Why Cambodia Is Southeast Asia’s Most Underrated Property Market in 2025
Cambodia might not always top the list of Asian property hotspots, but savvy investors are starting to pay close attention. With a liberal foreign ownership policy, a growing urban population, and continued Chinese and regional investment, the Kingdom of Wonder is quickly becoming a serious contender in Southeast Asia's real estate landscape. Here’s why Cambodia deserves your radar in 2025.
Foreigners Can Buy Property in Cambodia - Yes, Really
Unlike Thailand or Vietnam, foreigners can legally own strata-titled (condominium) units in Cambodia, as long as they don’t occupy the ground floor of a building. There are no minimum price thresholds, no citizenship-linked barriers, and no foreign ownership taxes on entry. This makes Cambodia one of the most open property markets in the region for international buyers.
Phnom Penh: Still Undervalued, But Rising
The capital remains the centre of Cambodia's property market, with a growing skyline and expanding infrastructure. While luxury supply outpaced demand in the late 2010s, recent stabilisation and economic recovery are reigniting interest. Prices per square metre are still significantly lower than Bangkok, Manila, or Ho Chi Minh City, making Phnom Penh one of the last affordable capitals in Southeast Asia.
Condominium units in Phnom Penh typically range between USD $60,000–150,000, with prime areas like BKK1 and Tonle Bassac reaching around USD $2,500–3,000 per square metre. Mid-range or suburban areas can be as low as USD $1,000–1,700 per square metre. This puts quality units well within reach for many international buyers.
Rental yields are strong, typically between 5% and 10%, especially in mid-market condos that appeal to the expat community and returning Cambodians.
In terms of capital appreciation, the market is cautiously optimistic. After price corrections in 2020–2022, 2025 has seen a rebound of approximately 10–15% in key districts, with forecasts suggesting 5–10% annual growth over the next few years—driven by infrastructure improvements, recovering tourism, and stable USD pricing.
Sihanoukville & the Chinese Influence
Sihanoukville, once a sleepy beach town, has transformed dramatically with large-scale Chinese investment. While this surge created volatility, 2025 sees renewed efforts to regulate development and improve infrastructure. If stability continues, Sihanoukville could re-emerge as a coastal investment hub—especially with regional travel rebounding.
Entry prices for resort-style condos start around USD $40,000, and with yields of 7–9% in high-traffic areas, the coastal market could become a compelling diversification option.
Strategic Location and Dollar-Based Economy
Cambodia’s use of the US dollar as its primary currency removes currency risk for many international investors. It also enjoys excellent connectivity to Thailand, Vietnam, and Laos, with improving regional highways and air links. The Belt and Road Initiative continues to fund major infrastructure upgrades that will have long-term effects on land and urban values.
The broader economy is rebounding, with GDP growth forecast at 6.1% for 2025 and rising to 6.5% in 2026, fuelled by tourism and light manufacturing.
Costs, Taxes & Ownership Considerations
Buyers should factor in the following costs:
Transfer tax (stamp duty): 4% of the purchase price, typically paid by the buyer.
Annual property tax: 0.1% of 80% of the property value above USD $25,000.
Rental income tax: 14% on gross rental income for foreigners.
Capital gains tax: 20% on net gains (implementation may be delayed until end-2025).
These taxes are modest compared to most regional markets. Importantly, there are no restrictions on foreign income repatriation.
Risks to Watch
Land titles remain complex, especially outside cities—freehold land is generally not available to foreigners.
Political stability is fragile, though investor confidence has grown post-pandemic.
Oversupply in some condo segments remains an issue, particularly in Phnom Penh.
Summary: Worth a Look for Brave Capital
If you're an investor seeking high-growth potential in an emerging Southeast Asian market, Cambodia may offer a compelling entry point. It's not without its risks, but the combination of low entry prices, open ownership, and USD-denominated assets makes it unique in the region.
We’re in the process of selecting and vetting reputable developer partners in Cambodia, and will soon share recommended options for those looking to take the next step.
Stay tuned for more on specific districts, developer profiles, and project recommendations as Cambodia continues to evolve.
Looking to diversify into emerging Southeast Asia? Get in touch to explore opportunities in Cambodia and beyond.