How to Rent Out an Apartment in Phnom Penh, Cambodia: Pricing, Demand, and Tenant Strategy

Phnom Penh’s apartment rental market is showing signs of stabilization after a period of rapid expansion. While supply increased significantly between 2016 and 2021, rental vacancies are now gradually declining, settling around 15% per project on average by 2025 (ips-cambodia.com, cambodiaproperty.asia). This indicates a healthy absorption rate, driven by a growing economy projected to expand by 5.5% in 2024 and 5.8% in 2025 (peterchy.com).¹²

The market is shifting towards more pragmatic development, focusing on affordability and resilience. This means opportunities exist for landlords who understand the current demand drivers and can position their properties effectively. The focus is less on massive projects and more on well-located, quality offerings that meet the needs of a discerning renter base.

TL;DR: Phnom Penh’s apartment market is stabilizing with declining vacancies around 15% by 2025 after a supply boom (ips-cambodia.com, cambodiaproperty.asia). Cambodia’s economy is set for steady growth (5.5% GDP in 2024, 5.8% in 2025) (peterchy.com). Entry-level condos range from $1,500-$2,200/sqm, with one-bedroom rents from $550-$1,550/month (ips-cambodia.com, thewanderinginvestor.com). BKK1, Tonle Bassac, Daun Penh, Toul Kork, and Russian Market are prime rental areas (ips-cambodia.com).¹²

Market Snapshot

The condominium market in Phnom Penh has cooled considerably since its peak expansion phase between 2016 and 2021 (globalpropertyguide.com). This period saw a substantial increase in supply across the city. However, the market is now demonstrating resilience, with rental vacancies gradually decreasing. By 2025, these vacancies are expected to stabilize around 15% per project on average, signaling that the market is absorbing the available inventory (ips-cambodia.com, cambodiaproperty.asia).¹²

Cambodia’s economic outlook remains positive, with GDP growth projected to continue steadily. This stable economic environment provides a solid foundation for the real estate sector. The development trend is also shifting, with a greater emphasis on localized, pragmatic projects that prioritize affordability and resilience over the mega-developments seen in previous years (goodvalueproperty.com). This suggests a more sustainable market trajectory moving forward.

Who Rents This Property Type Here?

Expatriates and business professionals form the core of the rental demand in Phnom Penh’s apartment market, particularly for one-bedroom units. A significant majority of expatriates, over 65%, choose serviced apartments or condominiums, valuing the convenience of amenities such as 24-hour security, swimming pools, and fitness centers (kiripost.com). This demographic seeks properties that offer comfort, security, and a hassle-free living experience.¹²

Young professionals and expatriates, many relocating from other provinces for job opportunities or educational pursuits, are also key renters. They are often looking for modern living spaces that provide access to essential services and convenient locations. While expatriates often target prime areas, there’s a growing local demand, especially from millennials and Gen Z, who are increasingly open to condominium living and new lifestyle concepts (ips-cambodia.com).

Pricing and Demand

As of 2025, entry-level condos in Phnom Penh are priced attractively, typically ranging from $1,500 to $2,200 per square meter. For renters, one-bedroom apartments can be found for $550 to $1,550 per month, with prices varying based on location and specific property type (ips-cambodia.com, thewanderinginvestor.com).

Condo rental yields in Phnom Penh remain a strong point, consistently averaging net returns of 6.5% to 8% annually, with some prime properties achieving even higher yields (goodvalueproperty.com). This makes the market particularly appealing for investors. Demand is particularly robust for larger units (2-to-4-bedrooms), both for rental and resale, especially when they are of good quality and situated in central locations. While high-end prices have seen a correction, the mid-range and affordable segments are experiencing strong uptake from the local population due to ongoing urbanization (globalpropertyguide.com).¹²

Best Neighborhoods

BKK1 is a highly sought-after area, especially by expatriates, due to its concentration of restaurants, bars, and nightlife. It’s considered a prime location with consistent rental demand and good liquidity (ips-cambodia.com, cambodiaproperty.asia). Adjacent to BKK1, Tonle Bassac offers a slightly quieter, leafy riverside environment with a mix of modern high-rises and renovated French colonial apartments.

