Real Estate Investment in Phnom Penh: Market Dynamics and Emerging Neighbourhoods


Phnom Penh, the vibrant capital city of Cambodia, has been a focal point for real estate investment over the past decade. 

With its burgeoning economy and increasing foreign direct investment, the city has seen a significant transformation in its urban landscape.

This article delves into the market dynamics of real estate investment in Phnom Penh and highlights the emerging neighbourhoods that are attracting investors’ attention.

Phnom Penh’s Real Estate Market

The real estate market in Phnom Penh has been buoyant, driven by a combination of economic growth, political stability, and a growing middle class. The city’s skyline is dotted with cranes, a testament to the ongoing construction boom. From luxury condominiums to commercial skyscrapers, the market has diversified, offering a plethora of opportunities for both local and international investors.

Market Dynamics

Economic Growth and Investment

Cambodia’s steady economic ascent has been a boon for Phnom Penh’s real estate market. 

The city’s growth is underpinned by a burgeoning garment industry, a burgeoning tourism sector, and a robust agricultural base.

The government’s welcoming stance on foreign investment has been pivotal, drawing in capital from across Asia and beyond.

This influx of investment has had a multiplier effect, spurring further development and enhancing the city’s appeal to international investors.

Demand and Supply

The imbalance between demand and supply that defined Phnom Penh’s real estate market is gradually stabilising.

A construction boom has introduced a wave of new developments, leading to more competitive pricing and a greater variety of investment options.

This shift is creating a buyer’s market where investors can leverage the increased supply to negotiate better terms and secure properties with greater potential for appreciation.

Infrastructure Development

The Cambodian government’s commitment to upgrading the nation’s infrastructure has had a direct and positive impact on the real estate sector.

Investments in roads, bridges, and public transportation have not only improved connectivity but also opened up previously inaccessible areas for development.

This infrastructural push is enhancing the value of properties in newly connected regions and reshaping investment strategies to favour these up-and-coming areas.

Emerging Neighbourhoods

As the city expands, several neighbourhoods are emerging as hotspots for real estate investment. These areas are characterised by their potential for growth, accessibility, and the lifestyle they offer.

Toul Kork: The Residential Haven

Toul Kork, once a quiet residential area, is now one of the most sought-after neighbourhoods in Phnom Penh.

With its leafy streets and mix of traditional and modern homes, it offers a tranquil environment away from the hustle and bustle of the city centre.

The area has seen a rise in upscale developments, catering to the growing demand for high-quality living spaces.

Chroy Changvar: The Peninsula Prospect

Chroy Changvar, a peninsula between the Mekong and Tonle Sap rivers, is witnessing a transformation.

With the completion of the Chroy Changvar bridge and the development of the satellite city, it has become an attractive location for investors.

The area offers a blend of residential, commercial, and recreational spaces, with a focus on sustainable development.

Sen Sok: The Affordable Frontier

Sen Sok district, located in the northwest of Phnom Penh, is emerging as an affordable option for middle-income buyers.

The area has seen a proliferation of housing developments, aimed at providing quality homes at reasonable prices.

With the AEON Mall and the Phnom Penh International Airport in close proximity, Sen Sok offers convenience and accessibility.

Investment Strategies

Long-term Growth

Investors with a vision for long-term growth are homing in on districts poised for urban expansion and infrastructural enhancements.

These areas often lie on the periphery of current development hotspots, offering lower entry prices and significant upside potential.

As the city’s development projects come to fruition, these investments are expected to appreciate in value, particularly as new roads, public transport links, and amenities draw both residents and businesses to the area.

Rental Market

The rental market in Phnom Penh is thriving, buoyed by a diverse influx of expatriates, business professionals, and a growing number of international students.

Properties that offer modern amenities, security, and proximity to lifestyle conveniences such as international schools, shopping centres, and dining precincts are particularly in demand.

Investors can capitalise on this trend by acquiring properties in these areas, ensuring a consistent rental yield and benefiting from the appreciation of property values over time.

Commercial Investment

Commercial real estate investment is becoming increasingly attractive as the city’s economy grows and diversifies.

Demand for quality office spaces, retail outlets, and mixed-use developments is on the rise, driven by both multinational Cambodian companies and burgeoning local businesses.

Investors can tap into this segment by focusing on strategically located properties that cater to the needs of these businesses, such as accessibility, modern facilities, and scalability, ensuring long-term tenancy and profitability.

Risks and Considerations

While the prospects are bright, investors should be mindful of the risks. It is essential to conduct thorough due diligence, understand the legal framework, and consider the economic factors that could affect the real estate market.

The Role of the Accomplished Businessman

In the context of Phnom Penh’s real estate investment landscape, the role of the accomplished businessman cannot be understated.

These individuals bring not only capital but also expertise and a network of contacts that can be crucial for the success of real estate ventures.

Their ability to navigate the complexities of the market and identify strategic investment opportunities contributes significantly to the growth and dynamism of Phnom Penh’s real estate sector.


Real estate investment in Phnom Penh offers exciting opportunities amidst a landscape of market dynamics and emerging neighbourhoods. With careful planning and strategic investment, there is potential for substantial returns. As the city continues to grow and evolve, keeping an eye on the emerging trends and neighbourhoods will be key for investors looking to capitalise on Phnom Penh’s real estate market.

Investing in Phnom Penh’s real estate is not just about buying property; it’s about understanding a city that is rapidly coming into its own, offering a unique blend of tradition and modernity. For those willing to delve into this market, the rewards can be as rich as the culture of this remarkable city.



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