Phnom Penh Real Estate ROI: 2025 Case Studies & Rental Yields
Why Phnom Penh Real Estate Is Attracting Global Investors?
Phnom Penh has rapidly emerged as Southeast Asia’s rising real estate hotspot, drawing both local and foreign investors thanks to:
- High rental returns: Gross yields averaging 6.8–7.7% annually, with some premium developments guaranteeing up to 10%.
- Affordable entry points: Purchase prices remain 40% below regional competitors like Bangkok or Ho Chi Minh City.
- Foreign ownership flexibility: Up to 70% of condo units in a building can be foreign-owned, with all deals transacted in stable USD.
Key Rental Yield Statistics (2025, Q3)
| Unit Type | Average Price ($) | Average Monthly Rent ($) | Gross Yield (%) |
|---|---|---|---|
| 1-Bedroom | 100,000 | 550 | 6.60 |
| 2-Bedroom | 238,600 | 1,000 | 5.03 |
| 3-Bedroom | 354,600 | 2,000 | 6.77 |
| 4+ Bedroom | 730,000 | 4,740 | 7.79 |
| Phnom Penh Avg. | – | – | 6.55 |
Note: Gross yields are before taxes and management costs. Net yields are typically 1.5–2% lower.
Case Studies: Real Investment Returns by Development
1. The Pinnacle Residence (Chamkarmon)
- Price Range: $57,000–$175,000
- Yield: 6–10% annually, with 6% guaranteed for 5 years
- Net Yield: Up to 9% after costs on some units
- Management: Professional, with developer buyback options
2. Wealth Mansion (Chroy Changvar)
- Price Range: $93,000–$350,000
- Yield: 21% over 3 years, 7% annually (guaranteed)
- Strategy: Hotel-style management adds value and rental stability
3. Le Condé BKK1 (BKK1 District)
- Price Range: $94,500–$680,000
- Yield: 8% guaranteed for 3 years
- Feature: Smart home tech attracts younger, high-earning tenants
4. Diamond Bay Garden (Diamond Island)
- Yield: 8% guaranteed for 10 years with Somerset management
5. J Tower 3 (Tonle Bassac)
- Yield: 6–8% targeted on large, family-style three-bedrooms
Sector Overview and Market Drivers
- Economic growth: Cambodia’s GDP up 6.1% in 2025, boosting rental demand. Source: Cambodia Investment Review
- Infrastructure upgrades: New airport, bridges, and a light rail system increasing access to new districts.
- Tourism recovery: 6.7 million arrivals in 2025, pushing up short- and long-term rental demand. Source: gocambo
- Controlled supply: Reduced condo launches in 2025 support current pricing and occupancy rates.
Districts & Strategies for Maximum ROI
| District | Typical Yield | Strength |
|---|---|---|
| BKK1 | 5.5–7.5% | Embassy/business area; secure income |
| Tonle Bassac | 6–8% | Waterfront value, new infrastructure |
| Chamkarmon | 6–8% | Expat-focused, balanced cost/yield |
| Chroy Changvar | 7–9% | Low entry cost, higher appreciation |
Premium areas like BKK1 yield the most stable rents and occupancy, while emerging districts such as Chroy Changvar offer higher appreciation but may carry more risk.
2025 Trends & Recommendations
- Guaranteed return programs: Somerset, ONYX (article), Wyndham management, Le Condé BKK1 offer hands-off, secure yields—ideal for overseas investors. Contact us if you would like more information about Guaranteed return programs.
- Smart home and eco features: New builds with smart tech and green certification command 10–15% premium rents.
- Family-sized units: Three-bedroom condos attract longer-term tenants and secure higher per-unit yields.
Phnom Penh vs. Regional Competitors
| City | Rental Yield | Price ($/sqm) | Currency Risk | Foreign Ownership |
|---|---|---|---|---|
| Phnom Penh | 6.8% | $2,164 | USD (stable) | 70% (strata title) |
| Bangkok | 3.4% | $4,500 | THB | Lease/complex |
| Ho Chi Minh | 4.6% | $3,200 | VND | Restricted |
| Kuala Lumpur | 4.3% | $2,800 | MYR | Restricted |
Phnom Penh offers the best rental yields, competitive pricing, and low legal barriers for foreigners. Related article: Rental Yields and ROI in Phnom Penh Apartments | Investment Potential
The Bottom Line: Realistic Expectations & ROI Tips
- Best yields: Target well-managed condos with guaranteed returns in prime districts.
- Tax advantage: Properties below $210,000 are fully tax exempt through 2025.
- Net yield caution: Subtract 1.5–2% from gross yields for realistic investment returns.
- Future outlook: As infrastructure improves and new supply tightens, yields may stabilize, but appreciation potential will remain high for investors entering before 2026.
“Smart investors in Phnom Penh real estate earn 6–8% yearly returns, and the savviest reach 10%—positioning Cambodia as Southeast Asia’s most attractive market for urban rental property.”
