Last updated October 28th, 2018.


Out of all the rapidly-growing frontier markets in Asia, Cambodia is arguably among the best for businesses and real estate buyers.


This small country in the heart of Southeast Asia has leapt forward in terms of economic growth ever since the Khmer Rouge disbanded over 20 years ago. Cambodia property is the best way to profit from the nation’s unparalleled rise.


Cambodia hasn’t suffered a single year of recession in 20 years. It skipped the Asian Financial Crisis of the 1990s, ignored the tech-bubble of the early 2000s, and even outgrew the more recent 2008 Financial Crisis.


There’s no such thing as a recession proof country but Cambodia is about as close as it gets. The reason is because Cambodia, like many frontier markets, is less correlated with the global economy.


Almost every country is dependent on others in the 21st Century. If China, the US, or Europe gets sick, the rest of the world will too. The exceptions are countries which aren’t reliant on foreign capital.


Cambodia is under the radar of most investors yet this is quickly changing. Multinational brands like Samsung, Nike, Toyota and others are setting up operations in Cambodia’s bustling capital of Phnom Penh.


Foreign investment grew by over 800% in the past decade and appears like it’s only getting started.


Manufacturing is also growing at an impressive level – especially due to the lower cost of labor compared to China, which is becoming too expensive for industry.


Realizing the potential here, investment has just started to flood in. But a problem exists: well-paid expats, often making six-figure salaries from international firms, have problems finding apartments which meet their standards.


Phnom Penh has a shortage of expat-quality housing in some areas – especially in the city’s central and western districts like Daun Penh and 7 Makara.


That means there’s potential in buying older apartments, renovating them, and either renting them out or reselling them afterwards.


It’s possible to buy property in Cambodia for $50,000, put $20,000 worth of renovation into it, and then have it be worth $100,000 on the market.


On the other end of the spectrum, some mid-sized towns in Cambodia are booming with activity, construction, and growth as the nation’s middle class becomes more prominent.


These second-tier cities see practically no foreign investment activity –  it will inevitably come over the next decade though. First movers gain the most.


Either way, Cambodia is one of the world’s most exciting and undiscovered countries for property investment.


Can Foreigners Buy Cambodia Real Estate?

Cambodia not only allows foreign investment but encourages it arguably more than anywhere else in Southeast Asia. Setting up almost any type of business with 100% foreign ownership is easy.


A one-year multiple entry visa takes $250 and a few days. Living in Cambodia with a long term visa is simple and cost-effective.


For real estate buyers, foreigners can own strata titles for condominium units in their own name. But strata titles are not available for either land or shophouse apartments. The general consensus is that new condominium buildings are overpriced.


You can often find the best deals in older shophouse apartments left over from colonial times. Plots of land with development potential are also promising for active investors.


However, things get more complicated for these two types of property because foreigners cannot directly own anything except a condominium unit.


You must either set up a nominee agreement, enforced with several different types of contracts, with a Cambodian citizen or form a Cambodia land holding company.


A land holding company is more legally secure, but requires annual licensing fees and monthly tax filing. The profits could still be worth the effort and cost if you’re buying Cambodia property on a larger scale.


Phnom Penh Jaguar

Large companies like LG, Unilever, General Motors and many more are setting up shop in Cambodia.


Hard Title vs. Soft Title

Besides strata titles, another quirk in the Cambodia property market is the distinction between “hard titles” and “soft titles”. Both give legal freehold status and must be owned by either a Cambodian person or Cambodian company.


Yet there are a few important differences between hard tiles and soft titles.


Hard titles are registered through the national government’s land registry and give property owners an indisputable right. Soft titles are instead registered through the local government. Soft titles are, at least in theory, not as ironclad as hard titles.


In reality, over 90% of properties in Cambodia are held on soft titles and they serve as government-recognized proof of ownership. Soft titles are solid enough that practically any local bank will accept one as collateral for a secured loan.


Most Cambodians even prefer soft title property because the transfer fees are a lot lower. Not only that, but the local government takes less time for processing compared to the national government.


Everything can be finished in a few days rather than months – something that especially makes a flipper’s life easier.


With that said, proper due diligence is a good idea. Real estate investors will often hire a lawyer to speak with the neighbors, look through the land registry, and confirm that the seller of a soft title property is indeed the true owner and has no encumbrances.


It’s noteworthy that the World Bank started an initiative called the Land Management and Administration Project (LMAP). The program finances a comprehensive, fully-digital land registry across the nation.


