Phnom Penh's
Real Estate Market Report Q2 2025
Q2 2025 shows stable land prices, selective new residential launches, and growth driven by major infrastructure projects, with the industrial sector and F&B-led retail remaining key economic drivers.
Economic Overview
GDP growth forecast for 2025 is 5.2%, with signs of stabilization in Phnom Penh’s residential price index. FDI approvals (Jan–May 2025) totaled $4.2B, driven mainly by manufacturing (85.7%). Tourism recovery continues, though border tensions with Thailand may impact arrivals.
Industrial Sector
Industry remains Cambodia’s main GDP driver, with 7.8% growth expected in 2025. Exports reached $12B (+17% YoY), led by garments, footwear, and manufactured goods. Over 2,400 active factories, 32 SEZs, and 20+ industrial parks operating nationwide.
Land Market
South Phnom Penh sees slight price increases, boosted by infrastructure and the upcoming Morodok Techo International Airport.
North & West remain stable due to limited vacant land.
East expected to grow after the Korea-Cambodia Friendship Bridge completion.
Residential Property
3 new condo projects launched in southern Phnom Penh, adding ~480 units.
2 new landed housing projects launched, totaling ~560 units.
No new serviced apartment supply due to construction delays.
Commercial Property
Hospitality: 50 new luxury hotel keys added in Q2.
Office: 31,400 sqm of new Grade B office space launched, but demand remains higher for affordable Grade B & C.
Retail: F&B and daily essentials continue to drive activity; innovative concepts like Pinnacle Gourmet Garden expected to boost footfall.
Outlook
Market sentiment remains cautious but stable, with growth prospects tied to infrastructure projects, industrial expansion, and targeted residential development in emerging areas.
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