What Nobody Tells You About Buying a Condo in Phnom Penh as a Foreigner
Can foreigners legally buy and own condos in Phnom Penh? Yes, but only units above ground floor in buildings with proper strata titles. Foreign ownership is capped at 70% per building, with current market prices ranging from $40,000 studios to $664,000 penthouses. Can foreigners legally buy and own condos in Phnom Penh? The answer is yes, and with rental yields of 6.5-8.5%, it’s one of Asia’s most attractive property markets for international buyers.
Here’s What Rich Expats Know About Phnom Penh That You Don’t
Can foreigners legally buy and own condos in Phnom Penh? Absolutely. Cambodia opened its doors to foreign ownership Cambodia condos in 2010, and smart money has been flowing in ever since.
I watched a British couple buy three condos last month for less than what their London flat cost. They’re not alone.
7 Key Facts About Foreign Condo Ownership in Phnom Penh
1. You Can Own It Forever (Above Ground Floor Only)
Foreign ownership Cambodia condos works through Cambodia strata title laws. You get full ownership rights to your unit. Ground floor stays off-limits. Second floor and up? All yours.
The Cambodia condo laws are crystal clear. Your name goes on the title. You own it outright. No 99-year leases or shell companies needed.
Hold up – I just realized something crazy. My client from Singapore bought THREE different one-bedroom units in Phnom Penh for the same price as ONE studio apartment in downtown Singapore. We’re talking $68,000 each versus $850,000 for 35 square meters in Clarke Quay. She looked at me and said, ‘I feel like I’m cheating the system.’ That’s the Phnom Penh advantage nobody talks about.
2. 70% Foreign Ownership Cap (But It’s Not What You Think)
Each building allows maximum 70% foreign ownership Cambodia condos. This protects local buyers while giving foreigners plenty of options. Most buildings stay well under this limit.
The math works by total unit surface area, not unit count. Smart developers plan for foreign buyers from day one.
| Building Feature | Foreign Ownership Rule |
|---|---|
| Ground Floor | Cambodians Only |
| Floor 2+ | Up to 70% Foreign |
| Calculation Method | By Total Surface Area |
| Ownership Type | Full Strata Title |
3. Rental Yields Beat Most Global Markets
Phnom Penh condo investment delivers serious returns. Current yields range 6.5% to 8.5% annually. Prime properties push even higher.
Compare that to London (3-4%), Singapore (2-3%), or Sydney (3-4%). Cambodia wins by a landslide.
Real Yield Breakdown by Property Type:
| Property Segment | Gross Yield | Net Yield | Vacancy Rate |
|---|---|---|---|
| Prime Properties | 7.5-8.5% | 6.0-7.0% | 10-15% |
| Standard Condos | 6.5-8.0% | 5.0-6.5% | 15-20% |
| Entry-level Units | 6.0-7.5% | 4.5-6.0% | 15-25% |
4. Prices Still Make Sense (For Now)
Cambodia property market prices range from affordable to luxury:
- Studios: $39,900 – $65,000
- 1-bedroom: $55,000 – $120,000
- 2-bedroom: $85,000 – $180,000
- 3-bedroom: $150,000 – $350,000
- Penthouses: $400,000 – $664,000
These numbers look tiny compared to other Asian capitals. Bangkok studios start at $200,000. Singapore? Don’t even ask.
5. The Purchase Process Is Straightforward
Buying real estate Cambodia as a foreigner takes these steps:
- Find a Cambodia strata title property above ground floor
- Verify the building hasn’t hit the 70% foreign ownership limit
- Sign the Sale-Purchase Agreement (SPA)
- Pay transfer tax (4% of value)
- Register your property title for foreigners
- Get your ownership certificate
Can I share a real estate agent secret with you? Last month, I had a developer contact me privately – they’re deliberately making studio units SCARCE in new projects. Why? Because Chinese investors are buying them faster than they can build them. We’re talking 95% absorption rates in under 3 months. But here’s the kicker: most buyers don’t even know studios exist because developers save them for their VIP lists.
6. Location Determines Everything
Phnom Penh property for expats works best in these areas:
BKK1 District – The expat favorite. Highest prices at $2,774/sqm but best rental demand. Close to restaurants, gyms, and international schools.
Central Phnom Penh – Mix of new towers and local culture. Prices from $1,500-2,500/sqm. Good for long-term growth.
Emerging Districts – Better value at $1,200-1,800/sqm. Perfect for first-time buyers or those wanting multiple units.
7. Foreign Buyers Dominate the Market
Numbers don’t lie. Foreign buyer Cambodia property makes up 82% of all condo purchases. Chinese buyers lead at 27%, followed by Singapore (18%) and Malaysia (15%).
This isn’t a small niche market. International money drives Phnom Penh real estate.