Slowly yet surely, all land in Cambodia is being converted from soft title to a nationally recognized hard title through this initiative. It’s only a matter of time before all soft titles will be converted free of cost and no longer exist.


You might read about “hard title vs. soft title” on other websites. But the notion of any major distinction between these two titles is mostly an invention of Cambodia’s expat community.


Some people falsely claim soft titles are “not secure”. They would quickly find out otherwise upon asking local experts and checking what banks accept as collateral.


How Much are Property Taxes in Cambodia?

Annual property taxes are 0.1% of the property’s market value in excess of 100,000,000 Khmer Riel (about $25,000). Needless to say, annual taxes are very low in Cambodia and often not even payable at all.


Rental income taxes are 14% for residents. For non-residents, rental income is taxed at a higher 20%. There are various deductions which, in most cases, bring these rates down significantly.


Unused land is taxed at a very high rate of 20% of its market value each year. Because of this, you can’t “landbank” in Cambodia without paying an unreasonable amount of taxes.


Any land purchases should be immediately developed or otherwise put to use as soon as possible.


However, if you speak to locals you’ll find that most are not even registered with the tax system. As such, there’s little to no enforcement of any of these taxes in Cambodia.


That’s by no means recommendation to not pay them – just a statement that you’re unlikely to get into big trouble if you don’t.


Is Buying Real Estate in Cambodia Safe?

In a word, yes. Foreigners enjoy freehold ownership and total control over their properties if things are done correctly.


But it’s important, especially for soft title properties, to speak with the neighbors and look through the land office’s public records to be certain there are no other claims over the property you’re buying.


Although rare, it’s not unheard of for people to sell properties which are either disputed or mortgaged. This can be easily avoided with proper due diligence.


It’s also important to remember that foreigners cannot legally own soft title or hard title properties in their own name – only strata titles.


If you don’t wish to incorporate and form a real estate holding company, your only option is to find a local nominee to hold the property on your behalf and bind him/her down with several contracts. That would require help from an attorney.


Best Places to Invest in Cambodia Property

Cambodia is a relatively small nation with a population of just over 15 million. With that said it has several cities which, each for their own reason, are great places to buy real estate.


Some cities like Phnom Penh, Cambodia’s capital and largest city, are popular for obvious reasons. Others like Sihanoukville and Siem Reap attract investors because of their their rapid growth in tourist arrivals.


There are also a few mid-tier cities like Poipet and Battambang where property prices are expected to rise due to Cambodia’s urbanization and population growth.


A lot less activity from foreign investors goes on in these cities, but they might have more to gain from an economic boom than anywhere else in the country.


Phnom Penh

With a population of over 2 million and rising fast, Phnom Penh is the nation’s bustling capital and the center of its growth. For the most part, anything of any business or political importance happens in Phnom Penh.


Longtime travelers and residents of Southeast Asia will often tell you that Phnom Penh is reminiscent of Bangkok about 30 years ago.


Nowadays, Bangkok is a modern metropolis of 16 million people, a regional business hub, and the most visited city by tourists in the whole world. Smart investors should take that as a cue.


While many people are off buying real estate in Singapore or Bangkok, perhaps investing in “the next Bangkok” or “the next Singapore” would generate better returns?


That aside, Phnom Penh has much to offer any visitor – from authentic French cuisine to its casinos and street markets. The city’s temples are some of the most ornate in the world, and are second in scale only to the size of its increasingly tall financial district.


Central Market Cambodia

Phnom Penh’s art-deco Central Market is the city’s most recognizable building.


Daun Penh

Daun Penh is the most central district of Phnom Penh. It’s home to the city’s central market and main commercial area, numerous government offices, the riverside area, and Wat Phnom.


This is the first of three districts in Cambodia’s capital which should grow most over the long term.


Phnom Penh’s riverside area boasts some of the highest property prices in not only Daun Penh, but the whole country. Of course, prices are still a fraction of similar riverside apartments in Bangkok or even Saigon.


Moving west, Phnom Penh’s tallest buildings are in the financial district with more under construction. Street 110, the CBD’s focal point, sometimes has apartments for sale. They have potential to be resold at a premium to large developers in the future.


This part of town won’t stay low-rise for long. It’s only a matter of time before office buildings and malls replace the colonial apartments which still remain.


Chamkar Mon

Located in the southern part of the city center, Chamkar Mon has some of Phnom Penh’s most upscale residential areas.


The areas referred to “BKK” (specifically BKK1, BKK2, and BKK3) are renowned for their impressive villas, wide choice of fancy restaurants, and top-quality international schools.


