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

Phnom Penh’s rental market for two-bedroom apartments presents a compelling opportunity, driven by a growing expatriate and professional population. While the market has seen a recalibration in recent years, demand remains robust, particularly for well-located and modern units. Understanding the nuances of pricing, tenant profiles, and operational considerations is crucial for maximizing returns.

The city’s rapid development and increasing attractiveness as a regional hub contribute to sustained interest in its property sector. For landlords and operators, a strategic approach to marketing, pricing, and property management can unlock significant potential in this dynamic Southeast Asian capital.

TL;DR: Two-bedroom apartments in Phnom Penh can fetch rents between $900 and $2,800 monthly, with average purchase prices around $180,000. Gross rental yields average 6.96%, though net yields are closer to 1.5-2%. The primary renters are expatriates and business professionals, with popular neighborhoods including BKK1, Tonle Bassac, and Toul Tom Poung. The market has seen a cooling from its 2016-2021 boom but experienced an 8% vacancy rate in 2024¹.

Market Snapshot

The Phnom Penh condominium market has experienced substantial growth, with a significant increase in supply over the last decade. However, the period between 2016 and 2021, characterized by a boom, has given way to a more recalibrated market where developers are adjusting their strategies. Despite a slowdown in new project launches, residential vacancy rates have shown a positive trend, dropping to 8% in 2024¹, signaling a healthy underlying demand.

Foreign investment, notably from China, has been a key driver, with foreigners owning a majority of luxury condos². Ongoing infrastructure development across the city is also reshaping neighborhood dynamics and influencing property values, creating a constantly evolving investment landscape³.

Who Rents This Property Type Here?

Expatriates and business professionals form the core demographic for two-bedroom apartment rentals in Phnom Penh. These renters often seek high-quality, modern accommodations with amenities such as 24-hour security, swimming pools, and gyms, with over 65% of expatriates choosing serviced apartments or condominiums¹. Young professionals are also a significant segment, attracted by job opportunities and educational pursuits.

Increasingly, families are also entering the rental market, particularly those looking for more spacious living arrangements and proximity to international schools⁸. While expatriates dominate demand in prime areas, local Cambodian professionals are also contributing to rental market growth, valuing the convenience and commute ease offered by condo living².

Pricing and Demand

The average price for a two-bedroom apartment in Phnom Penh hovers around $180,000³, though this can fluctuate based on specific location and the quality of amenities offered. Rental yields for apartments generally range from 5.01% to 8.5%, with a city average of 6.96% recorded in Q1 2025¹. However, net rental yields are typically more modest, falling between 1.5% and 2%¹.

Demand remains strong for larger units, including two- to four-bedroom apartments, especially when they are situated in central locations and boast high-quality finishes. The rental market’s dynamics are heavily influenced by expatriate demand, with foreign residents constituting a substantial portion of renters².

Best Neighborhoods

For two-bedroom apartments, several neighborhoods stand out for their appeal to target renters. BKK1 (Boeung Keng Kang 1) remains a top choice, known for its central location, convenience, and abundance of serviced apartments, international restaurants, and amenities, making it a quintessential expat hub⁸.

Tonle Bassac offers luxurious condominiums with potential river views and proximity to the business district and AEON Mall, appealing to those seeking upscale living. Toul Tom Poung (Russian Market) provides a more vibrant and slightly more affordable alternative to BKK1, with a lively atmosphere and a strong community feel. Daun Penh, the city center, is ideal for those wanting to be close to major businesses, embassies, and cultural sites, while Toul Kork is a prestigious residential area favored by families for its space and proximity to international schools⁸.

Listing Strategy

To attract and secure desirable tenants for your two-bedroom apartment, focus on highlighting modern amenities, quality finishes, and convenient access to essential services and transportation. Emphasize the property’s proximity to key business districts, international schools, and popular expat enclaves, as these are significant draws for your target demographic².

Consider offering competitive rental pricing that aligns with current market conditions and the supply of new units. High-quality photography and virtual tours are essential for showcasing the property’s appeal, especially to international renters. Exploring flexible lease terms can also accommodate the needs of expatriates and those seeking medium-term stays⁴.

Operations and Screening

Engaging a reputable property management company is highly recommended to handle the day-to-day operations, including tenant screening and maintenance. It’s crucial to ensure full compliance with Cambodian property laws and regulations, which can be intricate, particularly for foreign investors⁵.

Budget for annual property maintenance costs, typically estimated between 1% and 2% of the property’s value³. Understanding the tax implications for rental income is also vital, as non-residents may be subject to a 14% tax on gross rental income⁵. Factor in potential costs associated with tenant acquisition, such as agent fees or advertising expenses².

What matters in practice: A proactive approach to maintenance and tenant relations can significantly reduce turnover and ensure consistent rental income. Thorough tenant screening, while respecting local privacy norms, is key to mitigating risks associated with late payments or property damage.

Local Pitfalls

Navigating the Phnom Penh rental market requires awareness of potential challenges. Property laws can be complex, and ensuring all contracts and dealings are compliant is paramount to avoid future disputes. For foreign investors, understanding the nuances of property ownership and rental regulations is essential⁵.

Maintenance costs can sometimes exceed initial estimates, especially in older buildings or with unexpected repairs. Additionally, the tax implications for rental income, particularly for non-residents, need careful consideration and professional advice to ensure accurate reporting and avoid penalties⁵.

Frequently Asked Questions

What is the average rent for a two-bedroom apartment in Phnom Penh? The average rent for a two-bedroom apartment can range from $900 to $2,800 per month. This variation is largely dependent on the apartment’s location within the city, the specific amenities it offers, and the overall quality and modernity of the building¹.

Who are the primary renters in Phnom Penh? The primary renters are expatriates, business professionals, and young professionals who are drawn to Phnom Penh for work or study. Increasingly, families are also seeking out rental properties, particularly in areas that offer good access to international schools and a more suburban feel⁸.

What are the typical rental yields for apartments in Phnom Penh? Gross rental yields for apartments in Phnom Penh average around 6.96%¹. However, net rental yields, after accounting for expenses like maintenance, taxes, and management fees, typically fall between 1.5% and 2%¹.

Why Hausive Fits This Workflow

If you are managing two-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.