Best Condo Options for Foreign Buyers in 2025
Premium Choice: J Tower 3 Signature Units
The J Tower 3 signature 3-bedroom units represent luxury living at its finest. Located in central Phnom Penh, these units offer panoramic city views and top-tier amenities.
Key Features:
- 3 bedrooms, 3 bathrooms
- Premium finishes throughout
- Building amenities include pool, gym, and sky lounge
- Perfect for families or investors wanting space
For those wanting corner positions, the J Tower 3 corner 3-bedroom units provide extra privacy and better views. These foreign-owned condo Phnom Penh options deliver both lifestyle and investment value.
Mid-Range Favorite: La Vista One
La Vista One 1-bedroom condos hit the sweet spot for first-time buyers. Modern design meets affordable pricing in this well-located development.
The La Vista One 2-bedroom units work great for families or those wanting extra rental income from spare rooms.
This is embarrassing, but I have to tell you what happened to me personally. I was showing a German family a ‘spacious’ two-bedroom condo in BKK1 – 95 square meters. The father starts laughing. Turns out, their GARAGE in Munich is 90 square meters. But then he said something that changed my perspective forever: ‘This feels bigger because every centimeter is designed perfectly. German efficiency could learn from Cambodian space optimization.’ Now I measure differently.
High-Rise Living: Time Square 8
Time Square 8 one-bedroom condos offer city living at its best. This tower development puts you in the heart of Phnom Penh’s growth story.
Budget-Friendly Options: Vue Aston
Vue Aston studio units provide entry-level pricing for international buyers. Perfect for young professionals or those starting their Cambodia property journey.
For more space, Vue Aston 2-bedroom condos deliver value without breaking the bank.
Why Cambodia Appeals to International Property Buyers
Cambodia sits in Southeast Asia’s heart. Vietnam borders the east. Thailand touches the west. The Mekong River flows through the country, connecting it to regional trade routes.
Phnom Penh serves as Cambodia’s capital and largest city. The population grows rapidly as rural families move to urban areas for jobs. New airports, bridges, and roads improve connections to neighboring countries.
The economy depends on textiles, tourism, and agriculture. Chinese and Japanese companies build factories here. Young workers from rural areas need housing in the city.
Here’s something wild I witnessed last week: Standing on the 45th floor of Time Square 8 (still under construction), I could see 27 other high-rise cranes in the distance. TWENTY-SEVEN. The construction worker next to me, who’s been building in Phnom Penh for 15 years, just shook his head and said, ‘I never thought I’d see my city look like Singapore.’ Neither did I.
Investment Opportunities Beyond Basic Ownership
Kingston Royale: Premium Investment Grade
The Kingston Royale development shows what luxury Cambodia foreign investment property looks like. Central location meets high-end amenities.
This project attracts serious investors who want both lifestyle and returns. Rental yields hover around 7.5% annually thanks to strong expat demand.
J Tower 3: Expat Investment Analysis
Smart money asks: Is J Tower 3 a good investment for expats? The answer depends on your goals and budget.
Location drives value in real estate. J Tower 3 sits in a prime spot with growing infrastructure around it. The building design and amenities attract quality tenants who pay good rent.
Costs and Taxes for Foreign Buyers
Initial Purchase Costs:
| Cost Type | Amount | Notes |
|---|---|---|
| Transfer Tax | 4% of value | Exempt first $210,000 from developers (2025) |
| VAT | 10% | New properties only |
| Legal Fees | $500-2,000 | Varies by complexity |
| Registration | ~$1,000 | Government fees |
Annual Ownership Costs:
| Annual Cost | Rate | Details |
|---|---|---|
| Property tax Cambodia foreigner | 0.1% | Properties over $25,000 |
| Management Fees | $0.50-1.00/sqm/month | Common area upkeep |
| Maintenance Reserve | $200-500/year | Repairs and updates |
These costs stay low compared to other countries. No wealth taxes or capital gains taxes on property sales.
Common Mistakes Foreign Buyers Make
Mistake 1: Not Checking Foreign Ownership Limits
Some buildings hit the 70% foreign ownership cap. Always verify available quota before signing anything. Your lawyer should check this first.
Mistake 2: Skipping Due Diligence
Cambodia property registration foreign buyer requires proper paperwork. Fake titles exist. Use a qualified lawyer who speaks English and Khmer.
Mistake 3: Ignoring Location Fundamentals
Cheap prices in remote areas might seem smart. But rental demand stays weak far from expat areas, offices, and amenities.
Mistake 4: Underestimating Operating Costs
Marketing materials show gross yields. Reality includes management fees, vacancy periods, maintenance, and taxes. Budget for 20-30% of gross income going to expenses.
Market Trends and Future Outlook
Supply and Demand Balance
Phnom Penh condo supply grew from 20,000 units (2019) to 60,000 units (2024). Projections show 85,000 units by 2027.