BKK is also where Aeon, the city’s largest upscale mall, is located. Chamkar Mon is quickly turning itself into central Phnom Penh’s nicest residential and commercial area.


Chamkar Mon also has Cambodia’s largest casino right down the street from it.  Even hotel brands like Shangri-La, scheduled to open in 2019, are moving into this part of town and benefiting from the tourist boom.


7 Makara

West of both Daun Penh and Chamkar Mon, further away from the riverside, 7 Makara is not as central (nor as pricey) as either. But some predict this part of town is where much of Phnom Penh’s future expansion will happen as urbanization continues.


Numerous cafes are already starting to pop up. International brands like Cold Stone Creamery, Burger King, and Krispy Kreme are opening their first stores in the country.


You could easily see why 7 Makara will probably get swallowed up by the city center over the next decade. This would make prices increase to city center levels.


Some properties even more west of 7 Makara have great potential too. Consider looking at Tuol Kouk and Por Senchey districts closer to Phnom Penh’s airport.


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Angkor Wat

Siem Reap serves as the gateway to the ancient ruins of Angkor Wat – the center of Cambodia’s tourism industry.


Siem Reap

Angkor Wat is the world’s largest religious structure. Today, it’s also one of Asia’s most visited attractions drawing in more than 2 million tourists each year. Siem Reap is on the edge of Angkor Wat and Cambodia’s second largest city.


Siem Reap will naturally benefit from Cambodia’s tourism boom. The city’s airport just finished a major renovation. It needed one because arrivals are increasing by about 10% each year.


There are many apartments in and around the city center. As such, your first idea might be to start a restaurant or hotel to make money off a tourism boom.


It’s very hard if you aren’t living in Cambodia and probably not the best way to invest in Siem Reap property either.


Instead, Siem Reap is an excellent place to cater to the middle-class local market. More Cambodians enter the tourism industry as it grows.


Most of these jobs are in Siem Reap and well-paying by local standards. They make it easier to rent to a rising local middle-class without being a slumlord.


The outer parts of the city are mostly land. They’re great investment choices for those who don’t mind a complex title structure and development work.


But Siem Reap’s city center is, for the most part, the only neighborhood with residential apartments that foreigners can own.



About a four–hour drive from Phnom Penh, Sihanoukville has some of Asia’s best beaches. They’re mostly unheard of and often aren’t crowded.


This will probably change very soon and is already happening. A surge in Chinese foreign investment helped Sihanoukville property double between 2016 and 2018.


Sihanoukville still has some of Asia’s cheapest beachfront and beach view property. Finding absolute beachfront land priced at under $30 per square meter (about $3 per square foot) is possible.


Once you’re outside the beautiful coastal areas and travel a bit eastward, the actual city of Sihanoukville isn’t that much to look at. But even here there’s potential for long term growth. All major Cambodia real estate markets Cambodia are growing fast.


It’s worth steering clear of the large, expensive villa projects marketed toward foreigners. They might be fine if you just want a lifestyle purchase. However, they’re too large and illiquid as an investment. Stick with something nice but not too luxurious.



A perfect example of a city growing fast, Battambang has a prime location in the center of Cambodia’s most important rice producing province. It’s been a commercial hub for centuries and still serves as a gateway between Phnom Penh and Thailand.


Cambodia’s population and influence are growing at a pace not seen in the western world. It’s a rather small nation of just over 15 million today. But total population should reach over 20 million by 2035 and continue to grow from there.


It’s often the smaller and mid-tier cities which benefit most from urbanization since they’re starting from a lower base. In less developed cities, you can “create something from nothing” in a way you couldn’t in the capital.


Battambang’s center is, for the most part, the city’s only place to easily buy property as a foreigner. The suburbs have a few attractive houses and the city’s outskirts have well-priced land plots.


Yet both of these options require forming a land-holding company. You would need to develop any unused land immediately to avoid paying 20% tax on its value each year.



Poipet is similar to Batttambang in that it’s close to the Thai border (even closer in fact). It’s a second-tier city and will benefit from continued regional trade and urbanization.


The difference is that gambling contributes to the Poipet economy far more than agriculture and markets.


Gambling is illegal just across the border in Thailand. Of course, many Thais would still like to gamble and Poipet is the closest city to Bangkok where it’s possible.


Hordes of Chinese tourists are increasingly choosing Cambodia over Macao for their gaming adventures as well – a major boon to Poipet’s economy.


