Price per Square Metre in Phnom Penh: 5 Districts Analysed in 2026

A 35 sqm studio in a high-rise on Koh Pich currently lists at 2,400 to 3,200 USD per sqm in Q1 2026. That is roughly three times less than a comparable unit in Bangkok and five times less than equivalent property in major Western European capitals. For an international investor operating in US dollars - and the Cambodian real estate market is almost entirely dollarised - this translates to an entry threshold below 100,000 USD for a finished apartment with a hard title (full ownership).

Phnom Penh has undergone a remarkable transformation over the past decade, shifting from a quiet riverside city into a regional hub for outsourcing, logistics, and light manufacturing. Cambodia's GDP growth holds steady at 5.5 to 6.0% per year (World Bank projections, 2026), and the capital's population has surpassed 2.4 million residents. Urbanisation is driving housing demand, but supply is currently growing faster than absorption - and that imbalance creates a negotiating window that a well-prepared buyer can exploit.

Quick answer

• Average price per sqm in Phnom Penh for foreign-eligible condominiums (hard title, first floor and above) ranges from 1,400 to 3,200 USD in 2026, depending on district and asset class.
• Chamkarmon and BKK1 are the most expensive locations, with premium projects reaching 2,800 to 3,500 USD/sqm.
• Chroy Changvar (the peninsula facing the city centre) offers new developments at 1,400 to 1,800 USD/sqm with river views.
• Gross rental yields in Phnom Penh range from 6 to 8% per year for one- and two-bedroom units in well-located buildings.
• All transactions are conducted in USD - investors eliminate exposure to the Cambodian riel (KHR) but retain USD versus their home currency risk.
• Foreigners can own condominiums outright (strata title / hard title) from the first floor upward, subject to a 70% foreign ownership cap per building.

Options and scenarios

Option A: Studio 30-40 sqm in Chroy Changvar (entry-level budget)

Purchase a studio at 1,600 USD/sqm - total acquisition cost approximately 56,000 USD for a 35 sqm unit. The target tenant profile is expats and junior NGO staff working near the bridge economic zone. Expected rental income: 450 to 550 USD per month. Annual gross revenue: 5,400 to 6,600 USD. Gross yield: 9.6 to 11.8%.

After deducting management fees (approximately 1.50 USD/sqm/month), withholding tax on rental income (10% for non-residents, though enforcement is inconsistent), and vacancy allowance (roughly 1 to 2 months per year), the realistic net yield falls to 6 to 7.5%. That still represents roughly double the income return available in most Western European gateway cities.

Option B: Apartment 55-70 sqm in BKK1 or Tonle Bassac (premium segment)

Pricing: 2,600 to 3,200 USD/sqm. Total investment: 143,000 to 224,000 USD. Tenants at this level are senior NGO officers, banking executives, and diplomatic staff. Monthly rent: 1,000 to 1,600 USD. Gross yield: 6.5 to 8.5%. These addresses carry higher secondary market liquidity and lower vacancy risk, but the capital recovery timeline is longer. BKK1 and Tonle Bassac represent the deepest resale market in the city.

Option C: Off-plan in Sen Sok or Meanchey (speculative play)

Developers offer launch pricing from 1,100 to 1,400 USD/sqm with a typical 30/70 payment schedule. Potential capital appreciation to handover: 15 to 25% over an 18 to 30 month construction period. Risks include construction delays, specification changes, and completion risk. This option demands thorough developer due diligence - verify the MLMUPC construction permit, the ground title deed of the land, and the developer's track record on previously delivered projects.

Comparison table

Parameter	Chroy Changvar	BKK1 / Tonle Bassac	Sen Sok / Meanchey	Koh Pich (Diamond Island)
Price per sqm (USD)	1,400 - 1,800	2,600 - 3,500	1,100 - 1,400	2,400 - 3,200
Typical unit size	30 - 50 sqm	55 - 120 sqm	35 - 65 sqm	45 - 90 sqm
Monthly rent (USD)	450 - 600	1,000 - 1,600	300 - 500	700 - 1,200
Gross rental yield	8 - 10%	6.5 - 8.5%	7 - 9%	6 - 8%
Tenant profile	Expats, junior NGO staff	Senior executives, diplomats	Local professionals	Expat families, Asian corporates
Oversupply risk	Medium	Low	High	Medium
Secondary market liquidity	Low to medium	Highest in the city	Low	Medium

Risks and mistakes

1. Condominium oversupply. Phnom Penh has more than 30,000 new units under construction or in planning for 2025 to 2028 (CBRE Cambodia, Knight Frank). Annual absorption runs at approximately 4,000 to 5,000 units. Not every project will find a buyer. Prioritise buildings where at least 60% of units are already sold before construction completes.

