How to Rent Out a One-Bedroom Apartment in Phnom Penh, Cambodia: Pricing, Demand, and Tenant Strategy

Phnom Penh’s rental market for one-bedroom apartments is showing resilience, with vacancy rates dropping and a steady influx of expatriates and local professionals seeking quality housing. Understanding the nuances of pricing, tenant profiles, and operational best practices is key for landlords aiming for consistent returns in this Southeast Asian capital.

The city’s economic growth underpins a real estate sector that, while competitive, offers clear opportunities for well-informed investors. Navigating this market requires a grounded approach, focusing on specific neighborhoods, renter needs, and efficient management.

TL;DR: The average rent for a one-bedroom apartment in central Phnom Penh hovers around $600, with prices ranging from $300 to $1,000+ in prime expat areas. Popular expat hubs include BKK1 and Tonle Bassac, commanding rents from $700 to $1,800 monthly. Phnom Penh ranks as the seventh most expensive city in Asia for one-bedroom rentals, averaging $550 per month. Furnished units rent 15-25% faster than unfurnished ones, and gross rental yields typically fall between 6.60% and 7.06%⁴⁶⁵.

Market Snapshot

Phnom Penh’s residential property market is experiencing a tightening supply, with vacancy rates for apartments falling to 8% in 2024. This indicates a growing demand that is beginning to outpace new construction in certain segments. The condominium market, in particular, has seen substantial development, projected to reach over 60,000 units by 2025, with an additional 20,000 anticipated by 2026².

Despite this significant supply growth, demand has not been uniform across all market tiers. Concerns about oversupply persist in the high-end segment, while the mid-range and affordable sectors are seeing increased attention. Cambodia’s economy is expected to maintain steady growth, with GDP forecasts around 5.5% to 6.1% for 2025, providing a stable backdrop for real estate investment³.

Who Rents This Property Type Here?

One-bedroom apartments in Phnom Penh are primarily sought after by expatriates and local professionals. Over 65% of expatriates opt for serviced apartments or condos, valuing amenities such as 24-hour security, swimming pools, and gyms⁷. These renters are often business professionals or foreign employees who prioritize convenience and a move-in-ready living situation.

While expatriates form a significant tenant base, demand from Cambodian professionals is also on the rise. These renters are often looking for convenient locations close to business districts and workplaces. There’s also a growing demand for more affordable units from students and individuals relocating to the city for work, particularly in areas outside the prime expat hubs².

Pricing and Demand

The average monthly rent for a one-bedroom apartment in central Phnom Penh is approximately $600. However, this figure can fluctuate significantly, with prices in popular expat areas like BKK1 and Tonle Bassac ranging from $700 to $1,800 per month. In developing districts such as Chamkarmon and Daun Penh, one-bedroom units typically rent between $450 and $1,500 monthly⁴.

Phnom Penh has been identified as the seventh most expensive city in Asia for one-bedroom rentals, with an average monthly cost of $550⁶⁵. Demand is particularly strong for furnished apartments, which tend to rent 15% to 25% faster than unfurnished ones, as expatriates overwhelmingly prefer units that are ready for immediate occupancy⁴.

Best Neighborhoods

What matters in practice: In Phnom Penh, Cambodia, Tonle Bassac and Chamkarmon do not attract the same renter. The listings that get viewings fastest make that fit obvious from the first photos and the opening lines.

For landlords targeting expatriate renters, certain neighborhoods stand out. BKK1 (Boeung Keng Kang 1) remains a top choice due to its central location, abundance of international amenities, and proximity to embassies and NGOs. Tonle Bassac is another prime area, offering modern high-rises with river views and close access to the central business district and major shopping centers like AEON Mall.

Chamkarmon is an emerging district that provides a good balance of modern facilities and slightly more accessible pricing compared to the most central areas. Daun Penh, the city’s de facto central business district, attracts renters who can afford its premium pricing, offering proximity to business hubs and cultural sites. Toul Tom Poung (Russian Market) appeals to expats seeking a more local atmosphere with vibrant street life and markets⁴.

Listing Strategy

To attract and retain tenants, especially expatriates, focus on presenting your one-bedroom apartment as a move-in-ready solution. Furnished units consistently rent faster, often by 15% to 25%, as they eliminate the hassle for incoming renters⁴. High-quality finishes, reliable appliances, and tasteful decor are crucial differentiators.

Your pricing strategy must align with the specific neighborhood and the amenities offered. Researching rent bands in areas like BKK1 versus Chamkarmon is essential. Marketing efforts should highlight key features such as security, available amenities (pool, gym), and the convenience of the location. Consider offering flexible lease terms, as many expatriates prefer shorter commitments initially².

Operations and Screening

Effective property management is vital for maximizing returns and minimizing vacancies. Property maintenance costs are typically estimated at 1% to 2% of the property’s value annually. Engaging a professional property management company can streamline operations, handle tenant sourcing, rent collection, and maintenance, while also navigating local regulations⁴.

Tenant screening should be thorough, focusing on reliability and ability to pay rent consistently. For expatriate renters, verifying employment and references is standard practice. For local tenants, understanding their employment stability and rental history is important. Building positive landlord-tenant relationships can lead to higher tenant retention, reducing turnover costs and ensuring a steady income stream².

Local Pitfalls

Landlords must be aware of potential tax obligations. Rental income is subject to a 10% tax on gross rental income for residents and 14% for non-residents, although enforcement for individual landlords can be inconsistent⁴. Additionally, an annual Property Tax (TOIP) is required. Understanding and complying with Cambodian property laws and regulations is crucial, especially for foreign investors.

Another consideration is the potential for oversupply in certain segments, particularly high-end developments, which can lead to longer vacancy periods if not managed strategically. The market is increasingly shifting towards affordability and end-user demand, so understanding these trends is key to successful leasing³.

Frequently Asked Questions

What is the average rent for a one-bedroom apartment in Phnom Penh? The average rent for a one-bedroom apartment in central Phnom Penh is around $600. However, prices vary significantly by neighborhood, ranging from $300 to over $1,000 in prime expat areas⁴.

Which neighborhoods are most popular with expatriates in Phnom Penh? Expatriates often favor neighborhoods like BKK1, Tonle Bassac, Chamkarmon, Daun Penh, and Toul Tom Poung (Russian Market). These areas offer convenience, amenities, and established expat communities⁴.

What are the typical rental yields for one-bedroom apartments in Phnom Penh? Gross rental yields for one-bedroom apartments in Phnom Penh generally range from 6.60% to 7.06%. Net yields are typically 1.5% to 2% lower after accounting for expenses⁴.

Why Hausive Fits This Workflow

If you are managing one-bedroom 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.