Cambodia’s property market in 2026 offers buyers lower-priced opportunities in some residential segments, but widespread price recovery is not established. For investors, landlords and property developers, the decisive questions are whether a unit can attract a tenant, whether its ownership is legally secure and whether its purchase price reflects actual transactions rather than an ambitious listing. The evidence points to a prolonged adjustment in residential and office property, alongside comparatively resilient industrial demand.
What is happening to Cambodia’s property market in 2026?
The International Monetary Fund said in September 2026 that Cambodia experienced a prolonged real estate correction, subdued domestic demand and increasing financial-sector vulnerabilities. It forecast GDP growth of 3.0% for 2026 and 4.0% for 2027, after 5.3% in 2025. Those are economic growth forecasts, not property price forecasts. The IMF also projects private-sector credit growth of 3.5% in 2026, a relevant constraint for borrowers and developers.
Cambodia cannot be represented by one property price or one market trend. Phnom Penh condominiums, gated landed developments known as boreys, Siem Reap guesthouses, Sihanoukville apartments, offices and industrial premises depend on different groups of buyers or tenants. Reliable analysis needs to identify the segment, location, period and data provider before quoting any figure.
Property prices in Cambodia: what the numbers actually show
The Global Property Guide Cambodia price-history analysis compiles residential market indicators, including National Bank of Cambodia property price information. An index measuring residential price changes is more useful for national direction than averaging advertised asking prices. But it does not prove that every city or building has moved by the same percentage.
As an illustration of the gap between market segments, Knight Frank Cambodia Real Estate Highlights H2 2025 reported an average price of $676 per square metre of net saleable area for new condominium launches in its Phnom Penh sample. That figure reflects the mix of newly launched, more affordable developments and is not the citywide resale price, the value of a central high-end apartment or a national property average. Buyers comparing offers should hold building age, title, unit area, location, service charges and completion status constant.
Phnom Penh condominiums: supply is still a central issue
Knight Frank counted 63,334 completed condominium units in Phnom Penh in the second half of 2025, 9.6% more than a year earlier. It recorded 1,770 newly completed units in that half-year from Vue Aston and La Vista One River View. The completed stock comprised approximately 56% mid-tier, 23% core or affordable, 17% high-end and 4% prime units. These are figures from the firm’s monitored market, not a census of every apartment in Cambodia.
The same research found developers increasingly targeting local residents with smaller, more affordable homes rather than relying on speculative foreign buyers. Nine condominium projects launched in 2025, with product designs and prices responding to household affordability. This matters because a flat that suits a local owner-occupier may have a different future resale market from an investor-oriented unit marketed chiefly on promised rental returns.
For an existing condominium, check the occupied share of the building, actual rents from comparable units and whether the owner can transfer a valid title. For an off-plan condominium, verify the construction programme, developer funding, land and building permissions, escrow or instalment arrangements, and contractual remedies if completion is delayed. A presale discount is not a completed-building valuation.
Boreys and landed housing: affordability matters more than launch prices
Boreys are planned residential communities commonly containing terrace houses, shophouses, link houses and villas. Their demand is more closely connected to local household purchasing power, access to finance, schools, commuting distances and infrastructure than the foreign-investor market for strata-title apartments.
Developers may offer instalment plans and promotional prices, but buyers should calculate the eventual payment obligation, interest after any promotional period, transfer cost and annual ownership expense. They should verify land title, site boundaries, road access, drainage, infrastructure handover and whether the property or developer is subject to secured lending. A buyer purchasing land and a building must establish who can lawfully hold the title.
Phnom Penh’s office market: vacancy affects rental returns
Office buildings demonstrate why expected rental returns need to be tested. In H2 2025, Knight Frank reported overall Phnom Penh office occupancy of 58.7% and prime office occupancy of 76%. Its reported monthly asking rent was approximately $25 per square metre for Grade A space, $10 to $25 for Grade B and up to $10 for Grade C. Asking rent is not necessarily the achieved rent after incentives, fit-out contributions and vacant periods.
The report noted a substantial office development pipeline, with delivery dates subject to delay. For landlords and purchasers, a central location and a published Grade A asking rate do not by themselves demonstrate income. Request the building rent roll, signed leases, rent-free periods, operating costs, service-charge liabilities, tenant concentration and arrears history.
Siem Reap property: separate tourism exposure from long-stay housing
Siem Reap has several distinct uses for property: local family housing, apartments for long-term residents, hospitality accommodation, retail premises and tourism-related businesses. A guesthouse’s room income is tied to visitor arrivals and length of stay, whereas a home rented to a family or resident is tied to the local long-term tenant market. A single citywide investment yield would disguise these differences.
The IMF’s September 2026 assessment identified weaker tourism as one factor weighing on Cambodia’s wider economy. For Siem Reap hospitality investments, buyers should examine at least 12 months of room-night sales, average daily rates, channel commissions, payroll, utilities and maintenance. Long-stay rental investors should instead check signed tenancy lengths, renewal rates, property management capacity and occupancy. Neither future airport passenger capacity nor tourism promotional activity proves a particular asset will be profitable.
Sihanoukville property: coastal housing and industrial assets are different markets
Sihanoukville includes residential towers, hospitality projects, commercial premises, port-connected activity and industrial zones. An apartment marketed for coastal capital appreciation should be assessed against completed residential transactions and actual tenant demand. A warehouse or industrial site should be assessed against occupier requirements, utility capacity, freight access and the strength of a proposed tenant.
