7 Recommended Areas for Cambodian Real Estate Investment – Plus Tips to Avoid Costly Mistakes

2025.12.24

Author: Anna Araki / Anna Advisors Inc.

In recent years, Cambodia has achieved remarkable economic growth and has become a highly watched market in the global real estate investment scene.
At the same time, while you may be interested in overseas real estate, some people feel unfamiliar with Cambodia and lack a sense of the local geography.

In this article, we carefully select and introduce recommended areas for investing in Cambodia.
We’ll also explain key tips to avoid failure in overseas real estate investment, so please stay with us to the end.

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Five Reasons We Recommend Investing in Cambodian Real Estate

Here are five major reasons why we recommend real estate investment in Cambodia.

① You can hold assets in US dollars

In many Southeast Asian countries, real estate transactions can only be conducted in the local currency. Cambodia, however, is unique in that transactions can be conducted in US dollars.

The majority of currency in circulation within Cambodia is USD, and you can use US dollars directly when investing in real estate.

Being able to hold assets in US dollars makes it easier to mitigate exchange-rate risk, creating a highly favorable environment for long-term asset building.

② You can operate assets at high yields

A major advantage of Cambodian real estate investment is the ability to achieve high yields, especially for properties in the capital, Phnom Penh.

Phnom Penh has seen:

Growth in the number of foreign residents and tourists,
Development of large shopping malls and hotels,

and continues to evolve as an attractive urban center.

As the city develops, demand for high-end condominiums and commercial properties has steadily increased.

With expanded urban functions and the rise of the middle class, the rental yield for properties in and around Phnom Penh generally ranges from 5–12%.

③ Long-term economic growth is expected

In addition to tourism, Cambodia is also one of the world’s leading garment-producing nations, and it has achieved rapid economic growth over roughly the past decade.

Recent Cambodian average GDP growth rates are as follows:

2012: 7.31%
2013: 7.36%
2014: 7.14%
2015: 6.97%
2016: 6.93%
2017: 7.00%
2018: 7.47%
2019: 7.05%
2020: -3.10% (negative growth due to COVID-19)
2021: 3.03%
2022: 5.10%

Source: CEIC

With the exception of the COVID-19 period, the country has maintained steady upward growth, which has contributed positively to real estate values.

GDP growth for 2024 is projected at 6.1%, indicating a solid V-shaped recovery after the pandemic.

In sharp contrast to Japan, where the population is rapidly aging, Cambodia has a large proportion of people under 30, suggesting a stable future labor force and continued economic growth potential.

④ Non-residents can open bank accounts

When investing in real estate, numerous transactions arise, including:

Receiving rental income, and
Making payments for management fees and other expenses.

In overseas real estate investment, managing these cash flows is much smoother if you have a local bank account.

In many countries, opening a local bank account is restricted to residents only.
In Cambodia, however, non-residents can also open bank accounts.

This means you can reside in Japan while holding an account with a Cambodian bank, making for smoother and more flexible asset management—an extremely attractive point.

That said, opening an account in Cambodia requires documentation and specific procedures, so we recommend consulting with banks or professional service providers in advance.

⑤ High interest rates on deposits at Cambodian banks

In Cambodia, not only can you hold assets in US dollars, but fixed deposit interest rates are also extremely high, often 5.0% or more, and depending on the bank and term, can even reach around 7%.

By depositing income earned from real estate into a Cambodian bank, you may potentially grow your assets further.

If you place funds in Cambodian banks and use them for real estate investment, you can generally expect higher returnsthan keeping assets solely in Japanese financial institutions.

Our company also offers support for opening Cambodian bank accounts, so please feel free to contact us.
▷ Cambodian Bank Account Opening Support

For overseas remittances from Japan, we work with PRESTIA SMBC Trust Bank as our partner institution.

If You’re Starting Cambodian Real Estate Investment, Begin with the Capital Phnom Penh

As mentioned above, Cambodia is seeing robust urban expansion, especially in its capital, Phnom Penh.

With the city’s growth:

The number of foreign residents has increased, and
Demand has risen for high-end condominiums.