2. No land ownership for foreigners. Foreign nationals cannot own land in Cambodia. The purchase covers only the condominium unit itself (hard title, first floor and above). Ground-floor units and land parcels remain inaccessible - unless a buyer structures ownership through a Cambodian nominee company, which carries its own serious legal risks and should not be treated as a straightforward solution.

3. Developer quality varies significantly. Many developers are single-purpose vehicles with no completed project history. Before committing, request the MLMUPC construction permit number, the master land title deed (hard title), the Environmental Impact Assessment (EIA) report, and references from delivered projects. The absence of any of these documents is a material red flag.

4. Exit liquidity is limited. The secondary market in Phnom Penh remains shallow by regional standards. Selling a unit may take 6 to 18 months, and a forced sale typically results in a discount of 10 to 20% against the purchase price. Plan for an investment horizon of at least 5 to 7 years.

5. Transaction costs. Property transfer tax: 4% of the declared value. Legal and notarial fees: 1,000 to 2,500 USD. Agent commission (typically paid by the seller): 3%. Total acquisition costs for the buyer amount to approximately 5 to 6% of the purchase price.

6. Tax obligations in your home country. Rental income from overseas property is generally taxable in an investor's country of residence. If your home country has no double taxation treaty with Cambodia - and most do not - tax paid locally in Cambodia may not be automatically creditable against domestic tax liability. Always consult a qualified tax adviser before signing a purchase agreement.

FAQ

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

In the foreign-eligible condominium segment, prices range from 1,100 USD/sqm in peripheral districts (Sen Sok, Meanchey) to 3,500 USD/sqm in central BKK1 and Tonle Bassac. The average for new projects in well-established locations is approximately 2,000 to 2,400 USD/sqm.

Can a foreigner buy a condominium in Cambodia?

Yes. Foreign nationals can acquire a condominium with full ownership title (hard title / strata title) from the first floor upward, provided that foreign buyers do not collectively exceed 70% of a building's total floor area. Ownership of land and ground-floor units is not legally available to foreigners.

How do Phnom Penh property prices compare to Bangkok?

Comparable condominiums in central Bangkok (Sukhumvit, Silom) are priced at 4,500 to 8,000 USD/sqm. Phnom Penh offers prices two to three times lower while delivering gross rental yields that are broadly comparable or higher - typically 6 to 10% versus 3 to 5% in Bangkok.

What are rental yields in Phnom Penh?

Gross yields range from 6 to 10% per year depending on location and unit type. Net yields after management fees, taxes, and vacancy allowances run at 4.5 to 7.5%. The highest yields are achieved by compact studios in Chroy Changvar and Toul Kork.

In what currency are Cambodian property transactions conducted?

Virtually all real estate transactions in Phnom Penh are denominated in US dollars (USD). The Cambodian riel (KHR) is used only for small cash purchases. For international investors, this eliminates local currency volatility but retains exposure to USD fluctuations versus their home currency.

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

Cambodia has signed very few double taxation agreements. Most Western countries, including the United Kingdom, the United States, and EU member states, do not have a formal treaty with Cambodia. Rental income may therefore be taxable in both jurisdictions. Independent tax advice is essential before purchase.

How long is the flight from Europe to Phnom Penh?

There are no direct flights from most European cities. The most convenient connections route through Bangkok, Singapore, or Dubai. Total travel time is typically 14 to 18 hours depending on the layover. Phnom Penh is UTC+7, which places it 6 to 7 hours ahead of Central European Time.

Is Sihanoukville a viable investment alternative?

Sihanoukville experienced a speculative Chinese-driven boom between 2017 and 2019, followed by a sharp correction and significant capital outflow. In 2026 the market is stabilising slowly, but oversupply remains a structural problem and prices are still 30 to 40% below their peak. For high-risk-tolerance investors it represents a contrarian opportunity. For conservative portfolios, Phnom Penh remains the more defensible choice.

What is the minimum realistic budget to invest in Phnom Penh?

The lowest entry point is a studio of 25 to 35 sqm in a developing district for 40,000 to 55,000 USD, plus transaction costs of approximately 5 to 6%. A realistic minimum budget including an operational reserve is 50,000 to 65,000 USD.

What is a simple return calculation for a studio in Chroy Changvar?

Purchase: 35 sqm at 1,600 USD/sqm = 56,000 USD. Transaction costs at 5.5% = 3,080 USD. Total capital deployed: 59,080 USD. Monthly rent: 500 USD. Annual gross income: 6,000 USD. Annual costs (management 10%, admin fees, minor repairs): approximately 1,200 USD. Vacancy allowance (1.5 months): minus 750 USD. Net income before tax: 4,050 USD. Net yield: approximately 6.9%. After applying a standard withholding or local income tax estimate of around 8.5% on gross income (510 USD), the effective post-tax return is approximately 3,540 USD per year, or roughly 6.0% net on invested capital.

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