Freehold vs. Leasehold in Cambodia: Property Ownership Rights Explained
Understanding Property Rights in Cambodia
Navigating Cambodia’s property market means understanding the crucial distinction between freehold and leasehold ownership. The choice between these two affects how much control, security, and long-term value you gain from your investment.
What Is Freehold Ownership?
- Definition: Grants the owner permanent, absolute ownership of both the property and the land it sits on.
- Duration: No time limit—ownership is indefinite and can be transferred, inherited, or sold freely.
- Titles: Typically associated with hard title or LMAP title registration.
- For Foreigners: Non-Cambodians cannot own land freehold, but they can legally own freehold condominium units (usually above the ground floor and up to 70% of a building on a strata title).
What Is Leasehold Ownership?
- Definition: Confers the right to use or build on property for a fixed period—commonly 50 to 99 years in Cambodia.
- Duration: Ownership is limited to the lease term. After expiry, the property reverts to the true owner (usually a Cambodian national).
- Flexibility: Lease terms and options for renewal are negotiable. Registered leases at the Land Office provide added legal protection.
- Foreigners: Leasehold is the primary way for foreigners to control land; allows legal long-term use and development.
Here is a Freehold vs Leasehold video explanation from Mr. Oknha Dr. Kim Heang who is a part time lecturer of Hospitality, Tourism, Marketing, Management and Real Estate for Public and Private Universities in Cambodia.
Key Differences at a Glance
| Aspect | Freehold | Leasehold |
|---|---|---|
| Ownership | Full, permanent | For a set term (usually 50-99 years) |
| Transfer | Can be sold, inherited, or gifted freely | Can be transferred, but expires at term’s end |
| Security | Highest security, indefinite rights | Lower, depends on lease contract & renewal |
| Foreigners | Land ownership restricted; condos allowed | Land/house lease allowed, land remains Cambodian-owned |
| Value | Tends to appreciate/hold value | Value tapers as lease term shortens |
| Control | Full freedom over property improvements | Must comply with lease & original owner’s rules |
Investment Implications
- Freehold: Best for long-term security, full property rights, and generational wealth. Condos are the main freehold investment route for foreigners.
- Leasehold: Suitable for those seeking access to otherwise restricted types of property or land, at lower upfront costs and more flexibility.
Tip: Always verify title status—freehold (hard title, strata title) vs. leasehold—before any transaction. Legal consultation is essential, especially for foreigners and for lease renewal/extension negotiation.
Related article: Real Estate Contracts in Cambodia: 7 Must-Know Facts to Avoid Costly Mistakes in 2025
Conclusion
Cambodia offers both freehold and leasehold routes to property ownership, with different legal and practical implications. For local buyers, freehold is the gold standard, but foreigners have viable options through strata-titled condos (freehold) and leasehold agreements for other asset types. Weigh your goals for flexibility, security, and long-term value to choose the best path.