Thanks to this development, commercial districts and business areas where many companies cluster have also gained attention, offering high potential yields—a key attraction.

The suburbs of Phnom Penh, where many high-yield and relatively new properties are concentrated, are one of the best locations for overseas real estate investment.

In contrast, in many rural areas, the confusion left by past civil conflict has resulted in cases where property ownership is unclear. Even if you manage to acquire such properties, unexpected defects or legal issues may arise, so in general, we recommend avoiding rural properties.

At our firm, we carefully select and broker only high-quality properties in and around Phnom Penh.

7 Recommended Areas for Cambodian Real Estate Investment

We have already mentioned that the greater Phnom Penh area is particularly attractive for Cambodian real estate investment.
Let’s now take a closer look at some specific recommended areas.

Some of these are areas where our firm holds exclusive rights to market certain properties, so please take a look.

① Boeung Keng Kang (BKK) | Home to many wealthy residents

This area, often referred to simply as “BKK”, is one of the most actively developed real estate zones in Phnom Penh.

In particular, the sector known as Boeung Keng Kang 1 (BKK1) is considered the core of Phnom Penh.

The area features:

Luxury hotels for tourists,
Stylish cafés and bars, and
Numerous high-end apartments and condominiums targeting foreigners.

BKK also has a cultural side, with landmarks such as:

The Silver Pagoda, which houses many national treasures, and
The Tuol Sleng Genocide Museum, which preserves the memory of the Pol Pot era.

As a vibrant area that functions both as a tourist destination and a commercial district, and with many embassieslocated in the vicinity, BKK boasts a relatively safe environment—making it highly suitable for real estate investment.

② Toul Kork | A key transit area linking Phnom Penh International Airport and the city center

Toul Kork serves as a transportation hub that connects Phnom Penh International Airport with the city center.

With the ongoing development of Phnom Penh, the importance of Toul Kork has increased, and the area has seen a rise in high-end condominium developments.

Another notable feature is TK Avenue, one of the country’s largest shopping malls, which houses many stylish restaurants and cafés.

③ Meanchey | A “hidden gem” where a new airport is being built

Located in the southern part of Phnom Penh, Meanchey is sometimes described as Cambodia’s third city.

Compared with the city center, the area may appear smaller in scale, but the construction of a new international airport(scheduled to open in 2025) is underway, and future development prospects are a major draw.

Phnom Penh’s current international airport has a runway that cannot accommodate jumbo jets, which is one of the factors driving the decision to build a new airport.

With development expected to radiate outward from this new air hub—and with projects such as AEON Mall already open—the area is steadily expanding and evolving.

④ Diamond Island | Prime land near the Royal Palace

Diamond Island is a newly developed area located south of the Royal Palace, on the eastern side of the city.

The area is home to:

Wedding halls,
Hotels, and
A large amusement park currently under development.

As part of Phnom Penh’s increasingly active riverside area, Diamond Island has attracted significant domestic and international capital.

Construction is underway for luxury condominiums and commercial facilities, and Diamond Island is considered one of the prime locations in rapidly developing Phnom Penh.

⑤ Tonle Basac | A quiet, upscale residential area lined with embassies

Located in the southeastern part of Phnom Penh, Tonle Basac is home to a quiet, upscale residential district lined with embassies.

The area enjoys strong popularity among wealthy foreign residents and also hosts the first AEON Mall in Cambodia.

In addition, many Japanese brands—such as Watami, Daiso, and Yoshinoya—have opened outlets in the area.

The market around AEON Mall is especially popular among young people, giving Tonle Basac both the characteristics of a luxury residential district and a newly emerging commercial area.

⑥ Chbar Ampov | The second city following Phnom Penh

Chbar Ampov is a city located in the outskirts of Phnom Penh, about 20 minutes by car from the city center—an accessibility that contributes to its growing popularity.

The area offers sweeping views of both the Mekong River and Bassac River, an exceptional riverside location.

This is also where one of the country’s premier hotel-style condominium projects, “View Aston” (scheduled for completion in 2024), is being developed.

The hotel floors of “View Aston” are being sold exclusively through Anna Advisors, with an exceptional offer of an average yield of 8.5% over 10 years.

