Cambodia condominium investment returns increasingly depend on the price actually paid, the rent actually collected and the ability to resell. Phnom Penh had 63,334 completed condominium units at the end of 2025, according to Knight Frank’s H2 2025 research, but the same report recorded exceptionally weak sales rates in monitored projects. Investors examining Cambodia’s condominium market in 2026 need to separate developer asking prices from sale transactions, advertised rental yields from net income, and overall supply from building-level vacancy.
How much condominium supply does Phnom Penh have?
Knight Frank recorded 63,334 completed condominium units in Phnom Penh in the second half of 2025, up 9.6% from a year earlier. Two completed projects added 1,770 units: Vue Aston with 895 and La Vista One River View with 875. The research also recorded nine new project launches during 2025, with a shift towards lower-priced accommodation intended to reach more Cambodian buyers.
This figure is a defined research estimate, not a complete count of every type of apartment across Cambodia. The condominium market should not be confused with serviced apartments, rented shophouse units or all residential stock. Project surveys can report different supply totals because coverage and definitions differ.
The geographical concentration also matters. Knight Frank attributed 21% of existing stock to Chamkarmon, 18% to Sen Sok, 14% each to Chroy Changva and Meanchey, and 9% each to Toul Kork and Boeung Keng Kang. A large existing supply in a district is an indication of competitive stock, not a measurement of rental vacancy.
What is driving condominium oversupply in Cambodia?
The sector expanded through successive development cycles, with projects originally marketed across premium, mid-tier and more affordable segments. The recent correction reflects more than the number of completed towers. In its 2025 review, Knight Frank identified weak external demand, lower speculative buying and a stronger focus on affordability. It reported a sales rate of approximately 3% to 4% in monitored projects in H2 2025, with particularly subdued activity outside the core segment. That is a sales absorption measure, not a tenancy occupancy rate.
The supply mix helps explain developer responses. Mid-tier units accounted for 56% of existing stock in Knight Frank’s survey, against 23% core, 17% high-end and 4% prime. Developers have increasingly adopted smaller formats, lower entry prices and flexible payment plans. For buyers, however, a discounted launch does not establish that a resale unit will achieve the same price or attract a tenant.
How much have Cambodian condominium prices changed?
Knight Frank reported an average advertised launch price of US$676 per square metre of net saleable area for new projects launched in H2 2025. This was strongly influenced by affordable core projects. It must not be interpreted as the average value of all completed condominiums in Phnom Penh, still less as the price of prime central units. See the segment distinctions in the market report.
To compare two units, investors should put both on the same basis: contractual purchase price after incentives, net saleable area, completion and title status, furnishing, service charges and any outstanding payments. Asking prices, booking prices and completed resale prices measure different things. A lower nominal price per square metre can also mask an inferior layout or higher ongoing charges.
Who rents condominiums in Phnom Penh?
Potential tenant groups include Cambodian professionals, local families, international employees, consultants and households seeking managed buildings. However, the number of residents in these categories does not establish how many will lease a particular unit. Unit size, location, transport, schools, workplace access, parking, security and maintenance standards can all change the addressable tenant group.
IPS Cambodia’s 2025 market analysis discussed stronger demand for some larger apartment formats and reported a project-level rental vacancy estimate of around 15%. This is an agency estimate and should not be used as a verified nationwide or citywide vacancy rate. The responsible comparison is the current and historical performance of similar apartments in the same building or immediate area.
For landlords, a useful evidence pack contains the previous 12 to 24 months of signed leases, rental receipts, void periods, tenant turnover and discount or incentive records. If management cannot provide such evidence, an asking rent is only a target.
What rental yields are reported for Cambodia in 2026?
Global Property Guide’s October 2026 update estimated a 6.64% gross residential rental yield for Phnom Penh using median advertised property prices and rents. Its one-bedroom comparison reported 6.95%, while the two-bedroom comparison reported 5.45%. These figures cover residential listings within the specified datasets and are not audited achieved yields from completed condominium investments.
| Yield measure | Reported result | Interpretation |
|---|---|---|
| Phnom Penh residential gross yield, H2 2026 | 6.64% | Listing-based estimate across covered unit types |
| Phnom Penh one-bedroom gross yield | 6.95% | Advertised price and rent comparison |
| Phnom Penh two-bedroom gross yield | 5.45% | Advertised price and rent comparison |
Gross rental yield is annual potential rent divided by purchase price. It does not deduct void periods, fees, maintenance, taxes, property management, furnishing, borrowing or transaction costs. A quoted gross yield therefore cannot be compared directly with net cash-on-cash return.