Daun Penh, the historical heart of the city, is a bustling hub with many shophouse-style apartments and is known for its riverside promenade. Toul Kork, a rapidly developing western suburb, features numerous modern high-rise condo buildings and amenities, attracting families. The Russian Market (Toul Tom Poung) in the south is popular with expats seeking a more local vibe, known for its market and diverse shops (ips-cambodia.com).

Listing Strategy

To attract today’s renters, your listings must emphasize modern amenities, efficient layouts, and comprehensive facilities. Highlight features like security, convenience, and access to recreational activities, as these are critical decision factors for tenants. High-quality photos and accurate, detailed descriptions are non-negotiable; ensure you clearly state the property size, rent price, and any included utilities or services.

Consider tailoring your approach to specific renter profiles. If targeting expatriates, showcase features that align with their lifestyle needs, such as proximity to international schools, business districts, and expatriate-friendly services. For young professionals, emphasize convenience, connectivity, and modern comforts. Offering flexible lease terms and competitive pricing, especially in well-located projects with proven demand, can also give you an edge.

Operations and Screening

Professional property management can be invaluable, offering expertise in pricing, tenant acquisition, and navigating local regulations. When screening tenants, always request necessary documents like passports, work permits, or employment contracts to verify their status and reliability.

A clear, comprehensive lease agreement is crucial; it should detail rent, duration, renewal terms, payment methods, and house rules.

Maintaining your property well and responding promptly to tenant inquiries and maintenance requests are key to fostering positive relationships and encouraging lease renewals. Staying informed about local laws and regulations pertaining to rental properties in Cambodia is essential for compliance and mitigating potential legal risks (thewanderinginvestor.com). This proactive approach ensures smoother operations and tenant satisfaction.

What matters in practice: Tenant screening is your first line of defense against late payments and property damage. Don’t skip it. A clear lease agreement prevents misunderstandings. Prompt maintenance shows you value your tenants and their comfort, which translates to longer tenancies and fewer vacancies.

Local Pitfalls

Navigating the local regulatory environment can present challenges. Ensure you are fully compliant with all Cambodian laws regarding property rentals, including any licensing or registration requirements. Understanding tenant rights and landlord obligations is crucial to avoid disputes.

Building strong relationships with reliable local partners, such as legal advisors or property managers, can help mitigate these risks.

Be aware of potential issues related to utility services. While many modern developments have reliable infrastructure, older buildings or certain areas might experience intermittent issues with water or electricity. Clearly communicating the availability and reliability of these services in your listing and lease agreement is important. Managing tenant expectations upfront can prevent future dissatisfaction.

Frequently Asked Questions

What is the average price range for apartments in Phnom Penh? Entry-level condos typically range from $1,500 to $2,200 per square meter. For renters, one-bedroom apartments can cost between $550 and $1,550 per month, depending heavily on the specific location, size, and amenities offered (ips-cambodia.com, thewanderinginvestor.com).

Which neighborhoods are most popular for renting apartments in Phnom Penh? The most sought-after areas, particularly by expatriates, include BKK1, Tonle Bassac, Daun Penh, Toul Kork, and the Russian Market (Toul Tom Poung). These districts offer a combination of amenities, convenience, and desirable living environments (ips-cambodia.com).

What are the typical rental yields for apartments in Phnom Penh? Condo rental yields in Phnom Penh are attractive, generally averaging net returns of 6.5% to 8% annually. Some prime properties in high-demand locations can yield even higher returns, making it a competitive market for investors (goodvalueproperty.com).¹²

Why Hausive Fits This Workflow

If you are managing apartment units in Phnom Penh, Cambodia, Hausive is the property management software that keeps leasing, rent collection, maintenance, and owner reporting in one place. It is a better fit when you want faster follow-up, cleaner records, and less day-to-day thrash as listings, tenants, and owners all need answers at once.