The Phnom Penh skyline shows new condo developments reflected in the Mekong River at sunset. Hoem Seiha FB
Amid signs of economic recovery and easing financial conditions, Cambodia’s real estate sector is beginning to show cautious optimism. Data from ERA Data Intel and recent commentary from analysts suggest that after several years of market cooling, property investment — particularly in the condominium segment — is now regaining appeal.
Condo Prices Stabilise After Multi-Year Volatility
Condominium prices in Phnom Penh’s peri-urban areas have experienced notable fluctuations over the past decade. According to ERA Data Intel, for new launch condos, one-bedroom units rose from $999 per square metre in 2011 to a high of $2,260 in 2019, before retreating to $1,966 in 2023. In the CBD, prices peaked at $2,791 per square metre in 2020 but saw a moderate correction to $2,499 by 2023.
These trends align with data from Global Property Guide, which noted a 6.2% decline in Phnom Penh condo prices in 2020, followed by further drops of 8.1% in 2021 and 5% in 2022. Analysts point to oversupply and pandemic-related economic uncertainty as primary drivers of the downturn.
The market experienced some corrections due to investor hesitation during Covid-19, but the data now points to a levelling out, ERA Data Intel suggests.
Financing Conditions Improve, Broad Money Expands
Economic indicators suggest a favourable backdrop for real estate investment. Data from NBC indicates that Cambodia’s broad money (M2) — a measure of liquidity in the economy — continued to rise through January 2025, reflecting improved access to credit and greater investor confidence. Average interest rates for US-dollar denominated deposits have stabilised between 4% and 5%, supporting real estate lending.
“Liquidity is returning to the market, and we’re seeing a slow but steady rise in demand,” said Sok Chan, head of Financial Inclusion and Public Relations, The Association of Banks in Cambodia.
Government support has also contributed. First-time homebuyers continue to benefit from stamp duty exemptions, and developers are shifting toward more affordable inventory, particularly in outer districts.
Recovery Supported by Broader Economic Growth
Cambodia’s GDP is projected to grow by 6% in 2025, according to both the Asian Development Bank (ADB) and International Monetary Fund (IMF). The rebound is driven by strong tourism, infrastructure projects, and export sectors.
The completion of large-scale infrastructure projects — such as the Techo International Airport, set to open by late 2025 — is expected to further spur property development in suburban districts, where land is cheaper and zoning is more flexible.
Investor Sentiment Turning More Positive
Industry sentiment appears to be turning a corner. Asia Property Awards recently reported “encouraging signs of recovery” in the Cambodian property market, citing both domestic buyer interest and renewed foreign participation.
“I see Phnom Penh real estate as a good option for certain investors. It is a buyer’s market,” wrote The Wandering Investor, a global investment blogger. “Some projects are attractively priced with decent prospects for capital gains.”
Insights from ERA Data Intel report rental yields of 6–8% in Phnom Penh’s prime and mid-tier condo markets, making them attractive to cash-flow-focused investors.
Hoem Seiha specialises in the Cambodian real estate market.
