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

Phnom Penh’s serviced apartment market is showing robust growth, with consistent supply additions and increasing rental rates as of H1 2025. Grade A serviced apartments are proving resilient against competition from condominiums, largely due to their unique offerings and amenities. The market is also adapting to evolving tenant preferences, with a noticeable trend towards smaller unit sizes compared to pre-COVID levels.

Key districts like Daun Penh, Chamkarmon, and Boeung Keng Kang (BKK) continue to dominate, holding the largest share of serviced apartment units. Overall supply is projected to grow steadily through H1 2027, indicating sustained developer confidence and a dynamic environment for landlords and operators.

TL;DR: Phnom Penh’s serviced apartment market is growing, with Grade A units outperforming condominiums. Rental rates increased in H1 2025, with Grade A averaging $20-$21/sqm and Grade B at $14-$15/sqm. Daun Penh, Chamkarmon, and BKK are the top districts for serviced apartments¹⁸².

Market Snapshot

The serviced apartment sector in Phnom Penh is experiencing a healthy expansion. New supply continues to enter the market, and rental rates are on an upward trajectory as of H1 2025. This growth is underpinned by a strong demand, particularly for higher-quality accommodations.

Grade A serviced apartments are demonstrating a notable resilience, effectively competing with the condominium sector. This is attributed to their distinct advantages, such as comprehensive amenities and integrated services, which continue to attract a discerning tenant base.

Who Rents This Property Type Here?

The primary demographic for serviced apartments in Phnom Penh remains expatriates and foreign professionals. These renters often seek the convenience and comprehensive services that serviced apartments offer, such as housekeeping, concierge services, and fully furnished units, making their transition to a new city smoother.

However, there’s a growing local demand as well. Cambodian professionals and families are increasingly opting for serviced apartments, especially those located in convenient, central areas, for their ease of living and access to amenities. This dual demand profile presents a stable occupancy outlook.

Pricing and Demand

In H1 2025, average quoting rental prices for Grade A serviced apartments stood at approximately $20-$21 per square meter, while Grade B units were priced around $14-$15 per square meter. Both segments have seen significant rental rate growth, with Grade A increasing by 12.6% and Grade B by 7.2% half-on-half in H1 2025⁸.

Year-on-year figures for H1 2025 show Grade A rentals rising by 6.7% and Grade B by 5.7%⁸. This upward trend in pricing is supported by increasing demand, fueled by the return of expatriates and foreign business professionals to the city.

Best Neighborhoods

Daun Penh, Chamkarmon, and Boeung Keng Kang (BKK) are the leading districts, housing the largest concentration of serviced apartments. Daun Penh, a key commercial hub, leads with 2,054 units. Chamkarmon and BKK are close behind, each with 2,001 units, and are popular due to their central locations and amenities¹.

Other areas like Toul Kork and Sen Sok are emerging as significant locations. Toul Kork offers a more residential feel, appealing to families, while Sen Sok is a developing district with substantial current and future supply¹.

Listing Strategy

To maximize returns, focus on marketing Grade A serviced apartments. These units, with their superior amenities and services, are proving more resilient and command higher rents. Highlight features that appeal to expatriates, such as reliable Wi-Fi, housekeeping, and concierge services.

Emphasize the prime locations within sought-after districts like Daun Penh, Chamkarmon, and BKK. These areas offer convenience and are well-regarded by the target demographic. Consider offering flexible lease terms, catering to both short-term visitors and long-term residents.

Operations and Screening

Property management quality is paramount. Ensure high standards of maintenance and service delivery, as lapses can deter multinational corporations seeking compliant accommodations. Be aware that the market is trending towards smaller unit sizes, so adapt your offerings accordingly.

What matters in practice: Landlords must be vigilant about potential oversupply, particularly in the mid to high-end segments, as new projects come online. Maintaining competitive pricing and exceptional service is key to retaining tenants and attracting new ones in this evolving market⁵.

Screening tenants thoroughly is crucial. While demand is strong, ensuring reliable renters who can meet lease obligations and respect property rules will lead to smoother operations. Look for tenants with stable employment and a history of responsible tenancy.

Local Pitfalls

One significant consideration is the increasing competition from condominiums, which can put pressure on rental rates. While Grade A serviced apartments are holding their own, operators need to continuously differentiate their offerings. New supply entering the market also requires careful monitoring to avoid oversupply in specific segments.

Furthermore, landlords must be attuned to evolving tenant preferences. The shift towards smaller, more efficient living spaces means older, larger units might require renovation or repositioning to remain competitive. ESG (Environmental, Social, and Governance) compliance is also becoming a factor, especially for corporate leases.

Frequently Asked Questions

What are the average rental prices for serviced apartments in Phnom Penh? In H1 2025, Grade A serviced apartments averaged $20-$21 per square meter, while Grade B units were priced between $14-$15 per square meter. Rental rates have shown consistent upward trends in both segments⁸.

Which neighborhoods are most popular for serviced apartments in Phnom Penh? Daun Penh, Chamkarmon, and Boeung Keng Kang (BKK) are the most popular districts, boasting the highest concentration of serviced apartments. These areas are favored for their central locations, amenities, and accessibility¹.

What is the typical occupancy rate for serviced apartments in Phnom Penh? Occupancy rates for serviced apartments in the city center generally remain strong, typically ranging between 70% and 85%. This indicates a healthy demand for well-managed properties in prime locations¹.

Why Hausive Fits This Workflow

If you are managing serviced 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.