May 16, 2026Cambodia

Phnom Penh vs Sihanoukville: Where Foreign Investors Are Actually Buying in 2026

Cambodia's property market for foreign buyers is concentrated in two cities: Phnom Penh, the capital and economic center, and Sihanoukville, the coastal city that experienced a dramatic boom and bust. In 2026, these markets are in very different phases. Here is a factual comparison.

Phnom Penh: The Primary Market

Market Overview

Phnom Penh is where the vast majority of legal foreign property ownership in Cambodia occurs. The city's condo market has developed significantly since the 2010 Foreign Ownership Law, with several hundred condominium projects completed or under construction. The National Bank of Cambodia (NBC) reports continued GDP growth of 5-6% annually, and Phnom Penh's economy benefits from garment manufacturing, tourism, construction, and a growing services sector.

Phnom Penh's population has grown to over 2.2 million according to the National Institute of Statistics (NIS), and urbanization continues to drive housing demand.

Pricing

Phnom Penh condo prices vary substantially by location and quality.

BKK1 (Boeung Keng Kang 1), the traditional expat neighborhood, commands the highest prices: $2,500-$4,000/sqm for new developments and $1,800-$3,000/sqm for resale. Chamkarmon district (adjacent to BKK1) ranges from $2,000-$3,500/sqm. Toul Kork and Tuol Tom Poung (Russian Market area) offer mid-range options at $1,500-$2,500/sqm. Developing areas like Sen Sok, Chroy Changvar (across the river), and Meanchey district start from $1,000-$1,800/sqm.

Villa and house prices range from $200,000 to over $2,000,000, but these are not available for foreign ownership; only Cambodian citizens can hold land titles.

Rental Market

Phnom Penh has a year-round rental market driven by the expatriate community (NGO workers, embassy staff, international business professionals), the local middle class, and a growing student population. Gross rental yields for well-located condos are typically 4-6%, though oversupply in certain segments has compressed yields in some developments.

The expat rental market is concentrated in BKK1, Tonle Bassac, and along the Riverside. These areas command the highest rents: $800-$2,000/month for a quality two-bedroom condo. Developing areas yield lower rents ($400-$800) but can offer higher percentage yields due to lower purchase prices.

Infrastructure

Phnom Penh International Airport provides direct connections to regional hubs (Bangkok, Singapore, Kuala Lumpur, Ho Chi Minh City, Seoul, Tokyo). Road infrastructure has improved with Japanese and Chinese-funded highway projects. Healthcare is available through international-standard facilities like Royal Phnom Penh Hospital and Sunrise Japan Hospital.

The city faces ongoing challenges with flooding during rainy season, traffic congestion, and uneven infrastructure development between central and peripheral areas.

Who Buys Here

Chinese investors (still the largest foreign buyer group despite post-2019 reductions), Korean, Japanese, and Singaporean investors, Western expats living in Phnom Penh, and regional buyers from Vietnam and Thailand.

Sihanoukville: The Recovery Market

Market Overview

Sihanoukville's property market is in a fundamentally different position than Phnom Penh. The city experienced an extreme investment cycle: Chinese-driven construction boom (2016-2019), sudden collapse following the online gambling ban (2019), COVID-19 compounding the downturn (2020-2021), and a slow recovery focused on legitimate tourism and the Sihanoukville Special Economic Zone.

The Cambodian government has taken steps to reshape Sihanoukville, including infrastructure improvements, beach restoration, and stricter building regulation enforcement. Chinese President Xi Jinping's state visit in 2023 reinforced bilateral commitments to develop the city as a tourism and economic hub.

Pricing

Property values in Sihanoukville dropped dramatically from their 2018-2019 peaks. Condos that were marketed at $2,000-$3,000/sqm during the boom can be found at $800-$1,500/sqm in completed projects. Land values have similarly declined, though they remain above pre-boom levels.

However, many of these "bargain" prices come with significant caveats: the building may be partially completed, the developer may be financially distressed, and the strata title may not be registered. Buying a cheap unit in a building with uncertain legal status is not a bargain.

Rental Market

Sihanoukville's rental market is thin. The departure of the Chinese gambling workforce decimated demand, and while tourism is recovering, it has not yet generated sufficient demand to support the existing condo supply. Achievable rental yields are highly uncertain; many units sit vacant.

The areas around Otres Beach and Independence Beach are seeing some tourism recovery, and properties in these locations may have better rental prospects than inland developments.

Infrastructure

Sihanoukville has an international airport (KOS) with limited routes, primarily to/from Phnom Penh and some regional destinations. The new expressway connecting Phnom Penh to Sihanoukville (opened 2022, funded by Chinese investment) has improved accessibility. The deep-water port is Cambodia's only autonomous port and a key economic asset.

However, basic infrastructure (water, sewage, electricity reliability) remains underdeveloped relative to the scale of construction that occurred during the boom.

Who Buys Here

In 2026, foreign buying activity in Sihanoukville is limited. Some opportunistic investors are acquiring distressed assets at post-crash prices. Chinese investors with existing exposure are deciding whether to hold or exit. New foreign buyers entering the Sihanoukville market are few compared to Phnom Penh.

Other Emerging Areas

A brief note on other areas attracting foreign interest.

Kampot and Kep: These southern coastal towns have attracted a small but growing community of Western expats and lifestyle buyers. Property prices are significantly lower than Phnom Penh ($800-$1,500/sqm for condos where available). However, the legal framework for foreign ownership is the same (above-ground-floor condos with strata title only), and the condo supply in these towns is very limited.

Siem Reap: The gateway to Angkor Wat has a tourist economy but limited foreign-eligible property supply. The new Siem Reap Angkor International Airport opened in late 2023, which may drive future development.

Risk Comparison

Phnom Penh represents the lower-risk option for foreign buyers. It has the largest supply of strata-titled condos, the most established legal infrastructure for foreign ownership, a functioning rental market, and the most active legal and professional services sector.

Sihanoukville represents a high-risk, potentially high-return speculation. Prices are low relative to the boom period, and government investment in infrastructure is ongoing. But the risks are substantial: uncertain developer viability, incomplete strata titles, thin rental demand, and a legal environment that struggled to keep up with the boom and is still catching up.

For independent property data and market analysis in Cambodia, Bektu provides transparency resources for foreign investors comparing these markets.

Bottom Line

In 2026, Phnom Penh is where foreign investors are actually buying in Cambodia. It has the legal infrastructure, developer track records, and rental demand to support legitimate foreign property ownership. Sihanoukville is a speculative bet on the city's recovery, and while it may reward patient investors with strong risk tolerance, the current state of the market does not support it as a primary investment destination for foreign buyers seeking security and legal clarity.

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Phnom Penh vs Sihanoukville: Where Foreign Investors Are Actually Buying in 2026