⑦ Kampong Cham Province | A major project area within a special economic zone

Located to the north of Phnom Penh, Kampong Cham Province is the site of a major development known as the Jian Su Special Economic Zone.

With excellent access from Phnom Penh, plans call for the construction of a logistics center that incorporates:

Detailed strategic planning, and
Cutting-edge industrial technologies.

Within the broad project area of approximately 680,000 square meters, the surrounding region has a total population of around 900,000 people, promising abundant labor resources.
As such, the area is expected to become a new industrial hub for Cambodia.

Our firm also hosts seminars related to this center, so please consider attending.

Five Tips to Avoid Failure in Cambodian Real Estate Investment

When investing in real estate in Cambodia, understanding a few key points can significantly increase your chances of success.

Here are five tips to help you avoid common pitfalls in Cambodian real estate investment.

① Choose a reliable agency

Above all, when starting out in Cambodian real estate investment, it is critical to choose a trustworthy agency as your partner.

The Cambodian real estate industry is in a growth phase: demand is rising, but compared with Japan, the sector still has elements of immaturity.

You may encounter differences in culture and customs that are difficult to navigate, and there is a real possibility of running into unscrupulous operators.

By carefully selecting a reliable agency, you can achieve secure and transparent transactions.

Key points to check include:

Whether the agency has a proven track record of brokering projects with major developers and managing rental properties
Whether there are staff members who can respond in Japanese

We recommend giving special attention to these points when choosing an agency.

② Focus mainly on condominiums

In Cambodia, non-residents are basically not allowed to own land itself or detached houses (villas), so this requires special attention.

Broadly speaking, non-residents can purchase the following types of properties:

Apartments and condominiums
These are the most frequently traded property types in Cambodian real estate.
While there are conditions—such as being located on the second floor or above and total foreign ownership not exceeding 70% of floor area—non-residents can still purchase these units.
Condominiums, in particular, enjoy strong demand from wealthy locals and foreigners, making them suitable for beginner investors.
Hotels and Offices
Even non-residents may purchase commercial properties such as hotels and office buildings for investment purposes.
In and around Phnom Penh, development of hotels and office districts is progressing rapidly, creating a favorable environment for growth and making these properties increasingly popular.

③ Understand the pre-build scheme

One characteristic of the Cambodian real estate market is the widespread use of pre-build schemes for transactions.

Under a pre-build arrangement:

You pay a down payment before completion, and
Pay the remaining balance in line with construction progress.

If construction is halted, however, there is a risk that you may lose your down payment without ever receiving the property.

For example, if a developer goes bankrupt, construction may be suspended.

To mitigate such risks, it is essential to work with a brokerage firm that partners with financially sound, large-scale developers.

④ Maintain an environment where you can grasp local conditions

As with properties in Japan, being able to see properties firsthand is critical in overseas real estate investment as well.

In Cambodia, property values can fluctuate depending heavily on the surrounding environment, so it is important to inspect properties with a broad, contextual perspective.

Ideally, you would join a local tour and confirm the area with your own eyes.
However, not everyone can easily travel to Cambodia due to scheduling and other constraints.

If your intermediary is based locally, they can provide real-time updates on the current situation.

Furthermore, if the staff can speak Japanese, it becomes easier to convey nuanced requests and conduct detailed, accurate communication.

⑤ Gather information in advance through seminars and similar channels

In overseas real estate investment, many conditions and circumstances differ greatly from those in Japan. That’s why it is important to gather information in advance.

By inputting the necessary knowledge ahead of time, you can make more appropriate investment decisions.

In addition to using the internet to research investment destinations, we recommend attending seminars.

At seminars, you can:

Hear directly from experts, and
Gain accurate, up-to-date knowledge,

which in turn can significantly increase your chances of success in real estate investment.

Our company also holds regular seminars, so we invite you to join us.

Conclusion

In this article, we have explained in detail:

Recommended areas for Cambodian real estate investment, and
Practical tips to avoid failure.

In and around Phnom Penh, many properties offer high yields, and the conditions are well-suited even for non-resident investors.

By mastering the key points outlined above, why not take on the challenge of Cambodian real estate investment?