Why Phnom Penh is a good choice for investing in Cambodian real estate？

A large proportion of real estate in Phnom Penh, more mature market

Cambodia is in the early stages of development, and the scope of real estate development is not large. At present, it is mainly in Phnom Penh and Sihanoukville. The development of Phnom Penh is the largest, and Phnom Penh real estate has the largest market share.

There are more than 120 new projects in Cambodia, and Phnom Penh accounts for 90 projects. Villas, apartments, townhouses and a large number of second-hand houses are rented and sold. The housing market is large and the development is more mature.

Demographic Dividend

The short-term trend of the real estate market is determined by policies (down payment, loan interest rates, purchase restrictions, etc.), and the long-term trend is determined by the population. The real estate worth investing in must be a city with a large flow of people and a concentrated population.

Cambodia has a population of more than 16 million. Phnom Penh has the largest population among the 25 provinces and cities in the country, with a population of more than 2.1 million. In addition to the prosperous political and commercial economy of the capital, hundreds of thousands of foreigners are permanent residents. Therefore, Phnom Penh is the city with the most concentrated population in Cambodia, and the demand for rent is sufficient. There are more potential people in need. Judging from the demographic dividend, investing in real estate in Phnom Penh is better able to preserve and appreciate.

Diversified economy and stable market

Phnom Penh is the capital of Cambodia. In addition to the developed tourism industry, the political and commercial economies are prosperous. The diversified economy has laid the foundation for the stable development of the real estate market.Relatively speaking, cities such as Sihanoukville and Siem Reap are also important economic centers in Cambodia, but the development of the housing market lags behind Phnom Penh.

The tourism industry in Siem Reap is very eye-catching, but there are few other pillar industries, and the economy is relatively unitary. As a result, Siem Reap has not yet developed large-scale new  development. Only some villas and converted apartments for sale.

Sihanoukville ’s tourism and trade are relatively developed, with convenient transportation, geographical advantages, favorable policies, and real estate development. However, due to the serious gambling economic bubble, frequent public security issues, and economic development has not entered a stable period, investors and house buyers Even if they are optimistic about the prospects of Sihanoukville, they will still invest cautiously in the short term.

Therefore, from the perspective of economic development, the real estate in Phnom Penh is more stable and investment is more attractive.

High investment return yield rate

The capital of Phnom Penh has obvious advantages, there are many government and enterprise institutions, most of the wealthy class in Cambodia is also concentrated in Phnom Penh, and the market consumption ability is relatively strong. Concept, contacted with modern community and apartment products. Coupled with the large number of foreigners in Phnom Penh, it has also driven the development of the local real estate rental market.

In an active market, Phnom Penh's real estate investment rate of return has been rising all the way. Phnom Penh's housing prices have risen up to 16.7% in a year, leading the world, with a rental yield of about 6.5%, the rent out rate is not bad.

Overall, Phnom Penh's real estate investment return rate is relatively prominent in Cambodia, and investors also favor the Phnom Penh market.