How do vacancies and operating costs affect investment returns?
Consider a hypothetical finished condominium bought for US$100,000 and offered for US$550 a month. Its gross potential annual rent is US$6,600, giving 6.6% potential gross yield. If the property is rented for 85% of the year, collected rental income falls to US$5,610. With an assumed US$1,500 of annual operating costs, cash income becomes US$4,110 before applicable taxes, finance charges and transaction costs, equivalent to 4.11% of the purchase price.
| Illustrative calculation | Amount |
|---|---|
| Purchase price | US$100,000 |
| Monthly contractual rent assumption | US$550 |
| Annual potential rent | US$6,600 |
| Rent collected at 85% occupancy | US$5,610 |
| Assumed operating costs | US$1,500 |
| Operating cash income | US$4,110 |
| Operating yield on purchase price | 4.11% |
These are illustrative inputs rather than claims about average Phnom Penh apartments. With the same rent and fixed operating costs, a 70% occupancy assumption produces US$3,120 in operating income, or 3.12% on the US$100,000 purchase price. Investors should calculate their own downside cases, including periods without rent and major repairs.
Can foreign investors legally own condominiums in Cambodia?
Foreign ownership is permitted for qualifying private units in co-owned buildings under Cambodia’s 2010 condominium ownership law. The government’s real estate guidance describes eligibility requirements including strata title, a unit above the ground floor, internal building regulations and a ceiling of 70% of the total private-unit area for foreign ownership. That ceiling concerns area, not necessarily the number of apartments. Foreigners generally cannot directly own the underlying land.
Before payment, independently verify the strata title, registration entitlement, foreign ownership allocation, registered security interests, common-area rights and the identity and authority of the seller. Buyers should not rely solely on a developer brochure describing the property as freehold.
What property taxes and purchase costs should be included?
Cambodia generally applies a 4% property transfer stamp duty, with exemptions and reliefs for eligible transactions. Rajah & Tann’s January 2026 explanation and Chambers’ 2026 investment guide describe relief continuing to 31 December 2026, including qualifying first-time residential purchases at US$210,000 or below. Applicability depends on conditions and documentation. A buyer should obtain a transaction-specific tax calculation before signing.
Additional costs may include legal checks, registration, furnishing, building management fees, sinking fund contributions, vacancy, repairs, letting fees, rental-income tax and costs on eventual sale. The correct investment denominator is total money committed, not merely the developer’s advertised unit price.
How do investment risks differ between Phnom Penh, Siem Reap and Sihanoukville?
Phnom Penh has the most detailed published condominium survey evidence among the markets covered here. Its supply and yield estimates provide context for that city, not automatic assumptions for others. In Siem Reap, investors should assess long-term resident demand separately from short-stay tourism accommodation. In Sihanoukville, checks should include whether the entire development is complete and operational, which competing units are available, and whether common facilities and management are functioning.
Comparable current city-level datasets covering achieved condominium rents, vacancy and resale prices were not established for Siem Reap and Sihanoukville. A responsible investment case therefore requires building-level transaction evidence before using any precise yield estimate.
What should buyers check before investing in a Cambodian condominium?
- Obtain independent legal verification of strata title and the seller’s ability to transfer the unit.
- Confirm whether the development is completed, occupied and properly managed.
- Request completed resale transactions for comparable units, not just listings.
- Request actual signed leases, receipts and 12 to 24 months of vacancy data.
- Check current competing rental listings within the same building and nearby towers.
- Calculate net rental returns after every recurring operating cost and applicable tax.
- Test lower rents, longer vacancies and a slower resale before committing capital.
- Review common-area budgets, sinking funds, maintenance history and unpaid fees.
- Examine any guaranteed-rent promise as a separate contractual and counterparty risk.
- For off-plan purchases, verify permissions, construction progress, payments, remedies and title handover obligations.
What should investors watch in Cambodia’s condominium market in 2027?
The relevant indicators are completed projects entering rental competition, the rate at which unsold apartments actually transact, lease renewals, achieved rather than advertised rents, mortgage availability for local purchasers, and verifiable resale activity. Knight Frank expected the future supply mix in its H2 2025 report to include 55% mid-tier and 25% core units. This was a pipeline composition estimate, not a forecast of occupancy or a guarantee that excess supply would disappear.
The evidence supports caution about broad claims of market recovery. A completed condominium with a proven tenant history may produce income, while another tower nearby may struggle to sell or rent. For buyers, defensible pricing and independently verified operating records matter more than a market-wide yield headline.