Cambodia’s Housing Market Begins to Regain Momentum
Cambodia’s residential property market showed encouraging signs of improvement in May 2026 as home prices recorded their first meaningful monthly increase after several months of decline. According to the latest Residential Property Price Index released by the National Bank of Cambodia on July 31, residential property prices rose by 1.19 percent compared with April, suggesting that confidence is gradually returning to the market. Although prices remain below both their 2020 benchmark and the same period last year, the latest figures indicate that the market may be entering a period of greater stability after a prolonged slowdown.
The recovery was largely driven by stronger demand in Phnom Penh, where residential property prices rebounded after consecutive monthly declines. While conditions remain mixed across different regions, improving buyer interest and growing transaction activity in the capital are helping support a gradual recovery. The data also reflects the banking sector’s continued efforts to monitor market conditions using internationally recognized methods, giving investors and industry stakeholders a clearer picture of the housing market’s direction.
Phnom Penh Leads the Recovery
The latest Residential Property Price Index increased to 99.32 using 2020 as the base year. The improvement was mainly supported by Phnom Penh, where the residential property index climbed 1.88 percent from the previous month to 99.92.
Despite the monthly increase, housing prices in the capital remained 1.93 percent lower than they were a year earlier. However, after months of declining prices, the latest rebound suggests that market activity is beginning to strengthen as more buyers return and confidence slowly improves.
Provincial Markets Present a Mixed Picture
While Phnom Penh experienced stronger growth, residential property prices outside the capital moved in the opposite direction during May. The provincial property index fell by 1.89 percent from April to 93.89.
However, the longer term picture was more encouraging. Compared with May 2025, residential property prices in the provinces were actually 1.95 percent higher, showing that regional markets continue to perform differently from Phnom Penh. This highlights the varying pace of recovery across Cambodia’s property sector.
Market Recovery Follows a Prolonged Slowdown
Cambodia’s residential property market has experienced a challenging period since reaching its peak during the middle of 2022. Since then, national housing prices have generally trended downward, with sharper declines recorded toward the end of 2025 and the beginning of 2026.
January marked one of the weakest months during the recent downturn as the national property price index dropped by more than two percent. Against that backdrop, May’s positive growth is being viewed as an encouraging signal that market sentiment is gradually improving, especially in Phnom Penh where buying activity appears to be increasing.
National Bank Uses International Standards to Measure Prices
The National Bank of Cambodia calculates the Residential Property Price Index using the time dummy hedonic method, an internationally recognized approach that accounts for differences in property characteristics such as location, floor area, number of bedrooms, and the number of floors.
The methodology follows recommendations from the International Monetary Fund and relies on housing loan transaction data reported by banks and financial institutions. Statistical outliers are also removed to ensure the index accurately reflects broader market conditions rather than unusual individual transactions.
Readers who want to learn more about the methodology can visit the National Bank of Cambodia’s official website for additional information.
Experts Believe Buyer Confidence Is Returning
Speaking to Khmer Times, independent real estate consultant Mean Sovannarith said the latest figures provide encouraging signs that Cambodia’s property market is moving in a healthier direction.
“Although prices have not yet returned to their previous levels, it shows that buyer confidence is gradually returning,” he said, noting that data driven investors with a long term perspective are well positioned to seize opportunities before the market fully recovers.
He also emphasized the importance of cooperation among banks, developers, real estate professionals, and government authorities.
“For Cambodia, if banks, developers, real estate professionals, and the authorities work together to address cash-flow constraints, rebuild confidence, and better match products with actual market demand, the sector can recover more quickly and on a stronger foundation, he noted.
Sovannarith added that experienced investors and professionals with strong relationships in the banking sector can also help connect property owners, investors, and financial institutions to develop practical solutions that benefit everyone involved.
What Does This Mean for Cambodia’s Property Market?
Although Cambodia’s residential property prices remain below previous highs, the latest increase offers an encouraging sign that the market is slowly recovering. Stronger performance in Phnom Penh suggests that buyer confidence is returning, while stable lending practices and closer cooperation between financial institutions and developers could further support the recovery.
For investors, homebuyers, developers, and businesses connected to the real estate industry, the coming months will be important in determining whether this positive momentum continues across the country.
Conclusion
Cambodia’s residential property market is showing early signs of stabilization after a lengthy slowdown. While challenges remain and prices have yet to return to earlier levels, the May increase reflects improving market sentiment and renewed buyer confidence. If collaboration continues among financial institutions, developers, policymakers, and investors, the housing market could gradually regain stronger and more sustainable growth in the months ahead.