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

Phnom Penh’s rental market for three-bedroom apartments is showing resilience, particularly in prime locations. While the broader condo market has seen a cooling from its peak growth, demand for larger, quality units remains robust, driven by a significant expatriate tenant base. Understanding the nuances of this market is key for landlords aiming for consistent occupancy and favorable returns.

The city’s total condo supply is substantial, nearing 60,000 units by the end of 2024, with vacancy rates gradually declining. This absorption indicates a maturing market where well-managed, desirable properties can still command strong rental income. For operators, focusing on the specific needs and preferences of the expat demographic is paramount to success.¹

TL;DR: Rental yields for three-bedroom apartments in Phnom Penh can range from 1.5% to 2% net, with some sources suggesting higher figures of 4.5-7% for affordable housing and 4.5-6% for premium projects after deductions. BKK1, Tonle Bassac, Chamkarmon, and Toul Tom Poung (Russian Market) are top expat rental choices. Rents for 3-bedroom apartments can range from approximately $1,500 to $5,000 per month in prime areas like BKK1 and Tonle Bassac, and from $1,300 to $4,000 in emerging hubs like Chamkarmon and Daun Penh. Foreign landlords face a 14% tax on gross rental income, though enforcement may vary. The condo market has cooled from its peak (2016-2021) but remains attractive for rental yields averaging 6.5%-8% annually. Total condo supply reached approximately 60,000 units by end-2024, with vacancy rates around 15% by 2025. Entry-level condos are priced between $1,500 and $2,200 per square meter. The rental market is international, with most renters in nicer condos being foreigners.¹³⁴⁶⁷⁸

Market Snapshot

The Phnom Penh condominium market has transitioned from a period of rapid growth to a more stable phase. While the frenetic expansion seen between 2016 and 2021 has subsided, the market continues to offer attractive rental yields, often cited between 6.5% and 8% annually.³ This stability is underpinned by a growing supply, which reached around 60,000 units by the close of 2024, and a gradual absorption of available stock, with vacancy rates projected to settle around 15% per project on average by 2025.¹

Despite a softening in sales prices, which have seen a decrease of 15-20% from their peak, the entry-level segment now presents a more accessible price point, ranging from $1,500 to $2,200 per square meter.¹ This shift, coupled with a predominantly international rental base, suggests that well-positioned and well-managed properties can still achieve strong performance.²

Who Rents This Property Type Here?

Three-bedroom apartments in Phnom Penh are primarily sought after by expatriates. This demographic includes professionals working for embassies, NGOs, and multinational corporations, who often require more space for families or home offices. They are the driving force behind demand in the higher-end rental market, valuing convenience, quality amenities, and proximity to international schools and business hubs.⁷

Young professionals and expatriates relocating for job opportunities or business ventures also represent a significant tenant segment. They are typically looking for move-in-ready units that offer modern comforts and a lifestyle aligned with their international expectations. Families, in particular, are increasingly seeking larger accommodations, making three-bedroom units a prime target.⁶

Pricing and Demand

Demand for larger condominium units, specifically two- to four-bedroom apartments, remains consistently high. This is especially true for properties located in central areas that offer quality construction and desirable amenities. The rental market is international, with a substantial portion of renters in higher-end condos being foreigners, who often prioritize fully furnished units.⁷

Rental yields for high-end condominiums can be particularly attractive, typically ranging from 6% to 9% annually, with some prime properties potentially yielding 8.5% and above.³ Mid-range options generally fall between 5% to 7.5% annually, while lower-range units, catering to the growing local middle class, might offer returns of 4% to 7% per annum. Furnished apartments consistently rent faster, often 15% to 25% quicker than unfurnished ones, as expatriates almost exclusively seek ready-to-occupy accommodations.⁵

Best Neighborhoods

For landlords targeting the three-bedroom apartment market, focusing on expat-friendly neighborhoods is crucial. BKK1 is consistently cited as the most popular expat area, known for its high-end apartments, international dining, and cafes, commanding premium rental prices.⁶ Tonle Bassac is another prime location, offering premium condominiums with river views and convenient access to embassies, schools, and shopping centers, appealing to both expats and affluent locals.⁶

Chamkarmon presents a lively environment with a mix of modern condos and more affordable apartments, attracting expats who appreciate a local vibe and are drawn to the area’s rapid development.⁶ Toul Tom Poung, also known as the Russian Market, offers a vibrant district that blends tradition with modernity, attracting expats with its local atmosphere, cafes, and boutiques.⁶ Daun Penh, the central business district, is home to major companies and cultural attractions, appealing to those who want to be in the heart of the city, though it may require a more competitive pricing strategy.⁶

Listing Strategy

To maximize occupancy and rental income for three-bedroom apartments, a strategic listing approach is essential. Properties that are fully furnished and come with professional management services tend to achieve above-average occupancy rates and more stable cash flow.⁵ High-quality offerings in central, desirable locations are in high demand from both rental tenants and potential resale buyers.²

Marketing materials should emphasize walkability, proximity to business districts, and access to lifestyle amenities such as restaurants, cafes, and shopping. Properties featuring modern amenities, robust security, and services like swimming pools and gyms are particularly attractive to expatriate renters. It’s also worth noting that high-end condo units appear more resilient to demand fluctuations compared to mid and low-range segments.⁵

Operations and Screening

Effective property management is critical for success in Phnom Penh’s rental market. Landlords offering fully furnished units with comprehensive management services often see higher occupancy and more predictable cash flow.⁵ The choice of condo building and developer can significantly impact occupancy rates, so due diligence is advised.²

When screening tenants, particularly for longer leases, it’s prudent to verify employment and references. While the market is international, understanding the tenant’s profile and ability to meet rental obligations is key. For foreign landlords, being aware of the 14% tax on gross rental income is important, though enforcement can vary.³

Local Pitfalls

Navigating the Phnom Penh rental market requires awareness of potential challenges. While rental yields can be attractive, net figures typically range from 1.5% to 2%, with some sources suggesting higher figures for specific segments.³ The significant supply growth means that property quality and management can create substantial occupancy variances between buildings.¹

What matters in practice: Choosing the right condo building and developer is crucial due to significant occupancy variance between buildings. Fully furnished units with management services achieve above-average occupancy and stable cash flow.⁵ High-quality offerings in central locations are in high demand for both rental tenants and resales.² Properties with modern amenities, security, and services like swimming pools and gyms are preferred by expatriates.⁵ High-end condo units appear more resilient to falling demand than mid and low-range segments. Emphasize walkability, proximity to business districts, and lifestyle amenities in marketing materials.⁵

Frequently Asked Questions

What are the typical rental yields for condominiums in Phnom Penh? Net rental yields in Phnom Penh typically range between 1.5% and 2%.³ However, some sources indicate higher figures, suggesting potential yields of 4.5-7% for affordable housing and 4.5-6% for premium projects after accounting for deductions and expenses.³

Which neighborhoods are most popular with expatriates for rentals? BKK1, Tonle Bassac, Chamkarmon, and Toul Tom Poung (Russian Market) are consistently cited as top choices for expatriates.⁶ These areas are favored for their amenities, convenience, and international atmosphere, making them prime locations for rental properties.⁶

What is the average rent for a 3-bedroom apartment in Phnom Penh? Rental prices for 3-bedroom apartments can vary significantly. In prime areas like BKK1 and Tonle Bassac, expect prices to range from approximately $1,500 to $5,000 per month.⁴ In emerging hubs such as Chamkarmon and Daun Penh, prices typically fall between $1,300 and $4,000 per month.⁴

Why Hausive Fits This Workflow

If you are managing three-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.