Cambodia’s Real Estate Market Meets Oversupply, Regulatory Shifts

The American Chamber of Commerce in Cambodia (AmCham) hosted a real estate market update on September 17, 2025, at the Courtyard by Marriott Phnom Penh, gathering developers, bankers, legal experts, and investors to discuss the challenges and opportunities shaping Cambodia’s property sector.

Opening the session, AmCham President, Casey Barnett, highlighted the sector’s central role in Cambodia’s economy. 

“Over the last 20 years, property prices have grown, creating personal wealth that has allowed many Cambodians to embark on other ventures,” he said, adding that affordable land continues to attract manufacturers seeking lower costs compared with regional competitors.

Cambodia Real Estate Faces Oversupply Pressures

According to CBRE Cambodia’s Managing Director, Kinkesa Kim, the market remains under pressure from excess supply, particularly in Phnom Penh’s condominium and landed property markets. While both affordable and luxury segments are proving resilient, she noted that competition among developers has intensified.

“Too many projects remain similar in design, price, and location,” said Kim. “Innovation in layouts and positioning will be critical going forward.”

At the same time, Cambodia retains an edge in industrial land pricing. 

“For new businesses setting up operations, industrial land in Special Economic Zones is priced between USD 50 and USD 100 per square metre,” she explained. “In Vietnam, demand has driven prices up to USD 180–200 per square metre over the past five to six years.”

Regulatory Shifts

Davy Kong and Vajiravann Chamnan, Partners at DFDL Cambodia, outlined regulatory developments aimed at streamlining property and land management. These include simplified registration of units in older co-owned buildings, updated permit rules for small-scale projects, and increased use of digital land services.

A capital gains tax on property transactions is due to take effect on January 1, 2026, while incentives are being introduced for unused land and certain transactions. Trust structures, first introduced in 2019, are also becoming more widely used as a legal vehicle for foreign investors restricted from direct land ownership.

Banking Caution; Developers Adapt

From the financial sector, Pakaravee Anantathananid, Executive Vice President of Canadia Bank, said banks remain liquid but have tightened their approach. 

“Banks are now much more selective; the focus has shifted from collateral-based lending to cash flow analysis,” she noted. 

Conservative valuations and longer approval timelines are now standard, though financing remains accessible for reputable developers with strong track records.

In a panel discussion moderated by Tom O’Sullivan, CEO of Realestate.com.kh, Dr. Kim Heang of Borey Vimean Samnang, stressed the need for unique, high-quality projects tailored to buyer motivations. 

The panel also flagged digitalisation, tokenisation of real estate assets, and earthquake-resistant construction standards as emerging trends in the sector.

The Road Ahead

Speakers agreed that Cambodia’s property market is entering a period of adjustment. Oversupply, regulatory reforms, and tighter lending standards are reshaping the landscape. Yet competitive industrial land pricing, combined with the country’s gradual tourism recovery and cost advantages, continue to position Cambodia as an attractive market for investors.

“Cambodia is still competitive regionally,” said Kim. “We had some headwinds earlier in the year around tariffs, but things have stabilised. In general, Cambodia remains attractive in terms of land prices and the cost of setting up a business.”