Sihanoukville or Phnom Penh – Where to Invest in 2025

Sihanoukville or Phnom Penh

In 2025, Cambodia is strengthening its position as one of the most attractive investment destinations in Southeast Asia.
Two cities are drawing particular attention from foreign investors: Phnom Penh – the capital and financial hub of the country, and Sihanoukville – a coastal resort with tourism and port potential.

The question many investors are asking today is:
Sihanoukville or Phnom Penh – where is it better to invest in 2025?
The answer depends on your strategy, property type, and expected return on investment.

1. Market Characteristics

Factor	Phnom Penh	Sihanoukville
Market Type	Capital, residential & commercial market	Coastal resort, tourism market
Currency	USD	USD
ROI	8–11%	9–12%
Average Price Growth (2024→2025)	+7%	+6%
Main Tenant Profile	expats, corporations	tourists, short-term investors
Land Availability	limited	high
Market Stability	very high	moderate / growing
Growth Potential	moderate	high

💡 Phnom Penh provides stable and predictable returns, while Sihanoukville offers higher long-term capital appreciation potential.

2. Property Prices in 2025

Property Type	Phnom Penh (USD/m²)	Sihanoukville (USD/m²)	Phnom Penh (approx. EUR/m²)	Sihanoukville (approx. EUR/m²)
Studio	1,800–2,200	1,200–1,800	1,700–2,100 EUR	1,150–1,700 EUR
1 Bedroom	2,200–2,800	1,800–2,500	2,100–2,650 EUR	1,700–2,350 EUR
2 Bedrooms	2,500–3,200	2,500–3,200	2,350–3,000 EUR	2,350–3,000 EUR
Premium Apartment	3,500–5,000	3,000–4,500	3,300–4,700 EUR	2,800–4,250 EUR

💡 *Conversion rate: 1 USD ≈ 0.95 EUR (approximate)

Prices in Phnom Penh are on average 25–30% higher than in Sihanoukville, but the capital offers better liquidity and long-term rental stability.

3. Return on Investment (ROI)

Property Type	Phnom Penh ROI	Sihanoukville ROI	Investment Character
Studio	8–9%	10–11%	short-term rental (Airbnb)
1 Bedroom	9–10%	9–11%	stable rental income
2 Bedrooms	8–9%	8–10%	expats / families
Premium Apartment	6–8%	7–9%	lifestyle investment

According to the CBRE Cambodia 2025 report, Phnom Penh is the best choice for investors seeking stable ROI, while Sihanoukville stands out for its higher capital growth potential.

4. Key Investment Locations

Phnom Penh – Top Neighborhoods:

• BKK1 (Boeng Keng Kang 1) – prestigious apartments and offices, ROI 8–9%.
• Tonle Bassac – modern business district along the Mekong River.
• Chroy Changvar – new riverside developments, ROI 9–10%.

Sihanoukville – Prime Areas:

• Otres Beach – sea-view apartments, ROI 9–11%.
• Independence Beach – resort zone and premium investments.
• Ream Beach – future luxury resort area and upcoming Ream International Airport.

5. Investment Trends 2025

• Phnom Penh: growing office sector and expat housing, new condo projects in BKK1 and Tonle Bassac, stable rental market.
• Sihanoukville: dynamic tourism growth, increasing number of guaranteed ROI projects, recovery post-infrastructure transformation.

According to the Knight Frank Cambodia Report 2024, Phnom Penh will maintain its status as Cambodia's primary business center, while Sihanoukville is set to become ASEAN's leading coastal resort by 2027.

6. Infrastructure and Development

Project	Location	Status	Market Impact
Phnom Penh–Sihanoukville Expressway	both locations	completed	reduces travel time to 2.5 hours ✅
Techo Takhmao Airport	Phnom Penh	under construction	increases business traffic ✅
Ream International Airport	Sihanoukville	opening 2026	premium tourism development ✅
Sihanoukville Deep Sea Port	Sihanoukville	expansion	increased commercial importance ✅

7. Investor Comparison

Investor Type	Better Choice	Reason
Conservative Investor	Phnom Penh	stable ROI, lower risk
Growth-Seeking Investor	Sihanoukville	higher appreciation potential
Short-Term Rental Investor	Sihanoukville	tourism market
Long-Term Rental Investor	Phnom Penh	expat and corporate market
Commercial Property Investor	Phnom Penh	offices, retail, coworking spaces

Summary

The choice between Sihanoukville and Phnom Penh depends on your investment strategy.
If you're looking for stability, liquidity, and predictable ROI – choose Phnom Penh.
If you're prioritizing high growth potential, lower entry prices, and a tourism-driven market – Sihanoukville is the better direction.

In 2025, the ideal strategy may be diversification – splitting your portfolio between both cities, combining the capital's stability with the coastal resort's dynamism.

FAQ

Is Sihanoukville safe for foreign investors?
Yes – the market has stabilized after years of intensive Chinese investment, and authorities are promoting transparency.

Can foreigners buy property in Cambodia?
Yes, in condominium buildings – full freehold ownership rights apply.

Which city offers better ROI?
On average, Sihanoukville (9–12%), though Phnom Penh offers greater stability.

Does Varsovia Estate handle investments in both cities?
Yes – we assist international clients with analysis, purchase, and property management in both Phnom Penh and Sihanoukville.

About Varsovia Estate

Varsovia Estate is an international real estate agency specializing in premium properties in Thailand and Cambodia. We help investors with analysis, acquisition, and property management in Southeast Asia. We combine European service standards with local expertise and market knowledge. Our goal is to provide clients with maximum security and investment profitability.