Thinking about buying a 3-bedroom apartment in Daun Penh? It’s a vibrant area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?

And what about long-term investment—should you look into other districts like Chamkarmon or Toul Kork where property values might appreciate more over time?

In this article, we’ll answer these questions. We know this market quite well.

Will property prices increase in Phnom Penh in 2025?

Yes, property prices in Phnom Penh are expected to rise in 2025, driven by a combination of economic growth and urban development.

Backed by our fresh, in-depth market analysis, we’re confident that Phnom Penh remains an attractive destination for both local and international investors.

While there are challenges such as inflation and potential regulatory changes, the main drivers behind Phnom Penh’s price growth are strong and persistent.

The city’s ongoing development projects and increasing foreign investment continue to fuel demand, making significant price drops unlikely. Additionally, Phnom Penh’s strategic location and growing infrastructure keep attracting buyers and investors.

Signals pointing to a property price increase in Phnom Penh

Here are some factors suggesting prices could increase:

• The Cambodian economy is projected to grow steadily in 2025, boosting consumer confidence and increasing the purchasing power of potential homebuyers, which is likely to drive up property prices.

• Phnom Penh is experiencing a surge in infrastructure development, including new roads, bridges, and public transport systems, which are expected to enhance connectivity and increase property values in the surrounding areas.

• Foreign direct investment in Cambodia, particularly in the real estate sector, is anticipated to rise in 2025, bringing in more capital and driving demand for both residential and commercial properties.

• The government’s focus on urban development and modernization projects in Phnom Penh is likely to attract more residents and businesses, increasing demand for real estate and pushing prices higher.

• A growing middle class in Cambodia is expected to increase demand for housing, particularly in urban areas like Phnom Penh, where economic opportunities are concentrated.

• The tourism sector in Cambodia is projected to recover and expand in 2025, boosting demand for hospitality-related real estate and indirectly supporting residential property prices.

• Phnom Penh’s strategic location as a regional hub in Southeast Asia continues to attract multinational companies, increasing demand for office spaces and residential properties for expatriates.

Signals pointing to a property price decrease in Phnom Penh

Here are some factors suggesting prices could fall:

• Potential regulatory changes in Cambodia’s real estate sector could introduce uncertainties, affecting investor confidence and potentially slowing down property market growth.

• Rising construction costs due to inflation and supply chain disruptions could lead to higher property prices, but may also deter new developments, affecting the overall market dynamics.

• Economic challenges, such as global market fluctuations or local economic instability, could impact consumer confidence and reduce demand for property investments in Phnom Penh.

If property prices go up in Phnom Penh, how much would they increase by?

If real estate prices in Phnom Penh were to rise in 2025, the increase would likely be between 5% to 10% of their 2024 values.

Typically, real estate in emerging markets like Phnom Penh appreciates by approximately 5% to 10% annually over the long term. However, fluctuations can occur depending on factors such as location, economic conditions, and property type.

It means that, if you spot a charming 2-bedroom apartment in BKK1 for $150,000 today, don't be surprised if it's priced between $157,500 and $165,000 this time next year.

To give you a better understanding, here is a table that shows 7 types of Phnom Penh real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 5%, 7%, and 10%.