Phnom Penh Price Per Sqm 2026: Key Numbers

In Q1 2026, a 35 sqm studio in Phnom Penh's Chamkarmon district is priced between 2,100 and 2,800 USD per square meter. For international investors accustomed to Bangkok or Ho Chi Minh City entry points, that figure represents a market window those cities closed years ago. Cambodia's capital remains one of the few places in Southeast Asia where you can transact, hold, and collect rent entirely in US dollars, removing currency exposure to the local riel (KHR) - a genuine structural advantage in an emerging market context.

Cambodia's GDP growth averaged above 5.5% annually between 2022 and 2025 (World Bank data), while Phnom Penh absorbs over 100,000 new urban residents each year. That combination of macroeconomic momentum and accelerating urbanization underpins sustained demand for residential property, both for purchase and for rent.

Quick answer

Price per sqm in Phnom Penh (Q1 2026): 1,400 USD (periphery, Sen Sok) to 4,500 USD (premium, BKK1) - source: CBRE Cambodia, Knight Frank
Gross rental yield: 6-8.5% annually for centrally located condominiums
Transaction currency: USD - no currency risk relative to the riel
Foreign ownership: condominium units from the first floor upward only (strata title / hard title); foreign ownership capped at 70% per building
Entry costs: 4% transfer tax, approximately 1% notarial fees, 3% agency commission (typically seller-side)
Secondary market liquidity: average resale timeline of 6-18 months
Flight time from major European hubs: 12-15 hours with one stopover (Dubai, Doha, or Bangkok)

Options and scenarios

Scenario 1: Short-term rental investment in BKK1

BKK1 (Boeung Keng Kang 1) is Phnom Penh's expat and diplomatic hub - the district that consistently commands the highest rents and the most liquid tenant demand. A 45 sqm unit in a new B+ standard condominium is priced at approximately 3,200 USD per sqm, bringing the purchase price to 144,000 USD.

At a market rental rate of 900 USD per month (current 2026 benchmark for furnished expat units in BKK1), the gross yield is 7.5%. The full cost breakdown:

Purchase price: 45 sqm x 3,200 USD = 144,000 USD
Transfer tax at 4%: 5,760 USD
Additional costs (notary, registration): approximately 1,500 USD
Total acquisition cost: 151,260 USD
Annual rental income: 900 USD x 12 = 10,800 USD
Operating costs (property management, sinking fund, maintenance): approximately 1,800 USD per year
Net income: 9,000 USD, representing a net yield of approximately 5.95%

For context, net rental yields on residential property in Western European capitals typically range between 2.5% and 3.5% in 2026. The differential is material.

Scenario 2: Lower entry point - Toul Kork district

Toul Kork, located immediately north of the city center, is developing rapidly and attracting a mid-market tenant base that includes local professionals, Korean expatriates, and NGO staff. Prices in this district range from 1,800 to 2,200 USD per sqm. A 50 sqm unit at 100,000 USD generates monthly rents of 550-650 USD, translating to a gross yield of 6.6-7.8%.

The trade-off relative to BKK1 is reduced tenant liquidity and stronger competition from local landlords. Vacancy periods between tenancies can run longer. This scenario suits investors comfortable with slightly higher management involvement in exchange for a lower capital commitment.

Scenario 3: Capital appreciation play - Sen Sok

Sen Sok sits on Phnom Penh's western periphery, with entry prices from 1,400 USD per sqm. Infrastructure development is ongoing, making this a 5-7 year horizon bet rather than an income-generating play. Current gross yields are modest at 4-5.5%, but independent market estimates project capital appreciation of 30-50% over a decade as urban expansion extends westward.

The principal risk here is secondary market illiquidity. The tenant base is thin (largely local workers and industrial employees), and resale timelines can exceed those seen in central districts significantly.

Comparison table

Parameter	BKK1 (Premium)	Toul Kork (Mid-range)	Sen Sok (Periphery)	Bangkok Sukhumvit (Benchmark)
Price per sqm (USD)	2,800-4,500	1,800-2,200	1,400-1,800	4,000-7,500
Gross rental yield	7-8.5%	6.5-7.8%	4-5.5%	4-5.5%
Net rental yield	5.5-6.5%	5-6%	3-4%	3-4%
Secondary market liquidity	Medium	Low to medium	Low	High
Foreign ownership type	Hard title (condo)	Hard title (condo)	Hard title (condo)	Freehold (condo)
Transfer tax	4%	4%	4%	2% buyer + 3.3% SBT
Transaction currency	USD	USD	USD	THB
Typical tenant profile	Expat, NGO, diplomat	Middle class, Korean expat	Local workers, industrial	Expat, tourist

Foreign ownership structure

Foreigners cannot own land in Cambodia. However, they can hold full freehold title to a condominium unit (hard title / strata title) subject to three conditions: the unit must be located on the first floor or above (ground floor units are reserved for Cambodian nationals); foreign owners must not collectively exceed 70% of units within a single building; and the title must be issued by the Ministry of Land Management, Urban Planning and Construction.

