everyday transactions but plays no meaningful role in real estate deals.

What rental yields can I expect in Phnom Penh?

Gross rental yields range from 5 - 8% depending on location and asset class. After accounting for property management fees and local taxes, realistic net yields are in the 3.5 - 6% range.

Does Cambodia have a double taxation agreement with most Western countries?

Cambodia has signed relatively few double taxation treaties. Many European countries, including Poland, do not have a tax treaty with Cambodia. Investors should consult a tax advisor in their home country to understand how foreign rental income and Cambodian withholding tax will be treated locally.

What does the purchase process look like in Phnom Penh?

The process typically involves: a reservation deposit (1,000 - 5,000 USD), signing a Sale and Purchase Agreement (SPA), installment payments for off-plan units or a lump-sum payment for completed units, and registration of the hard title with the MLMUPC. The full process takes approximately 4 - 12 weeks for completed units.

Is Sihanoukville a viable investment location in 2026?

Sihanoukville remains a high-risk market in 2026. Following the withdrawal of Chinese speculative capital, prices fell 30 - 50% from their 2019 peak and significant oversupply persists. A new expressway to Phnom Penh may support a recovery, but the realistic investment horizon is 5 - 10 years.

What are the ongoing ownership costs for a condo in Phnom Penh?

Building management fees run 0.8 - 1.5 USD per sqm per month. Property tax is levied at 0.1% of assessed value above 100,000 USD annually. Building insurance typically costs 100 - 250 USD per year.

What are the risks of buying off-plan in Phnom Penh?

Off-plan purchases typically offer a 10 - 20% price discount versus completed units, but carry the risk of construction delays or project non-completion. Critical due diligence includes reviewing the developer's track record of completed projects, verifying their MLMUPC license, and checking their reputation among international buyers.

How does Phnom Penh compare to Bangkok as an investment destination?

Phnom Penh offers significantly lower entry prices (roughly 40 - 60% cheaper per sqm) and higher gross yields than Bangkok. Bangkok offers superior liquidity, a more mature legal framework, and a larger pool of international buyers on the secondary market. The two markets suit different risk profiles and investment strategies.

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