Peanech The Phnom Penh property market has demonstrated remarkable resilience and growth in Q4 2025, with residential property prices showing a significant 12% year-over-year increase. This sustained growth reflects the city's expanding economy, improved infrastructure, and increasing foreign investment.
Key drivers of this growth include the completion of several major infrastructure projects, including the new ring road system and expansion of public transportation networks. These developments have opened up previously inaccessible areas for residential development.
The condominium market has been particularly robust, with pre-sale transactions in premium locations exceeding expectations by 25%. BKK1, Daun Penh, and Chamkarmon districts continue to lead in both transaction volume and price appreciation.
Foreign investment has played a crucial role, particularly from Chinese, Korean, and Japanese investors who view Phnom Penh as an emerging market with significant growth potential. The streamlined foreign ownership regulations for condominiums have further accelerated this trend.
Looking ahead to 2026, analysts predict continued growth albeit at a more moderate pace of 8-10% as the market matures. The focus is expected to shift toward mid-range developments catering to the growing middle class.
Key Takeaways
- 12% year-over-year price increase in residential properties
- 25% increase in premium condominium pre-sales
- Major infrastructure projects driving accessibility
- Strong foreign investment from Asian markets
- Expected 8-10% growth forecast for 2026