Cambodia has emerged as a destination for property investment and ownership, providing opportunities for both local and foreign buyers. However, when considering property in Cambodia, it is essential to explore a few factors before making this decision. In this article, we will explore market trends, ownership options, location preferences, and prices to help buyers make informed decisions.
What's the Property Market Like in Cambodia?
The property market in Cambodia has experienced significant growth and development in recent years, especially prior to the pandemic making it an attractive destination for investors and buyers alike. With a stable economy and foreign investment, the real estate sector has flourished, witnessing a surge in demand for residential, commercial, and industrial properties. Urban centres, such as Phnom Penh and Sihanoukville, have become focal points for development, with a rising number of modern high-rise buildings. Despite the significant growth and development in Cambodia's property market, it has not been without challenges. The ban of online gambling in 2019, and the pandemic created an oversupply of properties, which has put downward pressure on prices. As a result, property prices have, in some cases, experienced a decline from their pre-pandemic levels. The current situation has created a market that is more favourable to buyers, presenting opportunities for those seeking more affordable investment options.
Am I Eligible To Buy a Property in Cambodia?
If you are Cambodian, you are eligible to buy a property in Cambodia. As a Cambodian citizen, you have the legal right to directly own any type of property, including land, condominiums, and landed properties. For foreigners or non-Cambodians, the property ownership regulations are slightly different. Foreigners are allowed to own condominium properties in Cambodia, but there are some restrictions. They can only own condominium units on the first floor or higher, and they are not permitted to own units on the ground floor. Additionally, foreign ownership is limited to a maximum of 70% of any building with a strata title.
If you are interested in buying a condominium as a foreigner, it is essential to familiarise yourself with the specific regulations and procedures. Find helpful resources to learn more about foreign ownership in Cambodia here.
Moreover, for foreigners interested in exploring opportunities in land and landed properties, there are certain limitations. Foreign individuals cannot directly hold property titles for such properties. However, foreign buyers and investors have found alternative routes to navigate the real estate market in Cambodia. Different approaches include utilising Trust Services, using a local nominee or registering a local land holding company. Through these methods, foreign investors can effectively secure a stake in the property market and invest in landed properties. If you wish to know more about these mechanisms, you can find additional information here
Prefered Location To Seek Property
The city of Phnom Penh serves as the capital of Cambodia and also the Kingdom's seat of government. The capital is not only the political centre but also the primary economic hub of the country. Major economic activities, including finance, education, hospitality & tourism, and technology, are primarily focused in the capital. The city has witnessed remarkable economic growth in recent years, making it an attractive hub for local and international companies, and fostering job creation for Cambodians. Phnom Penh is home to millions of Cambodians and a growing number of expatriates yearly. The city's urbanisation has been on the rise, with a significant influx of people migrating from rural areas in search of better employment and educational opportunities. It also offers a blend of cultural and historical landmarks, such as the Independence Monument, the Royal Palace, the Silver Pagoda, and the Tuol Sleng Museum, attracting visitors every year. These factors, coupled with the city's lifestyle, diverse activities and entertainment, make Phnom Penh a highly sought-after destination for property investors looking to capitalise on opportunities.
Siem Reap is Cambodia's cultural tourism centre, located about 14 km northwest of Phnom Penh. It is home to the famous temples of Angkor Wat, attracting visitors from all over the world yearly. Prior to the pandemic, Siem Reap International Airport catered to an impressive 3.9 million passengers annually. The primary drivers of the economy in Siem Reap rely on tourism, with hotels, boutique guesthouses, and F&B establishments catering to travellers visiting the city. Siem Reap offers a laid-back Khmer country lifestyle and a green environment, which appeals to both locals and foreigners. Notably, the city's newest airport, the Angkor Siem Reap International Airport, has been completed and is scheduled for an official inauguration in October 2023. This new airport will be able to accommodate long-haul flights and more visitors, further boosting tourism in the area.
Sihanoukville is the provincial capital of Preah Sihanouk, located 230 km from Phnom Penh. It has seen massive development in recent years, with numerous construction projects approved between January 2017 and May 2020. Sihanoukville has attracted foreign investment, especially from Chinese investors, resulting in the construction of condominiums, casinos, hotels, and offices. However, some of these projects faced challenges, such as the ban on online gambling and the impact of the pandemic, leading to stalled buildings. The administration of Preah Sihanoukville is implementing measures to address this issue with packages to attract investors. Sihanoukville also serves as the gateway to the idyllic tropical islands off the coast of Cambodia in the Gulf of Thailand, such as Koh Rong and Koh Rong Sanloem. The city's potential to become a tourist destination is further enhanced by the addition of two new world-class hotels in 2023.
Types of Properties
Cambodia boasts a diverse array of property types that cater to varying lifestyles and preferences. The real estate landscape comprises Condominiums, which offer modern living in high-rise buildings with mixed-use facilities. Office buildings and commercial spaces provide ideal settings for businesses and enterprises to thrive. Villas, sought after by affluent Cambodian families, offer spacious freestanding houses with gardens, making them perfect for extended family living. Shophouses, with their ground-floor retail spaces, are popular among locals, while renovated ones add a touch of history to urban areas. Lastly, Boreys, gated communities on the city outskirts, provide Khmer families with secure and well-equipped surroundings, including diverse housing options and communal amenities. Read more in detail about the property types here
Property Prices in Cambodia
Based on Realestate.com.kh research, here are the average sale prices of condominium units and landed property in Cambodia.
Landed Property Rate
|Upscale Area||Inner City Centre||Outside City Centre|
Comparing Property Prices in Neighbouring Country
Comparatively, Cambodia's property market offers more affordable options compared to Thailand. In Bangkok, according to the Wise website, the average sale price of condo units is as follows, with the prices converted to USD for better comparison:
Price per sq.m apartment city centre
Price per sq.m apartment outside the city centre
When comparing property prices between Bangkok and Phnom Penh, it's evident that Bangkok's city centre properties have a higher cost costing more than $5,400 per sqm. On the other hand, in Phnom Penh, high-end properties come at an average cost ranging from $3,000 to $3,500 USD. Overall, it can be observed that high-end properties in Phnom Penh are generally more cost-effective compared to Bangkok's city centre properties which might not be high-end properties. This price difference might attract potential investors and buyers to consider Phnom Penh as a viable option for real estate investment, especially in the luxury property segment.
In conclusion, while seeking property in Cambodia, it is important to understand the current market and select the location and the property type. Overall, Cambodia presents an attractive destination for buyers seeking properties still under market value or within an affordability range. If you're a newcomer to property investment in Cambodia or eager to make an informed decision, reach out to our real estate advisor today for a consultation on the Cambodian property market. At Realestate.com.kh, we offer current insights and help customers find their dream properties every day.
If you are looking for a property in Phnom Penh, Sihanoukville or Siem Reap contact us here