Current Rental Market in Phnom Penh

Phnom Penh is drawing in an increasing number of domestic and international individuals to its capital city each year. With rapid urbanisation attracting more Cambodians to the city for education and job-related opportunities, it has been converting into a main economic and cultural hub. Phnom Penh has become a focal point for investors interested in the real estate market. Realestate.com.kh closely analysed its current rental market in Phnom Penh, based on the overall leasing in the first half of this year.

The three most sought-after areas are BKK District, Tuol Kork District, and Chamkarmon.

1. BKK District is still the ideal location for property seekers when looking for a rental.  Situated in the heart of the city, the district bustles with commercial activity, boasting a wide array of shops, restaurants, and entertainment venues that attract a diverse population of young individuals and foreigners.
2. Tuol Kork District is a prestigious residential area located to the west and northwest of the centre of Phnom Penh. It is highly sought by families due to its proximity to educational institutions and retail areas. Tuol Kork is well known for its large number of villas and an increasingly growing number of boreys. 
3. Chamkarmon is a large district located to the south of central Phnom Penh. It is experiencing rapid development and offers modern residential and commercial facilities, making it an increasingly popular choice for renters. In particular, Tonle Bassac and Toul Tum Poung (known more commonly as Russian Market) are very popular with ex-pats, whereas Boeung Trabek and Phsar Doeum Thkov are still more Cambodian-centric. 

When it comes to housing options, apartments and villas dominate as the preferred choices for tenants. Here's a breakdown of the rental prices for most properties in the three major rental areas:

Apartments:

• BKK District: Starting from $750 per month 
• Tuol Kork District: Starting from $500 per month
• Chamkarmon: Starting from $500 per month

Villa: 

• BKK District: Starting from $3500 per month
• Tuol Kork District: Starting from $2000 per month
• Chamkarmon: Starting from $2500 per month

Despite an oversupply in the real estate industry in Cambodia, there has been a notable upward trend in rental transaction volume on Realestate.com.kh. A comparison between the same period from January-June 2022 to January-June 2023 reveals a steady increase, indicating a positive trajectory in the first half of this year.

In terms of rental demand, one-bedroom and two-bedroom units are the most common choices. One-bedroom units cater to the housing needs of single tenants or couples, while two-bedroom units are preferred by those with stronger financial capabilities, often utilising the additional room as a home office. Long-term leases, spanning six months or more, are favoured by the majority of tenants. Such arrangements provide a stable living environment and also cost savings and hassle-free relocation.

Key Factors When Choosing A Property 

When tenants are choosing a rental property, they carefully consider multiple factors. The location of the property plays a vital role, with a preference for areas that offer convenient transportation options and a wide range of amenities. In addition, tenants place importance on the quality of facilities and interior design, often seeking modern furnished properties. The affordability of the rent also has a significant impact on their decision-making process, as they strive to find a suitable residence that fits within their budget.

Moreover, the surrounding community and environment also influence tenants' choices. They seek out peaceful locations that are free from disruptive noise caused by neighbouring renovations. Other factors taken into account include pet-friendly policies, the availability of free parking, the standards of property management, the size of the property, internet speed, and proximity to schools. All of these considerations contribute to the final decisions made by tenants when selecting a rental property.

As Cambodia sets its sights on becoming a high-middle-income country by 2030, it has the potential to attract tenants with more demands, therefore understanding their needs is essential for successfully leasing a property. 

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