May 17, 2026Cambodia

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

For foreign property buyers in Cambodia, the market effectively comes down to two cities. Phnom Penh is the capital, the economic center, and the only market with genuine depth and liquidity. Sihanoukville was the speculative darling until 2019 and is now a cautionary tale. Understanding the current state of both markets is essential for making an informed decision.

Phnom Penh

Price range for foreign-eligible condos: USD 1,500 to USD 3,500 per square meter for mid-market developments. Premium projects in BKK1 and Tonle Bassac reach USD 3,000 to USD 5,000. Entry-level condos in emerging districts start below USD 1,500.

Villas and houses, which run from USD 200,000 to over USD 2,000,000, sit outside the foreign market entirely. Only Cambodian citizens can hold land title, so a foreign buyer's options are strata-titled units above the ground floor.

Best for: Income-producing condo investments, long-term capital appreciation in a growing frontier economy, and buyers who want legal clarity through strata titles.

Phnom Penh is home to approximately 2.3 million people, and the broader metropolitan area is growing rapidly. The city is Cambodia's administrative, commercial, educational, and diplomatic center. The presence of international organizations (UN agencies, World Bank, Asian Development Bank), embassies, NGOs, and a growing number of multinational corporations creates rental demand for quality apartments from expatriate professionals.

The Phnom Penh condo market has matured significantly since the 2010 Foreign Ownership Law opened it to foreigners. The initial oversupply of units (particularly in the mid-2010s construction boom) has been gradually absorbed, and occupancy rates in well-located, well-managed buildings have stabilized.

The macro backdrop supports it. The National Bank of Cambodia reports GDP growth of 5 to 6 percent annually, with Phnom Penh drawing on garment manufacturing, tourism, construction, and an expanding services sector. Several hundred condominium projects are now completed or under construction in the city.

Key districts for foreign buyers:

BKK1 (Boeung Keng Kang 1) is the established expat neighborhood with the highest concentration of international restaurants, cafes, and services. It commands premium rents and the highest resale values. Developers like Urbanland have their flagship projects here.

Tonle Bassac, between BKK1 and the riverfront, has seen significant development with mid-rise and high-rise condominiums. The area has good access to the Diamond Island developments and the Aeon Mall.

Toul Tom Poung (Russian Market area) is more local in character but increasingly popular with younger expats and digital nomads. Condo prices are 20 to 40 percent below BKK1.

Chroy Changvar, across the river from central Phnom Penh, is the emerging development zone with lower prices and larger projects. Infrastructure improvements (bridges, road widening) are increasing connectivity, but the area remains somewhat isolated.

Phnom Penh International Airport connects directly to Bangkok, Singapore, Kuala Lumpur, Ho Chi Minh City, Seoul, and Tokyo, and road infrastructure has improved through Japanese and Chinese-funded highway projects. International-standard healthcare is available at Royal Phnom Penh Hospital and Sunrise Japan Hospital. Flooding during the rainy season and traffic congestion remain unresolved, and infrastructure quality drops sharply between central and peripheral districts.

Rental yields: Gross rental yields for well-located condos in Phnom Penh typically run 5 to 7 percent, higher than comparable properties in Bangkok or Kuala Lumpur. However, management costs, vacancy risk, and tenant quality can significantly reduce net yields.

In cash terms, a quality two-bedroom condo in BKK1, Tonle Bassac, or along the Riverside rents for USD 800 to USD 2,000 per month. Developing districts rent at USD 400 to USD 800, lower in absolute terms but often a higher percentage yield against the lower purchase price.

The foreign buyer pool is led by Chinese investors, still the largest group despite the post-2019 pullback, followed by Korean, Japanese, and Singaporean buyers, Western expats already living in the city, and regional buyers from Vietnam and Thailand.

Risks: Oversupply in certain micro-markets, inconsistent building management quality, and the legal enforceability of strata titles in buildings where the developer has not completed the registration process.

Sihanoukville

Current market status: Not recommended for foreign property investment in 2026.

What happened: Sihanoukville experienced one of the most dramatic property boom-and-bust cycles in recent Southeast Asian history. Between 2016 and 2019, Chinese investment drove a construction frenzy. The number of construction projects in the city exploded from a handful to hundreds. High-rise condos, hotels, and casinos were built or started at a pace that far outstripped any organic demand.

The 2019 online gambling ban removed the primary economic driver behind the investment. COVID-19 closed borders and halted construction. Developers who had sold off-plan units stopped building. Investors who had paid deposits found themselves with no completed property and no recourse. By 2020, Sihanoukville was a landscape of half-finished concrete shells.

The 2026 reality: The Cambodian government has announced plans to redevelop Sihanoukville as a multi-purpose economic zone, and some Chinese-backed projects have resumed construction. However, the legal status of many stalled developments remains unresolved. Title registration for foreign-eligible units is incomplete in many buildings. The city's infrastructure (roads, water, sewage) was overwhelmed by the boom and has not fully recovered.

Prices reflect the reset. Units marketed at USD 2,000 to USD 3,000 per square meter during the boom trade at USD 800 to USD 1,500 in completed projects. That discount is not the bargain it looks like when the building is partially finished, the developer is distressed, or the strata title was never registered.

Government and Chinese-backed investment continues around the Sihanoukville Special Economic Zone, and Xi Jinping's 2023 state visit reinforced bilateral commitments to develop the city as a tourism and economic hub. The Phnom Penh to Sihanoukville expressway, Chinese-funded and open since 2022, has cut travel time, and the deep-water port remains Cambodia's only autonomous port. Sihanoukville International Airport (KOS) still runs limited routes. Where tourism demand is returning, it is around Otres Beach and Independence Beach rather than the inland condo towers.

The emergence of cyber-fraud compounds in empty Sihanoukville buildings has damaged the city's reputation. The U.S. Treasury sanctions against Cambodian businesspeople linked to these operations add a layer of geopolitical risk to any Sihanoukville investment.

If you already own in Sihanoukville: Consult a Cambodian lawyer about your title status. If your unit has a registered strata title in a completed building, you have a legal asset, though its market value is likely well below what you paid. If your unit is in an incomplete development or lacks a strata title, your options may be limited.

Siem Reap: The Third Option

While Phnom Penh and Sihanoukville dominate the conversation, Siem Reap (gateway to Angkor Wat) has a small but growing property market relevant to foreign buyers.

Siem Reap's appeal is lifestyle and tourism. The new Siem Reap Angkor International Airport, which opened in 2023, provides modern infrastructure and growing international connectivity. The condo market is much smaller than Phnom Penh's, with limited inventory and lower prices. Rental demand is heavily seasonal, tied to tourist arrivals.

For foreign buyers interested in Siem Reap, Urbanland's Treeline Urban Resort is one of the few institutional-quality developments offering strata-titled units. The market is best suited to buyers who want a personal-use property with some rental income potential rather than a pure investment play.

Kampot and Kep

The southern coastal towns of Kampot and Kep have drawn a small community of Western expats and lifestyle buyers. Condo prices, where units exist at all, run USD 800 to USD 1,500 per square meter. The ownership rules are identical to the rest of the country, meaning above-ground-floor units with strata title only, and the supply of qualifying stock is very thin.

Comparison Summary

|--------|-----------|---------------|-----------|

| Price (USD/sqm) | 1,500-5,000 | Uncertain | 1,200-2,500 |

| Gross yields | 5-7% | N/A | 3-5% |

For a complete overview of Cambodia's property market and ownership structures, Bektu's Cambodia country guide provides current data and legal guidance.

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