Cambodia’s condominium market, especially in Phnom Penh, has grown steadily over the last few years, with a particular focus on affordable and mid-range units. In the first half of 2024 alone, approximately 2,200 new condominium units were added to Phnom Penh, contributing to an estimated total of 14,000 new units by the end of the year. This increase includes developments such as Times Square 7 and Capital Center City, although the market has seen a slowdown in new high-end launches. Currently, condominiums in Phnom Penh offer some of the lowest prices in the region, with an average sale price of around $2,500 per square meter, which is highly competitive compared to other Southeast Asian cities like Bangkok and Ho Chi Minh City.
The Phnom Penh condominium market is also attractive for investors due to its rental yield, which averages 5.3%—a favorable return compared to other regional hubs. However, price adjustments are ongoing, with affordable and mid-range condos experiencing price drops of about 9.9% and 5.9% respectively, reflecting a shift in market demand and purchasing power. In contrast, the high-end market has remained relatively stable, showing a minor price increase of 0.3%.
Despite the growth in supply, occupancy rates have been mixed due to a decline in international investment, while local interest in mid-range and affordable properties has risen. In response to these dynamics, developers are increasingly targeting domestic buyers by creating more cost-effective, entry-level options. Industry experts expect that if Cambodia’s economy continues to grow, projected at 5.8% for 2024, the condo market will stabilize and potentially experience moderate appreciation in the long term, especially as urbanization and infrastructure improvements make Phnom Penh more attractive to both residents and investors.
Condominiums in Cambodia are rapidly transforming from a niche offering into a core part of the country’s real estate landscape. Although boreys (gated housing communities) are still popular among locals, the condo market is catching up fast, especially in urban centers like Phnom Penh and Sihanoukville. As of Q4 2019, a CBRE Cambodia report noted that Phnom Penh alone had 17,995 condo units, marking a 27% increase over the previous year. Here’s a look at the top 12 reasons why purchasing a condo in Cambodia is a savvy investment.
Overall, while challenges such as over-supply and declining international investment have impacted the market, Phnom Penh’s condominium sector remains a viable option for local buyers and investors looking for lower entry points in a market with competitive rental yields and relatively affordable property prices.
1. Saves Time and Boosts Productivity
Living in a city-center condo allows professionals to reduce their commute time significantly. This benefit is especially appealing in Cambodia’s rapidly urbanizing population, with a large portion of residents aged 25-40 focused on career advancement and business development. Proximity to workspaces, commercial hubs, and social venues ensures residents can spend less time commuting and more time being productive.
2. Reduced Maintenance and Housework
Compared to standalone houses or villas, condos require far less upkeep. Without yards or driveways to manage, residents save hours on maintenance each month. Many condominiums even offer housekeeping services, which means residents have fewer chores to handle and more time to focus on what truly matters.
3. Access to Essential Facilities and Services
Most condos in Cambodia are located near key amenities like schools, hospitals, banks, government offices, and shopping centers, allowing residents easy access to all essential services. This is particularly true in Phnom Penh and Sihanoukville, where well-located condos provide unparalleled convenience.
4. Attractive Amenities Right at Home
From gyms and pools to lounge areas and meeting rooms, condos provide luxury and convenience under one roof. These on-site amenities reduce the need to travel far for fitness, leisure, or social gatherings. Additionally, condos usually come equipped with advanced security features, such as CCTV and 24-hour security staff, allowing for a safe and secure lifestyle.
5. Builds a Sense of Community
Living in a condo creates an opportunity to connect with neighbors, turning a residential building into a vibrant community. From casual interactions to shared events, condo living fosters friendships and shared activities, enhancing the living experience and providing social support.
6. Lower Long-term Costs Compared to Renting Luxury Homes
While renting a villa can cost up to $2,000 per month, buying a condo allows owners to invest similarly but gain ownership and potential appreciation. Mortgages for condos can often be found for less than $1,000 per month, making them a cost-effective alternative to renting high-end properties. As a result, owners can save on monthly costs while building equity.
7. Promising Return on Investment
Buying a condo in Cambodia can generate returns through appreciation and rental income. With rental rates ranging from $500 to $2,500, condos in popular locations often yield returns of 8-10% per year. Given Cambodia’s expanding tourism and urbanization, condos are likely to see increased demand, pushing up both rental yields and property values over time.
8. Minimal Maintenance
One of the major benefits of condos is their low-maintenance nature. Basic repairs and maintenance are often managed by the building administration, saving owners time and effort. This hands-off lifestyle allows owners to avoid the headaches associated with larger, standalone properties.
9. Affordable Entry Price Compared to Other Asian Markets
Condos in Cambodia are priced more affordably than similar properties in neighboring countries. Starting prices for many condos in Phnom Penh range around $60,000, while those located in central districts like Chamkarmon may average $100,000 for a one-bedroom unit. This affordability makes condos an attractive option for first-time buyers and investors alike.
10. Enhanced Flexibility in Buying Process
Condos offer considerable flexibility in terms of purchase options and price points, with choices available for various budgets and preferences. With a straightforward buying process and the ability to select from numerous options across Phnom Penh and Sihanoukville, condo buyers have more flexibility than those investing in landed properties.
11. Growing Popularity and Market Maturity
While condominiums are still relatively new to Cambodia, their popularity is rising as the market matures. More international and local developers are entering the market, leading to high-quality construction and competitive pricing. As the sector expands, buyers are expected to see even more attractive deals and investment opportunities.
12. High Potential for Future Resale Value
As Cambodia’s economy continues to grow and urbanize, condos in central locations are likely to appreciate significantly in value. With the increasing demand for city-center living and modern amenities, condo owners can expect rising resale values in the coming years. Furthermore, increased foreign interest in Cambodian real estate bolsters the resale potential, creating a robust exit strategy for condo owners looking to capitalize on future gains.
Final Thoughts
Cambodia’s condo market is expanding quickly, offering various benefits from convenience and community to financial returns and investment security. With a growing urban population, improved infrastructure, and greater international investor interest, condos have become an attractive choice in Cambodia’s real estate landscape. Whether you’re a young professional seeking city convenience, an investor exploring high yields, or someone looking for a modern, low-maintenance home, buying a condo in Cambodia is an opportunity not to be missed.
If you’re interested in exploring condo options in Cambodia, visit reputable local real estate sites or consult real estate agencies to discover properties that match your budget and preferences.