The Changing Phases of the Condo Sector in Phnom Penh.
Over the past decade, Phnom Penh’s condominium sector has undergone a remarkable transformation — shaped by foreign capital, pandemic-related resets, and now, a growing wave of domestic buyers and shifting regional dynamics. From skyscrapers funded by Chinese investors to urban apartments occupied by young Cambodians, the city’s skyline tells a story of both ambition and adjustment.
But even as the market recovers from past excesses, natural events in neighboring countries — like earthquakes in Myanmar and Thailand — are now introducing a new variable: safety-driven buyer behavior.
The Rise: Chinese Capital and Sky-High Dreams
Before the Covid-19 pandemic, the condo market in Phnom Penh was on fire. Developers launched wave after wave of high-end projects aimed at international investors, primarily from China, Taiwan, Hong Kong, and Singapore. With Cambodia’s economy growing at 6.8 percent and an open-door investment policy, foreigners rushed in.
In 2018, high-end condos sold at an average of $3,260 per square meter (psm), mid-range units fetched $2,562 psm, and affordable units were around $1,466 psm, according to CBRE. These prices reflected both demand and the speculative optimism that defined the boom years.
Yet, this surge was not without its flaws. Tom O’Sullivan, CEO of Realestate.com.kh, put it bluntly: “Many of these projects have since been exposed — post-Covid — for delivering poor-quality construction that in no way reflects the price buyers originally paid.”
The overhang? Roughly 30% of units remain unsold as of March 2025.
Read more: Is Phnom Penh Really That Expensive to Live In?
The Reset: Pandemic, Price Corrections, and Local Buyers
The pandemic hit pause on Cambodia’s property boom. Chinese capital retreated, projects stalled or slowed, and many developers found themselves stuck with unsold inventory.
“Developers are getting more creative as to how to move unallocated stock,” said James Whitehead, Investment Advisor at IPS Cambodia.
Between January 2023 and December 2024, the average sale price in Phnom Penh’s prized BKK1 district dropped to $2,000 psm. Condos now range from $800 to $2,550 psm depending on location and layout — a far cry from the highs of the late 2010s.
This market correction paved the way for local buyers. Realestate.com.kh reports that 18.8 percent of 1,000 condos sold in the last 24 months were bought by Cambodians — a sign of growing incomes, urbanisation, and lifestyle shifts.
“Many young professionals are looking to rent condominiums in more central locations [now] to reduce commute times,” noted Ross Wheble, Country Head of Knight Frank Cambodia.
The Human Story: Young Cambodians Choose Condo Living
Take Saosopheakneath Bun, a 27-year-old working at Impact Hub. She recently purchased a $30,000 studio at Arakawa Residence using a mortgage.
“I love living in a condo. There is an elevator, waste management, a food court, and a convenient store and a lot of street food nearby,” she told Kiripost. Her only gripe? Paying $44 a month for parking.
Her colleague Bank Vath, also a young professional, echoed a common theme among locals: safety. “My family felt unsafe living in local rental houses. We have two bedrooms in our unit. I don’t think the cost of the unit is pricey,” he said of their $70,000 home.
These stories represent a shift — not just from renting to owning, but from traditional housing preferences to urban convenience.
Earthquakes in the Region Spark Condo Safety Concerns
While Cambodia itself is not known for frequent seismic activity, recent earthquakes in Myanmar and northern Thailand have sparked concerns among property buyers and developers.
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A 5.8 magnitude quake in Myanmar earlier this year was reportedly felt as far as Siem Reap and Phnom Penh, reminding residents of the region’s interconnected geology.
Experts note that although Phnom Penh is outside major fault zones, the quality of construction in older condo buildings — particularly those rushed during the pre-pandemic boom — is raising red flags.
“We’ve had developers with no experience putting up towers just to cash in,” said O’Sullivan. “Now that safety is a more conscious factor, newer, reputable projects with better engineering standards are attracting more interest.”
This subtle yet real fear is nudging Cambodian and foreign buyers alike to scrutinise structural quality and earthquake resilience. “The Thai quake made me rethink where I want to live,” shared a Phnom Penh-based expat on an online forum. “I’d rather pay more for a building with proper engineering than risk my family’s safety.”
The Shift: Domestic Market and Strategic Pricing
Developers have started to listen. The post-2022 recovery brought a new class of projects — realistic in price, targeted to domestic needs, and built to higher standards.
“There is now a clear undersupply of properties that meet actual demand,” said O’Sullivan. “The real issue is a mismatch between supply and what the market actually wants.”
This includes bigger units with functional layouts, good locations, and better amenities. As Whitehead explains: “No one wants to buy an overpriced studio in BKK1 that can only deliver a four to five percent yearly yield… But well-priced, well-designed units for families? That’s the sweet spot.”
Read more: How Do the Rich People Make Money in Cambodia?
Who’s Buying? A Changing Investor Profile
Realestate.com.kh data shows that while Cambodians dominate the rental market (13.8%), foreigners still own the majority of condo units. Interestingly, Americans now top the list at 10.3% of foreign buyers, surpassing Chinese (6.7%), Singaporeans (7%), and British (6.7%).
“The online gambling ban in 2019 significantly reduced speculative inflows,” said O’Sullivan, explaining the shift in Chinese investor behavior. But things are changing again.
After Chinese President Xi Jinping’s 2025 visit to Cambodia, “we’re now seeing a different class of Chinese investor re-engage with the market — more business-driven and focused on long-term opportunities,” O’Sullivan said.
The entrance of brands like BYD into Cambodia supports this narrative of renewed Chinese confidence.
Looking Forward: 70,000 Units by 2025 and a Cautious Optimism
By the end of 2025, Phnom Penh will host over 70,000 condo units, with about 9,000 more coming online in the near term. Developers are responding to actual buyer needs, offering better payment plans and diversified unit layouts.
The most in-demand properties? One-bedroom units in central districts like BKK1, Toul Kork, and Tonle Bassac, accounting for 61 percent of all units.
“We expect the trajectory to move upward over time,” said O’Sullivan. “The fundamentals are there: rising incomes, infrastructure investments, urbanisation and — most importantly — smarter development.”
Condos in Phnom Penh — Still Climbing, but with Caution
Phnom Penh’s condo market has matured through a painful but necessary evolution. It has transitioned from foreign-fueled frenzy to a more balanced ecosystem, involving both international and domestic players, and shaped now by not just profits — but safety, lifestyle, and real-world functionality.
As natural disasters in the region raise fresh concerns and domestic buyers become more influential, the industry is adjusting again.
The future of condos in Phnom Penh may no longer lie in luxury alone — but in quality, affordability, and safety that meet the demands of a modern, discerning buyer.
What do you think about the condo market in Phnom Penh? Have you experienced the shift firsthand? Share your thoughts in the comments or on our social media channels.