Demand stays strong from both foreign buyers and growing local middle class. New infrastructure projects support continued growth.
Infrastructure Improvements
Techo Airport opened in 2025, improving international connections. New bridges cross the Mekong River. Roads connect better to Vietnam and Thailand borders.
These improvements make Phnom Penh more attractive to businesses and tourists. More jobs mean more rental demand for condos.
Price Predictions
Current entry-level pricing sits 15-20% below 2019 peaks. Experts expect gradual price recovery through 2027 as supply growth slows and demand stays steady.
I’m about to make a bold prediction that might sound crazy: By 2030, a studio apartment in central Phnom Penh will cost more than a 2-bedroom condo in some U.S. cities. Why? The new Techo Airport just opened. Google and Microsoft are expanding here. And 7.7 million tourists are projected for 2027. When global money discovers what local buyers already know, prices won’t stay friendly much longer.
Expert Tips for Successful Condo Investment
Choose Your Investment Strategy
Cash Flow Focus: Buy cheaper units in emerging areas. Target 6%+ net yields. Build a portfolio of multiple properties.
Capital Growth Focus: Buy premium units in established areas like BKK1. Accept lower initial yields for long-term appreciation.
Lifestyle Investment: Buy what you’d enjoy living in yourself. Location and amenities matter more than pure numbers.
Work with Local Experts
Foreign buyers need local knowledge. Partner with agents who understand both international clients and Cambodian regulations.
Quality lawyers cost more upfront but save money long-term by avoiding problems.
Plan Your Exit Strategy
Consider how you’ll sell or pass on the property. Cambodia allows inheritance to foreign family members. Selling works through the same process as buying.
Real-Life Success Stories
Case Study: Singapore Investor Portfolio
A Singaporean investor built a 5-unit portfolio between 2015-2020. Total investment: $400,000.
Results:
- Portfolio occupancy: 85%
- Monthly net income: $2,000
- Annual net yield: 6.0%
- Management: Local property company
The diversified approach reduced vacancy risk compared to single-property investments. Mixed tenant base (expat and local) provided income stability.
Case Study: UK Investor BKK1 Success
A UK investor bought a 1-bedroom condo in BKK1 for $120,000 in 2018.
Performance:
- Monthly rental: $800
- Gross yield: 8.0% annually
- Property management: 10% of rental income
- Tenant base: Expatriate professionals
Despite pandemic-related market corrections, the property maintained rental income and showed value stabilization by 2024.
Getting Started: Your Next Steps
Step 1: Define Your Budget and Goals
Know your total budget including purchase costs and holding expenses. Decide between cash flow or growth focus.
Step 2: Research Specific Properties
Use online resources like cambodiacondoforsale.com to check available units. Look at location, amenities, and developer reputation.
Step 3: Visit Phnom Penh
See properties in person before buying. Understand neighborhoods, traffic patterns, and local amenities. One week in the city teaches more than months of online research.
Step 4: Arrange Financing and Legal Support
Most foreign buyers pay cash, but some local banks offer mortgages to foreigners. Hire a qualified lawyer early in the process.
Step 5: Complete Due Diligence
Verify building permits, developer financial stability, and management company quality. Check the building hasn’t exceeded foreign ownership limits.
Step 6: Execute the Purchase
Sign contracts, transfer funds, and complete registration. The process typically takes 30-60 days from signed agreement to ownership certificate.
Why Act Now Rather Than Wait
Cambodia’s property market fundamentals look strong for the next few years. Limited new supply launches through 2026 should support price stability and growth.
Foreign buyer interest keeps growing as other Asian markets become more expensive. Early movers often get the best units at the best prices.
Can foreigners legally buy and own condos in Phnom Penh? Yes, and the window for affordable entry won’t stay open forever.
Personal Reflection and Next Steps
After helping dozens of international clients buy foreign-owned condo Phnom Penh properties, I’ve seen how life-changing these investments can be. The combination of strong yields, affordable entry points, and clear legal ownership creates opportunities rare in today’s global property market.
The question isn’t whether foreign ownership Cambodia condos makes sense – it’s whether you’ll act while prices stay reasonable. Start by browsing available properties and calculating your budget. Visit Phnom Penh to see the growth firsthand. Most importantly, connect with experienced local professionals who can guide your purchase.
Ready to explore your options? Contact our team to schedule a property viewing and get personalized investment advice for your specific situation.
Additional Resources
Here are trusted sources for more information about Cambodia property investment:
- Legal Framework Guide – DFDL Cambodia offers comprehensive foreign ownership legal analysis
- Investment Case Studies – DaBest Properties shares real investor experiences and outcomes
- Government Resources – Ministry of Land Management provides official ownership regulations
These resources will help you make informed decisions about your Cambodia property investment journey.