Poipet has many apartments and houses in the suburbs north and northeast of the city center. Along with Cambodia’s other boomtowns,


The city’s borders are also constantly expanding in line with its population growth. Property investments on the edge of the Poipet’s central core should appreciate in value and perform well over the long term.


How to Perform Renovation Work in Cambodia

The best way to make money in Cambodia real estate is often buying an unrenovated shophouse apartment, spending money fixing it and bringing it up to modern standards.


But you’ll need a contractor if you’re undertaking a renovation job. Let’s face it: it’s sometimes hard to find an honest contractor in the developed world let alone in frontier markets.


Contractors may not always be up to international standards or could simply be trying to rip you off. This means it’s important to find a contractor based on local referrals and connections.


Honest, fair contractors exist in Cambodia. But you must know the right people.


Be aware that if you buy the top floor of a shophouse in Cambodia, you own the roof of that building and usually the right to build on top of it. You first need district approval though.


Cambodia Property

Locals often want to save themselves the 3% brokerage fee rather than use a real estate agent. Signs like this show a property is for sale.


Hiring Real Estate Agents in Cambodia

For newcomers to property in Cambodia, a proper real estate agent is a must. This is another one of those types of services that sometimes aren’t up to international standards in frontier markets.


Finding a quality agent outside of Phnom Penh, Siem Reap, or Sihanoukville is unlikely. That’s because locals don’t really use property agents in Cambodia. Khmers usually find properties for sale through local circles and word of mouth.


Most agents just simplify the process if you’re a foreign buyer. But for most people, using a Cambodian realtor is probably a great idea unless you speak Khmer and want to deal with local bureaucracy.


It’s also worth noting that some properties won’t be available if you use an agent. That’s because Khmers, whether doing so is practical or not, would much rather market the property themselves and save themselves 3% of the sale value.


Sellers typically pay the entire brokerage commission when you’re buying Cambodia property with a realtor.


Therefore, many “listed” apartments will simply have a sign outside in Khmer script that says the property is for sale along with a contact number.


Such opportunities require speaking or knowing someone who speaks Khmer. But some of the best deals are found riding around on a motorcycle and taking down notes of properties for sale.


With all that said, the best Cambodia real estate agents provide a valuable service – especially for the new and uninitiated.


Other Things to Know About Cambodia Property

The rules in Cambodia’s lawbook aren’t necessarily how things work in practice. Some of the things mentioned in this guide either do not apply across the board or are more nuanced than they might seem at first.


For example, soft titles transfer at the district level instead of the national level. Processes and timeframes vary based on where you buy property because of this.


Some “neighborhood chiefs” are infamous in their bureaucracy, asking for bribes unless you wait two months for the title transfer.


As of December 2017, some neighborhoods in Phnom Penh will let foreigners own soft title properties under their own name without finding a nominee or forming a company.


That’s despite a recent mandate from the central government. Sometimes you may run into a small problem, yet typically someone will offer to “fix” any small problems.


Something else notable is that the US Dollar is currency of choice for anything above a very small purchase. That’s obvious to someone familiar with Cambodia’s market but new information to someone who isn’t.


Buying local real estate denominated in the US Dollar a positive and unique aspect of investing in Cambodia property.


Regardless of your view on the dollar’s future, denominating your assets in the greenback is far better than many other Asian currencies. Some like the Vietnamese Dong and Indonesian Rupiah have performed badly for many years due to inflation.


Is Buying Cambodia Property a Good Investment?

It’s not the usual investment recommendation. But that’s precisely the reason why Cambodia property has so much potential. You can make money by investing in frontier markets that aren’t yet overrun by foreign capital.


Major outlets like Bloomberg or CNBC don’t talk about Cambodia very much. That’s a good thing. While everyone else hasn’t discovered Cambodia, GDP continues growing by over 7% annually.


Infrastructure, ports, and new roads are under construction across the country. The process of economic diversification continues on. Large multinational firms, lured by low taxes and business-friendliness, are setting up shop and bringing expats with them.


More importantly, a nation once scarred by the atrocities of the Khmer Rogue not only moves, but leaps forward. Cambodia’s best days are certainly ahead of it.


Skip the Next Western Recession

Learn the best places to invest – and where to avoid – by downloading our free Investment Cheat Sheet.

About Reid Kirchenbauer

Reid Kirchenbauer is the Founder of InvestAsian. He's an accomplished stock trader and property investor in Thailand, Cambodia, and many other places. He's been featured in publications such as Forbes, Nomad Capitalist, Property Report, and Seeking Alpha. Download his free investment guide by clicking here.

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