Sihanoukville or Phnom Penh, Where to Invest in Real Estate in 2025
Phnom Penh vs Sihanoukville, Where to Invest in 2025?
In 2025, Cambodia remains one of the most attractive investment markets in Southeast Asia. Two cities dominate investor analysis: Phnom Penh, the stable capital and economic hub of the country, and Sihanoukville, a port city on the Gulf of Thailand that, following infrastructure redevelopment, is once again attracting investor attention.
In this article, we compare both markets to answer the question: where is it better to invest, in Phnom Penh or Sihanoukville?
Phnom Penh, Stability and Long-Term Potential
Phnom Penh is Cambodia's financial, political, and educational center. The real estate market is driven by the local middle class, international companies, and the expat community. Investors primarily choose premium condominiums, townhouse villas, and commercial land plots.
- Stable property value growth, 6-9% annually
- High ROI from long-term rentals, 8-11%
- Domestic demand independent of tourist seasonality
- Transactions in US dollars (USD), no currency risk
- Strong ownership regulations (freehold for condos)
Average Prices 2025:
Condo (BKK1 / Tonle Bassac): $2,000 to $3,500 per sqm
ROI: 8-10%
Townhouse Villa (Borey): $350,000 to $600,000
💡 The CBRE Cambodia 2025 report indicates that Phnom Penh maintains the highest market stability and liquidity in the region.
Sihanoukville, Tourism Potential and Market Recovery
After several years of stagnation caused by the pandemic and oversupply of Chinese projects, Sihanoukville is undergoing a process of restructuring and infrastructure modernization. The city is focusing on tourism, port logistics, and hotel investments.
The Cambodian government is implementing the Sihanoukville Special Economic Zone (SSEZ) project, an industrial and commercial zone designed to attract foreign investment and increase employment.
- Rapidly developing infrastructure (port, highway to Phnom Penh, airport)
- Growing demand for tourist apartments and hotels
- Government projects and partnerships with China
Average Prices 2025:
Condo with sea view: $1,200 to $1,800 per sqm
Land plots for resorts: $250 to $600 per sqm
ROI from short-term rentals: 8-11% (during high season)
💡 According to Knight Frank Cambodia 2024, Sihanoukville is seeing a return of private investment, especially in tourism and logistics projects.
Comparison: Phnom Penh vs Sihanoukville
| Factor | Phnom Penh | Sihanoukville |
|---|---|---|
| Investment Type | Condos, offices, townhouse villas | Hotels, resorts, beachfront condos |
| Market Stability | High | Medium (in recovery phase) |
| ROI (average) | 8-10% | 8-11% |
| Value Growth | 6-9% annually | 10-11% annually (forecast) |
| Demand | Steady, long-term | Seasonal, tourism-based |
| Transaction Currency | USD | USD |
| Investment Risk | Low | Medium, High |
| Growth Potential | Stable | Dynamic (but risky) |
| Key Advantage | Security and liquidity | Low entry prices and beaches |
| Suitable For | Investors seeking stable returns | Investors accepting higher risk |
Which City Should You Choose?
Choose Phnom Penh if:
- You're looking for stable ROI and investment liquidity.
- You prefer premium residential or commercial properties.
- You value easy rental management and lower risk.
Choose Sihanoukville if:
- You're interested in rapid capital appreciation.
- You want to invest in tourism, hotels, or beachfront projects.
- You accept a longer return horizon and greater market volatility.
Forecast for 2025-2027
Both cities benefit from infrastructure development, the Phnom Penh, Sihanoukville highway has reduced travel time to just 2 hours.
Summary
📈 Phnom Penh is a safe choice for long-term investors, stable ROI, market liquidity, and a growing middle class.
🌴 Sihanoukville is an option for investors seeking higher returns and accepting greater risk, with growth potential in the tourism and port sectors.
The best strategy? Diversify your investments, allocate part of your capital to stable Phnom Penh, and part to promising Sihanoukville.
FAQ
Is it worth investing in Sihanoukville in 2025?
Yes, but selectively, in beachfront projects or hotels with proven ROI.
Which city offers higher investment security?
Phnom Penh, a stable and liquid market with strong domestic demand.
Does Varsovia Estate serve both markets?
Yes, we help investors analyze, purchase, and manage properties in both cities.
About Varsovia Estate
Varsovia Estate is a Polish agency specializing in premium real estate in Thailand and Cambodia. We assist investors in analyzing, purchasing, and managing properties in Southeast Asia. We combine European service standards with local knowledge and expertise. Our goal is to provide clients with maximum security and investment profitability.
