In recent years, Cambodia's real estate sector has experienced remarkable expansion, captivating the interest of both domestic and global investors. The country's rapid urbanization, growing middle class, and resurgence in tourism activity following the pandemic provide excellent opportunities for property investment, particularly in the condominium market.
In this article, we will explore the top three areas for condo investment in Cambodia: Phnom Penh, Siem Reap, and Sihanoukville.
Phnom Penh
As the capital city and economic hub of Cambodia, Phnom Penh hosts the Kingdom’s seat of government and serves as the home to over two million Cambodians and expats.
Over the years, the city has witnessed rapid development in various sectors, including real estate, infrastructure, and tourism. For example, the rapid development of areas such as Koh Pich, the construction of schools/institutions, and the addition of the new airport. All this combined it continues to attract many looking for better opportunities in the capital leading to a strong demand for residential properties. The growing middle class in Phnom Penh is driving a significant increase in consumer demand. As more people move up the economic ladder, there's a surge in demand for a wide range of goods, and services. In the capital city, international brands are increasingly present in the streets of Phnom Penh. In recent years, popular franchises like Starbucks, Papa John’s, 7-Eleven and Zara have entered the market showing interest in the Cambodian market.
In Phnom Penh, the popular residential areas for expats and locals who want to be close to the city centre include BKK, Chamkarmon, and Tonle Bassac. Prime location offers convenient access to commercial centres, schools, and entertainment facilities. Upcoming areas with a growing amount of amenities are Chroy Changvar and Koh Norea.
In Phnom Penh, the average sale price of condo units is as follows:
- Studio units cost an average of USD 80,000
- 1-bedroom condominium units cost an average of USD 110,000
- 2-bedroom counterpart units cost an average of USD 160,000
- 3-bedroom counterpart units cost an average of USD 290,000
To find condos available in Phnom Penh, click here
Siem Reap
Renowned for its ancient temples, including the world-famous Angkor Wat, Siem Reap has emerged as a tourist destination. The city's popularity among international visitors has created a strong demand for accommodation and businesses related to the tourism industry.
One notable aspect of Siem Reap's urban landscape is the absence of towering skyscrapers or high-rise buildings. This distinct feature is a result of building height restrictions that are in place to preserve the view and cultural significance of Angkor Wat. As a result, the city's skyline remains relatively traditional with the low-rise nature of buildings and condominiums maintaining the city's unique charm and tranquil atmosphere. Many expats will choose Siem Reap as home regardless due to its eclectic mix of culture, tourism and laid-back Khmer country lifestyle. Siem Reap is an appeal for starting businesses, especially in the food and beverage, hospitality, and tourism sectors. The construction of Siem Reap's newest airport, the Angkor Siem Reap International Airport, has been completed and is scheduled for an official inauguration in October 2023. With newly enhanced facilities, it is expected to attract more tourists to the city.
The prime residential areas in Siem Reap include Wat Bo, Sala Kamreuk, and Svay Dangkum, offering proximity to the city centre and major attractions like Pub Street.
In Siem Reap, the average sale price of condo units is as follows:
- 1-bedroom condominium units cost an average of USD 73,000
- 2-bedroom counterpart units cost an average of USD 108,000
- 3-bedroom counterpart units cost an average of USD 148,000
To find condos available in Siem Reap, click here.
Sihanoukville
Situated along Cambodia's southwestern coast, Sihanoukville is a rapidly developing coastal city. It is known for its surrounding islands Koh Rong and Koh Rong Sanloem and is also a key commercial hub for Cambodia. Home to the Sihanoukville Autonomous Port (SAP), it has the greatest capacity of the Cambodian ports due to its deep-sea port and direct feeder capacity to Singapore and other larger international ports. Sihanoukville also boasts the country's first expressway linking to Phnom Penh. It has significantly reduced the travel time by half, and as a result, Sihanoukville has experienced a surge in local and international tourism since its opening. The city is divided into several areas, and popular beaches include Ochheuteal, Otres and Serendipity.
In Sihanoukville, the average sale price of condo units is as follows:
- 1-bedroom condominium units cost an average of USD 75,000
- 2-bedroom counterpart units cost an average of USD 165,000
- 3-bedroom counterpart units cost an average of USD 260,000
To find condos available in Sihanoukville, click here.
In conclusion, the three cities in Cambodia with potential for condo investment are Phnom Penh, Siem Reap, and Sihanoukville. Generally speaking, these cities are poised to experience significant growth in the future due to their ties with economic activities such as tourism and trade. Phnom Penh, being the capital, holds a distinct advantage. However, Siem Reap and Sihanoukville are also worth considering due to their high influx of tourists. Overall, it is important to evaluate the dynamics of property demand in each city to ensure a favourable return on investment.
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