An alternative structure is leasehold, which allows tenure of up to 50 years with renewal options. Some investors incorporate a Cambodian company with a local shareholder to hold land-attached assets, but this path introduces material risk of asset control loss and is not generally recommended for residential property investment.

On tax residency: investors from countries that do not have a double taxation agreement with Cambodia should seek specific advice from a local tax professional. Cambodia levies approximately 10% withholding tax on rental income. Depending on your country of residence, you may be required to declare this income domestically and apply a proportional tax credit for amounts paid in Cambodia.

Risks and mistakes

Sihanoukville oversupply. Chinese capital flooded this coastal city between 2017 and 2020, leaving thousands of units vacant. Prices have fallen 30-40% from peak. In 2026, Sihanoukville remains a distressed market, not an opportunity, for most international investors.
Developer due diligence. Cambodia does not have a statutory developer guarantee fund equivalent to those found in the EU or Australia. The burden of due diligence falls entirely on the buyer. Verify the developer's completed project history, financing structure, and reputation among the expat and legal community before committing funds.
Secondary market liquidity. Reselling a Phnom Penh condominium takes an average of 6-18 months. This is not Bangkok or Singapore. Any exit strategy must account for a longer holding horizon and realistic resale timelines.
Political and legal risk. Cambodia ranks approximately 150th on Transparency International's Corruption Perceptions Index. The judicial system does not offer the investor protections available in OECD jurisdictions. Contracts should be reviewed by a qualified Cambodian property lawyer.
Off-plan payment risk. Construction-phase payments go directly to the developer. There is no statutory protection mechanism if a developer becomes insolvent. Buying completed or near-completed stock significantly reduces this exposure.
Currency administration detail. While USD dominates the property market, certain administrative fees are denominated in Cambodian riel. The KHR/USD rate is stable at approximately 4,100 KHR per dollar, but investors should remain aware of this operational nuance.
Tax reporting obligations. Regardless of whether Cambodia participates in automatic tax information exchange (Common Reporting Standard), investors remain legally obligated to declare foreign rental income in their country of tax residence. Non-disclosure is the most common compliance error among first-time international property investors.

FAQ

How much does a square meter cost in Phnom Penh in 2026?

Prices range from approximately 1,400 USD per sqm in peripheral districts such as Sen Sok to 4,500 USD per sqm in the premium BKK1 district. The average for new condominiums in central Phnom Penh is roughly 2,500-3,200 USD per sqm.

Can a foreigner buy a condominium in Cambodia?

Yes. Foreigners can hold full freehold (hard title / strata title) ownership of condominium units located from the first floor upward, provided that foreign ownership within the building does not exceed 70% of total units.

In what currency are Phnom Penh property transactions conducted?

Over 80% of real estate transactions in Phnom Penh are denominated in US dollars. This makes Cambodia one of the most dollar-integrated property markets in Southeast Asia and eliminates local currency risk for USD-based investors.

What rental yield can I expect in Phnom Penh?

Gross rental yields in central districts range from 6% to 8.5% annually. After deducting management fees, sinking fund contributions, and maintenance, net yields typically settle between 5% and 6.5% depending on the district and asset quality.

How long does it take to resell a property in Phnom Penh?

The average resale timeline is 6 to 18 months. Secondary market liquidity in Phnom Penh is considerably lower than in Bangkok or major Western cities. Investment horizons should account for this.

Is Sihanoukville a good investment location in 2026?

For most investors, no. Sihanoukville experienced severe oversupply following a speculative boom driven by Chinese capital between 2017 and 2020. Prices remain 30-40% below peak levels and the recovery timeline is uncertain. Phnom Penh is the more defensible market.

What are the total transaction costs when buying property in Cambodia?

The primary cost is a 4% transfer tax on the declared property value. Additional costs include notarial and registration fees (approximately 1%) and any agency commission (typically 3%, paid by the seller). Total buyer-side acquisition costs run approximately 5-6% above the purchase price.

What is the difference between hard title and leasehold in Cambodia?

Hard title (strata title) grants freehold ownership of a condominium unit and is the strongest form of property title available to foreigners in Cambodia. Leasehold provides usage rights for up to 50 years with renewal options but does not convey ownership. Most experienced investors prioritize hard title assets.

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

Bangkok offers superior secondary market liquidity and a more developed legal framework, but entry prices are two to three times higher per sqm and rental yields are lower. Phnom Penh is at an earlier stage of its market cycle, which implies higher risk alongside higher potential returns. They serve different investor risk profiles.

What is the recommended minimum investment horizon for Phnom Penh property?

A minimum of five years is advisable. This accounts for transaction costs on entry and exit, the relatively slow secondary market, and the time required for rental income to meaningfully offset acquisition costs.

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Price Per Square Meter in Phnom Penh: 7 Key Numbers for 2026