Investors should not treat port-related economic activity as evidence that unfinished or vacant residential buildings will fill quickly. For a distressed project, verify construction status, regulatory approvals, the identity of registered owners and creditors, any competing claims and the full cost to bring the building into productive use.
Industrial and logistics property: a different demand driver
Knight Frank’s H2 2025 property review identified industrial estates and logistics premises as a comparatively active segment, supported by export-oriented production and demand in established economic zones. This does not mean every parcel of industrial land is well priced. Suitable land use permissions, access roads, electricity, water, drainage, environmental requirements and lease conditions are essential to an occupier’s decision.
Buyers should establish whether a quoted land price relates to freehold or leasehold tenure. A 50-year industrial leasehold quotation cannot be compared directly with the asking price of freehold urban land. Where rental income depends on one factory or logistics operator, underwrite the tenant’s financial position and the ability to replace it at the end of the lease.
How to calculate a realistic Cambodian rental return
Gross rental yield equals annual contractual rent divided by the total purchase price, multiplied by 100. For a hypothetical $80,000 apartment renting for $500 a month, gross yield is 7.5%. At 85% annual occupancy with $1,200 in annual running costs, income after those assumptions would be $3,900, equivalent to a 4.875% operating yield on the $80,000 price. These are worked examples, not measured Cambodian market averages.
Net investor return may be lower after purchase taxes, legal fees, furnishing, financing, income tax, major repairs and selling costs. Calculate three scenarios: expected occupancy, lower occupancy and no rental income for an extended period. Then check whether the investment remains affordable without assuming capital gains. A quoted guaranteed yield should be tested against the contract, security, payer and circumstances in which payments may stop.
Can foreigners buy property in Cambodia in 2026?
Foreign buyers cannot directly own Cambodian land on a freehold basis. The 2010 Law on Providing Foreigners with Ownership Rights in Private Units of Co-Owned Buildings provides for ownership of eligible units above the ground floor in qualifying co-owned buildings, subject to statutory restrictions and the foreign-ownership ceiling. APS Cambodia’s August 2026 ownership guidance explains the rules for strata-title apartments, long-term leases and Cambodian-majority company structures.
Condominium ownership is not the same as owning the land beneath the building. Before paying a deposit, obtain independent legal verification of the title, permitted foreign quota, building registration, registered encumbrances and sale agreement. For leaseholds and company-held property, legal rights and control are different from direct freehold ownership, and informal nominee arrangements create significant enforceability risks.
Transfer taxes and 2026 residential property incentives
Cambodia generally levies a 4% stamp tax on applicable immovable-property transfers, with the taxable base determined under the relevant rules. The government extended targeted relief for eligible borey and condominium transfers to 31 December 2026. Andersen in Cambodia’s analysis of the January 2026 Ministry of Economy and Finance notification describes an exemption for qualifying first-time acquisitions valued up to $210,000 and a $210,000 deduction from the taxable base for qualifying higher-value purchases, as well as specified relief for subsequent purchases. Chambers’ Cambodia Investing In 2026 guide also discusses the first-time buyer conditions.
Eligibility depends on the precise transaction and supporting paperwork. Investors should have their lawyer or tax adviser verify whether an exemption applies before assuming a purchase budget, because the stated purchase price alone does not establish the amount of tax owed.
What could change Cambodia’s property outlook in 2027?
The IMF forecast of 4.0% economic growth in 2027 offers some scope for stronger activity, but it is not evidence of a coming rise in property prices. A meaningful residential recovery would require existing inventory to be absorbed, buyers to regain confidence and finance to remain accessible. For offices, signed tenant demand must improve relative to delivered space. For tourism assets, actual visitor spending and operating profits matter. For industrial property, manufacturing occupier demand and infrastructure remain central.
Watch measurable indicators rather than promotional claims: completed sale prices and transaction volumes, building occupancy, achieved rent after concessions, loan availability, developer completions, industrial tenant commitments and tourism receipts. Compare these figures within each city and property type before making a forecast.
Due diligence checklist for buyers and property businesses
- Identify the exact asset type, tenure, allowable use and legal owner.
- Obtain several recent comparable completed transactions, not only internet advertisements.
- Verify the title, boundaries, charges, mortgages, permissions and any legal disputes independently.
- Check the developer or seller’s right to sell and the contract’s payment and completion protections.
- Validate tenant demand with signed leases or documented nearby rental transactions.
- Model vacancy, service charges, maintenance, tax, financing and resale costs.
- Compare current competing supply and projects likely to complete in the next two years.
- Stress-test how much cash is required if the asset cannot be sold or let quickly.
Investment outlook: where the evidence leads
Cambodia’s property market in 2026 remains selective rather than uniformly recovering. Official macroeconomic analysis records a prolonged property correction; Knight Frank’s condominium figures document a growing Phnom Penh supply and a shift towards affordable end-user housing; and office research demonstrates the income risk of substantial vacancy. Industrial assets serving operating businesses have different demand characteristics, but still require careful tenant and tenure checks.
For individual buyers, the most defensible purchase decision is based on verified ownership, demonstrable use or rental demand, a supportable acquisition price and sufficient financial capacity to hold the property through a slow market. These tests matter more than a promise that Cambodia’s property market will rebound in 2027.